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The big question everyone is asking, “How in the world do I make money on YouTube?” We’re going to talk about five ways. Okay, so, big topic today everybody’s tuning in for. How to make money? This is really what it’s all about. And we probably could and will do several episodes that somehow relate to making money because that’s all I want to know. I mean,I’m just your average Joe who doesn’t know jack squat. But I know Nate does. So, let’s just dive right in. How do you make money on YouTube? We’re going to talk about five different ways to make money on YouTube. Usually, people only know about one. There’s five main categories and then category five only get to that. There’s actually five different ways to make money just under category number five. So, if I do the math correctly, that’s an infinite number of ways to make money especially under number five. That is what it sounds like to me. But let’s let’s go with number one. What’s kind of… the number one is Adsense. Okay, that means that you get views on your videos and there’s enough advertisers that are watching your videos, seeing those ads that you get paid advertising revenue from YouTube. So, these advertisers who have money to give me. They basically are aware that I have a million subscribers and blah blah, blah views and how do they know that? YouTube actually controls that for the most part. So, if you’re an advertiser, you can kind of say what type of channels or what type of content you want your ads to appear by. But YouTube takes care of all that behind the scenes. Because they’re really making them. I mean, this is their account that they’re selling. I mean, this is their platform and you contribute to it. Do you happen to know like, what the percentage is that you get from? Yep. What is it? YouTube pays out fifty five percent. So, for every dollar that’s paid to YouTube by the advertisers the creator gets 55% of that. So, wow. I mean I guess that’s pretty good. So, they make 45% to cover their overhead and then that’s their business, they’re entitled to that. That’s great. But we at 55%. So, we’re the the majority partner so to speak. And yeah, it works out great because they obviously created a platform that’s free for us to use and we’re putting our content on there for free for people to watch and then they’re saying, “Hey, well, let’s match this with advertisers and we’ll give you a fifty five percent of the fund.” So, it’s a pretty good deal. But in order for you to make money on YouTube with Adsense, is there a certain… is there a threshold of viewers or subscribers that someone should serve for? There is now. They’ve recently added some requirements. They have to have a thousand subscribers and 4,000 hours of watch time. So, and you can look up a little bit more details of exactly what that means. But you’ve got to have a little bit of momentum on your channel before you can turn on monetization. And that’s… I mean, you can get there in a month, you can get there in a few months is depending on how frequently you post your videos. You started, that’s number one. You started with Adsense. And are you building us a story, are you kind of going in order of what you perceive as the best ways to make money here or… Definitely. I don’t know that these are all in exact order but Adsense is definitely the one that people think of the most. But it’s the one that takes the longest to really provide a living. Because you’ve got to get millions of views to make thousands of dollars.
So, Let’s say you want an income of $5,000 a month, it’s not exact math here but roughly five million views a month is how many views you’d want to be getting on your channel. That’s a successful channel but you’re not going to get there from day one. Wow, so let’s say, I’ve done that. I’ve built up at least that many number of viewers and I am making 5,000 a month but I go 60K a year, I mean, that’s great money, don’t get me wrong but I want more what are some other ways that I can make money? Another one is Patreon. And I know that you haven’t heard of Patreon before. Patreon is a separate company. They created a website where patrons can sign up and become fans of your patrons of views. So, you’ve got a YouTube channel, you’ve created a Patreon account and people like your content so much that they want to donate 5 bucks a month to your channel so you can keep producing videos. Or they want to donate a dollar for every episode that you make just so you’ll keep making episodes. And believe it or not, there’s a lot of channels that are making millions of dollars by basically, crowdfunding or friends funding their channels. I’ll give you an example. So, there’s a real fun channel that I like to watch, it’s called “Sailing La Vagabonde.” It’s this Australian couple that live on a yacht. And they travel around the world and they vlog about it. They only post a couple videos per week but they’re making through Patreon… And you can just go and you that’s… This is public information. You can access on patreon.com. They’re making about 9 or $10,000 per episode. So, wait a minute. So, Patreon is not affiliated with YouTube in any way or are they like… No, it’s a separate company. And so, it’s not even connected there’s no… This is just a completely separate way. You set up a Patreon account and you say, “Hey people, if you like my YouTube channel and you want it to keep going will you pledge two dollars a month?” or whatever it is. And a lot of YouTubers that use Patreon will put in different perks, they’ll make content just for their patrons. So, you can go to the Patreon website. You’ll have your regular content that they’re paying for on YouTube you know, per episode or per month. But then, they’ll send out “Hey! thanks Patreon. So, we’re going to do this special interview just for you guys.” And they’ll send them t-shirts and they’ll get make make beer mugs or something for my scene. And it’s patreon a paid site for the users of it or is that also free? There’s a small percentage like a few percent. But it’s not it’s not 45%, right? So, that’s another nice way to make money. What else do you got? that was 2. What’s third? Okay, so when you have a big enough following or you get enough views on your videos, you can start to do brand deals. So, this video is definitely sponsored by Be the Hero Studios. But let’s say, I was wearing a Nike shirt because Nike paid me to wear that. You’ll see that with athletes. A lot of athletes are sponsored by those different companies ideas or whatnot. One that just popped in my mind. King a Random got sponsored by Home Depot and another one with DeWalt Tools and so he’ll make a video and he’ll use DeWalt tools or he’ll say, “Yeah, we got all this lumber from Home Depot and Home Depot partnered with us on this.” And some… I’ll just share the numbers that Grant shared is that, typically, you’ll get sponsorships ranging from 25k up to 100k is kind of the max range that sponsors are willing to pay when you’re getting millions of views on a video. The typical amount is if you expect to get a million views on a video, then you can ask about a hundred thousand, about 10% of your view rate is how much you can ask for the sponsors. If your video is only going to get a hundred thousand views, you can still ask 10 thousand for a sponsor.
That my friend is very useful information. I mean, that’s good to know stuff. yeah, So in a way, it really does kind of motivate you to go, I got to find something that does draw at least for that particular channel of income that does draw large amounts of… Is it views? Is that what they’re counting are views and that viewers or subscribers or whatever. I mean, they’re, when they’re looking at ad rates and wanting to advertise with you or sponsor that’s… A view on YouTube, in order for it to count as a view, that means somebody’s watched at least 30 seconds of your video. Again, useful information. So, 30 seconds counts as a view? Just let’s contrast that to Facebook. Facebook is 3 seconds and they don’t have to have the audio turned on. So if you’re scrolling through, you’re scrolling through Facebook and a video comes by and it’s been on in front of you for 3 seconds even without audio that counts as a view. But on YouTube, people will be watching it and if they’ve at least watched 30 seconds of your video, then it’s a view. So, it’s more… It’s a lot more valuable step. Much more qualified. You’re right, because I put a little cheesy videos on Facebook and I’ll go, “How did that get 1,600 views?” oh, and I don’t even put the words on the screen so they can read it. Listen to it if you want. Alright, so, there’s a couple of good ways. You’ve still got two more by my math. What’s kind of the fourth way? So, on number 4. We’ll call affiliate marketing, we’ve talked about this before. Affiliate marketing, I know what that is. Tell us what you remember. I remember that it’s like putting a link on there or something that people will go and click. So, if I’m wearing a Nike shirt. Maybe being sponsored or maybe not but whatever. And if somebody buys that shirt through a link on my site, I get a little commission on it? Yeah. So, if you, you would have to sign up on nike.com, affiliate program. You’d become an affiliate. Put links on your channel or on your website so that you could sell this specific Nike shirt, click here, you’ll get a commission. Let’s go back to the DeWalt or the whatever the tools that we were talking about with the those guys, the King of Random. So, as opposed to Home Depot paying him a $100,000 to do you want to do all the tools. If he just happens to do an episode about it, he might include a link, “Hey, this episode you know, remember we used do all tools, click here to see their latest.” or whatever it is. That would be more of an affiliate marketing. Well, let’s take an example. So, let’s say you and I make a video. We go out in the garage and we’re using a Dewalt tool. Dewalt is not sponsoring this video but we could link to a Dewalt tool that we’re using on Amazon. Because I am an affiliate with Amazon. And if somebody then clicked on the link to go to Amazon to buy that tool, I would then get a commission. So, that’s affiliate marketing. This is… I mean, all of these things you’re talking about so far and we haven’t even gotten into this massive number 5 which would probably better. But all four, those first ones are like, that is some good solid info, man. Alright, so number 5. Number 5. Start a business. And i’ll elaborate, i’ll elaborate. So, we’ve got to go to City Hall, you got to get all the forms. City Hall. If you have… If you have a business, you have some value that you give. You have a product, you have a service that you offer and you use YouTube to generate leads for yourself. We’ll talk about this in another episode. Yes, I mean, everything that we’ve talked about previously is we’re we’re generating leads for other companies. We’re either doing advertising for them through the Adsense or through a sponsorship or the affiliate links. Those are… like an affiliate link, somebody’s making a purchase from somebody else. But why not have something that we sell. Let’s say, you and I design a shirt. Let’s say, it might be the hero shirt, somebody wanted to buy that. that’s my own product that I create and so, for number five is a business. I said five, I actually got six different thoughts or kind of categories that we could talk about of how to monetize your channel through your own businesses. And one is, you create your own products. You have a service and so a service might be, you’re a dentist or you’re an attorney, you provide landscaping or something like that. So, you’re generating leads. Or a different type of service that will put it into a different categories. You could provide coaching or consulting. So, that way you could be on a phone call and the right coaching or speaker because I’m a public speaker.
That’s that’s actually another category and a lot of YouTubers will gain a lot more popularity and they’ll be invited to come speak. It’s kind of interesting because I’m a part of the National Speakers Association which you’re a speaker and I’ve never seen you there. You should come. I never joined. I have done things for them but I know better. But there’s two worlds that… I wouldn’t want to be in any organization that would have me as a member, as Woody Allen famously once said. Sorry, go ahead So, in the world of YouTube, there’s a lot of people that have grown in popularity and they’ve naturally, “Oh, now I’m going to become an entrepreneur now, I’m going to become a speaker because they want me to come speak. So, it’s kind of interesting. And then there’s people over here on National Speakers Association that that’s what they do. They have a message they start to speak and I’m I’m thinking, “Well, why don’t you use YouTube to get you more speaking gigs?” and so I’m trying… That’s I work with a lot of speakers to get them to merge those two worlds together. But definitely speaking is something that is a way that you can generate a lot of income from, from YouTube. And so, your part of your YouTube channel or what you would kind of put out there would be the topics that you speak on or would be something totally entirely different that you’re still making a link back to the fact that you’re a speaker? Yeah, you’d reference set it. That’s… so many different ways. I mean, what is Will Smith using his channel for. He’s a big-time actor. You know? One of the the most famous actors out there, one of my favorites. And then he’s got a YouTube channel. It really builds a lot of credibility or personality allows people to connect with them more series doing real time and it just builds his brand. And now he’s famous and it makes more people want to hire my guests to do their stuff. So, as a speaker, yeah, you’d probably want to be talking a lot about your topic. Your message, about happiness in your case. About YouTube in my case. So, two other ways I want to talk about. Just different types of businesses you could use. You can sell digital products like a membership site or digital course. So, if I wanted to make training video like a series of how-to YouTube or something like that That I could package and it’s, you know, it’s a solid ten hours that I could sell on DVD or better yet just a digital course of the access online. You know that’s something that I could sell. You know some type of how-to… And you’ve seen success with that I mean, you’re personally aware of that because you have clients who do that. Yeah, one channel that I’ve created from start to finish. We started at day one with zero subscribers. We’re now generating seven figures per year by selling a digital course on how to invest in real estate. So, it is perfect example of kind of the back end of the whole engine you’re he’s giving some of the material way in his free YouTube channel. And then able to sell the course itself via the channel, right? I mean, that’s, Wow. Yeah and that channel right now is got about seventy six thousand subscribers which… So that’s not mind-blowing. But that’s like the you’re talking about earlier. But you can take a smaller amount of potential clients, qualified leads and if you’re selling to a thousand of those 76,000. Yeah, well across the board, we’ve created 400 videos. Something like that. 400 plus and those videos are in total generating about twenty five or six thousand views per day. And so, think how many of those people are interested in buying of course. That’s a lot of people coming in. You only need a small percentage of that to actually generate. So, that’s why it’s generating. It’s kind of like, 2018 is Direct Mail. you know what I mean, it’s like you got to send out a bajillion bulk but direct mail flyers to get one person to show up at your car lot to look at “We’re blowing out this 2017.” You know, I mean, it’s like… But to be able to do that, electronically, digitally and reach that many people. Just create good content. Okay, I’ve got one more business idea and then I’m going to share a cool story to wrap this up. So, the other business idea is to put on your own events. So, you’ve got fans. People that love you, that admire you, that has been watching and following on YouTube. You can put on an event. And Kris, with the real estate channel, he actually does several types of events and he’s… We’ve done that quite successfully. But there’s YouTube events that a lot of YouTubers or like VidCon fans from all over the world come there. You can actually put on your own events, you can put on enough clients that put on cabin retreats and stuffs like that. So, anyway, that was just another idea that I thought of a different type of way to monetize your channel. Alright, so, a cool story. So, one of my favorite YouTubers he makes science videos, his name’s Derek Muller. The channel is called Veritasium.
You can check it out. I started following his channel when he had about 1 million subscribers and I was just fascinated because I saw he was making really quality videos and he was travelling around the world. He’s from Canada living in Australia and I saw him filming in United States. He came to Utah, BYU sound lab. Kind of a room like this but it was completely silent and did a video there. He went to turn oval filmed a video on radiation and it was like how’s this guy afford to do all this traveling and put all this attention into his videos. So, I found out he was making money from speaking. He was an… He had affiliate links to like Audible to get their audio books and he was making Adsense ad revenue and so I kind of like dove in and figured that out. But I thought imagine if he had his own events. Maybe he put on a science event or maybe if he had his own product or something that he could sell. He’s got this million subscriber base and his videos were we’re getting you know typically an average of 1.2 million views. Wow. So, I just had this idea what if he had a business behind it. Well fast forward a couple years, by this point he had over three million subscribers and he posted a video, his typical educational style. None of his videos were ever Scelzi but this one he did he promoted a product that he was launching on Kickstarter. It was a molecule. A magnetic molecule kit and like the chemistry kits that I use. Do you know where they were balling sticks? Well, this was magnetic and the bonds could rotate and it was like reminding me of my chemistry is, “oh, that’s pretty cool” So, his goal was to raise I believe $42,000 over this five-week period. He had a few million subscribers. Guess how quickly he hit goal? A week? 2 hours. So, over the five weeks, he raised over a half million dollars and so he’s able to develop the thing and a lot more. Yeah. The reason I wanted to share that story is just to really emphasize the power of YouTube in building a YouTube following. Once you build a tribe, as long as you respect the tribe. You can create and sell them whatever you want. You know really whatever they want. I’m sure they’ve been asking him for things, ” what do you sell? What do you offer? Do you put on events? Do you have any science kits?” So, the first thing he launched, Kickstarter, you know half a million dollars. Good for him. Wow! what an amazing way to leverage the loyalty of your base, yeah. But in the end, you know it sounds like he’s building trust with them so that if he thinks something is good or he recommends something, they probably will will do it or buy it. So can you monetize YouTube or how can you? There’s a lot of different ways to do that. So, do you think this video is helpful? I mean, I don’t know, it was helpful to me and I know nothing. So it had to be helpful to you guys, I’m sure. So I’m actually really curious up to five ways plus the the six different business ways, which one was a surprise to you, which one you think is going to be most effective to apply in your case? So comment below. We always check out the comments. Thanks for being here. See you.