What It Takes To Make A Living From YouTube’s Partner Earnings

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What It Takes To Make A Living From YouTubes Partner Earnings

There’s an extraordinary amount of hype around the topic of making money from YouTube. And, by making money, we mean  enough to earn a living wage so that you can realize your dreams of working in  video production full time. Of course, there are thousands of YouTubers that are making enough to focus on their career full time, but the  overwhelming majority of YouTuber users will see very little revenue return. It  takes hundreds of thousands of views to see any kind of worthwhile weekly ad  revenue income and millions of views to make becoming a full time partner  sustainable.

YouTube is expected to attract $5 Billion in advertising revenue this year  so how do creators get a piece of the pie? After all, it’s their content that’s  bringing the advertisers to the site in the first place. We take a look at some  of the ways you can make money on YouTube how the site is facing a backlash from  those who think the business model is broken.

Let’s start at the beginning with what it takes to become a partner so you  can actually monetize your video content.

What Exactly is a YouTube Partner These Days Anyway?

Nowadays, anyone with access to the internet can upload a video to YouTube.   However, if you want to make money off that content, you’ll need to become  a YouTube Partner.  So, how do you become a revenue generating YouTube  partner? Well, it’s pretty easy these days actually.

Once upon a time you could only become a YouTube partner if you applied  directly and were approved, or if you received a personal invite from Google.   Today however, anyone whose account  is in good standing can become a YouTube partner through  expressly allowing YouTube to place advertising in, on, and around your video  content. Google makes money from the views of these ads and partners can then  earn a percentage via a Google Adsense account. Exactly how much money a  partner can make varies enormously and depends on a range of different factors.

YouTube states that there are more than a million channels in the  Partner Program (up from 30,000 in 2011), with YouTube  estimated to take a 45/55 share of the ad revenue. Official  figures aren’t available but partners only really make a fraction of a cent per  view.

To start the process of becoming a partner, go to your ‘Account  Monetization‘ page in ‘Channel settings’  click on the “Enable My  Account” button. Once you’ve been accepted, (which is a really quick process)  you’re on your way to monetizing your videos.

What It Takes To Make A Living From YouTubes Partner Earnings

Be prepared for issues with approval if you are seen to be in violation of  any copyright agreements or are publishing  material that’s deemed abusive, racist or sexually explicit. Google will  take down this type of content and your account’s good standing may be affected  if you continually break the rules.

What Do YouTube Partners Earn From Advertising  Revenues?

YouTube takes around a 45% slice of advertising revenue, although the CPM  (cost per thousand) that advertisers are charged varies. Most partners  earn anywhere between $0.30 to $2.50 CPM, but there are many exceptions  to the rule, with some of the bigger YouTube players earning closer to a $10 CPM. Be aware that your location and the  type of content that you publish will have a bearing on how much you can  potentially earn.

There’s a handy little calculator  tool that lets you estimate YouTube Partner ad earnings based off of a  set number of video views, using the average CPM range mentioned above  ($0.30-$2.50CPM). Socialblade is  also good if you want to poke around in other’s channel statistics and take a  look at their very estimated earnings. A recent Reddit thread attracted contributions from  all over the world with tales of CPM margins ranging from $0.10 to $6.

Before you get too excited though, remember that creators only get paid if  their views are monetized. Many mobile views, those blocked by Adsense, and  those where advertising has been switched off for some reason, do not count.  50,000 views doesn’t mean that 50,000 of those views were monetized.

The top 1000 channels bring in around $23,000 per month from advertising – but then  again, they also average around 900,000 monthly video views, and because they’re  popular channels, they are likely commanding more generous CPM rates.

What It Takes To Make A Living From YouTubes Partner EarningsExample of Potential Earnings (@1M views per  month):$2,500/mo = $2.50 CPM x (1 Million  views/1000)

Partner Earnings From Sponsorship/Merchandise Deals

There are a number of popular YouTube creators who have secured lucrative  sponsorship deals with brands because these YouTubers have large, relevant, and  engaged audiences. And, sometimes, they are just in the right place at the right  time, I’m looking at you Grumpy Cat.

What It Takes To Make A Living From YouTubes Partner Earnings

Sponsorship agreements are settled outside of YouTube and can take on many  forms depending on the deal agreed.

Beyond sponsorships, some YouTubers are so popular that they’re able to sell  their own merchandise to their viewers. YouTuber Michelle  Phan not only signed a high profile deal with cosmetics giant Lancome but  also launched her own line of make up products which more than supplement any  income she gets from YouTube.  Creators, such as Phil  deFranco, run their own line of merchandise products and many YouTubers are  finding opportunities outside of the site in TV and movie appearances.

What It Takes To Make A Living From YouTubes Partner EarningsPotential Earnings:$100 to $1,000,000+

Partner Earnings From Paid Channel Subscriptions

In May 2013, after months of speculation, YouTube finally announced a paid  channel subscription service which allowed creators and publishers to charge  for their video content. 53 channels were launched with monthly fees ranging  from $0.99 to $6.99. The new feature, with a 55/45 split in revenue in  favor of YouTube was widely regarded as a toe in the water to see whether  consumers would be willing to pay for content in the same way they paid for VOD  services like Netflix. The new pay per view content model, comes with a 14 day  trail and discounts on yearly rates.

Just  earlier today – YouTube announced that they are now allowing any monetized  partner, with more than 10,000 subscribers, to enable paid subscriptions on  their channel.

What It Takes To Make A Living From YouTubes Partner EarningsExample of Potential Earnings (@10K Subs paying  $1.99):$1.99 (45% split = $0.90) x 10,000 subscribers = $108,000/year

Increased Earnings with MCNs (Multi-Channel Networks)?

Over the past two years, we’ve witnessed the rapid rise of YouTube MCN (Multi-Channel  Networks) formed in various ways to help support creators and to create  more attractive packaged offerings for monetization. MCN’s  are independent companies (not endorsed by YouTube/Google) who aggregate multiple YouTube  channels, and offer assistance to creators in various forms that can include  among other things, programming, collaboration, promotion, copyright management,  and increased earnings.  MCNs are able to offer increased earnings due to  the fact that they are often able to command higher advertising rates through  direct ad sales, sponsorships, and packaging.

For the average doing-this-outside-the-day-job partner, your earnings from  joining an MCN are not going to rock your world. BUT, for a percentage of your  ad earnings, MCNs can offer the kind of invaluable support that can help you  build up your channel, your subscribers and ultimately, your earnings.

Every Multi-Channel Network have their own rates including fixed CPMs where  they pay you a flat rate per 1000 monetized views, or via a contract which gives  you a percentage of whatever your channel generates (this can be anywhere  upwards of 60%). Machinima  offer their content partners a $2 CPM  rate which might seem thin, but then they do offer support and legal  advice when it comes to copyright issues, a bit problem with gaming videos.

If you’re interested in learning more, read our post on the pros and cons of joining  a YouTube MCN.

Monetization Issues: Is The YouTube Business Model  Broken?

There have been grumblings from some YouTube creators that the revenue model  is unfair. Technological challenges had proved an issue for the new pay per view channels and some MCNs are  complaining that the rate of return from ad revenue is unsustainable.

Jason Calacanis stirred up quite the heated debate earlier this year with his  post titled, “I ain’t gonna work on YouTube’s farm  no more.”  In it, Jason rants against YouTube’s model and calls  the 45% share a “YouTube Tax.”.

“In a way, YouTube is the Sebastian Shaw of the ecosystem, absorbing all your  power and talent and using it for their prime directive: maintain the 45% tax  through control of talent, advertisers and user behavior. “

He even created a YouTube ‘Bill of Rights‘ that aims to try and repair  the “damage” he sees between YouTube, MCNs, and other content partners.

For smaller scale creators, leaving YouTube is, at the moment, an unthinkable  concept. It is, after all, where the audience is. And speaking of audience, 41% of it now comes via mobile, so there are still some huge  advertising headaches to sort out where that is concerned.

At our Video Marketing  Summit, Jim  Louderback led a lively discussion with Greg Jarboe and Paul Colligan, on  the current state of YouTube.

Conclusion

It is possible to make a living from YouTube, but as with any creative  endeavor, the harder you work, the more optimized your videos are, the  greater you are at marketing and collaboration (and the hundreds of other little  skills and synchronicities that go into make a project work for you), the  more likely you’ll be able to generate an income.  Creating regular,  consistent content (weekly, or even better, daily), sharing it out via others  sites and social networks, encouraging engagement, being active on the site,  caring what you do is  what it’s going to take to make you successful.

So, is it worth monetizing your content if you know that you will struggle to  reach the views needed, or you find the MCN experience is not for you? Absolutely.

When you become a YouTube Partner through monetization, you’re then eligible  to use some great YouTube features that are unavailable to non-monetized users, like custom thumbnails, associated website  annotations, in-video  programming, live streaming, and more. Additionally, if you strike  lucky and upload a video that gets a lot of attention there’s no way to claw  back those potential earnings. Becoming a partner ensures that future views are  accounted for, and even if they bring in only a few dollars a year, that’s still  money that you have earned.

Source:  What It Takes To Make A Living From YouTube’s Partner Earnings http://www.reelseo.com/youtube-partner-earnings/#ixzz2jNQlBHQM ©ReelSEO.com, All Rights Reserved Follow us: @ReelSEO on Twitter | ReelSEO on Facebook

 

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