How Much YouTube ACTUALLY Pays You for 1,000 Subscribers

vidIQ
29 Sept 202310:22

Summary

TLDRThis video delves into the intriguing world of YouTube monetization, exploring how much creators can earn based on various factors such as subscriber count, niche, video length, and audience demographics. It presents real-life examples of income earned by creators with 1,000, 10,000, and 100,000 subscribers across different niches, revealing the significant impact of niche and ad rates on earnings. The video also discusses the importance of consistency, alternative income streams like sponsorships and affiliates, and the unpredictability of relying solely on AdSense revenue. Finally, it unveils the earnings of a 1 million subscriber channel, emphasizing the magnification of variables at a larger scale, and the commitment to reinvesting earnings into the channel's growth and community.

Takeaways

  • 🎥 YouTube pays content creators a percentage of ad revenue (55% to the creator, 45% to YouTube) once they meet minimum subscriber and watch time requirements.
  • 💰 Earnings vary greatly depending on factors like niche, viewer demographics, video length, and ad format.
  • 📊 Tracking RPM (Revenue per Mille or revenue per 1,000 views) is more important than CPM (Cost per Mille or cost per 1,000 views) for creators.
  • 📈 As channels grow, earnings tend to become more consistent, replacing dramatic spikes and drops.
  • 🤵 Successful creators start viewing themselves as business owners, exploring diverse revenue streams like sponsorships, merchandise, and affiliate marketing.
  • 💸 For channels with 1,000 subscribers, monthly earnings range from a few hundred to over $600 in the first month.
  • 💻 Channels with 100,000 subscribers can earn between $5,000 and $20,000 per month, depending on factors like niche and viewer demographics.
  • 🏆 Channels with 1 million+ subscribers can earn over $150,000 per year from YouTube AdSense, but earnings can fluctuate significantly based on various factors.
  • 💡 Understanding factors that influence RPM, like seasonality and viewer location, can help creators optimize their content and strategies.
  • 🤝 As channels grow, collaborating with sponsors, affiliates, and exploring alternative revenue streams becomes increasingly important.

Q & A

  • What are the minimum requirements for monetizing videos on YouTube?

    -The minimum requirements for monetizing videos on YouTube are having at least 1,000 subscribers and 4,000 hours of watch time.

  • How much does YouTube take from ad revenues generated on the platform?

    -YouTube takes a cut of 45% from the ad revenues generated on the platform.

  • What is the difference between CPM and RPM in YouTube monetization?

    -CPM (Cost Per Mille) is typically what the advertiser pays, while RPM (Revenue Per Mille) is what the creator makes after YouTube's cut.

  • Why might YouTube place ads on videos of creators who are not yet monetized?

    -YouTube is allowed to place ads on videos of creators who are not yet monetized as per the terms of service agreed by the creators.

  • How does the niche of a YouTube channel affect its ad revenue?

    -The niche of a YouTube channel significantly affects its ad revenue due to advertiser demand and willingness to pay, with niches like finance, business, and education often commanding higher ad rates.

  • Why do gaming channels generally earn less ad revenue compared to finance or education channels?

    -Gaming channels generally earn less ad revenue due to lower RPMs, which is a reflection of lower advertiser demand and willingness to pay for this audience compared to niches like finance or education.

  • What additional monetization opportunities exist for YouTube creators beyond AdSense?

    -Beyond AdSense, YouTube creators can explore monetization through channel memberships, donations via super thanks, super chats, merch sales, sponsorships, and affiliate marketing.

  • How does video length and ad format affect YouTube ad revenue?

    -Video length and ad format affect YouTube ad revenue as longer videos offer more ad placement opportunities, potentially boosting RPM, and skippable ads tend to yield higher revenue.

  • What factors influence the RPM of a YouTube channel?

    -Factors influencing RPM include geographical location and audience demographics, ad blockers, seasonal shifts, and niche-specific trends.

  • How did the VidIQ channel, with over 1 million subscribers, decide to use its YouTube ad revenue?

    -The VidIQ channel decided to reinvest all of its YouTube ad revenue back into the channel and the creator's Lego addiction, with the full support of the VidIQ community.

Outlines

00:00

🤔 Decoding YouTube's Revenue: Insights on How Much Creators Earn

This paragraph delves into the topic of how much revenue YouTube creators can earn based on various factors like subscribers, views, and niche. It provides real-life examples from various creators across different niches, highlighting the inconsistency and unreliability of relying solely on AdSense revenue. The paragraph emphasizes the significance of understanding factors like CPM, RPM, and niche dynamics in determining YouTube earnings. It also touches upon the minimum requirements for monetization and alternative revenue streams like sponsorships and affiliate marketing.

05:02

🧮 Dissecting YouTube Earnings: From Small Channels to Millions of Subscribers

This paragraph continues the discussion on YouTube earnings, focusing on how revenue trends change as channels grow in subscriber count. It provides examples of varying earnings for channels with 10,000, 100,000, and 1 million subscribers, highlighting the influence of factors like video length, ad formats, geographical location, audience demographics, and seasonal trends on RPM and overall revenue. The paragraph emphasizes the importance of understanding these dynamics to optimize earnings. It also touches upon alternative revenue sources like sponsorships, affiliates, and merchandise for larger channels. Finally, the paragraph reveals the exact earnings and RPM of the VidIQ channel, a 1 million subscriber channel in the YouTube education niche.

10:02

📣 New Horizons for YouTube Monetization: Exploring the Latest Changes

This paragraph briefly mentions the recent changes to YouTube's monetization policies, allowing creators with 500 subscribers and 3,000 watch hours to join the YouTube Partner Program. It encourages viewers to explore these updates in another video for more details.

Mindmap

Keywords

💡YouTube monetization

YouTube monetization refers to the process by which creators earn money from their content on the platform. This includes ad revenue, channel memberships, donations through super chats, and merchandise sales. In the video script, monetization is a central theme, exploring how much creators can earn based on their subscriber count and niche. It highlights the minimum requirements for monetization, such as having 1,000 subscribers and 4,000 hours of watch time, and the impact of various factors like niche and video length on earnings.

💡Subscribers

Subscribers on YouTube are users who choose to follow a channel, enabling them to receive updates and notifications for new content. The script uses subscriber milestones (1,000, 10,000, 100,000, and 1 million) to discuss the potential earnings at each level and how income and channel growth tend to stabilize as subscriber numbers increase. This illustrates the importance of building a subscriber base for financial success on YouTube.

💡Niche

A niche on YouTube refers to a specialized segment of the market that a channel caters to, such as gaming, finance, or education. The video script emphasizes how a channel's niche significantly affects its YouTube revenue, with some niches like finance and education commanding higher ad rates due to advertiser demand. This concept is crucial for understanding why earnings can vary so widely between channels.

💡RPM (Revenue Per Mille)

RPM stands for Revenue Per Mille, indicating the revenue a creator earns per 1,000 views. It is a critical metric in YouTube analytics, representing what the creator makes after YouTube's cut. The script discusses RPM in detail, contrasting it with CPM (Cost Per Mille, what advertisers pay) and explaining its importance in measuring a channel's earning potential. Examples of RPM differences across niches illustrate how earnings can vary based on content type.

💡CPM (Cost Per Mille)

CPM stands for Cost Per Mille, referring to the cost an advertiser pays for 1,000 impressions of their ad on YouTube. While the video script briefly contrasts CPM with RPM, the focus is on RPM as it more directly relates to what creators earn. However, understanding CPM is essential for grasping the broader ecosystem of YouTube advertising and how advertiser spending influences creator earnings.

💡AdSense

AdSense is Google's advertising program that allows creators to earn money from their online content. In the context of the video script, AdSense refers specifically to the earnings from ads displayed on YouTube videos. The script highlights the unpredictability and unreliability of AdSense revenue, encouraging creators to explore additional income streams.

💡Video length and ad format

Video length and ad format are significant factors affecting YouTube revenue. The script mentions that longer videos can offer more ad placements, potentially boosting RPM, and that skippable ads tend to yield higher revenue. This information is vital for creators when planning their content strategy to maximize earnings.

💡Geographical location and audience demographics

These factors influence the RPM a creator can earn, as advertisers pay more to target viewers in certain locations or within specific demographic groups. The video script explains that viewers from high-income countries like the United States can generate higher RPMs for creators, while audiences from lower-income regions may contribute to lower RPMs. This highlights the importance of understanding one's audience for maximizing YouTube revenue.

💡Seasonal shifts

Seasonal shifts refer to fluctuations in YouTube earnings due to changes in advertiser spending throughout the year. The script discusses how the last four months of the year can be particularly lucrative due to increased advertising around the holiday season. This concept is crucial for creators to understand for strategic planning of content and release schedules.

💡Affiliate marketing and sponsorships

These are alternative revenue streams for YouTube creators outside of traditional ad revenue. The script touches on how creators can earn significant income through affiliate links and sponsorship deals, often surpassing what they make from AdSense alone. This highlights the importance of diversifying income sources for financial stability and success as a content creator.

Highlights

YouTube requires a minimum of 1,000 subscribers and 4,000 hours of watch time for a channel to be monetized.

RPM (Revenue per Mille) is more important for creators than CPM (Cost per Mille) as it represents the actual earnings.

Ad revenue varies significantly based on the niche and audience demographics, with finance and business commanding higher rates than gaming and fitness.

Small channels often see one or two videos driving a majority of their income, indicating they are still figuring out their audience.

Once channels reach 10,000 subscribers, revenue and growth tend to smooth out, and creators start exploring other monetization opportunities like sponsorships, affiliate marketing, and merchandise sales.

Video length, ad format, geographic location, audience demographics, ad blockers, and seasonal trends all influence a channel's RPM.

At 100,000 subscribers, channels can earn anywhere from a few thousand to over $10,000 per month, depending on various factors like niche, video length, and sponsorships.

For a 1 million subscriber channel like VidIQ, ad revenue ranges from $13,000 to $15,000 per month, with an RPM of around $5.

Additional revenue sources for large channels include super chats, sponsorships, and merchandise sales.

YouTube recently lowered the threshold for monetization to 500 subscribers and 3,000 hours of watch time.

Transcripts

play00:00

how much does YouTube pay you to make

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videos on the platform I mean I was

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surprised I expected probably less than

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half of what I actually received we get

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asked this question all of the time so

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we started to do some digging it is

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definitely inconsistent not income that

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you want to rely on and we found some

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real-life answers and we're gonna break

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them down for you how much does YouTube

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pay you for one thousand ten thousand

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one hundred thousand subscribers and

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wait for this for the very first time we

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are going to disclose exactly how much

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we make on the vid IQ Channel that's

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over 1 million subscribers in the

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YouTube education Niche fun fact

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actually your Niche is one of at least

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five things affecting your YouTube

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Revenue but do keep watching because

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we'll tell you what the other ones are

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as well and there just might be

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something that you can do today to

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increase your Revenue

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with a snap of a finger

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first let's start with a thousand

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subscribers is the minimum required to

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monetize your videos along with four

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thousand hours of watch time once you

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through all of the ypp application for

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full you'll be able to run ads on your

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videos and after YouTube's cut of 45

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this is what you're gonna earn for long

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form videos anyway shorts it's a bit

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more complicated and you end up with

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pennies not worth talking about in this

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video but just to make things a little

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more complicated for first time earners

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there's two ways to measure Revenue CPM

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and RPM you can pause the video now and

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read this if you want to but in short

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RPM is what the Creator makes CPM is

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typically what the advertiser pays so

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RPM is more important to us and for

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anyone who's watching this video who's

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not yet monetized but does see ads on

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their videos YouTube is allowed to do

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this you agree to this in YouTube's

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terms of service so hurry up and get

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monetized and then come back and watch

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this video oh watch it anyway we'll take

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the watch time all right then here we

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have a personal finance and side hustle

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chat and so the first month of being

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monetized I received

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I think he may have put that Echo sound

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effect in himself but 666 dollars off

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your first month

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that's pretty impressive let's have a

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look at another Niche now we've got

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Irina D who's a realtor so my very first

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month of being monetized on YouTube from

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January 17th to February 17th I made

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534.66 interesting interesting a hundred

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dollars less but still pretty good let's

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go for something more mainstream gaming

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today I'm going to show you guys how

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much YouTube pays me for a small gaming

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channel within the last 28 days 172

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hours and 74 cents it's gonna leave a

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mark it's almost like gaming channels

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are being slapped in the face with one

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dollar bills

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now we haven't yet discussed how many

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views the Channel's got or how many

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videos were published and the reason for

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that is because something really

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interesting caught my eye in the screen

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grabs Spot the Difference between this

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Finance Channel and gaming channel we've

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got an RPM here of over 22 dollars and

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over here an RPM of under five dollars

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in other words for every 1000 views one

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type of video earns 400 more than the

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other now how can this be fair well put

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simply the market defines the value this

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Gap illustrates how Advertiser demand

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and willingness to pay very

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significantly between niches categories

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such as Finance business education

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command higher ad rates because the

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advertisers see those audiences as far

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more valuable and on the flip side of

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this we have gaming Fitness and cooking

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which command far lower advertising

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rates you can see in this list of

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average cpms how different niches fare

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when it comes to ad Revenue another

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common theme we see with small channels

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is that typically only one or two videos

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drive a majority of the income this

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tends to indicate that as a new Creator

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they're still trying to figure out their

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audience and what videos resonate best

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with them we often call this the small

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channels viral moment and it reinforces

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again how important consistency is and

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you start to see evidence of this when a

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channel has 10 000 subscribers revenue

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and indeed Channel growth tends to

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smooth out on the whole and it replaces

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those dramatic and anxiety-inducing

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spikes and at the same time in the

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Creator's YouTube Journey they start to

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realize the unpredictability the

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unreliability of AdSense revenue and

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then let go often explore other money

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making opportunities

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it's my light broken from YouTube

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directly those opportunities include

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Channel memberships donations through

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super thanks super chats and merch sales

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external from YouTube sponsors also

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start to enter the scene as advertisers

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see the value of micro influences

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it's running out of battery anyway don't

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fret if you're not seeing any sponsors

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yet you can also make a lot of money

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with other side hustles too like

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affiliate marketing I made some

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Partnerships with companies who are

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looking to do affiliate marketing

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including prize picks and transparent

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labs in 2022. candidly number one I do

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not make that much money from YouTube

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AdSense alone however I do have

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affiliate and sponsorship deals that end

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up being a much bigger portion than what

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I'm going to show you today directly in

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AdSense ah you see they're all starting

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to think like business owners not just

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content creators but what if you are

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just still relying on good old or bad

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old AdSense Tom's story focuses on real

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estate makes two videos a week and

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around about three thousand one hundred

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dollars a year with an RPM of 4.98 this

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is a similar RPM to the 3.73 that Kyle

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Mills makes with 10 000 subscribers and

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bringing in three thousand nine hundred

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dollars annually with a focus on Sports

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and now for the high RPM niches such as

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21 dollars Dara is in the SM education

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Niche and makes nearly eight thousand

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dollars a year in AdSense and Kevin pack

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in business and finance makes almost

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fourteen thousand dollars a year from an

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RPM of 32 so for some channels for some

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niches this is now becoming a

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considerable chunk of change but in most

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cases it's not life-changing or business

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defining how about when you 10x that to

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a hundred thousand subscribers at this

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point YouTube probably isn't just a

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hobby it may be financially sustaining

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for you so the money better be worth it

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right but before we look at the numbers

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let's take a look at what influences RPM

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first video length and AD format you may

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have seen this joke about this in the

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past and this is what you do when you

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need another seven seconds

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but eight minutes really matters on

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YouTube put simply longer videos offer

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more ad places potentially boosting RPM

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while skippable adds tend to yield

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higher Revenue next we have the big

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factor of geographical location and

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audience demographics if your viewers

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come from the United States higher RPMs

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if your viewers reside mostly in India

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lower cpms the simple differentiator

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here is the average salary income

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alternatively if your content appeals to

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a niche market in a specific region such

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as luxury travel in Europe This Will

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ramp up RPMs on the other hand if your

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main audience is Young Gamers with

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little disposable income RPMs are gonna

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plummet ad blockers are another

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influence on RPM and only in a negative

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sense now YouTube have hinted that they

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may try and Tackle this with warnings

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for viewers but whether this is rolled

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out on a mass scale remains to be seen

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and then we have the classic seasonal

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shifts for most niches the run-up to the

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holiday season typically the last four

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months of the year are a gold mine for

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RPMs as advertisers flock to the

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platform but there are other seasonal

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Trends depending on the niche New Year's

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resolutions school holidays and so on

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the more you understand how RPM works

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the more books you can get from your

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content for example that you want to be

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going flat out in January and February

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when RPMs typically are lower for most

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niches however having said all of this

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when it comes to AdSense a lot is still

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out of your control but anyway what

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about those 100 000 subscriber channels

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Jesse echol who started out on Tick Tock

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and then moved on to YouTube Wise Choice

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makes between 11

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000 and 17

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000 per month after hitting 100 000

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subscribers Jamie and Sarah make around

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about seventy thousand dollars annually

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which is between five to six thousand

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dollars a month where they mention how

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they work with sponsors Affiliates and

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they even have their own ebook it is

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definitely in consistent not income that

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you want to rely on because you can

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see hitting 100 000 subscribers the food

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reviewing Channel Rockstar eater makes

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around six to eight thousand dollars per

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month but here's a word of warning for

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you look how the revenue drops off from

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January onwards and now finally we

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arrive at the big reveal

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a one million subscriber Channel and

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we're going to use ourselves

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as the example now at this point I want

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to emphasize that there is so much

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Beyond just a channel subscriber count

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that impacts ad Revenue view counts per

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video will vary massively from channel

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to channel we typically average between

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50 and 100 000 views per video and video

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output will have a big impact too we

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generally publish between two and three

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videos a week plus a live stream

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basically when a channel is this big

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every variable is magnified and skewed

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these things are still blooming heavy

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anyway this is how we get on typically

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we're pulling in between thirteen

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thousand and fifteen thousand dollars a

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month which totals just under 170 000

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over a 365 day period and those 32 and a

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half million views equate to an RPM oh

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oh

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it's 5.18 kind of makes me feel like

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we're in the wrong Niche here time to

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start giving crypto advice and selling

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nfts now our true revenue on a channel

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is a little higher because we also make

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ten thousand dollars from live streams a

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lot of that is super chat income and

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another 1 000 books from YouTube shows

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now the fun fact is we've been getting

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tens of millions of views on this

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channel for years but we only turned on

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monetization a year ago and that was

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with the full support of UV vid IQ

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community and at the time we made a

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commitment to plow all of that money

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back into the YouTube channel

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and my Lego addiction

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having said all we've said about ad

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revenues and RPMs there is a brand new

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Dynamic to monetization especially for

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small channels 500 subscribers on 3 000

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hours of watch time will now get you

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into the YouTube Partner program but for

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Watts find out in this fantastic video