This is the most recent entry in Insider’s YouTube money logs series, in which producers detail how much money they make from the platform.
Passing the one million subscriber threshold on YouTube is a significant milestone, and in terms of its practical implications, it typically signifies that a creator may earn a living from the site full-time.
YouTube content producers can generate revenue through a variety of channels, but the advertisements embedded inside their videos typically contribute the greatest sum to their bottom line. For example, finance YouTuber Andrei Jikh, who has 1.7 million subscribers, has made $1.6 million in ad revenue in fewer than three years of uploading videos to the platform.
According to the lifestyle entrepreneur Tiffany Ma, who is also a YouTuber, she makes up to $11,500 per month from the advertisements that appear on her videos.
In order to begin receiving money directly from YouTube, content producers need to have at least 1,000 subscribers and 4,000 view hours over the course of the previous 12 months. After they have reached that number of subscribers, they are eligible to apply for YouTube’s Partner Program, which enables them to begin monetizing their channels through the use of advertisements, subscriptions, and channel memberships. Advertisers are required to pay a set fee to YouTube for every 1,000 times their ads are viewed. YouTube receives 45% of the revenue, and the remaining 60% goes to the original content provider.
The CPM rate, which indicates how much money advertisers pay YouTube for every 1,000 ad views, and the RPM rate, which indicates how much cash a creator makes for every 1,000 video views after YouTube’s share, are two important measures that determine how much money may be made on YouTube.
Certain topics, such as personal finance and cryptocurrencies, have the potential to increase a creator’s ad rate by drawing in lucrative advertisers.
According to Jikh, who spoke to Insider about cryptocurrency advertising, “the ad revenue for crypto is a lot more than anything else finance-related, like credit cards or banks.”
Ma has mastered a plan to maximize payment, despite the fact that the lifestyle content she creates brings in less revenue.
According to Ma, “I think YouTubers should certainly insert three to four commercials within a video in order to properly optimize their viewership.”
A good number of these YouTube creators also have other sources of income.
For example, Graham Stephan, who has 3.4 million subscribers, just established his own coffee business.
But the money made directly from YouTube serves as a crucial support system for the salaries of many content creators.