How Youtubers Make Money From their Videos

How Youtubers Make Money From their Videos

So you have been surfing the Internet for the last couple of hours, just watching random videos and you have watched your favorite Youtube star, who is the same age as you, enjoying her vacation in the Bahamas, while you are at home watching her videos. How you ever asked yourself how come these Youtube celebrities can enjoy such extravagance? Making money on Youtube cannot only be a matter of luck, but it takes work- hard work to be more specific.

Like Hollywood celebrities, Youtube stars may seem like they are having the time of their lives in their videos. It’s all smiles and beautiful sunshine for them. But did you know that they too have to put in the effort to work hard to make videos interesting for their subscribers? Yes, they do. These stars spend hours and hours on thinking about what their next video will be.

There are so many people on Youtube that are living testimonies that hard work pays. Additionally, hard work should be accompanied with patience, consistency and the right marketing strategy. Take, for example, the Youtube channel, MKBHD (Marques Brownlee). As to date, he has about 4 million subscribers on his channel.

Brownlee does product reviews for different gadgets and devices which includes smart phones, tablets, VR consoles, smart watched, audio and video recording devices and so much more. It is estimated that if a Youtube channel has about a million subscriber, the owner of that channel is estimated to make $20,000-$50,000 per month just by posting 1-2 videos per week.

How do YouTubers make money?

Through Ads.

When ads are placed at the beginning of your video, a Youtuber can make money. The more people watch their videos, the more money they make through the ads. That’s why Youtubers try to create interesting or viral content, because the more people watch their videos, the more profitable their videos become.

Have your videos sponsored.

If a company want you to do a video about their products, the Youtuber can get paid as a sponsor. This is a very popular advertising method at the moment.

Becoming an Amazon Associate.

Like Marques Brownlee who produces product reviews for different gadgets and devices that are readily available on Amazon, a small portion of the earnings are given to Brownlee.

Think of it like a commission. Let us say, Brownlee does a review on the newest iPhone model. If he reaches 2 million views with affiliate links to all the versions of iPhone, he can make up to $2,000 from Ads alone. Then, let us try to assume that about 0.1% of the 2 million viewers bought the iPhone which costs $700-800 on the website.

Let us try to do the math: 2,000 customers x $800 = $1,600,000 in revenue for Amazon. The product reviewer receives 8% commission which is about $128,000. That is how much money Brownlee can make in reviewing a product.

Popular Youtube celebrities did not become money-making machine overnight. Brownlee was making videos for 2 years without being paid a cent. People like Michelle Phan, PewDewPie, Ryan Higa, Zoella and Jena Marbles just to name a few. Most of these people took years and tears to get them to where they are. Hard work indeed pays off.