Earning money from YouTube is a goal many people aspire to, but being a successful YouTuber requires work and a lot of time.
The amount of earnings a YouTuber makes per month depends on several factors, including how often they post videos, what kind of videos they’re posting, how many subscribers they have, and of course, how much advertisers will pay for the niche you are in.
If you’re thinking about starting your own YouTube channel, know that it can take time, patience, and a lot of hard work to start seeing financial rewards.
YouTube is one of the best places to make a living online. YouTube’s ad revenue system isn’t as clear-cut and “cut and dry” as many other online money-making opportunities (like click-to-click, where advertisers pay a website owner per click on an ad).
Still, it’s simpler and easier than it is for other websites.
There are many ways to become a YouTube influencer, but the key part is establishing consistency. You must keep your social media channels up to date, have videos with high quality and relevancy, and keep doing what you do well.
If you reach 500k subscribers, you can make around $1500 – $2500 per month on AdSense alone.
You can earn additional income through Affiliate Marketing, Sponsorship, and Selling Merchandise online.
What Does Having 500,000 Subscribers Mean
YouTubers earn a percentage of ad revenue generated by their subscribers. The more times a video is watched, the more ad revenue is generated, which YouTube uses to pay its creators.
Some YouTubers can earn thousands of dollars a day. However, the average YouTuber earns less than $500 a month in ad revenue.
According to multiple statistical sources, YouTubers make an average of $3 to $5 for every 1000 views.
CPM Decides Your Compensation Rate
As a YouTuber, it’s important to understand how CPM (Cost Per Mile) on YouTube works in order to get the most out of your monetization efforts. In short, CPM is the amount of money that an advertiser pays for 1,000 views of their ad.
The compensation rate is determined by a number of factors, including the topic of your video, the length of the ad, and the geographical location of the viewer.
In general, advertisers are willing to pay more for ads that are seen by viewers in developed countries, and they are also willing to pay more for longer ads.
However, the most important factor in determining your CPM is the topic of your video. Advertisers are generally willing to pay more for ads that are relevant to their product or service, so it’s important to choose a topic or niche that is likely to pay higher rates.
By understanding how CPM works, you can maximize your earnings potential on YouTube.
The Highest CPM Niches Include
There are a variety of factors that go into determining the highest CPM niches on YouTube. One of the most important is the target audience.
For example, advertisers are willing to pay more to reach viewers in high-income brackets or with disposable income.
As a result, channels aimed at luxury audiences or with large followings tend to command higher prices. Another important factor is engagement.
Advertisers are also willing to pay more for channels with high levels of engagement, as this indicates that viewers are more likely to watch and remember their ads.
Finally, niche channels with passionate and engaged audiences can also command premium prices. Consequently, when it comes to the highest CPM niches on YouTube, it’s all about finding the right mix of audience, engagement, and niche.
Here are Some of the Highest CPM Niches on YouTube:
1. Fashion and Beauty: Videos in this niche tend to get a lot of views, as people are always looking for new style inspiration and product reviews. In addition, many fashion and beauty brands are willing to pay top dollar to have their products featured in videos.
2. Gaming: Gaming videos are extremely popular, especially among younger viewers. Gameplay footage and walkthroughs can be very engaging, and many gaming companies are willing to pay handsomely for exposure on YouTube.
3. Technology: Tech-savvy viewers often turn to YouTube for product reviews and unboxing videos. If you can keep up with the latest gadgets and offer helpful insights, you can stand out in this competitive niche.
4. Food: People love watching food videos, whether they’re looking for new recipes or wanting to see creative culinary creations. If you have a knack for food photography and videography, this could be a very lucrative niche for you.
5. Pets: Pet videos are always popular on YouTube, as people love watching cute animals. If you have a pet that you can film, there’s a good chance that your videos will find an audience. And don’t forget about pet product reviews – many pet owners are willing to pay for honest and unbiased opinions about the latest products on the market.
6. Money, Finance or Investing: If you’re looking to make money on YouTube, you’ll need to target high CPM niches. Niches like money, finance, and investing typically have higher CPMs than other categories, so you can earn more money per view. Of course, you’ll need to create quality content that appeals to your audience. But if you can do that, you can stand to make a lot of money in these high CPM niches.
Show Calculations on How You Make Money Based On CPM
To calculate your earnings based on CPM, you first need to know your cost per thousand impressions (CPM). This is the amount you’re paid for every thousand ad impressions on your website.
To calculate your CPM, simply divide your total earnings by the number of impressions you received. For example, if you earned $100 from 4,000 impressions, your CPM would be $25.
Now that you know your CPM, you can calculate how much money you make for each page view. To do this, simply multiply your CPM by the number of page views you receive. So, if you have a CPM of $25 and receive 1,000 page views, you will earn $250.
It’s important to remember that earnings vary greatly based on traffic levels and the type of ad revenue model you’re using.
For example, if you’re using a CPC (cost per click) model, you’ll only earn money when someone actually clicks on an ad. In contrast, if you’re using a CPM model, you’ll earn money for every impression, whether someone clicks on the ad or not.
As such, it’s important to experiment with different models to see what works best for your website.
CPC VS CPM on YouTube
CPC and CPM are popular pricing models for online advertising.
CPC (cost per click) means that advertisers pay for each user who clicks on their ad.
CPM (cost per thousand impressions) means that advertisers pay for every thousand times their ad is seen, regardless of whether it is clicked on.
So, which model is better for YouTube advertising?
CPC can be a more effective model if your goal is to generate website traffic or leads, as you only pay when a user takes the desired action.
However, CPM can be a better option if your goal is simply to increase brand awareness, as you will reach a wider audience.
Ultimately, the best pricing model depends on your specific goals and objectives.
Other Ways to Make Money on YouTube?
Millions of people make a decent living off YouTube. Not only can you make videos about your life and hobbies, but you also can make money doing sponsored videos, posting ads, making videos for webisodes, and more.
1. Affiliate Marketing
You can make money on YouTube through affiliate marketing. This is when you promote a product or service in your videos and include a link for viewers to click on to purchase the product. You will then earn a commission on any sales that are made.
To be successful with affiliate marketing on YouTube, you need to choose products that you believe in and that are relevant to your audience.
You also need to create engaging videos that encourage viewers to click on the links. If done correctly, affiliate marketing can be a great way to earn money on YouTube.
2. Sponsorship
You’ve probably heard of people making a living off YouTube, but what about making money through sponsorships?
In addition to monetizing your videos through ads, you can also secure sponsorships from businesses that want to promote their products or services to your audience.
To find sponsors, start by creating a list of companies that you think would be a good fit for your channel. Then, reach out to those companies and offer to promote their products or services in your videos.
In exchange, they will provide you with a fee or commission for each sale that you generate. To maximize your earnings, be sure to negotiate favorable terms with your sponsors and promote their products aggressively in your videos.
With a little effort, you can soon start earning money through sponsorships on YouTube.
3. Sell Products / Merchandise
There are a number of ways to make money on YouTube, and one sweet option is to sell merchandise. You can create your own products, such as t-shirts, mugs, and other items, or you can partner with an existing company and sell their products through your channel.
In either case, you’ll need to create compelling videos that promote your products and convince viewers to make a purchase.
You’ll also need to build up a sizable audience before you can start making significant revenue from product sales.
But if you’re willing to put in the work, selling merchandise can be a great way to monetize your YouTube channel and earn some extra income.
Conclusion
YouTube is the second largest search engine on the planet. Just as Google search allows anyone to have a voice through the potential to reach millions of people, the YouTube community gives anyone the opportunity to have a voice and make money by creating awesome videos.
With so wide an audience, it may seem like an easy path to riches. YouTubers earn income in a variety of ways, including from ads, product sales, affiliate offers, and sponsorships.
Other Articles of Interest:
Check out what you can make with 100 million views on YouTube
To make money on YouTube you need 4000 watch hours, learn how