With over 2 billion daily registered users, there is no secret that YouTube is the number one video platform in the world. Lots of people depend on it to learn, get entertained, or even earn a living.
If you are the one supplying educational or entertainment content on YouTube, you can monetize your channel and make some money.
The Salary that a YouTuber Can Earn
Despite there being lots of millionaires on YouTube, there are plenty of people who are still skeptical about the possibility of making money on the platform.
For example, Google usually distributes 68% of its AdSense revenue, meaning for every $100 revenue from advertising, Google pays out $68 to the owner of the channel or as they are known, publishers.
The precise rates advertisers pay vary between $0.10 and $0.30 per view, although the average is usually $0.18 per view.
The average for a YouTube channel is $18 per 1,000 ad views, which is around $3 to $5 per 1000 video views.
As you can see, it is not about how many subscribers you have when it comes to earning on YouTube. But more on that later.
Niches on YouTube that are Making the Most Money
When starting a YouTube channel, it is important to have your objectives clear. If you want to someday make money off the video content you create. You need to make sure that you choose a niche that is easy to monetize and has low competition.
Without a doubt, choosing the right niche will increase your odds of success. For YouTubers to make money fast they need to create engaging videos and post video content weekly.
Luckily, there are plenty of YouTube niches out there. However, there is no such thing as the best niche or perfect niche for YouTube.
The most profitable YouTube niche ideas are the following:
- Beauty and Fashion
- Personal health/Fitness
- Unboxing/Product Reviews
What Does a YouTuber Make with 200,000 Subscribers?
In terms of ad revenue, 1000 subscribers can earn you $20 per month, which translates to $2000 per 100,000 subscribers per month. A subscriber is important for your business but you also need a customer that will buy or click ads.
This means you can earn $4000 per month with 200,000 subscribers from YouTube ad revenue.
However, ad revenue is not the only source of revenue on YouTube. For instance, you can also earn by doing affiliate marketing on the platform, which usually includes links to products or services you review and use in your YouTube videos that will track purchases.
If a viewer buys the product/service using a link from your channel, you receive a commission on the sale, which can be between 5% and 50% depending on the brand you are working with.
Once you have someone on your subscription list they will get notified or have your videos show up in the search.
The 5 Super Rich YouTubers including the Highest Paid YouTuber
You can earn a good living by being a full-time YouTuber. To help you understand that you can also earn on this platform, we have compiled a list of the current top 5 richest YouTube creators.
1. Jeffree Star
Net worth: $200,000,000
Subscribers: 16.6 million
Earnings (2020): $15 million
Jeffree Star is an American make-up artist of Jeffree Star Cosmetics, he uses his YouTube channel to promote his brand and himself.
He published his first video content in 2009, and his channel now has a total of 412 videos, earning $18 million in 2018 from YouTube alone.
2. Ryan’s World
Net worth: $50,000,000
Subscribers: 45 million
Earnings (2022): $22.69 million
This is the kid you have been hearing about. Ryan’s World debuted in 2015 and involves Ryan reviewing kids’ toys.
He works with his mother, who quit her day job to work on the channel full-time.
Today, the family runs nine channels, all of which cover toy reviews as well as some DIY science practicals and various challenges.
Net worth: $53,000,000
Subscribers 109 million
Earnings: $24 million
PewDiePie is a channel run by Felix Kjellberg, a Swedish gamer who plays video games while commenting and sharing hilarious reactions.
Since there is a scarcity of big gaming channels, PewDiePie will continue to be the big fish in the gaming world.
4. Dude Perfect
Net worth: $50,000,000
Subscribers: 57.5 million
Earnings: $23 million
Dude Perfect channel belongs to a group of former Texas A&M college mates namely Cory and Coby Cotton, Tyler Toney, Cody Jones, and Garret Hilbert.
The content of the channel is primarily trick shots and stunts although they often include good-natured contests and games against each other.
It started in 2009 and has a total of 12.8 billion views to date.
Moreover, for every 100,000 views, a video receives Dude Perfect sponsors a child from Compassion International.
Net Worth: 35,000,000
Subscribers: 28.8 million
Earnings (2020): $19.5 million
Starting in 2012, Markiplier started off creating sketch comedy videos where he would play every featured character.
The name is a mixture of Mark and multiplier.
The Reality for YouTubers
As you can see, subscribers are important, but they are not everything. There is a very small percentage of YouTube creators that end up with a large number of subscribers: Out of 37 million accounts, just 22,000 have more than one million subscribers, according to Tubics, a marketing software company.
The vast majority of successful YouTube creators make good money and belong to a “middle class” of accounts. These accounts have around 50k-500k subscribers, many of whom can’t live off their YouTube earnings alone.
YouTube Views Make You Money (CPM Determines Your Pay Rate)
On YouTube, CPM is the amount of money you earn for every click on a particular ad and is an abbreviation of Cost per Mille where Mille is a thousand views. This means you get paid each time an ad reaches a thousand views.
But different creators have different CPM since advertisers tend to pay different rates based on a few factors, such as seasonality geography, and even niche.
To put it simply, CPM rates are not clearly known to YouTubers but they tend to be between $2 and $5 per 1000 views.
This means a CPM with the rate of $5 can earn you $5,000 from a million views. But on average a YouTube video tends to receive only a couple of thousand views, which makes it a bit challenging to earn a steady income off the platform, even if you are extremely popular.
Final Verdict on Why YouTubers Make Money
If you want to earn millions of dollars from your YouTube channel like the richest YouTube creators, you will need more than thousands of subscribers. The richest YouTubers use their channels as a springboard for a bunch of other different ways of generating income, including merchandise sales and sponsored content.