How much money do YouTubers make? This is a question on the minds of many aspiring content creators and curious onlookers alike. At money-central.com, we’re here to break down the realities of YouTube earnings, from the humble beginnings of a beginner YouTuber to the staggering fortunes of the platform’s biggest stars. We’ll explore the various factors that influence income, reveal the diverse revenue streams available, and provide insights to help you understand the landscape of YouTube monetization. Learn how to get paid, calculate RPM, CPM and CPC.
1. How Much Do YouTubers Make Based on Channel Size?
Subscriber count is a significant indicator of a YouTuber’s earning potential, but it’s not the sole determinant of income. A larger audience generally translates to more ad views, higher engagement, and increased opportunities for sponsorships and brand deals. YouTube’s algorithm also tends to favor larger channels, further boosting their visibility and reach. While niche, engagement rate, and monetization strategies also play crucial roles, we can examine potential income levels based on channel size:
1.1. Beginner YouTuber: 1,000+ Subscribers
Many YouTubers in this category earn between $30 and $300 per month, depending on their niche and location. Reaching 1,000 subscribers is a significant milestone as it unlocks eligibility for the YouTube Partner Program, allowing creators to monetize their content through ads.
While 1,000 subscribers may seem modest, it’s an achievement that places you ahead of many others on the platform. In fact, only a small percentage of YouTube channels have at least this many subscribers. At this stage, revenue primarily comes from AdSense, and sponsorship opportunities are limited.
Beginner youtuber with 1000 subscribers
1.2. Mid-Range YouTuber: 100,000+ Subscribers
YouTubers in this range typically earn between $500 and $1,500 per month, with some reaching $5,000 or more. Reaching 100,000 subscribers signifies a move into the realm of professional YouTubers. Only a small fraction of YouTube channels reach this level, and creators often consider transitioning to part-time or full-time content creation.
Brand deals, paid collaborations, and sponsorships become more frequent at this level. Earnings vary significantly depending on the creator’s niche, video views, and diversification of income streams.
1.3. Famous YouTuber: 1 Million+ Subscribers
The highest-paid YouTubers typically have at least 1 million subscribers. At this level, monthly AdSense revenue can range from $10,000 to $100,000. Individual videos can generate significant income through sponsorships, brand deals, merchandise sales, and product promotions. Annual revenues are typically estimated in millions of dollars.
Top creators with millions of subscribers often manage multiple channels and evolve into established brands. Their earnings often support entire teams, including editors, screenwriters, marketers, and other professionals who help maintain and expand their brand.
1.4. YouTube Stars: 50 Million+ Subscribers
At this level, earnings are astronomical, with annual incomes reaching tens of millions of dollars. Only a select few YouTubers in the world have over 50 million subscribers. These are the platform’s true stars, akin to celebrities.
2. What Are the Prerequisites to Start Earning Money on YouTube?
The most basic way to make money on YouTube is through the YouTube Partner Program (YPP), also known as AdSense. This program allows content creators who meet specific criteria to receive payment for their videos.
Here are the requirements to become a YouTube Partner and be eligible for monetization:
- Have at least 1,000 subscribers in the past year AND 4,000 valid 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.
- Have no active Community Guidelines strikes on your channel.
- Have a valid Google AdSense account.
- Pass the review and approval process.
The amount a YouTuber earns through AdSense depends on how frequently their videos are viewed. The more views, the higher the potential earnings. However, estimating the value of each view is not always straightforward.
2.1. CPC, CPM, and RPM: Understanding the Key Metrics
YouTube shares a percentage of ad revenues with its partners. The breakdown is as follows:
- Cost Per Click (CPC): Advertisers pay only when someone clicks on their ad.
- Cost Per Mille (CPM): Advertisers pay for every 1,000 ad impressions, regardless of whether viewers click on the ad. An ad impression is counted when a viewer watches the ad for at least 30 seconds or the entire duration if it’s shorter than 30 seconds.
- Revenue Per Mille (RPM): This metric represents how much money a YouTuber earns per 1,000 views after YouTube takes its share. It’s influenced by both CPC and CPM.
Example:
Let’s say your YouTube video gets 5,000 views. Half of these views result in ad impressions with a CPM of $10, and 100 viewers click on the ad with a CPC of $0.5.
- CPM earnings: 2,500 impressions x $10 / 1000 = $25
- CPC earnings: 100 clicks x $0.5 = $50
- Total earnings: $25 + $50 = $75
After YouTube’s 45% cut, you’re left with: $75 x 0.55 = $41.25
Your RPM is then: $41.25 / 5 = $8.25 per 1,000 views
In this scenario, with 5,000 views per day, you could earn approximately $1,238 per month.
CPC and CPM formula
3. What Factors Influence YouTube Monetization?
The number of views is undeniably important for earning money on YouTube. However, several other factors can significantly impact a YouTuber’s income.
3.1. Video Length
Longer videos provide more opportunities for ad placement, potentially increasing 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 can also affect engagement. Longer videos can command more attention, but shorter videos may attract new viewers and increase subscriber numbers more quickly. Creators need to find a balance based on their content and audience preferences.
3.2. Content Type
Certain content types lend themselves better to long-term monetization. Tutorial videos, such as “How to Change Your Car Battery,” can attract views for years, generating consistent ad revenue. Evergreen content tends to have higher watch times, positively impacting ad impressions and overall earnings.
Podcasts and live streams can generate short-term revenue and boost social media engagement. While they can increase YouTube subscriptions, the number of views may decline after the event or topic becomes less relevant.
3.3. Niche and Demographics
Some niches, such as technology and personal finance, typically command higher advertising rates, leading to better CPC and CPM values. Cooking, travel, and humor channels may have lower RPMs.
Demographics also play a role. For example, gaming content often attracts younger viewers who may be less likely to spend money on products or watch ads without skipping them.
3.4. Geographic Location
Advertisers are willing to pay more to reach audiences in high-spending regions like North America and Europe. However, market size is also important. The more YouTube users in a country, the more potential viewers for your videos.
The U.S. market, with a large number of high-paying users, is highly desirable. However, countries like India, with a massive user base, should not be underestimated.
Many successful YouTubers use subtitles to make their content accessible to a wider audience.
4. What Are the Additional Ways for YouTubers to Earn Money?
Full-time YouTubers typically diversify their income streams beyond YouTube ads.
4.1. Affiliate Marketing
Affiliate marketing is a popular monetization strategy. Creators can promote relevant products to their audience and earn a commission on sales made through their affiliate links. This feature is generally available to channels with at least 15,000 subscribers.
4.2. Merchandise Sales
YouTubers with a strong connection with their audience often sell branded merchandise, such as mugs, t-shirts, and other items featuring their logos or catchphrases. Some creators develop their own products related to their niche.
4.3. Channel Memberships and Crowdfunding
Channel memberships allow viewers to support their favorite creators with recurring payments in exchange for exclusive perks, such as animated Super Stickers, priority Super Chat messages during live streams, or early access to new videos.
Creators can also use platforms like Patreon to receive tips, donations, and subscriptions. Paying members often receive exclusive content and other benefits as a thank you for their support.
4.4. Digital Products and Business Services
Some creators use their YouTube channels to promote their expertise and market their consulting or coaching services. They create videos showcasing their knowledge and skills to attract potential clients.
4.5. Brand Sponsorships
Popular YouTubers often earn income through brand sponsorships. Creators with a large and engaged audience can strike deals with brands to promote their products or services through product placements, endorsements, or dedicated videos. Payments vary depending on the creator’s influence, niche, and the type of collaboration.
youtubers use personal merchandise to make money
5. Who Are the Highest-Paid YouTubers in 2024?
To understand the potential earning capacity of top YouTubers, let’s look at some of the highest-paid stars in 2024. Note that annual income figures are estimates 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 a dominant force on YouTube. The first creator to reach 300 million subscribers, his annual income is staggering. His channel features elaborate giveaways and challenges.
5.2. Jeffree Star
- Channel: @jeffreestar
- Subscribers: 15.8 million
- Topic: Makeup, Beauty, Vlog
- Annual Income: ~$200 million
Despite having fewer subscribers than some other top YouTubers, Jeffree Star is one of the highest-earning personalities on the platform. He owes much of his wealth to Jeffree Star Cosmetics, a company he founded.
5.3. Like Nastya
- Channel: @LikeNastyaofficial
- Subscribers: 120 million
- Topic: Kid content, Toy Reviews, Edutainment
- Annual Income: ~$106 million
At a young age, Anastasia Sergeyevna Radzinskaya, known as Like Nastya, is one of the wealthiest children in the world. Her channel features fun and educational content aimed at children and families.
Mr beast has the most subscriber
6. FAQs About How Much Money YouTubers Make
6.1. Who is the highest-paid YouTuber?
As of 2024, MrBeast (Jimmy Donaldson) is the highest-paid YouTuber, with an estimated annual income of $700 million.
6.2. Can YouTubers earn money through memberships or Patreon?
Yes, YouTube offers a Channel Membership feature, and creators can also earn through platforms like Patreon.
6.3. What is YouTube Premium and how does it affect earnings?
YouTube Premium is a subscription service that allows viewers to watch ad-free videos. Creators still earn revenue from Premium users based on watch time.
6.4. Do YouTubers earn differently from Shorts compared to regular videos?
Yes, YouTube Shorts monetization is different. Shorts have a dedicated fund that is distributed to eligible creators based on views.
6.5. How much does a YouTuber with 1 million subscribers make?
A YouTuber with 1 million subscribers can earn between $40,000 and $500,000 annually, depending on various factors.
6.6. How many YouTube subscribers do you need to make $2,000 a month?
Approximately 400,000 to 800,000 monthly views could generate $2,000 in ad revenue. However, earnings can also come from 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 relatively small amounts.
Understanding how much money YouTubers make involves considering various factors, from channel size and content type to monetization strategies and audience engagement. Diversifying income streams and consistently creating high-quality content are essential for success on the platform.
Want to learn more about managing your finances and achieving your financial goals? Visit money-central.com for comprehensive resources, tools, and expert advice. Whether you’re a beginner or a seasoned investor, we have the information you need to take control of your financial future. Explore our articles on budgeting, saving, investing, and more, and discover how to make your money work for you.
Address: 44 West Fourth Street, New York, NY 10012, United States. Phone: +1 (212) 998-0000. Website: money-central.com.