Demystifying Digital Profits: How Does YouTube Pay?
One of the most prevalent questions for aspiring YouTubers and those unfamiliar with the platform’s monetization process is, “How does YouTube pay its creators?” If you’re also intrigued by this question, you’ve landed on the right blog. Today, we’re going to break down the different ways that YouTube pays its creators and how you can get your slice of the pie.
YouTube Partner Program (YPP)
The YouTube Partner Program (YPP) is the primary way YouTube pays its creators. After reaching the eligibility criteria of 1,000 subscribers and 4,000 watch hours in the previous 12 months, a creator can apply for the program. Once approved, the creator can start earning money from ads displayed on their videos. Here’s how it works:
1. Ad Revenue
YouTube places various types of ads in and around your video, and you earn money from:
- Display ads
- Overlay ads
- Skippable and non-skippable video ads
- Bumper ads
- Sponsored cards
Revenue is generated based on clicks or impressions. The amount you earn can vary depending on factors like the video’s content, demographics, and the advertiser’s bid. YouTube typically pays out 55% of ad revenue to creators, with the remaining 45% retained by the platform.
2. YouTube Premium Revenue
YouTube Premium is a subscription service where members enjoy ad-free access to the platform, among other benefits. As a creator, you get a portion of the fee when a YouTube Premium member watches your content. The payout is based on the total watch time of your videos by Premium members.
Channel Memberships
Channel memberships allow your subscribers to pay a monthly recurring fee for special perks like badges, new emojis, Members-only videos, and other exclusive benefits. This feature is only available to creators who are part of the YPP, over 18, and have more than 30,000 subscribers.
Super Chat & Super Stickers
Super Chat and Super Stickers are ways for fans to pay to pin their comments on live chat or attach a colorful sticker during a live stream or Premiere to stand out from the crowd. These features are another means of earning revenue on YouTube.
Merchandise Shelf
For creators with more than 10,000 subscribers, YouTube provides a merchandise shelf feature. This allows creators to showcase their official branded merchandise right on their YouTube channel. YouTube has partnered with various merchandising companies, making it easier for creators to sell their products directly through their channel.
YouTube Shorts Fund
In response to the rise of short-form video content, YouTube has set up the YouTube Shorts Fund, a $100 million fund distributed over 2021-2022. This fund rewards creators of engaging and popular short-form content, even if they are not part of the YPP.
It’s important to remember that different monetization methods will suit different creators, and what works best for you will depend on your content, audience, and the level of engagement on your channel. To maximize your income from YouTube, consider diversifying your revenue streams by combining several of the above methods.
Understanding how YouTube pays is the first step to making money on this vast platform. Just remember, creating a successful YouTube channel requires dedication, creativity, and patience. Keep creating and keep experimenting, and who knows, you might just become the next big YouTube sensation!