The question I get asked most often is how we actually make money on YouTube, its often very difficult for people to wrap their minds around how YouTube creators actually make a profit! Here are a few ways that allow you to profit from the YouTube platform
1. As a YouTube Partner with Ad Revenue
The structure Of Youtube is actually very similar to traditional cable where advertisers place their ads alongside a program they feel fits their demographic.
If you're familiar with watching YouTube videos, you know that often there is an advertisement that plays immediately before a video is played. There are also at times advertisements during the video, either commercial style ads or pop up links, and sometimes there are even ads at the end of a video. As these advertisements are watched the channel then makes a profit. Usually the profit per view is very low, we're talking pennies! This is why a high volume of views is crucial to making a profit on YouTube.
Also, similarly to traditional cable, YouTube familiarizes itself with the demographic of the people watching a specific channel and chooses ads geared towards that demographic. And YouTube tracks each viewers profile and demographic, as well as behaviour on YouTube (and internet over all as YouTube is owned by Google) and chooses to show not only ads but videos that YouTube feels will most likely be enjoyed by that particular profile.
The rates you are paid for the advertisements that run on your channel are also determined by demographic, as some locations and demographics are found to be more valuable than others. For example, ad rates would be higher for a female aged 30-40 in the United States than let's say a 70-80 year old in Nigeria. This is due to the purchasing power of the demographic, and how likely they are to purchase the items they view in the advertisement.
Ad a YouTube partner you do have to abide by the YouTube Community guidelines, if YouTube deems your content not suitable for advertisers there is little you can do to change that. So abiding by the platform guidelines will allow you to stay in good standing.
2. Work with Brands as an Influencer or Affiliate
YouTube can be a great avenue for Influencers or Affiliates, which is basically partnering with brands to promote their content. This has so many different variations, from getting paid per promotion to getting commissions for sales. This is also a great option for those who already have a following on other social media platforms.
Influencer marketing is on the rise, and considering most people are moving away from watching traditional cable it is a fantastic opportunity! You do have to stay away from turning your channel into shopping network as that will deter viewers. But becoming a trusted person in a specific niche, or providing value to your viewers will help drive your credibility.
3. Use YouTube to Sell Products or Merchandise
You can use YouTube to sell products or merchandise! If you already have a business YouTube can be the next avenue to interact with your audience. For example you can create videos of behind the scenes at your business, or create videos on how to use your products in a tutorial type fashion. The possibilities are endless, but remember, don't sell but instead focus on providing value and building relationships with potential customers.
When using this option, but may be best not to have these videos monetized as you wouldn't want to have a competitors or similar product to be features on the advertisement, especially since YouTube algorithms will place similar ads with what your demographic is currently interested in.
4. Crowdfund Your Next Endeavour
YouTube can be a great way to give your fans a sneak peek or trailer into an upcoming project as you are Crowdfunding. Sometimes Crowdfunding is used to save up for equipment or to cover production or actor costs. YouTube can help you reach a broader audience as you try and generate excitement for your upcoming endeavour.
5. Fan Funding Support Through Your Audience
Similar to Crowdfunding, Fan Funding is another option that can help make a profit. Depending on the value you give your viewers, many may want to pitch in to receive more information or to be apart of your intimate community. YouTube is actually rolling out more features to make Fan Funding more available to channels on YouTube.
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