For many, being a full-time creator is the ultimate dream job. But beyond the viral videos and online personalities lies a fundamental question: how do content creators make money on YouTube? The answer involves multiple revenue streams that extend far beyond ordinary advertising, from partner programs to a talent management agency. In this blog, we’ll look at the ways in which content creators can earn online and the diverse ways YouTubers monetize their content, from the foundational YouTube Partner Program to innovative entrepreneurial ventures.
Here are Ways in which YouTubers make Money Online:
YouTube Partner Program (YPP)
The primary way YouTubers earn money is through the YouTube Partner Program. After meeting certain eligibility requirements, creators can tap into various methods to monetize their content. To qualify for the early tier of YPP, creators must have
- 500+ subscribers
- 3,000+ valid public watch hours in the past year or 3 million+ public YouTube Shorts views
And to gain access to all of YPP’s features, creators must have
- 1,000+ subscribers
- 4,000+ valid public watch hours in the past 12 months or 10 million+ valid public YouTube Shorts views
How YPP Generates Income
Now that you are aware of the eligibility requirements, it’s time to understand the main ways through which YouTube content creator income is generated
Advertising revenue:
The most well-known source of revenue is through ads. Either played before or in a longer video. Creators receive a share of the revenue generated from these ads.
YouTube Premium Revenue:
You get a portion of the subscription fee when Premium Subscribers watch your videos.
Shorts Monetization: Revenue from ads shown between videos in the Shorts feed is pooled, and creators who have monetized will get a share of the income.
Fan Funding Features
YouTube has developed several features that allow subscribers to support their favorite creators directly. Most of these are unlocked at the early access of the YPP.
Channel Memberships: Viewers can pay a recurring monthly fee to become a member of a channel. In return, they get access to exclusive perks like custom badges, emojis, exclusive live streams, and members-only videos. Creators can set up multiple membership tiers at different price points, and YouTube takes a 30% cut of this membership revenue.
Super Chat and Super Stickers: These features allow viewers to make one-time payments and creators to make money on YouTube.
Creators As Entrepreneurs
Several YouTubers, after gaining a large audience, build their brands by selling their products. This can include multiple things like:
- Merchandise: T-shirts, mugs, hoodies, and other branded items are ways to allow fans to show their support for creators and build a sense of community.
- Digital Products: Creators can sell digital goods like online courses, e-books, presets for photo and video editing, or templates. This is popular amongst educational creators.
- Physical Products: Some creators launch their product lines, such as a tech reviewer developing their own gadgets or a beauty influencer creating a makeup line.
Brand Deals and Influencership
As a creator’s channel grows in size and popularity, equal opportunities also open up for them to earn. One of the best ways creators make money is through brand collaborations. Here are two main ways:
Brand Sponsorships: This is a straightforward approach where companies pay creators to feature or mention their products and services in their videos. These can range from a brief mention to a fully dedicated video.
Affiliate Marketing: Affiliate marketing on YouTube includes special links to products in creators’ video descriptions and also provides promo codes to viewers, so that they can get an offer. When a viewer clicks that link and makes a purchase, the creator earns a commission. This is a popular method because it doesn’t require a large following to get started.
Crowdfunding And External Platforms
Additionally, content creators make money on YouTube via platforms like Patreon, Ko-fi, and Kickstarter help creators raise funds for ongoing projects or single campaigns. Offer tiered rewards are present to increase support, and viewers can pay as much as they want to encourage their favourite creators and also unlock exclusive perks. These monetization strategies are explained in depth in our content creation course online, helping creators build sustainable income streams.
The Future of YouTube Monetization
Earnings from YouTube don’t stop here. The world of YouTube monetization is constantly evolving. Here’s a glimpse into newer YouTube monetization methods we could see soon:
Creators as Studios: Streaming giants like Netflix are already exploring partnerships with top YouTubers to create original content. As traditional media isn’t as popular as it used to be, this could mean that creators with big audiences are slowly becoming the new production houses.
AI-Enhanced Creativity: Tasks like video dubbing are already being incorporated with the help of AI tools. In the future, AI could play an even larger role in helping creators identify viral trends and optimize monetization strategies.
Growth of the Creator Landscape: With the inception of influencer management agencies in India, the trend of creators building their community, with their products, services, and communities, is set to accelerate. Very soon, YouTube will come up with features and tools to broaden this landscape.
