As one of the territories of Google’s empire, some say YouTube is slowly replacing television. One look at YouTube’s numbers and statistics will make you agree that this is not an exaggeration. The video platform is the second most used search engine after Google. Video marketing has become a vigorous marketing tool and its heyday is on the horizon. But what does that mean to you as a business? Or as an individual looking for extra monthly income? Surely, you have heard about people making money from YouTube, but how is that done? Becoming a YouTube Partner is the way to gain revenue from creating video content on YouTube.
How Does YouTube Work?
YouTube is a free website where viewers can upload and view videos for free. YouTube relies on advertisements to gain revenues. With one billion active users per month, YouTube does not find it difficult to find advertisers. When an advertiser pays to place an ad on a creator’s video, the amount of money is split between YouTube and the channel’s owner. Although YouTube’s share of the advertiser’s money is not officially announced, it is estimated to be forty five percent. At the end of the day, it’s the creators’ content that brings the audience to the platform, so it is fair that they get a piece of the pie. In addition, YouTube encourages better video content by allowing video uploaders to make money by becoming YouTube partners. Better content means a higher number of active users and viewers, which eventually makes YouTube more powerful, and brings in more advertising revenues.
What Is YouTube Partner Program?
The YouTube Partner Program was created to optimize the quality of the content present on YouTube. For the website, this is a top priority. It makes the platform a safe environment for advertisers and viewers alike by eliminating spammers, impersonators, and bad actors abusing YouTube’s monetizing policies. If YouTube gives money to anyone who uploads videos on the platform, soon enough, YouTube will be a spam website and its audience will escape. For that reason, YouTube has set up two eligibility requirements to qualify for applying to be a YouTube partner. Number one, your channel must reach 4000 watch hours during the 12 months preceding your application. Number two, your channel must have at least one thousand subscribers. In addition, your country should be one of those that program is available to. This ensures that any channel submitted for review is a channel that posts real content which has gained enough views and subscribers to be somehow legitimate or presentable.
How Much Money Can You Earn by Becoming a YouTube Partner?
The amount of money differs based on the channel’s content, authority, number of watch hours, and number of subscribers as well. Any creator can easily view this information through YouTube Analytics. The amount of money or the price of the view is counted by the CPM: cost per thousand. YouTube decides how much an advertiser should pay for every 1000 views. The more popular the channel is, the higher its price will be. Most partners earn anywhere between $0.30 to $2.50 CPM, while hotshot YouTube channels earn about $10 CPM. The channel’s location and the type of audience it targets also affects the amount of money earned by the creator. On the other hand, one important remark is that video creators only make money when their views are monetized. “Many mobile views, those blocked by AdSense, and those where advertising has been switched off for some reason, do not count. 50,000 views do not mean that 50,000 of those views were monetized.”
3 Types of Advertising YouTube Offers
Type#1: In-Video Overlay Video Ads
These are banner-like images that are displayed across the bottom of the video screen. They appear during the broadcast of the original video. If the viewer clicks on these ads, it will either redirect him/her to the advertiser’s website or open up a larger advertising display content. YouTube gives you the option to add what they call a “companion display ad.” The website supports Static, GIF, PNG, and JPG formats.
Type#2: TrueView In-Stream Ads
According to TechTarget, “TrueView is a YouTube video ad format that gives the viewer options, the most common of which is the ability to skip the advertisement after five seconds.” There are three types of TrueView ads in-stream ads, in-slate ads, and in-search ads. In-stream ads allow viewers to skip the pre-roll ads after five seconds. In-slate ads allow viewers to opt for commercial breaks interspersed through the video content. In-search ads appear in YouTube search results when the viewer’s search is related to the ad’s keywords. The main intention behind using these in-stream ads is to introduce advertising in a viewer friendly manner. People have simply grown tired of being subjected to ads everywhere they go. With TrueView in-stream ads, the audience has more power over what they choose to watch or skip. This is one of the perks of digital advertising.
Type#3: Videos Contain a Product Placement
YouTube’s product placement is similar to traditional product placement in Hollywood movies or TV shows. The only difference is that it is much cheaper and easier to embed. Advertisers use vloggers, influencers, and popular channels to embed their products. Video creators need to notify YouTube if their video contains paid promotion. This is essential so that YouTube can adjust other ads it places on your video that do not conflict with what you are promoting for a third party. It also guarantees the viewers’ right to know which videos include a paid promotion.
How Much Does It Cost to Create Videos?
The effectiveness of making online videos is no longer questionable, the benefits are quite obvious. The most common question, however, is how much it costs and whether video marketing will still be profitable when compared to its cost. For video bloggers, cost is even more central since most vloggers are on an individual and tight budget.
The 3 T’s Driving the Cost of Making Videos
The pre-production preparations take time and money. The process contains planning, scripting, and location scouting. Next comes the phase of shooting, choosing the faces in your video, adding special effects, and editing. In addition, adding more members to the video production team means a higher cost.
The team’s talent and level of expertise and creativity is a key factor which determines the cost of your videos. Amateur photographers cost less than highly-professional ones.
The tools used in the video creation process also count in how much your video marketing will cost. Using the latest, high end cameras along with sophisticated editing tools will not have the same cost as using a cell phone’s camera and free editing applications.
Video Quality Levels and the Cost of Each
According to Hinge Marketing, these are the five video quality levels’ description and the average cost for each:
Description: The do-it-yourself approach using basic consumer video equipment and self-taught talent.
Cost: Free (Excluding camera gear expenses)
Description: Requires someone with some experience or training using somewhat more sophisticated tools. Usually it a freelancer, a part timer, or a project-based photographer.
Cost: $1,500 – $3,000 for a one or two-minute video.
Description: Solid professional team using professional tools and average level of time.
Cost: $5,000 – $20,000 for a one or two-minute video.
Description: Top-level talent, high-end tools (such as motion graphics, high-end cameras, a studio.) Premium quality videos often tell a story and grab attention, and even awards.
Cost: $25,000 – $50,000 for a one or two-minute video.
Description: Top level and top talent. The best examples are movie trailers and Superbowl ads.
Cost: $100,000 – $1,000,000 plus for a one or two-minute video.
Restricted Content and Advertisements
So, as a video creator, you should be aware that YouTube policies, or AdWords policies, restrict some content. This applies to content producers, as well as advertisers. Such content includes fake products, non-copyrighted material, violent content that encourages hatred or discrimination, inappropriate adult content, or illegal data collection methods. You can check prohibited or restricted content in detail on Google’s AdWords policies.
YouTube Academy: Mentoring Every YouTube Partner
To encourage top notch content and keep the advertising business going, YouTube has set up the Creator Academy. The academy offers online lessons and courses in video format to users. These educational videos cover the video creation process step by step to guide those interested in video production. The courses deal with topics such as how to create great content, how to build a loyal fanbase of subscribers, insights about the YouTube community, tips and tricks on how to do it like the giants. The best part about these courses and lessons is that they are all for free and they come from YouTube itself!
How to Apply to Become a YouTube Partner?
Step #1: Are You Eligible?
The requirements are mentioned earlier in the article. If these conditions do not apply to your channel, you will not be accepted as a YouTube partner. The following steps will only work if you are already eligible.
Step #2: Enable the Monetization Status
Sign in to your account and click the right corner of the screen, exactly on your channel’s profile picture. Select “Creator Studio,” then “Channel.” You will find many tabs under “channel,” go for status features. Look for “Monetization” and then click “Enable.”
Step #3: Read and Agree on the Program’s Terms and Conditions
This is good for knowing the exact content you should avoid on YouTube, Otherwise, your channel will have a bad image to YouTube’s SEO and the platform may remove your content or ban your channel.
Step #4: Select Your Monetizing Options
Now you will select between the three types of advertising that we mentioned earlier: “Overlay In-Video Ads,” “TrueView In-Stream Ads,” and “Videos Contain a Product Placement.” You must choose at least one. Surely, if you want to maximize your ad revenue, you should select the three of them. You can always adjust these ad settings or select specific videos that you wish to place ads on.
Click “Monetize My Videos” to confirm your enrollment in the program.
Step #4: Wait for YouTube’s Approval
YouTube usually approves all channels within seconds. Unless the channel contains content that does not comply with the website’s policies. Your chosen ads should be visible on your channel, and you will be able to make money right away.
Step #5: Create an AdSense Account
Your AdSense account is set up through your YouTube account and you can associate more than one channel with you AdSense account. However, a payee is not allowed to have more than one AdSense account. In order to receive your payments, you will have to register your email, the same one associated with your YouTube channel, and all your banking information. Through the AdSense account, you can keep track of your earnings or fix any issues relevant to them.
Step #6: Vary the Ads that Run on Your Channel
Sometimes one type of advertising works better for a certain type of content and according to the nature of the video, you should select the suitable advertising. For example, mid-roll ads are not suitable for short videos. You will also come to notice to which type of advertising your audience responds best. Also, using the same advertising approach over and over can make your videos seem dull and boring. It is always good to have a mix of this and that.
Step #7: Offer Paid Subscriptions
If your channel reaches 100,000 subscribers, it means that you have valuable content that people would pay to watch. YouTube unlocks this feature for unique channels so that they are encouraged to create more engaging content. This means that you can earn $0.99-$4.99 a month from every subscriber. This is YouTube replacing the old fashioned TV subscription.
YouTube Partner in a Nutshell
Video marketing has huge potential and it is one of the best ways to make money online. Like any other creative content, video production is a process which requires ingenious ideas, effort, time, and consistency. Being the most prominent video platform, YouTube is the right place to start sharing videos. Becoming a YouTube partner makes video production profitable which is useful for investing in the improvement of the quality. In addition, it motivates creators to continue creating more stimulating and curious video content.