– In this video you're
going to learn everything you need to know about
YouTube monetization. In fact, I'm going to
be revealing how much YouTube pays me for 3 million
views over the last month. We're also going to be talking about how to join the YouTube Partner Program. The five ways to earn money. Payment methods and taxes, like how to actually collect the money from Google, who owns YouTube. Key terms you need to know. And a new report that reveals
how much creators are earning. Currently, millions of
creators are earning money from the YouTube Partner Program. And we're going to be touching on alternative forms of revenue.
So, if your ambition is to
be able to work from home. Make a living from your
influence on YouTube. Bolt on extra streams of revenue to your business as an entrepreneur. Then you're going to want to buckle your seatbelt
for this entire video. Because it's power packed with lots of important information
that you need to know if you're serious about YouTube. This information is coming
directly from the source. It's coming from YouTube
and it gets kind of complex. So, I'm going to be breaking it down. So, that you can understand it
and apply it to your channel, to not just grow faster,
but to make more money. You got to just press record.
If you're new to the channel. My name is Sean Cannell. My passion is helping you build
your influence with YouTube. I've built multiple YouTube channels and my passion is
helping other people like some of our students that
you can see on screen here. Get that silver play button.
Monetize their influence and
build a full time business around their YouTube channels. So, click subscribe if you haven't yet. And today's episode is all about YouTube monetization explained. Five ways to earn money
and how YouTube pays you. Now, this is part of
our three part series. Part one, we talked all about YouTube
search and how YouTube works. And part two, we talked all
about YouTube recommendations. And once you got the views going. Once you got that momentum. Once you got the subscribers coming in. Well, then how do you monetize? And so this is how YouTube works. Part three, all about monetization. And today's episode is brought to you by our YouTube starter kit. And if you haven't heard, we are running a very
limited holiday special.
Where you can get 90% off
the YouTube starter kit. If you haven't seen it's
a digital asset bundle. That is full of powerful resources, like our YouTube clarity blueprint. The 15 YouTube title
formulas for getting views. 51 moneymaking video ideas guide. Which is very important in case you're not in the YouTube Partner Program yet. 51 video ideas to jumpstart your camera. Best cameras and video equipment.
How to create awesome thumbnails. Which has a training of how we create thumbnails on Think Media that has not been released anywhere else. We have a very special price of 37 that's over 90% off during the holidays. So, tubestarterkit.com is where you can learn more about that. And now let's get into the episode. So, how do you get into the
YouTube Partner Program? Well, to apply for the
YouTube Partner Program. You must meet, check this out. Eligibility thresholds related to watch time and subscribers. You must fill out an application and then YouTube reviews the application.
To ensure that your
channel has not run afoul of YouTube monetization
content and copyright policies. Only channels that meet
eligibility requirements and thresholds and follow the guidelines will be admitted to the program. Which makes them eligible to receive access to ads and other
monetization products. So, if you're excited to actually explain some of this crazy language,
smash the like button. Because I'm going to try
to make this as clear and as simple as possible in this video.
But if you want the current update of how monetization works. Let's break it down. So, the minimum eligibility
requirements to join is that you need to follow
monetization policies. We're going to talk about that. But that's a collection of policies. There's a lot of different ones. And if you're a YouTube partner, your agreement includes
that you're in compliant with things like copyright. Things like YouTube's terms of service. That you have advertiser friendly content. That you live in a country where the YouTube Partner
Program is available. Now in the description, there's going to be a series of links. The YouTube Partner Program is available and I think nearly a
hundred countries now.
So, you need to be living in a
country where it's available. You need to have more than
4,000 public watch hours. That's hours of your content consumed across your whole
channel within 12 months. And that's a rolling 12 months. It's not like ever. It means it's always the last 12 months. Have you hit 4,000 watch hours yet? And I think it happened to me
on one of my smaller channels. I actually got booted out of the program for not maintaining my
amount of watch time hours. So, you have to make sure you hit that. You need at least 1000 subscribers and then you need to
link an AdSense account. And we're going to continue to explain these things in greater detail. Now in the back of your YouTube channel. You're going to see once you have accepted the program terms. Once you have set up your
Google AdSense account. So, the two different things you need to set up is a YouTube channel and then you also need to set
up a Google AdSense account.
Remember links in the
description to resources. Once you've got your
monetization preferences set up. Then your channel goes into a review after you hit the targets. And so what you'll see, it looks different depending on how updated the backend of your YouTube is. It'll say you need 1000 to be reviewed and 4,000 to be reviewed. So, it'll count it up. Now at the time of recording this. I'm recording it on our Think
Marketing YouTube channel on our Coffee with Cannell Show. And we just got this channel
it's brand new this year. And it took us a few months
to hit these targets. We were rolling the hours up. Uploading our video podcast
and doing live streams. Like I'm recording this one. And we were just calculating those hours. Hit the subscribers. And then eventually we
applied to get reviewed. It sometimes can take a couple of days. It could sometimes take weeks. So, that's kind of the process. And in the back end of
your YouTube channel, you'll see where you are on that journey.
So, you also need to set up an AdSense account for your payments. And then later you will connect that AdSense account to
your YouTube channel. A key thing here is you really want to make sure you only have
one AdSense account. They're very passionate about this. Notice it says duplicate AdSense account created through your
YouTube will not be approved and will be turned off for the
associated YouTube channel. So, let's summarize it. How do you join? You need to make sure you
start a YouTube channel. Then you need to follow YouTube policies. We're going to go deeper
into those in just a second. So, this is where it gets into the idea that just because you
have a YouTube channel and even just cause you're
getting your content viewed.
If you don't rest inside of YouTube's good graces
regarding your content. Then you may not be
approved for monetization on a channel basis or on
an individual video basis. You got to live in a
country where the YPP, the YouTube Partner Program is available. You have to reach the
eligibility thresholds. 1000 subscribers, 4,000
hours of watch time in the last 12 months. You then have to apply and get reviewed. And there's not a lot you can do to speed that up or not.
Besides maybe how advertiser
friendly your content is. How much content you've posted. YouTube likes to say, part of the reason of those
eligibility thresholds is now they have something to review. They can see your brand. They can see your channel. They can see your thumbnails. They can get an idea of
what your channel is about. So, if it becomes very
quickly clear that, wow, this person is not really playing in like a copyrighted content place.
Their topic and subject matter is really aligned with advertiser guidelines. They've been putting out a
lot of consistent content. There seems to be good user engagement. Those things could potentially get your channel approved quicker. And let's say you're more borderline in a gray area of the type
of content you create. It might take longer. And again, there's not a lot you can do to control that review timeline period. And then number six, you got to set up an AdSense account and then link your AdSense account. And once you've done all these things. You could start collecting
money from YouTube. A couple of things that'll
help speed up getting approved is you want to enable
two-step verification for your Google account.
Which means you will protect
your account and your password. So, it's smart. You should have two step
verification everywhere to prevent you or help
you from getting hacked. Make sure you only have
one AdSense account. And then once you get accepted, then you can start building from there. If you get rejected from
the YouTube Partner Program and the reviewers found
that a significant portion of your channel doesn't meet the policies and the guidelines you
can reapply after 30 days. So, don't worry if you get rejected. You can always reapply. All right, next. What are YouTube monetization policies? That's the big question, right. A key eligibility requirement of the YPP is to follow monetization policies. They include community guidelines, terms of service and the Google
AdSense program policies. That's quite a bit of stuff, right. So, here's what you have.
You have community
guidelines, terms of service, copyright, Google AdSense policies and advertiser friendly policies. Now I've got good news for you. If you're already feeling
a little overwhelmed. Take a deep breath and know that there are other ways to
earn money besides the YPP. However, this also should
not be super overwhelming because if you're just making good content that's helping people and serving people. This shouldn't really
cause you any stress. But YouTube is a massive
company owned by Google, right. That is actually paying millions of creators through this program. And when you sign up for
this, you're in business. It's just like going to sign up for a job and to get hired at a new job. Where are you going to fill out like forms and go through training and onboarding. So, they have legal vulnerabilities
as a massive company. They're in business with you.
So, that's why there's all of this different policies and whatnot. So, here's a couple clarity
points of what this stuff is. Community guidelines. That includes spam and
deceptive practices. Are things that will get you disapproved. If you are impersonating somebody else. If you're linking to porn or
malware or deceptive content. If you're running scams. Sensitive content, anything that maybe violates child safety. Thumbnails with sensitive content that maybe has like nudity or violence or misleading thumbnails. Self-injury, suicide. This video will probably get demonetized because of the words I'm using. Violent and dangerous content. Cyber bullying. Regulated goods. It could be illegal or
recreational drugs, firearms, all of that kind of stuff. If your content is about that. You may not get your
channel monetized because you could be outside of
the community guidelines. If you go well, this channel that does that
kind of stuff is monetized and is part of the YPP. Well, one, they might have
limited ads being shown. Or sometimes you might
get your channel approved, which is fine. But maybe you talk about one of those topics in a particular video.
And that one video might get demonetized. Just like this one might get. Notice, even the words I was saying. I said some words just now about nudity. Like YouTube might turn the monetization of this video from green to yellow. Because I'm talking about illegal drugs. They're going to hear
those types of things. All the more depending on what the visuals are in your video and whatnot. And that's just your general
community guidelines. I get it. You might be like, why
can't I just talk about whatever I want and just
have YouTube pay me. Look, you're in business. They're the boss. We're technically the
employee in terms of the YPP. If they say jump, we say how high. Unless you want to monetize in other ways. And we'll talk about that. But I think that is an
important thing to know. Now, the terms of service are just like, you probably do this with
every software you install. Every time you open up like your phone, your droid, or your Apple.
And you just skip through 48
pages of terms of service. Well, yeah, that's going to be your rights, YouTube's rights. How they're going to
handle your information. So, you have to sign off on that when you sign up for YouTube channel and an AdSense account. Lots of details in there
we won't go into it. Copyright. Creators should be uploading videos that they've made themselves. That you're authorized for
all the content in the video. That means you shouldn't
upload videos you didn't make or use content in your
video that is copywritten like music or copyrighted
programs or TVs or video made by other users without
So, if you really want to
be on the safe side of YPP. You want to avoid copywritten content. Now there's a whole segment of people who use what's called fair use
to put compilations together. Gaming is technically copywritten. But a lot of gaming companies will allow their content to be streamed. Because they know it builds their brand. Others have challenged
that and it seems weird. But yet it's in their power to do so. There's movie review channels
that play clips of movies or photos of movies talking about recaps of shows or seasons. So, there's ways to use
copywritten content. That's a subject for another
day regarding fair use. But you could get into trouble if your content is not your own. What you want to consider is you could be building your channel. Hitting your subscribers, getting views, getting your hours and then your channel might not be approved depending on the type of content on the channel. So, if you're going to build a YouTube business around the YPP. You want to think through all of these things and you
can study more fair use.
If you are creating
certain types of content. Then of course Google's AdSense policies. Now, Google AdSense is the ad platform that integrates through the advertising that will play in your videos. So, some of their policies are like, that you're not going to
click on your own ads. That you cannot tell your viewers to click on your own ads or try to reward, hey, we're doing a giveaway.
You know, if you click on whatever. Invalid clicks spam, because they don't want
you to game the system and that's kind of what
those policies are. And then you've got your advertiser friendly content guidelines. So, if you check all the boxes. You're kind of within
the community guidelines and these overlap a little bit with the advertiser friendly guidelines. But again, this now is up to Target. Whether they want to
advertise on your videos or whether a baby clothing company. A particular church or faith group may not want to advertise on
a certain type of content. So, if you want to be advertiser friendly. Inappropriate language could
cause limited monetization or demonetization and
not getting approved. Violence, adult content, shocking content, harmful and dangerous
acts, hateful content, incendiary or demeaning content, recreational drugs or
drug related content.
Tobacco-related content, firearm content, controversial issues and sensitive events and adult themes in family content. I know this is controversial
and some people go, well, I want to talk about the news. I want to talk about world events. And this is something that YouTube continually struggles with. This is why many news channels. Whether it's on the right or the left. Whether it's one of my favorite news channels Phil DeFranco.
Why he has created multiple
other revenue streams. When you're talking about the news. You might not be a channel
about recreational drugs. I'm talking about it right now, right. And this video might get demonetized. Therefore you have multiple
other streams of revenue. You want to worry if this is
the theme of your channel. But I wouldn't worry too much about one-off videos being monetized or not. Because sometimes you
just want to talk about, or need to talk about what
you need to talk about. But these are important
information to know. At the end of the day this is the YouTube monetization policies.
And so, when you are in
the good graces of YouTube. Then things will go great for you in the YouTube Partner Program. Let me give you an example
on our channel Think Media. We're pretty advertiser friendly. In fact, like almost completely. I would think completely. Because we're talking about cameras. How to use a camera. We don't curse in the videos and we don't use illegal drugs
while filming the videos. See, what I mean.
It's pretty straight and narrow. Now on the other side. Depending on your content format. These are things you need to consider and please do not unless
actually if you want to drop a comment and talk about
how mad you are, please do. At the end of the day, they go, well, this is YouTube's free
will to let you in or not. So, advertisers want
certain types of content. And by the way, there
are certain advertisers that actually maybe want edgier content. They don't mind being on
certain types of content and YouTube is giving an environment where that is made possible.
All right. So, the five ways to
earn money with the YPP. Hit the like button if
you're getting value out of this video so far. So number one, advertising revenue, we all know this. When you watch an ad that plays at the beginning of a video. This is also overlay ads, a little banner or different video ads. Display ads. When you search and
there's ads at the top. Channel memberships. You can become a member of certain channel if they set that up and you
can collect money monthly for someone to subscribe for
like premium content from you, for extra videos from you
that are just for members. Merchandise shelf. Underneath your videos on
our Think Media channel right underneath the video, you can get, Think hats, Think
hoodies, things like that.
So, people can browse and buy merchandise. Super chat and super stickers. If you're getting value
out of this very training, you could drop a Super chat. You could do a super sticker. And this gives you a chance to have your message highlighted and to kind of be like a tip jar to say, hey Sean, grateful. YouTube premium revenue. This is interesting because
I pay for YouTube Premium. This is I pay so that I don't see any ads. But the big thing about
YouTube premium revenue is you're skipping past
advertiser friendly content. Because me, I pay 10, 11, 12 bucks
whatever it is now a month. To be distributed between
the content I watch. Because how do creators get
paid when I watch content? Because I don't see ads when I'm logged in on the channel that has
YouTube Premium revenue. So, they are going to
distribute a portion of that YouTube Premium
revenue to the creator. That's a part of the YouTube
monetization program, the YouTube Partner Program. They're going to give them a portion of my YouTube Red money.
Think about that. No matter what kind of content it is. Meaning if it was non advertiser friendly. I am watching it and I've
already paid YouTube for it. So, there's some algorithmic
way they distribute that. But that is different kind of stream. And you'll see in your
backend and your AdSense. This is something that will show up for you as a separate source of revenue. Thanks so much for that super chat and congrats on hitting 1000 subscribers. You're welcome for the advice. So, here's the requirements. Ad revenue. You got to be 18 years old or have a legal guardian
older than 18 years of age who can handle your payments via AdSense. So, how do these kids' channels? How are they a part of the YPP? They have a legal guardian
sign up for the AdSense. Okay. Next, you got to create content that meets advertiser friendly content guidelines. And we just described all the different kinds of YouTube policies.
Now channel memberships.
You want to be able to invite people into channel memberships. You got to be at least 18 years old and have more than 30,000 subscribers. And one thing to note is this stuff is constantly
updating and changing. So, that's one reason why you definitely want to hit subscribe.
Because you just want to have a constant flow of
information for when maybe the subscriber amounts change. It's within YouTube's free will.
And we're going to be talking
about it a little bit later. How policies do change
and how there's updates. So, you need to have more
than 30,000 subscribers for channel memberships. Merchandise shelf. You need to have more
than 10,000 subscribers. Super chats. You got to live in a country and region where super chat is available. And then it would precede the fact that you've got your
channel approved to go live. You can actually start going
live on desktop pretty easy. And you could look that
up on how to do that. You could go live on your mobile phone. I think you need a 1000
subscribers, but once you do. You're able to get a super chat like KGbeautywithin just dropped. Thank you so much
Kgbeauty, appreciate you. And so, that's a super chat and how cool you just saw $5. Just came to the Think Marketing Channel. Much love and appreciation. Out of gratitude for this training. In some cases you might be more of an entertainment,
more than education channel. But that's a way to earn revenue through the YouTube Partner Program.
And then YouTube Premium revenue, which is create content
watched by a viewer who is a YouTube Premium subscriber. It's actually a portion of that person's YouTube Premium membership going to the creator that
they want to support. That's one reason why I love
YouTube Premium membership. Not only do you not have to watch ads, so it saves time. But allows you to like directly interface with the creators you watch most. That when you spend your time consuming someone's content, you're voting for them. Even just with like the
11 or 12 bucks a month that you pay to be a part of that. Now there's a sixth way
it's called BrandConnect. And once your channel
reaches a certain size, this shows up in the backend. So, like we don't have this on our Think Marketing channel. We do on our Think Media channel. And this helps you get paid to include brand content in your video. You need to have a pretty large channel. I'm not sure the exact numbers. And this is kind of a way
to do influencer marketing and brand deals directly
connected to YouTube.
I believe my friends, Benji and Judy almost exclusively do brand deals now through this. They're in a good flow with it. And so, on Think Media we're signed up and they will email us
when there's opportunities and they do not guarantee
they'll email you. So, in the meanwhile,
that is a way brand deals can fund us at Think Media. But we've lately been
working with Dill trucks and GVM and Epidemic Sound and
vidIQ and different people. Just directly. So, think about that too. Outside of the YouTube Partner Program. Outside of getting
approved for BrandConnect. As soon as you biz dev. As soon as you start to hustle and build those relationships. Build this targeted audience. Then you're able to start
taking advantage of that. So, here's a fact. You don't have to be a part of the YouTube Partner Program
to make money on YouTube. I just want you to know that. We're going to go deeper and there's some information
you need to know.
But your goal is to create
multiple revenue streams through other side hustles and businesses. And you should do that either way. Even if you are a part of
the YouTube Partner Program. You don't want to become dependent on just that one income stream. For example, this happened recently. There was a YouTube bug that cut certain creators pay by 50% or more. And it was pretty crazy
because some people showed, they had money coming in every day. 50 bucks a day, 150 a day. And it just zeroed out. Now YouTube did not
acknowledge the problem or provide any details and
it seemed to be remedied.
My point is not to go deep into this. But here's my mindset. My mindset is that at any time YouTube ad revenue could go
away and that I don't want to build my business
on YouTube ad revenue. At this point. And I'm going to reveal some
numbers to you in just a bit. The YPP is a very powerful
program that impacts what we're building at Think
Media overall in our company. But again, I'm just aware that if for some reason. We fell outside of advertiser
friendly guidelines. They're like an at-will employer. They can do what they want. So, I also want to have income streams that are within my control. So, that is a huge mindset
that I want you to take on. If you're serious about
doing this full time. You got to build multiple
streams of revenue and think bigger and think different. And if you want help doing
that and you haven't watched our free class @thinkmasterclass.com. It's brand new and updated for 2021. And so, it's going to teach you other ways to earn money outside of
the YouTube Partner Program.
As well as how to get
views and subscribers and some of the latest
strategies for growth working right now on YouTube. So again, thinkmasterclass.com and a summary of all resources in the YouTube description below. Including that and the
links and places to sign up and all the stuff we're
talking about in this video. Which brings us to, how do I get paid by
YouTube when I earn money? How do I get paid? Unless you're part of an
MCN, a multi-channel network. Then all payments are going to be issued through your AdSense account. Now, I don't necessarily
recommend being a part of an MCN. I've got friends who have niche channels. Meaning they have like 20
different faceless channels and they usually run
those all through an MCN. And then they get paid
through PayPal from that MCN. That's getting a little complex. But at the end of the day
when you work through an MCN. They're dealing with
like AdSense in a way, or they're even dealing
directly with advertisers.
And able to like sell ads on your videos or however it works out. And then they're cutting you a check. For most of us, we're going to be just sign up on AdSense. So, here's what it says in
order to receive your payments. Sign up into an AdSense
account and make sure you've resolved all payment holds. So, sometimes it's like you need to update your Social Security number.
You need to update your tax info. You need to make sure your
address is verified, whatever. And there's a reason they're
holding your payment. Once you've reached
your payment threshold. And we'll talk about that in a second. Then they will cut you
your money as long as you're not suspended on your channel for not being in compliance
with the policies. So, here's how you get paid. Number one, provide your tax
information to Google AdSense. Then you confirm your
personal information. You have to verify your identity again. Not required in all locations,
but I think US, Canada, Australia, Europe, you're
going to need to do that. Verify your address as well.
Select your form of payment and then meet the payment threshold. Now here's how you confirm
your personal information because personal identification numbers are sent to a mailing address. So, if you have a mailing
address, they send a pin number. So, now they know that is a real address because a piece of mail
came to that address and you enter that pin number online. Got it. And it's also important
to confirm the accuracy of your payment address
and your payee name.
And let me just pause here.
Because every once in a while I get an objection and someone's
like, well, wait a minute. I like don't want anyone
to know my identity though. Well then you're probably not. I mean, I get it. You might be able to go out somewhere like wait by the certain fence
at 6:00 AM in the morning to go do some work under
the table to get some cash. This is not that. This is working with a giant corporation that like needs your
identification number. Needs you to have an address. Needs you to be a real person. This is what it is. So, you have to give them your name. Give them your information. Just like most employers that are paying or all employers that are paying taxes are going to require your
Social Security number and all that kind of stuff. You will become kind of like an employee for Google who owns YouTube. All right. So, you can change your payment address. Change your payee name.
You're going to verify your identity. So, depending on location, you
need to verify your identity. Your name, your address,
your date of birth. You typically, if you're
required to do this. You typically won't be asked
to verify your address. If you've verified your identity. And YouTube is always doing things like maybe they'll send
certain pins to your phone to confirm with the phone number.
You might be able to get
this done really quick or you might have to
jump through some hoops and have them mail you
like a piece of paper. So, verifying your address when your earnings reach
a certain threshold. They'll mail you a pin number. In most cases, wait two to three weeks
for that to arrive. And then you'll enter that pin number and that'll verify your address.
Now you can start collecting money. Let's say you get approved for the YPP and your channel's making money. You actually don't need to be too afraid that you're not going to
be able to get that money. Even if it just keeps building up. It may just be sitting there until you check all of these boxes. Cross all your T's. Dot all your I's and then all the money will be released to you at once. So, maybe you're like shoot. My money's just been sitting
in my Google AdSense, but I haven't verified my address.
I haven't selected my form of payment. As soon as you get that all dialed. That money should be released to you. Next, when you reach a
certain payment threshold. You then select your form of payment. There may be several payment
forms available to you and we'll cover those in a second. And usually when it comes to
your threshold, for example, it can be different
depending on where you live. But it's probably like a hundred dollars. If your current balance reaches $100 during January let's say, and you've completed all of these steps. Then you'll issue the payment
to you at the end of February. This is important to know. So, if you're like desperate to pay your next bill with rent.
This is not the strategy for you. If you're just getting started. You should be thinking about
earning money in other ways. Because you can see this could take weeks. Get it approved, months
to get it all set up for the checks to come through. Plus you got to get the views and the monetization to build up. So again, let's also
say you make $33 a month in YPP once you're approved. It might take you a couple of months before you hit a payment threshold and then that will actually
be released to you, right. So, that is how that breaks down. Now, how can I actually collect the money from YouTube which is
Google through AdSense. So, when you reach the threshold. You may be eligible for checks, EFTs, electronic funds transfers. EFT via single Euro payments area, a SEPA. A Rapida. A wire transfer. These are some of the ways.
And again, we'll link resources. Personally, I have direct deposit set up electronic funds transfer. So, every month with the
momentum we have now. Obviously we hit the threshold every month and the money just gets transferred into my business bank account. You may want to, separate conversation. But event initially,
you may want to identify your side business with separate accounts.
Even if you don't set up an LLC and this is not legal advice
or business structure advice. But even if you don't
actually set up an LLC or an S Corp or anything else. You may want to set up
a separate bank account. And that way you can know how much your side hustle is earning and you could connect
your Amazon affiliates. Your what you do partner program. If someone pays you, the
money goes in that account. So, that way you actually maybe know and on the one hand you're
not intermingling funds.
So, it might even be help you later on taxes for organization. But even just for organization. You can direct all of
your side hustle income into a particular bank account. But regardless, that's how I do it. The other way is once
your address is approved, they may actually mail you a check. Then you have to go to your
bank and deposit that check. Some people like getting
that check in the mail.
I use electronic funds transfer. How much does YouTube pay? So, now I'm signed up for the YPP. Now I'm in the program. YouTube pays a rate between 0.01 cents and 0.03 cents for an ad view. Now, when you look in your analytics. You'll notice there's a difference between a view and an ad view. The key is they're going to pay for an ad view, not a view. What are you talking about Sean? Well, ads don't always play, right.
So, you get paid when
someone actually views an ad. So, based on this article. A YouTuber can make around
$18 per 1000 ad views. Which comes out to $3 to $5
per 1000 video views, okay. And that's what's called a CPM. And they say that CPMs range
anywhere from $1 to $5. So, a simple way to think about it is again that for every
1000 views you get, you might make $2. And therefore, if you got a million views. You'd make $2,000. 1000 views, $2. A million views, $2,000. Now Forbes estimates that top talent can make anywhere from 5 for
every 1000 video views, $5. There's eventually what's
called YouTube Premium ads. Which is reserved for like
the elite YouTube channels. And they might make more because their influence is
considered to be greater. So, the thing you need to
know is that this varies. It varies on your niche.
It varies on where you live. It varies a lot on your audience. How old your audience is? How much buying power they have? And this is a conversation
for another video. It also varies on engagement. Some of our top viewed
videos on Think Media. I'll actually show you some later. That are longer and have
more engagement, earn more. It has to do with the
topic of the content. It has to do with the niche you're in. So, there's a lot of factors. So, here's a couple of key
terms that you need to know. One is CPM and RPM. So, CPM is the cost per
1000 ad impressions. It stands for cost per mil, I believe. And mil means a thousand in like Latin. And so CPM is the cost
per 1000 ad impressions before YouTube takes a revenue share. And we're going to explain
YouTube's revenue share.
You are not getting all the money. So, RPM is the total revenue after YouTube after revenue share. So, the CPM is like, what does it costs to advertise
on this particular channel. For example, if you have a channel that's
all about personal finance, savings stocks and investing. Advertising on that channel
may pay a lot more money. Because of the audience
that watches Graham Stephan talk about the stock market. Might be kind of a more, a fluid audience. Therefore they'll pay more. If something is considered
if you will lower quality call it just cat videos. It's a random audience. It's not super focused. It may be getting millions
of millions of views. But it's a ton of 13 year old kids. And it's a ton of people
that just don't really, it's a different audience. So, the CPM can be less
than a dollar on one channel and the CPM could be
$30 on another channel. So, CPM is a number, as it says here, that's more advertiser focused. It includes only video views from videos that are monetized and it's earnings before
the revenue share.
Whereas RPM is actually a number that they started putting in your backend. That's focused on you. It's actually just there
to simplify things for you to actually say, how much
money did you actually make. Sean, give me a break. This is the most intellectual, like this is a lot of information, bro. Summarize it, RPM. Like when you see your RPM, it's telling you how much you're making.
And here's what it also includes. It includes how much
you're earning from ads after YouTube takes their cut. It includes also all the super
chats, channel memberships. So, it's just kind of gives you a number of how your channel is performing. It includes the total number
of views from your videos and includes ones that did not monetize. CPM is focused on ads actually paying. RPM is saying you got
a million views a month and based on getting a
million views a month, you got people in channel memberships. You got people watching your videos. You got ads playing sometimes. Let's just simplify it
out of the million views, here's how much you earned.
You went live a bunch of times. Here's your super chats. All of your views and activity,
final money left over. So, RPM is their attempt to
summarize it in this case. And I've seen RPM be used different in different marketing settings. So, here's Think Media in November, 2020.
Playback based CPM, $20.49. That might shock you
because if the average CPM is $3 to $5 or even $1. 20 is freaking crazy. Why? Think Media is talking
about tech, tech products, talking about business development. Talking about things like this, which are much more intellectual like entrepreneurs watching like you. Creators like you. This is not an entertaining cat video. You know what I mean. Like it's a whole different
mindset if you're here. So, it's a higher CPM. Notice how aggressive this is though. That's just the total number
before YouTube took their cut. My RPM is like half that, see that.
YouTube's taken, I'll tell you the exact
percentages in a second. But it's almost like YouTube takes half. Now, we don't get a ton of super chats, live stream wise on Think Media
so that doesn't affect it. We don't have channel memberships. So, this is a pretty raw
measure of simply ads and off of 3.4 million views, total. It doesn't mean all the
views were monetized, right. Or that ads played the whole time. But in November on Think Media
out of 3.4 million views, we earned 30,000, almost $31,000. And it varies depends on the channel. But now you're seeing an example. What niche you pick. The quality of your content. The quality of the engagement. That's how much I earned
November, 2020 from Think Media. Now, what is the revenue
split with creators? Here's your big question, right. When you enable ads and
you're a part of the YPP. You think about that CPM
number that bigger number. Google's revenue share is a 45-55 split.
So, Google takes 45% of YouTube
advertising and you get 55%. So, if there was a a hundred dollars. Google's working with Dove soap and they sell an ad on your video or a cluster of videos and
Dove pays Google a $100 and Google gives you 55 and they keep 45. You could let me know in the comments if you think that's fair. And if you think YouTube
taking the split is fair. In my opinion, I mean, they give you YouTube for free to use. They have the distribution. They built the infrastructure. So, it is what it is,
but that's the split. And what you're getting again is what's left over
after that advertising. Now I believe obviously this is an article from investopedia.com. But I haven't seen Google
reveal this anywhere publicly.
So, I also think this could change. This is just kind of a known amount, but maybe depends on the channel. And remember it's their will to say, hey, we want to change it. We want to keep more. And by the way, they might need to. I don't know they're doing pretty well. They're listing crazy profits. They're up like 5 billion. Up like 30% over last year right now. Google and YouTube are doing real well. But they can always change
things to affect shareholders. Hire new employees. Scale whatever it is
they need to do right. Because keep in mind also that running this program is freaking insane.
The amount and they keep
throwing more people at it and they don't even
have near enough people. To review content, to see a
videos or advertising compliant, or if they got demonetized
for the wrong reasons. They are throwing thousands
of thousands of people at it. They probably need to throw a
quarter million people at it. There's this ever-growing
multi-dimensional conversation happening around this. There's you the creator. Me the creator, but there's
a lot of things at play. But it's also a fact that
Google is doing very well. As we can see. Memberships. This one, really lean in for this. YouTube takes 30% of a channel membership giving creators 70%. So, you're allowed to affect
how much people pay per month. I think it could be a dollar,
5 is kind of an average. Now keep in mind. Twitch is 50-50. All right. So, that's interesting, a 50% split between
creators and the company. If you have a $5 tag on
membership on your site. So, it's kind of nice that you get 70%. In my opinion, that's still a whole lot. So, let's say you charge
people $10 a month to become a member of your channel.
You're further down the road. You've thought about
different premium content, exclusive content you're
going to give them. When you're a channel member. You get things like stickers
and things like that. A channel member community tab. But I think the biggest thing you can do is exclusive Q&A or exclusive training or things to really make it
worth what they're investing in. And some people want to
just support the channel and some people want the premium content. But all that said, if it's $10, YouTube is going to take three and you're going to keep seven. Now we actually have a membership program.
Now we host it off of YouTube and we pay for software called Kajabi. But they don't take a percent of anything. So, we pay to use the
software and besides fees. Which in every case there
might be transaction fees. Apple Pay fees 1, 2% of
whatever transaction fees. We pay that too using Stripe. So, we pay like less than
2% for the transaction. But we keep nearly then about 98%. So, if you think about that at scale. Let's say you got a thousand
members at $10 a month. That would be $10,000 a month. YouTube would take $3,000. You'd keep $7,000. If you set it up off of
YouTube, you'd keep 98%. However and this is where you need to make your decisions as
you're building your brand and thinking about your future. YouTube's so integrated. Maybe somebody doesn't
want to go somewhere else. Maybe they want to just live on YouTube.
Maybe they want the ease of use. Maybe you don't want to pay
for another software service. Especially if you're a
creator, that's starting. This isn't going to cost you anything once you hit this threshold. Even if it's a place you
start and you move later. You don't have to think like I'm paying for separate software. I hope I hit enough members. Again, what's kind of nice is actually when you're
on the smaller side. YouTube is taking the risk
or they're taking all the heavy lifting and why
wouldn't you give them 30%.
But what I would say, is
if you're further along. Let's say you're doing a
hundred thousand dollars a year from a channel membership situation. YouTube would take 30,000 of those dollars leaving you with 70. You might want to start considering your decisions at that level. So, let me know if this
is valuable information and if you do appreciate it and you've been getting
value out of this video. It would mean the world to
me if you hit the like button and give me some feedback.
What else do you want to know? And what questions do you
have for future videos regarding channel
memberships, memberships, building your business,
YouTube ad revenue. Next, super chat. How much does YouTube
take from super chat? They take 30% and this is not considering any Apple service fees,
tax, MCM cuts, et cetera.
So, it's just kind of the raw numbers and super chats can be
anywhere from $1 to $500. Okay. Now to turn on monetizations options. Each one gets kind of turned
on uniquely or specifically. So, let me give you an example. If you want to turn on super chats. You need a 1000 subscribers. You're already a member of
the YouTube Partner Program. You're in one of the right countries. And I actually just, let's see this.
We'll talk about this a little bit later. Kids content. If you have your audience
set or made for kids. Then it might restrict
super chats or it will. If a certain video is made for kids. It will probably restrict super chats and kind of makes sense. Because if a kid is watching
that how in the world are they actually, I mean, it's probably their parents' credit card. Paying you money with super
stickers and super chats. So that's a heads up if you
have content made for kids and we'll touch that on that later. But I actually just turned
it on on Think Marketing. It wasn't even turned on yet. As I mentioned, this is
a new channel this year. Okay. And so, you can see if you
go to your monetizations tab. You start getting new
options and new boxes. Video advertising that's your YPP. Your merchandise shelf that
you can start building out. Your super chats. You also have your, let me see your memberships
that you can set up. So, I clicked on super chats. I click get started. Okay. And I went over to supers up top.
You can see that there. So, you've got merchandise,
memberships, supers, and then it opened up a
commerce product addendum. This is like a terms of service. See this. So, you scroll through this whole thing. I then entered my name, my
email and something else. And boom Think Marketing had super chats turned on and people were able to give today in super chats for the first time. Pretty cool. And so, then you have this little knob where you can disable it on and off. Now, if you want to just flip a switch. But now whenever we go live
for Coffee with Cannell or Think Marketing Live
with Heather Torres.
Super chats can come in. And one of the ways we'll
use that in the future. Is if you give a super chat maybe then it'll just put you to the
front of the line for Q&A or doing channel reviews
or something like that. So, those are ideas. If you
could think about ways to include that in how you monetize. Key, is once you've even hit the threshold like we have on this channel. You then go into and you
could see these tabs, merchandise, membership, supers, giving. And I think giving is YouTube allowing you to partner
with different non-profits. And eventually that
BrandConnect tab will show up. And so, as you evolve
in getting subscribers and watch time and as your channel grows. There may be more features. And then as YouTube evolves, they might bolt on more features and more ways for you to earn money. All right. Couple of new YouTube
monetization updates. One of the huge things
that happened recently was beginning in January 2020. YouTube dramatically
curtailed the data collected for videos marked 'made for kids'. And they disabled a lot of features.
If videos were targeting
kids, limiting ads for kids. And so, this is why in
each one of your videos and live streams you need to be selecting. Unless you can select
this at a channel level and also at an individual video level. You can say, yes, it's made for kids or no it's not made for kids. Not the topic of this video. But if it's not made for
kids, it's not made for kids. It's not could it be watched by kids? You should take that into consideration. Man, there's no way for kids
focused creators to make money. That is not true. And
I'll show you in a second. How actually still the
top earning creators are making content for kids. It just made the ads less specific. But brands could still advertise
on a channel on a macro. It had a lot more to do
with the detail of ads. And the fact that like when
YouTube follows you around is like collecting your
watch time history.
Deciding what to recommend to you. CAPA said, you can't
collect all that data. People can still advertise on
the videos in a broad sense. Just in a less granular sense. And this has been an evolving topic. So, that's something to know about. And then lately or most recently YouTube made a massive. This is huge friends lean in. YouTube will now show ads on all videos. Even if creators don't want them. And YouTube is going to run ads on smaller creators videos
without paying them. So, there's a lot of
outrage in the community of people that were like, what the heck. Because it's kind of like a double whammy to small creators.
Number one, you actually may opt to
not turn ads even on. Because you'd rather win influence before you build your income. That's what we did on all of our channels. And my whole journey I've withheld turning on monetization
right from the start. Because we've been more interested in building our brand, than turning on. Eventually we turn it on. But it's like if nobody knows you yet. What's 5 cents on a YouTube ad compared to potentially building a bond. Different people have different opinions. But now you have no choice. So, whether you could
either turn ads on or not.
But the double whammy is that
you don't even get a cut. When you're part of the YPP, you get 55%. In this case, YouTube is
keeping a hundred percent. This shows you that YouTube can do whatever they want whenever they want. Now to put some things
into perspective on this. They are just rolling this out in testing. This does not mean that ads
will be playing on your videos. If you're not a part of the
YouTube Partner Program. They're rolling it out and testing. That's how YouTube does things. They roll out features on some channels, some videos and they test it. So, we'll see where this goes. And on the other hand, this is why it's important to have multiple streams of income
and what I also think. And we're going to be making
a concerted effort here at Think Media and Think
Marketing to create some content to help you reach that
1000 subscriber threshold and 4,000 hour watch
time very specifically.
Because I want the YPP
money to go directly to you. I know some business
owners and entrepreneurs that even if they were
eligible for the YPP. They didn't want to do it. Because the business model they have. The products and the
services they have to sell. So, far outweigh AdSense. They'd rather get you
right into the content. Help you, serve you and give you a chance to do business with them. Rather than being
interrupted with an ad first. But those days are gone. Because now YouTube has the right to put ads on regardless. Therefore it is my opinion that all of us should sprint to be a part
of the YPP, no matter what. So, at least we can all collect that 55% as well as develop
multiple streams of income. Don't stress in the short term. Although I know this is kind of crazy. Because what can you do other
than just create content, keep building, get that
a 1000 subscribers. Keep building towards
the watch time hours. But regardless YouTube is a free platform and like most platforms. Whether it's a blog, an audio platform. Ads display. Ads play. You use Instagram for free.
People are swiping they see your content and they see a sponsored post. They're going to see ads. YouTube is just kind of deciding to make even more money by
just starting to roll out ads across content that
is advertiser friendly. Meets policies, but it's
not part of the YPP yet. And it's out of your control. What you can control is
the next video you create. As your strategy is how quickly you're focusing on growing and is creating multiple
streams of revenue. Which again, if you want
to learn more about that. Don't miss our updated web
class link in the description @thinkmasterclass.com. So how much are creators earning? How much are creators
earning with the YPP? Here's some recent stats of
some of the top channels. So Ryan's toy world, right. Ryan's World has 25 million subscribers and they have been listed as
earning $26 million in a year. Now I believe these stats. May be an aggregate of what they think he makes from brand deals and this, that, and the other thing. But some of these examples, this is talking just AdSense. Meaning just the YouTube Partner Program.
Because there's no way they can know what endorsements, brand deals and the full width of everything else that they're doing. So, I want you to notice
this, Ryan's a kid's channel. He unboxes toys, plays games and does quizzes and
puzzles to entertain kids. And he's crushing. No matter who your
content is targeted for. Check the right box and know that you can grow and still make a lot
of money with the YPP. Even if you have kids content. Notice this, that he's also expanded to eight other channels.
Making Ryan's World a small empire. Second, Dude Perfect, $20 million. Anastasia, I'm not going to try to say the last name. Somebody help me. 18 million, a five-year-old Russian girl. So, clearly an adult had to
sign up for the AdSense program. 55.6 million followers and $18 million in a year. She has 120 million followers
across six channels. So, a lot of the people that really start to build big influence and focus heavily on YouTube's
partner program, the YPP.
Start to expand into multiple channels to just bring in a windfall of revenue from all of that viewership. Giving people more content. More things to look at. Jeffree Star or Rhett and Link at four. 17.5 million and then
Jeffree Star 17 million. And it says with now millions of followers and his own cosmetics line. Jeffree Star makes significantly more from his cosmetics line than
he does from his YouTube ads. But 17 million a year. Could you live on that? Let me know in the comments. If you could live on 17 million in a year. Okay. So, check this out though. This whole industry friends is just getting started
and it's going crazy. So, there's a really in-depth article that just came out.
That did a deep dive
study that discovered that 2 million creators are making
six figure incomes on YouTube, Instagram and Twitch globally. And I want you to see this. So, it revealed that there are over 2 million professional creators. Now this is across platform and there's 46.7 amateur
creators in the world. At the time of recording this going into 2021 at the beginning. There are now over 50
million content creators. 1 million professional creators on YouTube and 12 million amateur
creators on YouTube. This has become the fastest
growing type of small business. Out of all of them right. Now here's what's shocking to me. Their definition of a professional
creator in this study. Was they said, well a
professional creator is a creator that's full-time. And for that creator to be full time.
That means they're earning
a six figure salary. They're making at least six figures. So, I about spit out my alkaline water. Because I was like since when did you need to make six
figures to be full-time. I moved to Vegas with my wife Sonja and our two chihuahuas to work at a church for $42,000 dollars a year. And in Vegas' cost of living, I felt like we were living like Kings. 42 grand a year in Vegas back in 2010. Freaking I felt like the Prince of Egypt. I think it's interesting that to be considered professional,
that's a staggering number. And I want to encourage you by how much opportunity there is. If a million creators,
because I know you're like, well there's so much competition. My friends look at how many people are actually doing so well,
put that in perspective. A million creators are
earning over six figures. Thousands are earning seven
figures on just YouTube and you can see this chart, right. There's other platforms. But let's look at that 12
million YouTube creator number.
That means those creators some
are earning nothing, right. They're just getting started. But some are earning
hundreds a year or a month. Some are earning thousands and some are earning multiple thousands. And what I want you to
hear is going into 2021 and what this deep dive
SignalFire article revealed is that this creator economy is going to double over the next few years. Meaning creators making
this a full-time living.
A full-time income. So, out of that 12 million creators. Millions are earning hundreds a year. Millions are earning thousands a year. An extra five grand a year. An extra 12,000 a year. And millions are earning
high five figures. 45 grand, 55 grand, 68,000. And there's so much freaking
opportunity in this space. I'm not trying to over hype it. To say like, it's just so easy. Like you shoot one video on
your webcam without trying and a windfall of money
goes into your bank account.
This stuff takes work. It takes discipline. It takes strategy. It takes focus. But this is a real, this is the fastest growing
small business type. And it is established. It's tried and true. And there's ways to navigate. This is the mission of Think
media and Think Marketing. We want to help 10,000. Just 10,000 of those 12 million become full-time creators.
We want to help 10,000
purpose-driven people create a full-time living. Doing what they love. While making a difference in
the world with online video. I don't even define that by six figures. Because I know that you can live, the median household income in America. Which is an incredible, incredible, incredible place to
live is like 55, 58,000. So, how much opportunity is in that red 12 million. And furthermore how much opportunity is there is on even these other platforms. YouTube, my friends is
just getting started.
The creator economy is
just getting started. It's reached a pretty massive level with this many content creators. But this article very soberly and with much clarity and zero hype broke down how the industry. Whether it's software companies. Whether it's camera companies. Whether it's creators themselves. Whether it's finance companies helping creators finance projects. How people are viewing
creators like startups. This is the new era friend. This is the future. And I know if you're subscribed to Think Media, Think Marketing. That you're a part of that journey and maybe this is what you
want to build. So, let me know. What is your ambition with YouTube? What's your goal with YouTube? What is it that you want to build? Do you want to go full time? Are you already part-time or full-time? Have you already started earning money? Let me know. And are you a part of the YPP? Are you already a part of
the YouTube Partner Program? Have you learned anything
in regards to the YPP and what questions do you
have about monetization? If you've been getting value out of this.
How YouTube work's series. It would mean the world to me. If you hit the like button,
but also let me know. What other questions do you have? What do you want me to
cover in future videos? Or hit a few of the
frequently asked questions and questions that are coming in now. But as a final reminder. Today's episode is brought to you by the tubestarterkit.com. Where you can get a jumpstart. Best deal we've done for
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go to tubestarterkit.com to learn more about that. If you got value out of today's Coffee with Cannell hit like. We've been in a deep dive episode here. And let me know if you've
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