We all love watching our favourite creators on YouTube. But have you ever wondered how do they capitalise on the views and likes and number of subscribers? Let’s have a look at different streams from which a YouTuber can earn.
Who knows, you might even start your new YouTube channel after this!
Crux of the Matter
Type Of Audience
The audience of any creator can be bifurcated into 3 different categories:
1. Casual Viewers: They form majority of the total audience. They are aware about the creator but don’t follow them religiously.
2. Active Viewers (Fans): They form a good chunk which regularly follows and engages with the creator on different platforms.
3. SuperFans: They are very niche but highly monetizable as they are willing to go an extra mile to interact with the personality.
The avenues are divided into majorly 2 parts:
a. Business to Business – This is further divided into Adsense and Brand Deals
b. Business to Consumer: This is further divided into Merchandise and Paid Content
By this medium, YouTube sells ads through creators’ video
For such slip in ads, YouTube pays creators close to 50% of revenue generated. YouTube also tends to surface creators video more often, leading to exponential rise in views.
AD SENSE US v/s India Pay Comparison: In US, for every 1000 views, a YouTuber on an average earns $5.3. The same figure for India stands at $0.25.
Various business houses/brands collaborate with creators in order to promote their products or services. This medium is a source of generating a sustainable income for creators as they can indulge into year long partnerships.
When creators grow a substantial audience with good concentration of Active viewers and Superfans, introducing one’s own merch is a good business model. It helps in creating a closer community besides not limiting the income stream to content creation or brand deals.
The most common method of merchandising is introducing a line of apparels. Although in the past couple of years, merchandising has evolved significantly. Some of the examples are: Mr. Beast Burger by Mr. Beast, Dispo (photo sharing app) by David Dobrik, Chamberlain coffee by Emma Chamberlain, Latercase by UnboxTherapy.
Paid Content is a content behind a paywall and can only be unlocked by paying for it. Again, it is only feasible when a creator has a decent number of active viewers and superfans. Categories of paid Content are:
a. Online courses: Exercised by creators generating knowledge through their content. If a course is worth ₹1,000 and 100 people opt for it, a creator can generate ₹1,00,000.
b. Monthly subscription to Exclusive Clubs: Audience can join various membership clubs for as little as ₹29/month and get access to exclusive content, and have better reachability with the creator.
- Ryan’s World is a children’s YouTube channel featuring Ryan Kaji, a 9 year old, along with his mother. According to Forbes, Kaji was listed as the highest paid youtuber for the year 2018 and 2019, earning $22 million and $26 million respectively from his videos and product line.
- On October 9, 2006, Google announced that it had acquired YouTube for $1.65 billion in Google stock. The Daily Telegraph wrote that in 2007, YouTube consumed as much bandwidth as the entire Internet in 2000.
- Susan Wojcicki is the CEO of YouTube. Wojcicki was involved in the founding of Google, and became Google’s first marketing manager in 1999. She proposed the acquisition of YouTube by Google in 2006, and has served as the CEO since 2014.