With over 1.9 billion monthly users, YouTube makes up for nearly half the internet. This is a huge audience that translates into a great opportunity for people to earn from it.
Traditionally, people would make money from YouTube by uploading top-quality content which would garner millions of views. However, with the advancement in the digital age, content creators now have several options to monetize their content on YouTube. Some common ways to earn money via YouTube include advertising, fan funding, merchandise sales, and corporate sponsorships from a major brand.
Here is a list of ways to make money from YouTube.
Affiliate marketing is where you sell other people’s products and charge a commission for every sale that comes from you. It is one of the most popular methods of earning money from YouTube. To become an affiliate marketer, you will have to add a link toa specific product/service in the description box. Note that this link is a unique URL that is linked to your account.
There are several companies that have affiliate marketing programs such as eBay, GoDaddy, Gearbest, etc. However, the most popular and simplest amongst these is the Amazons Associate program. This program gives you a commission of 4 percent for every sale that is generated from your URL. All you have to do is simply sign up for the program, after which you will be redirected to your portal. Then you will have to search for any item listed on Amazon and create a unique URL for it. Next, you will have to create a small video about the product to highlight its best features and ask your viewers to click on the link in the description box.
The best thing is that you don’t need a large number of subscribers to become an affiliate marketer. Even if you have a small YouTube channel with a limited number of subscribers, you can still benefit from these programs. Plus, if one of your viewers clicks on your link to purchase a specific product, but ends up buying another one, you’ll still receive a commission. This means that you can easily get a commission for a $1,000 product, even when you marketed a $50 one.
Another technique to earn from YouTube is brand sponsorship, or in other words known as influencer marketing. Here, a brand will recruit you to market its products or services in a video. For instance, the very famous makeup YouTuber, Michelle Phan would get sponsorships from popular cosmetic brands like Lancôme.
In 2019, there were over 700 agencies that would help connect brands with social media influencers on different channels like Facebook, YouTube, Instagram, Twitter, and Snapchat. However, these agencies naturally charge a brokerage fee. One such example of these agencies is YouTubesFameBit, that charges a 10% brokerage fee for any deal it brokers.
For this monetization technique to work successfully, you need to have a large number of subscribers. If you only have a few subscribers, brands will not be interested in your channel. This is because their target audience will be limited, and they won’t be getting possible prospects from your channel. However, this might not always hold true. For instance, some brands offer small YouTubers free items or products for promoting them, instead of money.
Remember, once your subscribers increase, and your channel grows, you will start receiving sponsorship proposal emails. This is because businesses want to ensure they are present on all platforms where their target market is spending time. So, if your channel is one such place, you are definitely going to be getting plenty of sponsorship proposals.
Another great way to make money from YouTube is by selling your merchandise. There are essentially two ways in which you can do this. Firstly, you could source products, purchase them in bulk from Shopify and Amazon, and resell them for a higher price. Secondly, if you are a manufacturer, you can leverage YouTube to sell your products on your channel.
YouTube partners can also enable this option in their account and sell up to 12 merchandising items to their audiences. A famous example of a YouTuber making money through merchandise sales is Jeffree Star. This YouTuber made millions of dollars by selling eye shadow palettes, highlighters, and lipstick to his fans.
Selling merchandise sounds easy but it comes with its fair share of challenges. You need to make sure that you have enough time to handle, pack, and deliver the orders. You can hire an assistant but that comes at a cost too. So, make sure that you have sufficient time to fulfill your orders professionally or enough money to pay your assistant. If you fail to honor the orders, you will not be successful. Remember that customer satisfaction is a key aspect of e-commerce.
Another thing that you need to have is a space you can use a warehouse to store your products. You can do this inside your home but if the products are too big, then this might be a challenge. Lastly, you need to be aware of the fees. For instance, there is going to be a delivery charge for shipping the products from the manufacturer to you. Moreover, there will also be a cost associated with packing the products and storing them.
Another less known way to make money from YouTube is via channel memberships. You can have a recurring monthly fee for followers and fans in exchange for additional content. This bonus content can include live chats, special videos, badges, emojis, and other value-added content.
YouTube partners who have a minimum of 1,000 subscribers can enable this feature of Super Chat on their channel. Third-party service providers such as Patreon assist YouTubers in making money via these memberships.
These useful and creative techniques to make money on YouTube have attracted a large number of people to earn from it. According to Forbes, the most popular content creators are making approximately $20 million a year so it’s easy to see why people are now moving towards it.