Making a living as a YouTube creator is a dream for many, but how does it actually work? The reality is that “YouTube earning” isn’t a single paycheck. It’s a combination of different revenue streams, all of which depend on a creator’s audience, content, and strategy.

Here’s a breakdown of the primary ways YouTubers earn money.

1. The Starting Line: The YouTube Partner Program (YPP)

Before a creator can earn most types of revenue directly from YouTube, they must be accepted into the YouTube Partner Program (YPP). As of 2024, the requirements are:

• 1,000 subscribers
• 4,000 valid public watch hours in the past 12 months
• OR 10 million valid public Shorts views in the past 90 days
• Adherence to YouTube’s monetization policies and Community Guidelines.

Once accepted, creators can turn on monetization features.

2. Google AdSense (Ad Revenue)

This is the most well-known revenue stream. Creators earn money by allowing YouTube to place ads on their videos (before, during, or after the content).

• How it works: Advertisers bid to place their ads on certain types of content or in front of specific audiences.
• The Split: YouTube keeps 45% of the ad revenue, and the creator gets 55%. (For Shorts, the split is different, with creators getting 45% of a shared “creator pool”).
• CPM vs. RPM:
  • CPM (Cost Per Mille): This is what advertisers pay per 1,000 ad impressions (views of the ad, not the video).
  • RPM (Revenue Per Mille): This is the creator’s actual revenue per 1,000 video views after YouTube’s cut and accounting for the fact that not every video view has an ad. A creator’s RPM is always lower than their CPM.

An RPM can be as low as $0.50 or as high as $20+ depending heavily on the video’s topic (finance and tech pay more) and the audience’s location (advertisers pay more for viewers in countries like the US or UK).

3. Direct-from-Fan Funding

These features allow viewers to support creators directly. YouTube takes a smaller cut of this revenue (typically 30%).

• Channel Memberships: Viewers can pay a monthly fee (e.g., $0.99, $4.99) to become a “member” of the channel, gaining access to perks like custom emojis, badges, and exclusive content.
• Super Chat & Super Stickers: During live streams, viewers can pay to have their message highlighted in the chat.
• Super Thanks: Viewers can pay to leave a “tip” on a regular video upload, which highlights their comment.

4. Other YouTube-Powered Revenue

• YouTube Premium Revenue: Creators get a portion of a YouTube Premium subscriber’s monthly fee. This share is based on how much of their content that subscriber watches.
• Merch Shelf: Eligible creators can link their official merchandise store (like Teespring) to their channel, and a “shelf” of products will appear below their videos.

5. External Revenue Streams (Often the Biggest)

For many established YouTubers, the money they make outside of YouTube’s built-in systems is the largest part of their income.

• Brand Deals & Sponsorships: A brand pays the creator directly to feature their product or service in a video. This can range from a 1-minute integration to a fully dedicated video. Creators negotiate their own rates, which can be thousands of dollars for a single video.
• Affiliate Marketing: The creator includes special links (e.t., Amazon Associates) in their video description. If a viewer clicks that link and buys a product, the creator earns a small commission at no extra cost to the buyer.
• Selling Their Own Products: This is often the most profitable method. Creators use their audience to sell their own merchandise, digital products (like e-books or video courses), or services (like coaching or consulting).

Conclusion

Earning a significant income on YouTube is not as simple as just getting a lot of views. It requires consistency, building a loyal community, and diversifying income streams. While AdSense provides a base, the most successful creators build a business around their channel using brand deals, memberships, and their own products.