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How Do People Earn Money on YouTube? Most Common Ways to Make Money on YouTube

How Do People Earn Money on YouTube?

Creating and uploading YouTube videos is the trending way to earn money online after blogging which is also the best way to generate online income now a days.

Yesterday one of my friend Dhirendra Rana asked me to install an awesome video editing software on his friend’s laptop.  When they came to me then asked few simple questions “What is the purpose of installing video editing software? ” they simply replied that They want to produce video for YouTube.

Then again I asked “What is the ultimate goal of making videos for YouTube? Is that Money ?” they replied Yes, We want to make money on YouTube like “BB ki Vine” owner is making huge amount of money now a days.

Now a days 95% out of 100% people knows that they can also earn money on YouTube using their videos but They still don’t know how?

People think they will create any type of video, will get video views and earn huge amount of money.

Oh Shit!  What the hell is going on with People?

Well, I am not gonna share any strategy or tips to generate huge amount of YouTube money, If you think then I will suggest you to leave this article as soon as possible or Visit another article How Much Estimated Time is Required to Become Famous on YouTube and Earn Money.

But If you want to know “How top YouTubers make money on YouTube” then you can continue reading this article.

How Do People Earn Money on YouTube

How Do People Earn Money on YouTube

There are many ways or methods to earn money on YouTube but after doing research I found few common ways that top YouTubers are using to make huge amount of money to put in their pocket using their videos.

Well, before continue this topic let me explain “What is the difference between YouTubers and Successful YouTubers?“.

YouTubers make any type of bullshit videos, waits for views and Dreamed that If they get 1,00,000 views They can earn up to $10,000 but It’s wrong.

Let’s take an overview, If YouTubers are using AdSense to monetize your video.

Generally when people produce bullshit videos, their AdSense RPM and CPC would be low ( RPM approx $0.30 to $1 and CPC approx $0.10 to $0.50 ).

Let’s Assume your RPM is $1, CPC is $0.50 then How much you will earn from YouTube when you get 1,00,000 views and 10,000 clicks on ads while watching videos.

RPM means revenue per mile that means how much you will get paid by AdSense per 1000 views.

Earning if your RPM is $1 = (Views/1000)*RPM = (1,00,000/ 1,000)*1

Earning if your RPM is $1 = 100

That means, You will get only $100 for 1,00,000 Views.

CPC means cost per click that means if someone click on any ads while watching your videos then how much you will earn per click on Ads.

Earning if your CPC is $0.50 = (Number of clicks)*CPC = 10,000*0.50

Earning if your CPC is $0.50 = 5000

That means, You will get $5000 for 10,000 Clicks.

Now Your Final earning would be = Earning if your RPM is $1 for 1,00,000 Views + Earning if your CPC is $0.50 for 10,000 Clicks

Final Earning = $100+$5000 = $5100

I will not go in deep here because I have ready shared many articles about that. OK Now let’s talk about successful YouTubers, They create quality videos after doing some research like trending ways and keywords research.

When their videos comes into the action they earn huge money.

Let’s take an overview, If successful YouTubers are using AdSense to monetize your video.

Generally when people produce quality videos, their AdSense RPM and CPC would be High ( RPM approx $5 to Max and CPC approx $5 to Max ).

Let’s Assume your RPM is $10, CPC is $5 then How much you will earn from YouTube when you get 1,00,000 views and 10,000 clicks on ads while watching videos.

RPM means revenue per mile that means how much you will get paid by AdSense per thousand views.

Earning if your RPM is $10 = (Views/1000)*RPM = (1,00,000/ 1,000)*10

Earning if your RPM is $10 = 1000

That means, You will get $1000 for 1,00,000 Views.

CPC means cost per click that means if someone click on any ads while watching your videos then how much you will earn per click on Ads.

Earning if your CPC is $5 = (Number of clicks)*CPC = 10,000*5

Earning if your CPC is $5 = 50,000

That means, You will get $50,000 for 10,000 Clicks.

Now Your Final earning would be = Earning if your RPM is $10 for 1,00,000 Views + Earning if your CPC is $5 for 10,000 Clicks

Final Earning = $1,000+$50,000 = $51,000

I don’t wanna share above calculations because this article is about how top YouTubers earn money on YouTube but after seeing mindset of my friends and other people who are joining YouTube to earn money Who have not enough knowledge about it so I had to share this calculation to aware them.

ways to make money on youtube

OK, Now let me explain common ways to earn money on YouTube that top YouTubers uses to fill their pocket with lot’s of money. Four ways, basically:

1. Ad revenue

When there’s an ad on a video watch page, the creator of that video shares the revenue from that ad with YouTube.

YouTubers aren’t allowed to discuss ad rates, but it’s generally acknowledged to be between $1 per 1,000 views, up to a few dollars per 1,000 views.

Many YouTubers also make sponsored or branded content, in which they share or discuss a product for a fee. This can be very lucrative, but there’s also the risk of clouding your authentic relationship with your audience.

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2. Merchandising

Many YouTube creators sell shirts or mugs featuring logos or inside jokes.

There are companies designed for niche creators looking to make merch for their audiences (I co-own one, Don’t Forget To Be Awesome).

For some YouTubers, this can be a bigger source of income than ads (it is for my brother and me), but for most it’s a relatively small business.

3. Ancillary products

Many YouTubers are able to use their existing audiences as activation energy for other projects–from tours to music to makeup lines to books.

Because many of these projects have better established business models (like, people generally expect to pay for books), this can also be a great business.

It’s unlikely my novel The Fault in Our Stars would’ve been so successful without the activation energy provided by the viewers of our videos.

4. Subscription fees

This is an emerging business model, but I think a very promising one.

Voluntary subscription platforms like Patreon: Support the creators you love allow viewers to support the creators they love directly.

This decreases the influence of advertisers and makes creators directly answerable to their audiences. It does, however, require that a percentage of viewers choose to pay.

I suspect most YouTubers make most of their money from ads, but I think advertising is probably shrinking percentage-wise as a revenue source, which I think is mostly good news.

I think advertising is an important part of funding our online experiences, but ultimately I’d argue the Internet is healthiest when serving the needs of its human users rather than the needs of its corporate sponsors.

I hope you like this article and Please do share this article with your friends on social media like Facebook, LinkedIn, Twitter and Other. Don’t worry sharing this article is free, I am not charging here any single money from you  .

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