Adsence earning potential based on YouTube Subscribers
Adsence earning potential based on YouTube Subscribers

How Much Money Do People On YouTube Make?

How Much Money Do People On Youtube Make? It’s a question many aspiring content creators ask, and money-central.com is here to provide some answers. Figuring out how YouTubers generate revenue involves understanding factors like subscriber count, video views, monetization strategies, and alternative income streams. This guide delves into the financial aspects of being a YouTuber, offering insights into potential earnings and the strategies used to maximize income, offering guidance on financial planning, investment options and debt management. Discover practical tips and expert advice on money-central.com to manage your personal finances and achieve financial freedom.

1. How Much Do YouTubers Make Based on Channel Size?

Subscriber count is a crucial factor, but it doesn’t directly translate into a fixed income. Instead, a larger subscriber base generally leads to increased earning potential. A bigger audience means more ad views, clicks on affiliate links, and greater opportunities for sponsorships. YouTube’s algorithm often favors larger channels, enhancing their visibility and attracting more viewers. While niche, engagement, and monetization strategies also play significant roles, here’s a general breakdown of potential income based on channel size:

1.1 Beginner YouTuber: 1,000+ Subscribers

Beginner YouTubers with over 1,000 subscribers typically earn around $30 to $300 per month, varying by niche and country. Reaching 1,000 subscribers is a significant milestone, unlocking eligibility for the YouTube Partner Program and enabling early monetization strategies. According to Tim Queen, only 9% of YouTube channels achieve this milestone, outperforming 91% of their peers. At this stage, most revenue comes from AdSense, so the earning potential is relatively low, and sponsorships are rare.

1.2 Mid-Range YouTuber: 100,000+ Subscribers

YouTubers in this bracket earn approximately $500 to $1,500 per month, with some reaching $5,000 or more. Achieving 100,000 subscribers marks a significant step toward becoming a professional YouTuber. Only 0.3% of accounts reach this level, prompting many to consider full-time content creation. Brand deals, paid collaborations, and sponsorships become more common. Earnings vary widely based on niche, views, and investment in other income streams.

1.3 Famous YouTuber: 1 Million+ Subscribers

The highest-paid YouTubers boast at least 1 million subscribers. Monthly AdSense revenue can range from $10,000 to $100,000. Individual videos can earn $20,000 to $50,000 each through sponsorships, brand deals, merchandise, and product sales. Annual revenues are usually estimated in millions of dollars. Top creators often operate multiple channels and evolve into brands. Their earnings often support entire teams, including editors, screenwriters, and marketers who help maintain and grow their brand, according to Riverside.fm.

1.4 YouTube Stars: 50 Million+ Subscribers

At this level, earnings are astronomical, reaching tens of millions of dollars annually. Only about 30 YouTubers worldwide have more than 50 million subscribers, making them true stars of the platform. These individuals are often regarded as celebrities, commanding substantial influence and earning power.

Adsence earning potential based on YouTube SubscribersAdsence earning potential based on YouTube Subscribers

2. What Are The Requirements To Start Earning Money On YouTube?

The most fundamental way to monetize content on YouTube is through the YouTube Partner Program, also known as AdSense. This program allows content creators who meet certain criteria to receive payment for their videos.

Here are the requirements to become a YouTube Partner and become eligible for monetization:

  • At least 1,000 subscribers in the past year AND 4,000 public watch hours in the past year (excluding shorts) OR 10 million valid public YouTube Shorts views in the last 90 days.
  • Agree to YouTube’s terms and conditions.
  • Do not have an active Community Guidelines strike on your channel.
  • Have a valid Google AdSense account.
  • Pass review and approval.

A YouTuber’s earnings with AdSense depend heavily on how many views their videos receive. Estimating the value of each view is essential.

2.1 What Are CPC and CPM, and How Do They Factor Into RPM?

YouTube pays partners 55% of ad revenues. Here’s the breakdown:

  1. Cost Per Click (CPC): Advertisers pay when someone clicks on their ad, not just when a user watches the video.
  2. Cost Per Mille (CPM): Advertisers pay for every 1,000 ad impressions, meaning a viewer must watch the ad for at least 30 seconds, or its entire length if the ad is shorter than 10 seconds, according to Google Ads Support.

Both CPC and CPM are used to calculate the Revenue Per Mille (RPM), which represents how much a YouTuber earns per 1,000 views after YouTube takes its cut.

Example:

  • Your YouTube video gets 5,000 views.
  • Half of these views result in ad impressions with a CPM of $10.
  • 100 viewers clicked on the ad with a CPC of $0.5.

Your earnings would be:

  • CPM: $25 (2,500 impressions x $10 / 1000)
  • CPC: $50 (100 clicks x $0.5)

Total: $25 + $50 = $75

After YouTube’s 45% cut, you’re left with:

$75 x 0.55 = $41.25

Your RPM is, therefore:

$41.25 / 5 = $8.25 per 1,000 views

At 5,000 views per day, you’d earn about $1,238 per month.

3. How Does YouTube Monetization Work? 4 Key Factors

The number of views is essential for making money on YouTube, but other factors also significantly influence income.

3.1 Video Length

Longer videos allow for more ads, increasing potential ad revenue. Pre-roll ads (at the beginning of the video) and mid-roll ads (in the middle) typically have higher payouts than post-roll ads (at the end). However, video length also affects engagement. Longer videos can command more attention, while shorter videos can attract new followers and increase subscriber numbers more quickly. Balancing these factors is crucial.

3.2 Type of Content

Some content types are better for long-term monetization. Tutorials, like “How to change your car battery,” can attract views for years, maintaining steady ad revenue. Evergreen content often has higher watch times, positively impacting ad impressions and overall earnings. Podcasts and live streams are great for short-term revenue and gaining traction on social media, but their views may dwindle quickly.

3.3 Niche and Demographics

Certain niches, like tech and personal finance, typically command higher prices from advertisers, resulting in better CPC and CPM rates. Cooking, travel, and humor channels often have lower RPMs. Demographics also matter; gaming content may attract younger viewers who are less likely to spend on products or watch ads.

3.4 Country

Advertisers pay more to reach audiences in high-spending regions like North America and Europe. Market size is also important. The U.S. market, with 247 million high-paying users, is particularly appealing. India, with 467 million active users, has nearly as many users as Europe and the U.S. combined. Many YouTubers make their content accessible to as many users as possible with subtitles. Riverside, for example, can automatically generate captions and subtitles in over 100 languages.

YouTube Creators niche and demographicsYouTube Creators niche and demographics

4. What Are The Other Sources of Income For YouTubers?

Full-time YouTubers often diversify their income streams, with YouTube ads being just one part of the picture. Many creators earn a substantial portion of their income from other sources.

4.1 Affiliate Marketing

Affiliate marketing is a popular way to make money on YouTube. Creators can tag products relevant to their audience and advertise them during their videos. They can embed links in their video descriptions and earn a commission ranging from 5% to 50% for every purchase. This feature is available only for YouTube channels with at least 15,000 subscribers. Some creators report making significant amounts even with smaller channels.

4.2 Personal Merchandise

YouTubers who have built a strong connection with their audience often sell merchandise associated with their brand. This can range from general branded merch like mugs and t-shirts to fully dedicated products. For example, Kimono Mom, a Japanese YouTuber with over 3 million subscribers, sells her own umami sauce and kitchen appliances.

4.3 Channel Memberships and Crowdfunding

Channel membership is a feature offered by YouTube that allows viewers to support their favorite content creators with recurring revenue. By paying a monthly fee, supporters receive extra perks, such as animated Super Stickers, priority Super Chat messages during YouTube live streams, or early access to new videos. Since YouTube takes a 30% cut of channel membership fees, creators can also set up a Patreon account to receive money in the form of tips, donations, and subscriptions. Members often receive exclusive content as a thank you for their loyalty.

For example, the gaming YouTuber Josh Strife Hayes thanks his supporters by displaying their names at the end of his videos.

4.4 Digital Products and Business Services

Some creators use their YouTube channels as part of broader outreach strategies, leveraging their visibility to showcase expertise in a certain niche. This supports marketing efforts for their consulting or coaching services. Neil Patel, owner of a famous digital marketing agency, uses his channel of 1.29 million subscribers to post short videos about SEO techniques and general digital business advice, supporting his broader business goals.

4.5 Brand Sponsorships

Popular YouTubers often boost their earnings through brand sponsorships. Creators with enough influence strike brand deals to promote products and services, ranging from product placements to full partnerships. Influential creators may also be paid to run brand campaigns on other social media platforms or speak at conventions. Payments vary based on popularity, niche, and type of collaboration. Riverside, for example, partnered with Premiere Gal, a YouTuber with 500K subscribers known for her video editing tutorials.

YouTube Kimono Mom with merchandiseYouTube Kimono Mom with merchandise

5. Who Are The Highest-Paid YouTubers in 2024?

Examining what top stars earn can give you an idea of the maximum earning potential on YouTube. Here are the top 3 highest-paid YouTube stars in 2024, with annual income figures based on publicly available data.

5.1 MrBeast

Channel: @MrBeast

Subscribers: 314 million

Topic: Challenges, Philanthropy

Annual Income: ~$700 million

James Stephen Donaldson, known as MrBeast, is the top YouTuber. The first creator to reach 300 million subscribers, his $700 million annual income is substantial. His channel features extravagant giveaways and elaborate challenges. He has 103 million subscribers on TikTok, where he is the third-most-followed creator.

5.2 Jeffree Star

Channel: @jeffreestar

Subscribers: 15.8 million

Topic: Makeup, Beauty, Vlog

Annual Income: ~$200 million

Despite having fewer subscribers, Jeffree Star is one of the highest-earning personalities on YouTube. A singer, songwriter, model, fashion designer, and makeup artist, he owes most of his wealth to Jeffree Star Cosmetics, founded in 2014. His cosmetic empire generates $100 million in annual revenue.

5.3 Like Nastya

Channel: @LikeNastyaofficial

Subscribers: 120 million

Topic: Kid content, Toy Reviews, Edutainment

Annual Income: ~$106 million

Anastasia Sergeyevna Radzinskaya, known as Like Nastya, is one of the wealthiest children in the world. Her channel boasts 120 million followers and is the most profitable kids’ channel globally. Nastya’s content is simple, fun, and educational, featuring songs, play clips, and toy unboxings aimed at children and families.

YouTube Mr. Beast with SubscribersYouTube Mr. Beast with Subscribers

6. FAQs About How Much Money YouTubers Make

6.1 Who’s the Highest Paid YouTuber?

As of 2024, MrBeast (Jimmy Donaldson) is the highest-paid YouTuber, with a projected annual income of $700 million. His popularity continues to grow, with each video regularly garnering about 100 million views and earning millions in ad revenue.

6.2 Can YouTubers Make Money Through Memberships or Patreon?

Yes, YouTube offers a Channel Membership feature that allows fans to support their favorite creators directly through monthly subscriptions in exchange for exclusive content or perks. Additionally, YouTubers can earn through memberships or donations on platforms like Patreon.

6.3 What is YouTube Premium and How Does it Affect Earnings?

YouTube Premium is a subscription service that offers viewers the option to watch ad-free videos. Creators still earn revenue from Premium users based on how much watch time their content receives.

6.4 Do YouTubers Earn Differently From Shorts Compared to Regular Videos?

Yes, YouTube Shorts monetization is different. Shorts have a dedicated fund that collects money from ads viewed between them, which is distributed to eligible creators based on views.

6.5 How Much Does a YouTuber With 1 Million Subscribers Make?

Earnings for a YouTuber with 1 million subscribers vary based on factors beyond subscriber count, including video frequency, engagement, audience demographics, and niche. A more realistic estimate ranges from $40,000 to $500,000 annually.

6.6 How Many YouTube Subscribers Do You Need to Make $2,000 a Month?

Roughly 400k to 800k monthly views could generate $2,000 in ad revenue. There’s no fixed subscriber count to earn $2,000 monthly, as earnings also come from sources like affiliate marketing and sponsorships.

6.7 Is Being a YouTuber a High Paying Job?

Top YouTube creators can earn millions, but the vast majority of YouTubers earn small amounts. Only 0.3% of accounts have 100,000 subscribers or more, so being a YouTuber is a lucrative business for a small number of people.

Are you looking to improve your financial situation? Visit money-central.com for comprehensive articles, tools, and expert advice on managing your finances effectively. Whether you need help with budgeting, saving, investing, or debt management, money-central.com provides the resources and support you need. Take control of your financial future today!

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