Monetizing YouTube in 2023: A Detailed Guide to Earning Money

YouTube is no longer just a platform for watching funny cat videos. With over two billion active users and roughly 500 hours of video being uploaded every minute, it’s a bustling online marketplace ripe with monetisation opportunities. But with such an overwhelming amount of content, how can you successfully cash in on your creativity? Let’s dive in and explore the steps to making money on YouTube in 2023.

The Preliminary Steps

First and foremost, you need to establish an engaged audience. Here are a few strategies to consider:

1. Identify a target market: Knowing your audience will help you curate the appropriate content and kickstart your journey towards a loyal viewership.
2. Find a niche: Specialised content will help you attract a dedicated audience and present collaboration opportunities with brands in your sector.
3. Invest in good equipment: A high-quality camera, microphone, and lighting can significantly enhance your videos, making them more appealing to viewers.
4. Utilise audience-building tools: Regular posting, optimising videos with relevant keywords, and driving traffic from social media or blogs are effective ways to garner viewers.

The Numbers Game: Subscribers and Views

To start making money from YouTube, you need a minimum of 1,000 subscribers. While you don’t get paid per subscriber, a higher subscriber count means more opportunities to generate revenue.

In addition, you need 4,000 watch hours of your content in the last 12 months to start earning. More views equate to a higher earning potential. Remember, you’ll only generate revenue if viewers engage with the ads on your videos. Forbes estimates that YouTubers can earn approximately $5 (£3.50) per 1,000 views, meaning a video with 75,000 views could generate about $375 (£270).

The YouTube Partner Program

Once you hit the 1,000 subscriber mark and reach over 4,000 watch hours in the past year, you’re eligible to join the YouTube Partner Program. This enables you to incorporate ads into your videos, earning roughly 55% of the ad revenue your content generates. You’ll need to ensure your content adheres to YouTube’s advertiser-friendly content guidelines. Ads will only appear once your videos have passed a review process ensuring compliance with these guidelines.

Making Money Beyond Ads

Ads are only the beginning of your YouTube earning potential. Here are other avenues to explore:

1. Merchandise: Selling branded items such as t-shirts or tote bags is an excellent way to supplement your ad revenue. YouTube even offers a Merchandise Shelf feature that can be integrated into your videos.
2. Fan Funding: Platforms like Patreon, Tipeee, and Buy Me A Coffee allow you to receive donations from fans in exchange for exclusive content.
3. Influencer Partnerships: YouTube affiliate marketing involves promoting other brands’ products in your videos. It’s an effective way to increase your revenue through sponsored posts and discount codes. Ensure any partnerships are disclosed and adhere to all advertising regulations.
4. Content Licensing: If your video goes viral, you can licence it to news publications or brands for a fee.
5. Channel Memberships: YouTube Partner Program members can offer paid memberships for exclusive content.
6. Chat Payments: If you livestream, YouTube’s Super Chat function allows fans to donate money for shout-outs.

Other Considerations

1. YouTube Shorts: While making money from YouTube Shorts can be more challenging due to the lower revenue per view (RPM), the format’s popularity can help you grow your audience.
2. YouTube Premium: This feature allows subscribers to watch your content ad-free. You earn revenue based on how much premium subscribers are watching your videos. It’s a viable second revenue stream.
3. Community Guidelines and Policies: To monetise your channel, you need to follow YouTube’s Partner Program policy and its Community Guidelines.

Finally, don’t forget your tax responsibilities. While you can earn up to £1,000 tax-free, anything over this amount is taxable. Familiarise yourself with the tax regulations for your country to ensure you remain in compliance.

In conclusion, while it can seem daunting at first, earning money on YouTube is feasible with a targeted approach and consistency. Harness your creativity, build an engaged audience, and utilise all the tools YouTube provides, and you’ll be well on your way to a profitable channel in 2023.

Published on June 24, 2023