Sending and receiving money is now a breeze. And one can easily send and receive money with money transfer apps and even with their bank account (if they have one).
But how will one send money to another person if there is no money? Well, one thing right now is that with all the facilities that have been put to our disposal, one can make money easily, and even from the comfort of their homes.
With some common social media apps like Facebook, YouTube, Twitter (Now X), TikTok, and many others, one can make money from these platforms easily. But at times we ask ourselves questions like, How do these platforms make their own money?
Well, we will be taking a closer look at YouTube today and will be showing you how YouTube makes his money. Proving to you if YouTube is a legit platform or not for making money or for using it.
How Does YouTube Make Money?
Understanding YouTube
Youtube is an online streaming platform where one can watch videos, movies, and many others in HD, MP4, and many others. YouTube is also a video-sharing platform that allows users to upload, share, and view videos. It was founded in 2005 and has since become one of the largest social media platforms globally.
Key Features
- Users can create channels and upload videos in various formats, including vlogs, tutorials, music videos, and more.
- Users can subscribe to channels to receive updates when new content is uploaded, creating a personalized feed of videos.
- Viewers can comment on videos, fostering community interaction. Creators can engage with their audience through replies and discussions.
- Creators can earn money through ads, channel memberships, and merchandise shelf features. Joining the YouTube Partner Program (YPP) allows for ad revenue sharing.
- Creators can broadcast live to their audience, allowing real-time interaction through chat.
- A feature for short, vertical videos, similar to TikTok, designed to increase engagement and reach.
How Does YouTube Make A Profit?
YouTube generates revenue through several key channels:
1. Advertising Revenue (Ad Revenue)
The primary source of income is via ads. Advertisers pay to display ads before, during, or after videos. YouTube shares a portion of this revenue with content creators.
Types of Ads:
- Display Ads: shown on the sidebar of videos.
- Overlay Ads: semi-transparent ads that appear on the lower part of the video.
- Skippable Video Ads: Viewers can skip these ads after a few seconds.
- Non-Skippable Video Ads: Must be watched in full before the video plays.
- Bumper Ads: Short ads (6 seconds) that can't be skipped.
2. YouTube Premium
This subscription service allows users to watch ad-free content, access YouTube Originals, and download videos for offline viewing. YouTube earns subscription fees, a portion of which goes to creators based on their views.
3. Channel Memberships
Creators can offer channel memberships, where subscribers pay a monthly fee for exclusive perks, such as badges, emojis, and access to member-only content.
4. Super Chat and Super Stickers
During live streams, viewers can pay to have their messages highlighted (Super Chat) or purchase animated stickers (Super Stickers) to support their favorite creators.
5. Merchandise Shelf
YouTube allows creators to showcase and sell their merchandise directly on their channel pages, earning a share of the sales.
6. Affiliate Marketing
Creators often include affiliate links in their video descriptions. While this doesn't directly generate revenue for YouTube, it can enhance the platform's attractiveness to advertisers.
7. Content Partnerships
YouTube collaborates with companies and brands for sponsored content, events, and promotions, generating additional revenue.
8. Licensing Content
YouTube can also earn money by licensing popular content to third-party companies or for use in advertising.
By diversifying its revenue streams, YouTube has established a robust business model that benefits both the platform and its creators.
How much does YouTube pay for 1 million views?
On average, YouTube pays between $0.003 and $0.005 per view. For 1 million views, you can expect to earn between $3,000 and $5,000.
How can I make money on YouTube without making videos?
It is quite easy to make money on youtube without making videos. There are third-party apps that permit one to earn by watching videos on YouTube and many other ways.
Final Thought on YouTube making Profits
YouTube is a very popular online platform. And right now, they rank second in the search term queries and are considered first for streaming videos and publishing others.
Because of some of these things, people tend to ask some questions about Youtube. Some people really want to know how YouTube really makes their money to grow and pay other people that make money from them.
Some people ask this question so that they will be sure if the Youtube source of income is legit. Well, we explained some ways that YouTube uses to make money, from the most common way to the least common