How to Make Money on YouTube (From REAL YouTubers)

YouTube has become a means for creators to quit their jobs, build wealth, and live the life they want to live.

Contrary to popular belief, ads aren’t the only revenue stream; you can make money in many ways on YouTube. That said, you do need a solid strategy and, of course, great content.

In this article, we’ll talk about how top-earning YouTubers make money.

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YouTube Ad Revenue: Make Money with Views

YouTube Ads are the primary source of money for the majority of creators. Let’s explore how they work and how to monetize them as a YouTube partner.

How YouTube Ads Work

To earn money from ads on your YouTube videos, you have to join the YouTube Partner Program. This program allows creators to monetize their content. For each ad displayed via your content, you’ll get a share of YouTube’s revenue.

To become a YouTube partner, you must satisfy one of the following conditions:

• Have 1,000 subscribers and 4,000 watch hours in the past 12 months
• Have 1,000 subscribers and 10 million valid public Shorts views in the past 90 days

Now, there are different kinds of ads that run on YouTube, all of which can be a revenue source for your channel.

• Pre-roll ads. Ads that play before the video starts
• Mid-roll ads. Ads that run during the video (usually long-form videos)
• Overlay ads. Ads that appear as banners at the bottom of the video player

The actual pay on an ad run varies based on several factors, such as the viewer’s location or the advertiser’s bidding. That’s why successful YouTubers don’t just rely on ads.

You should also understand the impact of YouTube Premium on ad revenue. It’s a subscription that lets users watch content ad-free, so YouTube Premium subscribers won’t give you any ad earnings. Still, with lots of views, even YouTube Premium revenue may be good enough.

Maximizing Ad Revenue

It’s simple: if you want to earn more through YouTube ads, you have to get more views. You can do that with more channel memberships and high YouTube traffic. But getting more eyeballs on your content isn’t so straightforward. YouTube today is incredibly saturated.

Don’t worry – just look at how successful YouTubers have gained millions and even billions of viewer clicks on their content. PewDiePie is one of the top YouTube earners, with a net worth of $45 million as of 2024. He puts out diverse content on his channel. He keeps his subscribers engaged with a mix of videos, which includes gaming, comedy, and even personal vlogs.

Another strategy for increasing YouTube ad earnings is making long videos (10 minutes or longer). These videos may make money through several mid-roll ads. But here’s the catch – your long-form video has to be interesting and engaging to avoid drop-offs.

Wendover Productions has cracked that code with their long explainer videos. They use a combination of killer graphics, research-backed information, and topical subjects that keep viewers glued to the end.

YouTube Shorts and Their Impact

YouTube Shorts has become a powerful tool for channel growth and monetization. Shorts are quick 60-second videos similar to TikTok or Instagram Reels. They have their section of the YouTube app.

Although Shorts don’t generate as much ad revenue as YouTube videos, they help increase a channel’s visibility and subscribers. That, in turn, drives more traffic to the creator’s main content. Making Shorts is a viable way to boost earnings on YouTube.

Many creators also use Shorts as a teaser or a highlight reel for their longer content. For example, a cooking channel might post a 60-second recipe on Shorts and put a link for the full recipe to gain more views. This strategy helps attract new viewers and convert them into long-term subscribers. The good thing is that you can create Shorts using your actual YouTube videos.

Earn from Brand Sponsorships and Collaborations

You may also create sponsored content and work with brands. Here’s everything you need to know for this strategy to make money on YouTube:

How to Secure Brand Deals

For many top YouTubers, brand sponsorships have become a major source of income, often surpassing ad revenue. With a strong personal brand and an engaged audience, you can woo brands into sponsoring.

Companies look for creators whose audience demographics align with their target market. For instance, a beauty brand may want to collaborate with a makeup artist. More brands are gravitating toward influencer marketing. 26% of brands said they dedicated 40% of their marketing budget toward influencers.

To secure brand deals, you’ll need to join an influencer marketplace or work with a talent agency. The payout from such sponsorships usually depends on your subscriber and view numbers. However, you don’t have to have millions of subscribers to score brand deals. All you need is an engaged audience to run branded content campaigns.

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Be Creative with Sponsored Content

Uploading videos with a sponsor logo somewhere in the frame won’t cut it. Smart creators integrate sponsorships creatively. They use them organically as part of their content.

MrBeast is particularly good at this. His challenge and giveaway videos feature sponsor products seamlessly. For example, he might use a sponsor’s product as a prize in a competition or integrate it into a stunt.

You want to make it feel relevant, not gimmicky. That way, sponsors are satisfied while you maintain the authenticity that viewers want.

It’s a win-win situation for all: brands get exposure, creators get paid, and viewers get entertaining content.

Collaborate with Other Creators

Besides brands, YouTubers also collaborate with other creators since it helps them boost their reach and earning potential. They tap into each other’s viewers and gain more following.

A great example of success through collaborations on YouTube is Logan Paul. He doesn’t post content regularly on his own channel. Yet, he’s able to earn an estimated $18 million annually. A significant portion of this comes from collaborations and crossover content. He regularly works with creators on content or podcasts.

Collaborations aren’t limited to content. Many top creators team up for merchandise lines, live events, or even business ventures. Similarly, collaborations may help creators expand into new content areas. For example, a gamer YouTuber may collaborate with a tech reviewer to create content about hardware.

Turn Fans into Customers with Merchandise

Once you’ve gained ample subscribers, it’s time to venture into merchandise as a secondary source of YouTube revenue.

How to Create a Merchandise Line

By creating products that resonate with their brand and audience, creators turn their popularity into stuff fans want to buy. You, too, can create your very own line of products. The key is to make the product relevant. Don’t just put a logo on a mug or t-shirt and call it a day.

When designing a merchandise line, it’s crucial to consider quality and customer service. Many top creators partner with established e-commerce platforms or fulfillment services to ensure a smooth buying experience for their subscribers.

Promote Merchandise Like a Pro

Creating merchandise is one thing. Selling it is another. Good merchandise promotion is all about integration. The most successful YouTubers seamlessly include their products in their content. Again, relevance is important.

Rhett and Link, the duo behind Good Mythical Morning, are masters at this approach. They’ve turned their Mythical brand into a retail powerhouse. They regularly feature their products in their daily episodes, often incorporating them into challenges or segments.

Some creators go a step further by creating content specifically around their merchandise. For example, a fashion YouTuber might do a “styling video” featuring items from their clothing line.

Sell your products on the merchandise shelf that appears underneath the video player on YouTube. This feature is available to YouTube partners who meet the eligibility requirements. Otherwise, create an online store to sell your merchandise.

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Go Beyond Traditional Merch

Yes, t-shirts and hoodies remain the most popular merchandise type. But top YouTubers are thinking outside the box with their merchandise. They’re creating products that align with their content and provide real value to their audience.

Ryan Kaji of Ryan’s World, for instance, has expanded into educational toys and books. These products are related to his channel’s focus on children’s content and appeal to parents and kids. With merchandise sales reportedly generating $25 million, it’s clear that this strategy has paid off.

You need to do two things for successful merchandise expansion: understand your audience and create quality products. Some YouTubers have gone on to create successful brands, which have become their primary revenue generators (think Jeffree Star with his makeup brand).

Diversify Income Streams

You may not always have that viral video to gain new subscribers and increase views. Here are some fan funding avenues to make money on YouTube.

Offer Paid Subscriptions

Many top YouTubers have found success with subscription models. This approach not only provides a steady income stream but also helps create a deeper connection with their most dedicated fans.

Creators use platforms like Patreon, Buy Me a Coffee, and even YouTube’s Channel Memberships feature to offer paid subscription options. YouTube Channel Memberships offer exclusive perks like ad-free content, exclusive videos, or direct interaction with the creator.

Depending on your niche, this can be a lucrative model. For instance, a finance advisor may leverage their expertise to gain paid subscribers for exclusive content with insights or reviews.

Try Live Streaming, Channel Memberships, and Super Chats

Live streaming is a powerful tool for engagement and monetization on YouTube. High-earning creators use live streams to connect with their audience in real-time.

Live streams should be combined with Super Chat and Super Stickers. With Super Chat, fans pay to highlight their messages on the live stream. Similarly, with Super Stickers, fans pay to surface animated images during the live session. It’s a fun way for your audience to interact with you and pay you.

PewDiePie frequently uses live streams to engage with his audience. Some creators, particularly gamers, have turned live streaming into a major part of their content strategy. Many pro gamers earn a significant portion of their YouTube income from live streaming their gameplay, often for several hours a day.

Create Digital Products and Apps

Some savvy YouTubers have expanded their brand into the digital product space with apps and online courses related to their content. This approach allows them to offer their expertise to their audience in new ways.

YouTube creators in niches like fitness, cooking, or education offer online courses or guides. These digital products may provide additional income besides video ads and sponsorships. Link these products in your video descriptions and use a call-to-action in your content to get viewers to click.

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Profit Off of YouTube Fame

Success on YouTube opens many doors. Here are some examples of how expert YouTubers have used their fame to expand their income sources:

Publish Books

For many top YouTubers, their online success has introduced them to the traditional publishing world. Book deals can be a substantial payday, not to mention establishing authority in the relevant field.

You may choose to write an autobiography, a self-help guide, or content related to your niche. Creators like PewDiePie, KSI, and Issa Rae have published successful books.

Appear on TV Shows and Movies

Some of YouTube’s biggest stars have successfully transitioned into traditional media, landing TV shows or movie roles. This crossover can boost a creator’s profile and earning potential. Ryan’s World, for instance, expanded into television with “Ryan’s Mystery Playdate” on Nickelodeon.

Other creators have found success with media outlets that create documentaries, reality shows, or even scripted series. Lilly Singh is a great example of a successful transition from YouTube to media.

Host Live Events and Tours

Live events and tours have become a major revenue source for famous YouTubers. These events allow creators to connect with fans in person while also generating income through ticket sales and merchandise.

MrBeast, with his estimated net worth of $500 million, has successfully ventured into live events. These events also double as content. Just publish the videos from the event back on YouTube. Talk about a full-circle moment!

Build a YouTube Business Empire

As your YouTube business grows, you’ll need to expand your team, create your own company, and eventually branch out.

Creating a Production Company

Many successful YouTubers have expanded their operations by creating their own production companies. This move allows them to scale their content creation and potentially produce shows for other creators or platforms.

Rhett and Link, for example, have established Mythical Entertainment, a full-fledged production company. With their very own production house, they produce not only their content but also content for other YouTubers.

Investing in Other Ventures

Any finance expert would tell you to diversify your investments. YouTubers like MrBeast and Logan Paul are great examples of diversification of investments.

If you reach that level of success and have ample capital at hand, invest in real estate, stocks, and funds.

Licensing and Global Expansion

Licensing deals are a lucrative opportunity for YouTubers with strong brands. By allowing their likeness or brand to be used on products, creators reach new markets and generate passive income. Ryan’s World has been particularly successful in this area thanks to global licensing deals.

Some content creators have expanded beyond borders by simply translating their content into multiple languages. For example, the popular psychology channel Psych2Go created another channel, Psych2Go Korea, for its Korean audience.

Conclusion

Making money on YouTube is far from easy. However, there are countless examples of people making it in the world of YouTube. So how to get paid on YouTube?

It’s all about creating engaging content, building a loyal audience, and strategically leveraging that audience across multiple revenue streams. Top creators are constantly finding new ways to turn their influence into income.

The average YouTube channel annual income is $77,637 in the US. There’s a lot of potential in making money on YouTube. That said, it’s not a get-rich-quick scheme. You’ll have to spend time and energy to get YouTube views and earn from ads, sponsorships, collaborations, merchandise, and media deals.

YouTube is just one of the many ways to make money. Discover more ways to make money online!

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Next Steps: What Now?

Thinking of making your first YouTube video? Here are some key steps to consider:

• Choose a niche that you’re passionate about to focus your content on.
• Start creating consistent, high-quality content in that niche.
• Focus on building a loyal audience first.
• Play with different content formats and see how they perform.
• Learn about SEO and optimize your videos for discoverability.
• Engage with your audience through comments and community posts.
• Develop a strong personal brand that resonates with your target audience.
• Start building your presence on other social media platforms.
• Once eligible, join the YouTube Partner Program and link it with your Google Adsense account.
• Lastly, be patient and persistent – success on YouTube often takes time and consistent effort.

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