Written by Channing Nuttall
You constantly see how famous YouTubers have millions of dollars, but how do they turn the platform into revenue? Many people think that YouTube influencers get all their money via advertisements before their video plays, but there is much more that goes into it than that. If YouTuber’s rely solely on revenue from ads before their videos, they only get roughly 10% of what the advertiser pays YouTube for the advertisement. In order to make money on YouTube, an individual must use it as a large network.
One way YouTuber’s capitalize on the large network is by selling their own products using the platform. This is a great way to make money because many subscribers trust the YouTuber’s they watch and would enjoy their products. Another way they capitalize off YouTube is affiliate links for brands that they use. An affiliate link gives a discount code to the viewer and gives a portion of that sale to the YouTuber they watch, which is a win-win.
Another way to get money via the video platform is by doing sponsorships with companies. Sponsorships allow for the YouTuber to pick which company they work with and take YouTube out of the revenue stream. Sponsorships can be off-putting to viewers so, YouTubers should ensure that the brand they are doing a sponsorship with is a product they have used. In addition, many YouTubers may collaborate with brands to create a product with their name on it. This is powerful for both the YouTuber and the brand because the brand may gain first time users and the YouTuber will make a percentage of the sales of that product. Another way to gain revenue, after YouTubers have an established channel, is to take part in live speaking events. This is a great way to make money because popular YouTubers can often make thousands of dollars for just an hour of speaking. In order for YouTubers to make money, they have to work harder than simply collecting revenue from advertisements on their channel.