YouTubers have a lot of earning opportunities.
The most common ways they make money on YouTube is via YouTube’s AdSense where Google displays ads on their videos and pay them for it when their audience interact with the ads.
There are two types of interaction in this manner, either the viewing the ad or clicking on them.
In the former, your audience will probably watch at least 30 seconds of pre-roll ads before watching your main video content . As long as they aren’t using AdBlock, this will make you money but most YouTubers don’t have to worry about the ad blocks since a large population of their audience normally use the YouTube mobile app, YouTube tallies up the revenue they make from ads (before the video and banner ads), and then splits that profit with you; usually they take 32% and you take 68%.
Earnings from this type of interaction are calculated on CPM basis i.e cost per mile (1, 000 views)
A particular amount is given to you for every 1000 views but have it in mind that the amount varies as it depends on the niche the youtuber is into for example A YouTuber who runs a news channel might receive $2 for every 1000 views, while another youtuber whose channel is about cars might receive as high as $20 per 1000 views.
This second form of interaction is known as CPC i.e cost per click. Every time a viewer clicks on the link to the advertisers site, YouTube pays you an amount of money.
This also depends on what niche you are in and how targeted is your audience.
The amount they will pay a video creator that does tech gadget review will be high compared to someone that does comedy skits.
Advertisers love to push their ad in front of intending customers and will pay more to anyone with the majority of his audience being their target.
Below is a simple calculation given by a pro youtuber in his answer on quora
Advert or Monetized video views:
Assuming 1million views, for every 1000 views you get $3, i.e
1000 views => $3
10,000 views => $30
100,000 views => $300
1,000,000 views => $3,000
2. Advert Clicks :
Lets assume for an average click we get $0.45 and from 1million views we are using as a case study, lets assume 9,000 viewers actually clicked or watched the advertisers video;
it’s 9,000 x 0.45 = $4,050
So that is, $3,000+$4,050 = $7,050
i.e CPM + CPC = TOTAL
Once YouTube take their share and tax, the youtuber with 1 million subscribers will have pretty much what is left of the total $7,050
YouTubers also make money from sponsorship deals.
This works well for celebrities and channels with big audience. Have you seen a channel that stylishly promote some company in their videos?
If you are a fan of Mark Angel comedy, you may have come across some of their videos where Emmanuella and the others drink and talk about freshyo or the other video that she answered all the questions in her Uncle’s class using Wikipedia.
Those are sponsored videos and they make a killer income from those deals.
YouTubers also make money by selling their own products.
You may have come across a YouTube channel that has a customized T-shirt with the channel’s name on it or some others that ask you to register for their online courses or webinar. They are all selling their products.
Affiliate marketing is also one of the ways they make money on YouTube.
In this case, you register with an online shop that accepts affiliate marketers and has products related to your niche which may be helpful to your audience.
All you have to do is pick the product you want to recommend to your users, generate a direct affiliate link to it and share the link in the video description and ask them to click the link to purchase.
You’ll get a percentage of the sales price when the item is purchase with your referral link. This is another cool way to make money as a youtuber