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How Do YouTubers Make Money?

youtubers make money

The term ‘YouTuber’, is now commonly known as a job in today’s world. Still, most people have loads of questions about what they do and how YouTubers make money. This is why many YouTubers feel uncomfortable when answering questions about what their job is. They know that loads of other questions would follow.

man on an ipad on youtube

In this guide, we would be looking at some of the commonly asked questions about YouTubers. Our focus would be on how they make income. Let’s start with the most obvious question: What do YouTubers do? Well, YouTubers are individuals who produce videos for YouTube about a wide range of topics. Not only this, but they make an income from it.

But, behind what seems like shooting a video and just posting it on YouTube, YouTubers have to work with search engine optimisation and algorithms. They also have to create a content strategy to gain more subscribers and more profit.

Most people usually wonder how making videos and posting them on YouTube is a source of income, but YouTubers have different ways to make money through this job. Regardless of what the content is, there are three main ways that YouTubers make money.

Method 1 – YouTube Ads

The first is the YouTube advertisements, which show up along with the video you’re watching. You might have to watch an ad before your actual video, or they can pop up in the middle of long videos.

So, a brand would pay YouTube to advertise their product alongside popular videos, and YouTube would give the uploader part of that revenue.

Method 2 – Embedded Personalised Ads

Some creators also sell advertisements for placing in their videos. They can dedicate 5-10 seconds talking about a “sponsor” before they dive deep into their content. This method is usually the best way to integrate ads because it’s more connecting to the viewer being directly spoken by the youTuber. The brand would pay the YouTuber directly to do this.

The plus side about this method is that it’s much more engaging to their audience. It’s usually tailored in a specific niche. Many YouTubers use this method such as LinusTechTips.

Example of an embedded personalised ad:

Method 3 – Affiliate links

Thirdly, this method is a popular way to stack up money on the side. This works really well for product reviews and recommendations. The YouTuber will place their affiliate link in the description and if the viewer clicks on the link and purchases, then the YouTuber will earn a percentage of the sale.

Method 4 – Selling a product or service

YouTubers make money by selling things alongside their videos. For instance, a tech YouTube channel might sell different tech gadgets. Or, a YouTube channel dedicated to a celebrity fanbase can sell merchandise. Very popular YouTubers even have their own merchandise.

You can see YouTubers such as Nelk and SteveWillDoIt who run their own limited edition clothing brand Full Send, and beer company Happy Dad. This fully supports the YouTubers when they can’t use the other methods.

Ad Restrictions for YouTubers

Some accounts are restricted from using YouTube Ads due to “unsafe” or “non-advertiser friendly” content. It’s quite a common thing to happen in recent years which slowly forced many people to find other income streams.

This has happened to industries such as dangerous activities like urban climbing, extreme sports, non child friendly content, political content and much more.

Do brands send YouTubers free products?

This depends on the industry that the brand is running in, and how popular the YouTuber is. But this is a hugely popular way of brands getting their product in front of viewers.

For instance, a popular tech YouTube channel will receive new gadgets from tech companies to make videos for them to gain attention.

The same goes for many other industries. Brands send these products before release so the product gains enough attention before the release date.

Do YouTubers keep the free products?

After YouTubers make money with the products, can they keep it? This can be yes or no, depending on the brand and what the product is.

For instance, if you review a phone, there’s a good chance that the company would let you keep the phone. But you can’t say the same for something large like a car. 

Some YouTubers also buy the products after they return products to the company, so that they can make use of them and also compare new products to it.

How do YouTubers know what to do?

youtube computer desk with mobile

It’s a common question to wonder how YouTubers know what to do and how to do it.

Although there’s video production, entrepreneurship, and social media classes that you can take today, many YouTubers do a lot of research and go through trial-and-error processes before they fully get the hang of it.

Being a YouTuber does require a huge amount of effort. Obviously depending on your niche and can differ.

Final Take

Although anyone can be a YouTuber, not everyone can become a famous YouTuber that makes a profit. It requires a large amount of effort, time and skill. There’s a lot to consider if you want to be a YouTuber – make it your full-time job.

Take a look at this video below by the well known Marquees Brownlee talking about this topic:

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1 Comment

  • MyFansandMe
    28/07/2021 at 7:45 pm

    There’s also another way for YouTubers to earn money by offering requests, reactions, and shout-outs to their subs, fans, and followers at My Fans and Me.

    Reply

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