How Much Does Youtube Pay The Channel Owners On What Basis?
YouTube is by far the most popular video-sharing platform on the internet. It has more than 2 billion active users who watch more than 5 billion videos per day. And, as such, it has become a great source of income for many small and large businesses. But, how much does YouTube pay channel owners and on what basis?
When it comes to exactly how much YouTube pays the channel owners, it all depends. You can generate income from YouTube in a few different ways, such as by earning ad revenue, creating sponsored content, and selling merchandise. Each of these methods has its own set of rules and regulations, so it’s important to understand all of them in order to maximize your earning potential.
1. Ad Revenue
Ad revenue is the most popular and well-known method for generating income from YouTube. YouTube pays the channel owners a portion of the total money that advertisers pay for their advertisements that are shown on the channel. The exact amount of money earned from ad revenue depends on the type of advertisement, the length of the video, the number of viewers, and the amount of engagement from viewers.
On YouTube, there are two types of advertisements that creators can monetize their videos with: Pre-roll Ads and Overlay Ads. Pre-roll ads are those that are shown before the video begins, while overlay ads are the banners or text advertisements that appear in the bottom part of the player. The revenue generated from ad revenue depends on the cost per thousand impressions (CPM) of the advertisement. The CPM tends to differ depending on the advertiser, and the channel owner earns 68% of the total revenue that the advertiser pays.
2. Sponsored Content
Sponsored content is when brands and companies pay a channel owner to create custom content for them. This could be anything from product reviews to special interviews with company executives or employees. The amount of money paid to a channel owner for sponsored content depends on the type of content, the amount of views, and the engagement from viewers.
As with ad revenue, the revenue generated from sponsored content also depends on the CPM of the advertisement. Generally, the CPM of sponsored content is higher than the CPM of regular advertisements due to the fact that the content is customized to the brand’s or company’s needs. The channel owner earns 90% of the total revenue that the advertiser pays.
3. Selling Merchandise
Selling merchandise is a great way for a channel owner to monetize their channel. This could include anything from t-shirts and mugs to stickers, keychains, and more. The revenue generated from selling merchandise depends on the type of merchandise, the price of the merchandise, and how many items the channel owner is able to sell.
The great thing about selling merchandise is that the channel owner gets to keep 100% of the revenue that is generated. However, there are some up-front costs that the channel owner has to pay for the production of the merchandise, so it’s important to keep track of all of the expenses and revenues in order to be successful.
Conclusion
Overall, YouTube is a great way to generate income for small and large businesses. You can generate income in three ways: ad revenue, sponsored content, and selling merchandise. The exact amount of money earned will depend on the type of advertisement, the length of the video, the number of viewers, and the amount of engagement from viewers. With the right strategies and a bit of effort, you can easily make a good living from your YouTube channel.