Think you can make a living from YouTube ad revenue?

youtube-revenue

Now first off… I’m not saying it is impossible … it obviously is not.

However is a lot more work then most people think and most have a better shot of making it into the Olympics!

First off, let’s get one thing straight, you don’t make money based on the amount of views you have. You make money based on people’s engagement with the ad.

Engagement here means clicking or watching a ad for more than 30 seconds. YouTube Advertising is managed in the Adwords platform. Advertisers choose ads on a Cost Per Click (CPC) or Cost Per View (CPV) model.

HOWEVER…once you have some data such as video views and ad revenue you can plug in some math. Now obviously there is a little more that goes into forecasting ad revenue but this is a good start.

I use this when I am forecasting CTA/Conversions and I have found it works on the receiving end as well.

Let’s say oh make $1 per 5000 views. Not just one time but a few…. you can then assume that per 5000 views you will make $1. Like I said this is a BROAD assumption, you content and ad type have a lot to do with it. But if you are constantly creating the same type of content then this math can be pretty accurate. But again, it’s a broad guideline.

So no it’s not the AMOUNT of views that directly pay out, but assuming you have decent content yes, the more views means more money if your audience keeps engaging….. we all know this can change at any time.

Here’s a little piece of information that will give you a real kick in the pants. It’s estimated that even if your YouTube videos bring in $100,000 in gross revenue in a year, your effective take-home earnings will only be about $21,000 after you account for YouTube’s cut, taxes, and editing costs. This is based on one example with one YouTuber, but it’s hardly far from the truth for many creators at that level.

Sure, there are some YouTube channels that reportedly make over $1 million a year, but we have to understand that they are the exception rather than the rule. The overwhelming majority of YouTubers are never going to get anywhere near that and you’re almost lucky if you break three figures a month before factoring in expenses and taxes. It’s not easy.

Every view on YouTube is not created equal. Looking at a video’s view count does not convey nearly enough information to determine how much money a video has earned.

Why?

A certain percentage of every video’s views are not monetized, that is, they don’t have ads associated with them. If an ad doesn’t run, nobody makes any money on that particular video view.

But there are so many successful youtubers that are millionaires… really? How do you know?

Behind the scenes, most of those youtubers are paying entire teams of helpers. In the rare case where they are doing everything themselves, it also leaves them without any time to monetize all that content, so many “social media influencers” are actually broke.

The top 3 percent of YouTube channels get 90 percent of the traffic. Which means the rest of us are fighting over the remaining 10 percent.

Even those top 3 percent aren’t making a living. And to even get into the top 3% you would have to have more than 1.4 million views per month.

But even at 1.4 million views per month, according to Analytics and ad research, your average payment from YouTube will amount to less than $17,000 a year. WTF!

That’s based on an estimate of $1 per 1,000 views, which seems reasonable, according to those familiar with YouTube’s partner and advertising programs. Insiders say it can range from a low of $0.25 per 1,000 views to a high of $5 per 1,000 views.

Wait–can’t you make a lot of money from sponsored posts?

You can, and for YouTubers who do rake in the big bucks, sponsored posts are an important part of the mix.

But before you can really cash in on sponsorships, you need to build up a very large subscriber base. Subscribers are obviously a lot harder to get than views.

According to The Economist, influencers with at least 100,000 subscribers on YouTube can get an average of $12,500 for a sponsored post, with payments going up rapidly if you have one million subscribers or more. But those figures refer to endorsements by people who are celebrities in their own right.

Someone who’s only well known on YouTube might not command that kind of pay.

Last but not least, the amount of time to create one video is crazy. Take it from someone who has produced hundreds of videos.

I do a lot of video editing and publishing for clients and I’m telling you it’s not an easy job, and I do not even film them, I just edit and create graphics for social media.

If you add in the time for filming the video, I think at max a normal person could produce 2 videos a week, that are good quality.

Not there are a lot of people who just point, shoot and upload and this works sometimes but not all.

Typically you are looking at 1 day of shooting and 2-3 days of editing and publishing.

In conclusion, I absolutely am NOT saying that you can’t be successful on YouTube. I am saying it is a lot harder then people think and there is a lot that goes into it.

Good luck!

Ps. Hit me up if you would like me to help you get rollin.

Leave a comment