DIRECT INCOME FROM YOUTUBE
This takes the form of ad revenue per 1000 views- how much do you really get paid?
This does not include affiliate marketing, sponsored products, et cetera! These are INDIRECT income from YouTube because you are using your YouTube influence to ask for money from other people. With DIRECT income from YouTube, the company is paying you directly to be on their platform.
The only way YouTube does this is with ad revenue, and this is given to you based on video performance
Some videos make small amounts (such as £0.50 per 1000 views) and some videos make large amounts (such as £22.00 per 1000 views). This is determined by your video SUBJECT, the ANALYTICS of who watches your video and for how long, the SUCCESS RATE of the viewer interacting with the advert, and HOW MANY ads you show in one video.
The best performing videos are long videos on financial topics, because these tend to score highly in all four categories above! They have long videos and a high percentage of people click on the ads on finance videos. So an episode which interviews a financial expert for 45 minutes would be an excellent video for making lots of money in ad revenue!
However if you can make a video that gets paid £10.00 per 1000 views and it only gets 100k views (£1000) it will pay you less than a video that gets paid £1.00 per 1000 views and gets viewed 2M times (£2000), or if it takes two days to make a £10.00 per thousand view video, versus a video that you could make two every day, the video that you can make four times the frequency means it can be one quarter of the payout (so a £10.00 video once every two days or a £2.50 video twice per day are exactly the same).
So if a video makes £1.50 per 1000 views, and a video is viewed 1M times, that means the person was paid £1,500 for that video. Today (2020) YouTube deducts its fee BEFORE it pays you for your ad revenue. So when you see your revenue (for example £10,000 in the last 28 days) that is the amount that you will receive from YouTube. So if you see that you have had 10 million views and made £10,000 that means you made £1.00 per thousand views
Direct revenue from your channel is good because you can see exactly how much you were paid. BUT it is quite a weak way of making money from YouTube compared to indirect methods! These indirect methods use your influencing power to make money for other people (or your own products) and this is where the majority of income is generated when you have a successful YouTube channel with high influence
So in general indirect methods are superior and make far more income than direct methods (ad revenue)
In the next insight we will look at these indirect methods, and then we will look at HOW you build a successful YouTube channel!!
I wrote this in about 5 minutes with the thoughts in my head during a work break on a busy day so if I have forgotten anything important please let me know!! Thank you for your time in reading :)
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ONLINE MEDIA- building a business on YouTube, podcast, social media: how do you build the most influence (and make the most money)?
This is not ESSENTIAL to succeed, but if you have a large online following it will help ANY business to a large degree
If you are skilled in building online influence, you will be able to help any business that you make by building high interest and hot leads. Online influence is massively growing and will become an even bigger aspect of marketing a business in the next 25 years
It will also make lots of money by itself! Tens of thousands of people make over £200k per year just from the online influencing platforms alone
So this upcoming topic is about how to make money online with the power of your influence (YouTube, podcasts, online course downloads, and social media influencing)
So we will look at:
-direct money from YouTube
-indirect money from YouTube
-how to grow and monetise YouTube
-indirect money from podcasts
-how to grow and monetise podcasts
-direct money from downloadable courses
-how to grow and monetise courses
-indirect money from social media
-how to grow and monetise social media
-how to link YouTube, podcasts, courses and social media together to grow all of them
-how to use the influence from these to help your product-selling business
-how to use the influence from these to help your service-providing business (including b2b)
These will each be their own insight but I havent planned them so there might be more as I talk about these topics! So there will be a minimum of 12 insights on this broad topic
INDIRECT income from YouTube gives a much higher income than DIRECT income (ad revenue)
The money you can make is determined by your influencing power! Your influence is determined by a) how many views you have b) how likely those views are to result in an action (such as buying a product or visiting a website)
This means that somebody with 1 million subscribers and 1.5M views per video, but an audience who doesnt engage well with your content, will have less influence than a channel with 10,000 subscribers who follow loyally and have a high engagement with your content! It is the influence of your channel, and NOT your views, which determines your indirect income from YouTube
So for indirect methods you are selling your INFLUENCE in the same way an Instagram influencer or a football team sells their influence when they advertise
The highest paying of these indirect methods is directly selling YOUR product or service on YouTube
So if your channel talks about furniture (chairs, sofas, tables) and you have links to your own furniture shop in the video, then the aim is for people to see the video and buy furniture from YOUR shop! This way, you are using your influence to sell your own products, and this makes the maximum amount of money
So if your channel is a gaming channel you could sell controllers, games, consoles, chairs and equipment on your own shop, and then anybody who wants to buy those items for themselves will be likely to click the links in your video and buy from your shop, because a) this is the easiest route for the customer because the links are easily available b) they have seen that exact item being used so they want that item rather than a rival item c) they are loyal to you and might want the exact one you use (brand loyalty)
The second best way of making indirect income on YouTube (by selling your influence) is by advertising the products of other companies. There are two ways to do this:
1: affiliate links are links to products which viewers can click on, and if they make a purchase after clicking on your link, you receive a small cut of money. If this amount is, for example, 5%, it means that for every £1000 of products people buy after clicking your link, you make £50. This can be a lot when your channel naturally sells certain things, for example an aquarium channel could have lots of links to aquarium equipment which the videos organically promote, and sells thousands of pounds worth of products this way (although I would recommend starting your own shop online if you are selling large amounts of affiliate products)
2: sponsorship/ advertising. This is when a company pays you to openly sell or represent their product. Just like how Coca-Cola sponsors the Olympics, a headphones company might sponsor your ‘how to become a musician’ channel. This can be good because you know how much money you will be paid, whereas for affiliate links you don’t know how successful the links will be. However it needs to be done subtly because viewers tend to dislike open advertising on videos such as sponsorship, unless it is done well.
The final and very useful way of making indirect income from YouTube is with a subscription donation! This can either be ‘support me on patreon so I can keep making videos for you’ or it can be ‘lets hit this target to fund something specific’. There will be a small number of viewers who like your content so much that they are happy to donate to you! There are channels with tens of thousands of patreon donors, so if you have 5,000 supporters on patreon and they average £2 per month, this will be an income of £120,000 a year just from your patreon supporters. A great way of increasing this number is to ask in a good way, and another is to give generously back to your supporters in some way (for example talking about them a lot or even giving them free things).
For the second donation method, this is when you ask to raise money for a specific cause. For example if you have an embroidery channel you may want to raise money to buy a specific machine that will improve your videos, or raise money to get a batch made by a factory with your designs on (and anybody who donates gets free items after).
So these are the best ways to make money INDIRECTLY by selling your influencing power on YouTube! Again, I typed this without notes on a busy day so if I have missed anything please let me know! I will be very busy for a few weeks so this will be very common for me for the timebeing!
Next time we will look at HOW you grow a channel that has loyal followers who will engage strongly and give you the most influencing power
Thank you for your time!