Most content creators and bloggers want to open YouTube channels because it’s a great way to monetize their content. It’s also very lucrative and can pull in large turnovers over time if done rightly. But, while this is true, have you ever sat back and wondered how YouTube splits its cash inflow to make a profit and pay users? If you’re on the brink of starting a YouTube channel like other youtube creators, the answer to this question will enlighten you and provide clarity. Here’s all you need to know about the revenue sharing program – YouTube revenue split as well as the revenue sharing model.
After all, it would be foolhardy to venture into a business without understanding its inner workings. So, read this article to learn about the creator fund and YouTube revenue split so you can determine who keeps what and whether or not it’s fair enough.
Key Takeaways
Questions are arising with an ever-increasing number of individuals joining the train of Youtubers to make money. Yes, creators can earn from long form videos as well as shorts videos.
The most important question from users eligible for monetization relates to the Youtube revenue split. Not to worry though; it’s quite fair, as Youtube collects 45% of YPP members’ revenue and gives creators 55%. Then, when using Adsense, google pays you 68% and retains 32%.
As for brand sponsorship and merchandise sales, you get paid directly, thus having your profit to yourself. The affiliate marketing system is similar since the commissions go straight to your account.
Ways to Make Money on YouTube Via YouTube Revenue Split
Before we disclose details of the YouTube revenue split, it’s imperative that you know and understand how to make money on YouTube. This knowledge will help you understand better the ratio division of who keeps what. So, let’s explore the various methods of monetizing YouTube.
1. YouTube Partner Program (YPP)
Joining the moving train of the YouTube partners program is one of the ways of monetizing your account. However, certain requirements you’ll have to meet will ascertain your eligibility. Let’s take a look at these requirements:
- Your Youtube channel should have a minimum of 1000 subscribers.
- Users should have watched your video for 4000 hours over one year.
- Have a linked Adsense account.
- Accept all terms and conditions.
To enjoy share revenue as a member of the YouTube partner program, you can access various earning opportunities, including Google Adsense. Adsense helps you monetize your content by displaying ads for which you will be paid based on click-through rates. Engagement and impressions also help you to rack in cash from Adsense.
An advertiser will pay between $0.10- $0.30 per view. But, the average amount an advertiser pays is $0.18. Hence, this translates to an average of $18 for 1000 views. From the total amount earned, the Youtube revenue split will be 45:55, with the content creator receiving the larger percentage.
2. Ad Campaigns
Running advertising campaigns generates greater revenue for Youtubers. With ad campaigns, you can choose specific products and companies to run ads for. This opportunity is one of a kind. You don’t always have to showcase general ads like with Adsense. You can choose ads that you know will intrigue your fans and select a suitable display method. By doing so, you’re likely to have more clicks and views. The more you earn, the larger your share of the YouTube revenue split.
3. Brand Corporate Sponsorship
Youtube is a platform that connects a large percentage of the population to updates, disseminates information, and spreads exposure. Being a visual platform, it relays information with clarity. Due to this, big brands that are interested in converting viewers to customers offer YouTube content creators paid partnerships.
The Youtuber promotes the brand’s products and gets paid with commissions based on Cost per View (CVP); you can call this influencer marketing. However, brand sponsorship isn’t open to all. The possibility of this option depends on the Youtuber’s network and fame. Also, you can connect with brands and seal deals through any of the available sponsorship platforms.
4. Membership and Fan Funding
This is another opportunity for YouTube revenue split. Fan support is an exciting way to make money off Youtube. It takes a true lover of your content to put their finances on the line. With the help of third-party apps, you can create groups where your YouTube followers can sign up as members for a monthly fee. Your ardent Youtube fans can also pay you for extra unique content like badges and live chats.
However, to access this fan funding/ support, you need a minimum of 1000 subscribers. If you’re interested in receiving donations from fans, you have to configure your account from the settings. If you’re interested in learning more about this, click here.
5. YouTube Merchandise Shopping
Youtube merchandising is another avenue for YouTube revenue split. It is just like marketing products on any other platform. Members of the Youtube Partnership program have this juicy opportunity at their fingertips. They can sell up to 12 merchandise items to subscribers on their channel.
However, this is with the involvement of third-party apps where one can set up online stores for merchandise. It’s a smart idea as it converts your fans to customers you’re sure will be loyal to your products. Interestingly, you can sell almost anything; accessories. Clothing items, tools, etcetera.
Many famous YouTubers have tread this path and excelled at it. Jeffree Star and Pewdiepie are notable examples of YouTube influencers who have raked millions from selling merchandise. If you’re in doubt about the possibility of making millions through YouTube merchandising, click here to see how much Youtubers have made from this trade.
6. Affiliate Marketing
Using an affiliate link, you can market a company’s goods and services through your Youtube channel. Apart from adding the link to your video description, there are other creative ways to market the services. You can review a product or even passively recommend a brand as your favorite when discussing a related topic.
You’ll receive a commission whenever anyone purchases the product using your link. This commission comes in for every sale you make. The percentage paid is quite juicy, although it depends on the company.
Not all monetization methods above require a Youtube revenue split. But for those that do, you can be sure that the split is sufficient to keep your pockets full if you garner adequate engagement.
Factors Influencing Youtube Revenue Generation and
YouTube Revenue Split
Though Youtubing is highly lucrative, not every Youtuber makes money from the venture. Some YouTubers haven’t gotten even $100 from their content. The reason is that it takes more than just creating and uploading content to make money. There are other Youtube revenue generating factors you should consider.
1. Cost Per Mile
Some advertisers do not pay content creators based on single views. Cost Per Mile or CPM deals with a cumulative amount. Hence, influencers receive revenue from every 1000 views. CPM rates differ between advertisers, so one can pay you more while another pays less.
2. Cost Per Click
Like with CPM, Cost Per Click or CTC rates also differ. But in this case, the advertiser pays the Youtuber based on individual clicks. So, for every user that clicks on the influencer’s link, the influencer will receive a stipulated amount.
3. Pay Per View
Large views can also help you earn money on Youtube as they translate to engagement. You can track viewing engagement using click through rates, viewer retention, and total watch time.
4. Subscriber Engagement
The amount of engagement (likes, comments, super stickers, live chats, etc.) from subscribers influences how much money you can make. The reason is that active subscribers are more likely to watch the ads you display, follow your recommendations, and buy products using your affiliate links.
Subscribers are also instrumental for exposure, as the more you have, the higher the tendency of your videos being showcased in search results. Also, in instances where the pay is per view, subscribers will come through for you.
Applying the above factors can help you monetize your Youtube channel successfully.
Conclusion
The times are fast changing, and the internet is the new gold mine, with YouTube being one of its most enterprising wells. However, some are stuck in the old age, believing that the internet holds no monetary value to users. If you’re a part of this category, I implore you to snap out of that mentality and monetize your skills by showcasing them on YouTube.
It’s the ultimate side hustle you can start without much capital. And yes, the profits are meaty as the YouTube revenue split favors content creators and enterprising individuals.
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