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How To Make Money on YouTube: Video Monetization Part 1

Video Marketing Monetization Methods have exploded through the roof.

Do a Google search and you see Adwords ads everywhere. The same is true for YouTube. You click the play button, and what do you see? A preroll Ad. Or, after 10-15 seconds a banner ad pops up. There is another banner Ad to the right of the video, and more textual ads above the Related videos section. And this is only a YouTube video page. Then there are home page Ads, Channel Ads, etc, etc….

There are two terms you need to be familiar with:

  • YouTube Publishers – Publishers are those who upload videos, create channels, playlists, and content.
  • YouTube Advertizers – Advertizers are those who pay to place Ads on YouTube (through Google Adwords).

Video publishers/creators are monetizing their YouTube space (your channel, playlists, and videos) with advertizing ad placements. This blog post will go over the nuts and bolts of YouTube Ads on how to make money on YouTube.

No doubt you may be saying to yourself, “I’m not Lady Gaga on Youtube,” nor “Am I Christina Perry singing ‘I Am Only Human‘ with 58 million views. How am I to make viral videos to get millions of views that are needed to make money on Youtube?” That is a very good question.

People will watch anything. Seriously. Give it a great title. That is the key. A great title will get you attention. After that, it all depends on the video. What kind of video?

It amazes me how videos that are simple, hilarious, outrageous, politically incorrect, borderline r-rated, stupid, and practically insane get the most traffic and viral effect.

Seriously!

Check out a couple of these YouTube success stories:

  • Shane Dawson is a YouTube sensation whose rise to fame was the day that YouTube got him fired. With over 1 billion views  and 6 million subscribers to his Channel he is a YouTube rockstar. He uploads a video to YouTube of him pole dancing and he gets fired by Jenny Craig. Like…seriously? Now, his YouTube Channel Shane Dawson TV gets millions of views on his videos. He has gone on to publish books and iTunes. Ya, I know what you are thinking…’Teenager stuff and r-rated mouth.” His impersonations (such as Paris Hilton, Miley Cyrus and Sarah Palin) are big hits.
  • Felix Arvid Ulf Kjellberg is a Swedish Video Gamer with over 38 million subscribers to his PewDiePie YouTube Channel, and who works through the Video Network “Maker Studios.” This is a huge business and some of these video gamers are raking in the cash with YouTube by doing screen captures of their gaming. Brands such as Electronic Arts, etc.,  are signing up as sponsors with these YouTube publishers and giving them sizable paydays.
  • Natalie Tran is another YouTube sensation for years, and is really one of the early Tuber’s…making it to the 2010 YouTube Rich List. Her Youtube Community Channel continues to gain momentum getting millions of views. Her wikipedia tells us that she even has tried her hand at acting and films as a result.
  • Philip DeFranco, real name Philip Franchini, Jr, is another YouTube money maker with over 3.4 million subscribers and has become a Vlogger Celebrity. He gets news story and gives his opinion about it. That’s about it. This video has 4 million views. Ya, catchy title that will get the clicks. It really discusses the issue of Tuber’s who use images of sexy women as thumbnail pics to get the clicks, etc…(but didn’t he do the same with the title?).

How To Make Money On Youtube

We will be discussing the different ways you can Monetize your videos on Youtube.

1. Become a YouTube Partner. When you verify your account there will be a number of added features and benefits to you. The biggest benefit is that you will be able to put Adwords Advertizers ads on your YouTube videos (ads run on or beside your videos). You make money when visitors watch the preroll video ad for 30 seconds or click on it, or if they click on the overlay banner ad on the bottom of the video (more on this below).

How much money can you make? If an Adwords Advertizer pays $10 per click, you will make 55% of that, and Google (who owns YouTube) makes 45%. As a rule of thumb, for every 1000 views, you can make anywhere from $1.50 to $4.00.

Adsense Income

2. Earn Google Adsense Income By Placing Advertizer Ads on Your Published YouTube Content

I have created this video which shows a number of ways to monetize your videos as a publisher.

How to Make Money On Youtube | Video Monetization

You can monetize your YouTube video content in a number of ways:

A. First, Enable Monetization in your Creator Studio dashboard under Channel/Monetization.

B. Next, Link your Adsense account with your Youtube account.

C. Set Your Default Settings for Upload Monetization – If this is deselected, you can edit each video with Video Manager and monetize individually. You can also bulk edit the monetization of videos by selecting them in your Video Manager and the clicking on the Actions > Monetize tab.

How to Make Money on Youtube

D. Choose Which Ad Formats you want to place on your videos.

They include:

  • Overlay in-video banner and text ads. These type of ads show up after 10-15 seconds into a video and are places in the lower 1/3 of your video.
  • Skippable video ads (preroll). These are video ads that start before your video.
  • Display Ads, or Companion Ads, appear to the right of your video and can be a Banner Ad or Rich Media Video Ad.

Youtube How to Make Money

In the “Charlie Bit My Finger – Again” video, you can see 3 Advertizers: the OverLay In-Video Ad, the Display Banner Ad to the right, and the Promoted Video Ad.

Next Two Points Are Critical

3. Focus on Getting Subscribers. They are the YouTube Holy Grail. Each Subscriber you have gets a notification every time you upload a new video. With a catchy title, you will get a view. The more views you have that keeps them watching your video to the end, the higher your rankings will be in Youtube and Google’s search engine, which in turn gets you more traffic and views.  The more views, the more people see the ads. It is a pure numbers game.

4. Use YouTube to Bring Awareness To Your Brand. People hate sales and marketing videos on YouTube. Direct selling on YouTube is pretty much a waste of time. What does work is using YouTube to bring awareness to your brand and to start a conversational piece to your customers and fans.

Google LibraryI like the imagery that Phil Nottingham of Distilled used at his presentation at MozCon 2014 when he describes YouTube as a library and that “people don’t go to a library with purchase intent. YouTube is great for building brand awareness, starting conversations around your brand and solving problems with customers. YouTube is not good for direct sales and sending traffic to your sites.

It must be mentioned that Phil is speaking about Video Publishers (those who upload videos and create content), and NOT YouTube Advertizers.

To get the most traction to bring awareness to your brand, put your brand name and website URL (that you monetize) in highly viewable positions: channel name, channel header art, logo in videos, description boxes, titles, annotations, cards, etc….

Other Ways How To Make Money On YouTube

5. Signup For Google Adwords and Target Other YouTube Videos to Place Ads for Lead Generation and Brand Recognition

Google Adwords is an incredible service. You only pay if someone clicks on your Ad. If you are using a preroll Video Ad, you only pay if someone watches your video for 30 seconds or longer.

Resources:

While not the main subject of this blog post, if you want to try your hand at Google Adwords and have a budget, there is a lot of money to be made. Just be very careful or your credit card will reach its maximum quickly and you will have nothing to show for it. In other words, you need to know what you are doing. Tread lightly.

6. Buy/Sell the Description Box Section on High View YouTube Videos

Some videos go viral like wildfire. It could be “How Charlie Bit My Finger” with 805 Million views. You can message the owners of these videos and offer to buy space in their description box and put your website URLs and information to your product and/or service. Alternatively, if you have a viral video yourself, you can sell and make money from your description box. This would be a private deal.

7. Make Money on YouTube by Creating Presell Videos (or Open Box Videos) on Affiliate Products with a Link to Your Website

Once again, this is not a great way to make money on Youtube, but if you do proper YouTube SEO on keywords for the product in the title and description box, you can get some organic traffic and views. How many actually click on the link in your description box is minimal for direct sales and affiliate videos. For the most part, YouTuber’s despise these types of videos.

(Important Note) I have been in this business since 2008. I have seen a lot of wso’s, and e-courses that promise you riches by publishing videos on YouTube and selling affiliate products. This is simply a scam and the only one making money is the person trying to get you to buy their wso or ecourse. I agree with Phil Nottingham (see above) that YouTube is great for brand awareness and engaging the customer to solve problems (how to fix, train, etc). It is not good for direct and affiliate selling.

8. Get Sponsors for your YouTube Channel and Videos with Paid Placement Ads

YouTubes Paid Ad Placements program is a lucrative business. In fact, paid placements have been around a long time in Television. I am sure Coca Cola paid American Idol a pretty good sum for this.

Youtube How To Make Money

YouTuber’s have been generating high priced revenue for the longest time and cutting private deals with big brands and sponsors.

Because YouTube was cut out of the revenue stream for Paid Ad Placements between publishers and sponsors, YouTube has recently updated their terms of service. You have to notify them in your Ad monetization settings that your video has a Paid Ad Placement. You also are no longer able to include graphical title cards but text only for paid ad placements.

Youtube Paid Product Placements

I am not really sure how YouTube is able to monitor this for videos that have sponsored ads right inside their videos during production.

The key is finding brands who will sponsor your videos and/or your channel. This is a huge opportunity for local seo’ers who want to add an extra income stream. Find local brands and businesses for YouTube product placements sounds like a great new income stream to me.

9. Create Paid Viewer Content. Users Must Pay To Watch Your Videos and/or Subscribe to Channel

YouTube has a Paid Content Monetization Program that is highly ‘under used.’  Only paying customers who purchase with their Google Wallet can watch your videos and content.

10. Use YouTube’s Fan Funding to Monetize Your Videos

When the Fan Funding Feature is enabled, you can set a custom greeting message where users can support you by donating to your Channel. You can also upload a Thank You message after they have contributed to your Channel.

Thank you for reading my post. I am hopeful that you will put these top 10 how to make money on YouTube strategies to work.

Please comment if you have more ideas on YouTube. Thank you

About Mark Dulisse

Software Developer, Blogger, SEO Consultant, Internet Marketer

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21 comments

  1. Great post.that covers the question that is on every Tubers mind! I am anxiously awaiting part 2.

  2. Really great post, and lots of detail. Thanks for sharing Mark!

  3. Great post Mark! I was under the impression that YouTube can be great to market your services and products. Looks like I fell for the “bull” again! Thanks for posting and looking forward to the next one. 🙂

  4. Hi,

    Yes indeed it is a must to know information for the new bloggers. Because initially they can’t expect huge turn out from the affiliate programs, just because they will lack traffic.

    The one option they can go for adsense, and probably Youtube is more handy to get some traffic and earn money as well..

    Thanks for sharing your quality.
    kumar sunil

  5. thanks for sharing the quality article with us . I will try this method still in my online carrier. But now I will definitly try this way of earning.
    Keep writing Quality Post.

  6. Great information you have shared with us on this website about make money online with youtube.Bundle of thanks

  7. Hi Mark,
    First of all thanks for sharing make money method with us.
    I am new to your blog and I bookmarked this page for future usage.

    Really this is inresting and easy way to make money though youtube.
    I think it is very easy process to get Google adsense account though Youtube.
    I have a question, Can we use This account on our bog?

    Regards:
    Areesha Noor!

  8. These day million of visitors visit youtube website every day, If you want to earn money by help of video then youtube is good platform for you, here you can earn good number of money online.

    Regards
    John

  9. Mark, Great way to make money online via you tube. you tube monetization is necessary to run google adsense campaign. Thanks for sharing!! Now-a-days millions of people are posting and watching you tube videos.

  10. In some videos you can’t skip the ad, does this mean that the uploader get money every time?

    They are very short for the must part but still.

  11. We’ve just about all experienced failing in online marketing. What happens all too often is that people give up and not learn in the failure. Rather we search for another method and begin the brand new method, fall short again as well as, again, search for another technique. It is very possible our answer is at the initial method however we in no way took time to discover it. All of us just went away. And all of us didn’t learn anything.

  12. Hi Mark, Thank You for shared most important tutorial shared about Make Money with YouTube. You Tell men Step by step as well Really I Have learned easily. It is very helpful knowledge.

  13. Carrier monitoring system

    Nice post Mark, You share the nice post about YouTube can be great to market your services and products. Thanks for posting.

  14. Hey Mark,
    You have shown really a great number of ways to make money out of YouTube and the names of those famous YouTubers you have mentioned along with a short description really can motivate people to have a look at it, Great work.

  15. Hi Mark.

    Great post, as always 🙂

    You covered everything one needs to know to start making money on YouTube. I’ve only used YouTube for backlink building and driving traffic thus far, but would love to give YouTube monetization a try sometime soon.

    – G

  16. Hi mark,
    Thanks for showing the way to monetizing the youtube videos.
    The way to earn a little more extra money.

    Thanks for sharing!
    Keep it up!
    Gaurav Vashisht

  17. Hi Mark,

    This is so nice to talk about how to make online money with Youtube videos, Thanks for sharing this great blog post here with us.

  18. Good info, I love simple straight to the point information like alternating keywords between the file name and the title and creating separate channels for different subjects to increase relevancy. Really good post.

  19. Wow really a very good post.

  20. Hi Mark,

    So lucky I read you article about earn money from youtube, recently I planning to create some video for SEO learning video in Chinese, I will follow your step to make my first success 🙂

    Regards
    Wynn

  21. Awesome ! Outstanding , Such a very nice article, Thank you sir

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