A Guide To Monetization on YouTube

A Guide To Monetization on YouTubemake-money-with-youtube

By: Ryan Prussky


YouTube has hundreds of new people joining the online platform all with one question, how should you monetize your videos? New creators find themselves feeling discouraged when they first start posting and realize they aren’t receiving any revenue. Although it is possible to make a great deal of money using YouTube, it is not as simple as posting and getting paid. In fact, new creators should not spend too much, if any, time on monetization, instead you must first hone your craft. You must build an audience, but more importantly you must have strong passion for YouTube itself.

Some people love Youtube but only see it as a video platform website and refuse to acknowledge that it is actually a social engagement tool. It is important to remember that in order to profit from your content you must first engage your audience which will result in building a following. Once you gain that following you are able to do a lot of things, including making money from your channel. However, if you start off with the thought of making money instantly you probably will not get there.

So now that you’ve built a following, what strategies are effective in monetization through YouTube? Big YouTubers are able to make money in a number of different ways, the first is by using AdSense which is done through YouTube. This AdSense gives a revenue split for any and all YouTubers monetizing off this site. When a large following is acquired, along with a large view count every month, it ends up being quite a bit of money, even with the revenue split. In addition, the large monthly view count allows for the creator to set up further revenue streams elsewhere that can be advertised in their own content.

These outside sources can include merchandising divisions which sell practically everything, from T-shirts and hats to photos and calendars. Unless the merchandise is created by the creator on the YouTube channel, a small percentage will be split with the manufacturer’s. Although there is another revenue split, it still greatly increases your income. Overtime YouTubers often become more comfortable with operating on and off of YouTube and producing the highest quality content on a very cheap budget. This commonly leads to more traditional media players coming to the page creator asking them to create content for them.

This will ultimately lead to your YouTube channel evolving into a production house, which will encourage other media outlets to paying you to create content for them. In this situation, all agreed upon revenue is given to you, rather than split with YouTube or some merchandising manufacturers. There are a lot of ways to make money on YouTube once you have established your success by building content and a large audience.


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Note: The accepted formula that Auxiliary Mode Inc. uses to calculate the CPM range is $0.45 USD - $25.00 USD.

The range fluctuates this much because many factors come into play when calculating a CPM. Quality of traffic, source country, niche type of video, price of specific ads, adblock, the actual click rate, watch time and etc.

Cost per thousand (CPM) is a marketing term used to denote the price of 1,000 advertisement impressions on one webpage. If a website publisher charges $2.00CPM, that means an advertiser must pay $2.00 for every 1,000 impressions of its ad. The "M" in CPM represents the Roman numeral for 1,000.

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