HOW MUCH CAN YOU EARN ON YOUTUBE?

How much money can you make on YouTube? How much money YouTube pays? How much money YouTube partners make? How much money can you make from YouTube partnership? Should you join a YouTube network?

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YouTube revenue
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How much YouTube pays partners for their content?

After you enable monetization of your YouTube channel, you can activate ads for your video content and earn revenue. Ads are delivered through different YouTube-sold sources.

YouTube partner agreement does not include any guarantees about how much, or whether, you will be paid. When people view or click ads embedded to your video, you generate earning which is based on a share of advertising revenue.

YouTube's share is 45% of the gross revenue generated. Content creators receive 55%. Once your earnings are finalized, you receive your payment through your AdSense account on a monthly basis, unless you have a contract with Multi-Channel network (MCN).

If you have a contract with Multi-Channel network (MCN), you will have to share your earnings with MCN. Most networks take up to 50% of the gross revenue in exchange for the services provided, depending on the number of views of your videos. The more views your YouTube channel generates, the less % MCN takes.

How much money can you make on YouTube?

Sorry to say, but you are not the first person in this world who decided to make some extra money by means of YouTube channel. More than four hundred hours of video are uploaded to YouTube every single minute. Thousands millions of hours of YouTube video are watched every single day. It means that people spend a massive amount of time watching videos monthly. But this time is spread over a huge number of videos, creating an intense competition for those viewing hours.

Absolute majority of videos get little to no attention. But also there are a lot of examples of videos, made by amateur creators, that received millions of views and generated a solid revenue. This list of lucky creators goes on and on and it inspires potential YouTubers and gives them some big expectations. If somebody managed to do it, why cannot I?

The statistics is very sobering. Less than half of one percent of YouTube videos get to one million view point, and more than fifty percent of all YouTube videos get less than five hundred views. But at the same time thousands of channels make six figures revenue a year. Quite a lot of amateur creators managed to make YouTube channel as their primary source of revenue, and even more have their YouTube channel as secondary stream of income.

A very popular dream to become rich from YouTube videos is exceptionally rarely achieved. The tremendous competition multiplied by random chance to make a popular video means that any potential YouTuber has very low odds to become the next big YouTube star.

But nothing is impossible. The total income generated by YouTubers grows yearly. A part of this income is always claimed by amateur talented content creators with interesting ideas and a dream to succeed as YouTuber.

How much money YouTube partners make?

Cost per impression (CPI) is the main payment factor on YouTube. CPI is the rate you are paid by YouTube for every 1000 views of ads that are embedded to your videos. You should know that this is after Google has already deducted its 45% share of the money paid by advertisers for having their ads embedded to your video. Though YouTube never published its CPI rates, it was estimated by online marketing companies that YouTube's current CPI ranges from fifty cents to ten dollars.

Let's say, for example, one million people that watched a particular video on your channel also watched the ads embedded to it. Let's also use for calculation the average CPI of $2. So you can expect your video to earn:

Views x CPI
1 000 000 views x ($2/1000 views) =$2000

We should not forget that ad blockers and ‘Skip ad’ button exist. It was revealed that approximately fifteen percent of viewers actually watch videos without skipping ads. Fifteen percent of one million is 150 000 viewers who actually watch the ads.

150 000 views x $2/1000 views =$300

But we should also remember that CPI rates vary from fifty cents to ten dollars. A complex algorithm is used by YouTube to determine the quality of views on your channel and to assign the appropriate rate for them.

The following factors impact the algorithm:

- the type of audience that viewed your video
- the type of the ads
- the price of the ads
- retention of the audience
- engagement

Even if your CPI rate is at the upper range, your revenue will still be below $2000 we initially calculated. Getting views is extremely important and the best YouTube marketing companies stand on it, but don't expect that YouTube views alone will let you to earn a fortune.

You might also want to know What is RPM?

Other YouTube income sources

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