There are different ways of earning money on YouTube. In some cases, you could earn more, whereas in other instances you could earn significantly less. One important thing has to be said at the beginning. If you are looking for quick money or ways of getting rich quickly, you should stop reading now. This article is definitely not for you, because making money on YouTube is a marathon, not a sprint. The process of building your YouTube Channel that can gradually and effectively start earning you an income is a gradual and strategic one.
This article looks at the three best and most profitable ways.
I have organized the list of individual ways of making money on YouTube based on their financial efficiency (in descending order).
1. Earning Money on YouTube Using AdSense Ads
What is AdSense? AdSense works by matching text and displaying ads based on your content and visitors. Your visitors will start clicking those ads and you will be paid for it.
You can activate monetization of the videos of your YouTube channel. YouTube will then start showing ads within your videos or next to them and that is how you will get paid.
The ads can be:
- content ads,
- overlay ads in your video or next to it,
- sponsored cards,
- skippable TrueView ads.
The majority of Youtubers use monetization of their videos using Adsense ads. But be careful! This form of earning money on YouTube is mainly suitable for people with a lot of subscribers. This is because you get paid $1 to $5 for 1,000 views.
So if you regularly have huge volumes of views each month, this would be a great way to earn money.
If you have just launched your YouTube channel and it only has around hundreds – thousands of views per month, it may be better to focus on the following 2 ways of earning money:
2. Using Affiliate Marketing
Let’s start by discussing what is Affiliate Marketing and then we will take a look at how it can be used on your YouTube channel.
Affiliate marketing is built on the idea of recommending someone or something, which is really good.
Therefore, if you have many subscribers to your YouTube channel, you can use this to recommend products and services that you use and like, to your followers.
Subsequently, you will receive a commission for these recommendations.
A Practical Example:
The YouTuber Frank Kozáček has a video on his channel, where he presents the Camtasia software (a video editing/cutting software), which he’s been using for several years. He talks about having edited over 300 videos using this software.
He recommends this particular software to his viewer in this video, and the video description (see picture below) includes an affiliate link, where his viewers could download a free 30-day trial version of the software if interested.
When the viewers click on this affiliate link, the TechSmith Company selling the Camtastia software knows, these people are from Frank Kozaček as the entire process is automated.
This means that people will be directed to the product page, where they can test the software for free and then decide, whether this software is suitable for them or not.
Additionally, if the viewers like this video editing/cutting software and purchase the paid version, Frank gets a commission from the TechSmith Company.
In this case, the commission is 15%. The current price of the software is 200 USD, which means he will get 30 USD credited to his account. All this, just for talking about something he uses and finds helpful when doing his work and recommending the software to his viewers.
Frank also has another affiliate link for the excellent email marketing tool – Smartemailing, which he recommends in another video. In this particular video, he is showing 5 ways to promote your YouTube videos for free (see picture below).
This is how you can recommend the products and services of other companies, brands or people to your viewers and generate more money from your videos. However, it is important that you recommend only things you are using, you are truly satisfied with, and you believe they are suitable for your target audience.
Using Affiliate Marketing can easily earn a percentage of the product and service prices that you have recommended to your viewers.
If we compare this method to the Adsense advertising, by using Affiliate marketing, you can achieve higher earnings without having high volume of traffic on your YouTube channel.
So, this was the second most efficient way of making money on YouTube – through Affiliate Marketing.
Finally, we’ll examine the first position – the best way of earning the most money on YouTube.
3. Selling Your Own Products and Services
If you are a businessman or a tradesman, you will love this way as it surpasses both of the previous ways.
As far as making money on YouTube, there is no better way than making money by selling your own products and services. You may ask why? The answer is pretty simple actually, it’s because people pay you directly.
Whereas, if you are earning money on YouTube using the AdSense or Affiliate methods, you are only receiving a portion of all revenue. What this means, is that the money goes through several other parties before it gets to you. Each of the parties collect their share, and you will only receive a small portion of the total.
When selling your own products and services, all money received from the customers goes directly to you, so you will receive 100% of the money.
You can sell your:
- physical products,
- online products,
This is how Frank Kozáček from the VIDEO ACADEMY sells his premium eBooks, video training, and consulting. This way generates the most money for him.
How to Sell Your Products and Services Using YouTube Videos?
It is very similar to Affiliate Marketing. The main difference being, that you are promoting your own products and services in your videos and direct your viewers to your online store/website.
For example, in one video (see picture below) Frank Kozáček shows a little trick on how to get more YouTube subscribers. In the same video, he also promotes his paid eBook – Improve Your YouTube Channel.
Using the link in the video description he directs his viewers to his online store, where they can purchase the eBook.
A different, yet very efficient technique is where you collect e-mail addresses from your viewers first, and use these as your leads that you hopefully convert into sales. This way, you could improve the sales levels of your products and services, as having the email addresses of potential clients allows you to communicate directly and effectively with them.
So, if you are a businessman or a tradesman, and you sell your products or services, this option could be the best option for you. Why?
Because you do not need to have a huge viewership on your YouTube channel, yet you could earn relatively good money through the videos.
Described above, are the three best ways of earning money through YouTube. However, I don’t recommend focusing on just one of these, as that way you could be potentially forfeit the opportunity to earn extra money.
Which of these methods of earning do you use on YouTube? And what would be your winning choice? Do you have other ways to make money on YouTube? Please, share your experience in the discussion below. Every comment is appreciated.
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Whilst on the subject of social networks, I recommend that you also read the article A Couple of Ways to Earn Income on Instagram. The article also includes the 5 most common ways to earn extra income on this social network.
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My name is George and I currently work from home as a freelancer for a PR agency selling advertising. I also freelance as an online marketer for an e-shop, and I am actively involved in creating this website. I am always looking for interesting opportunities on how to make money online. I share my findings with my readers on this website. I consider this to be my hobby. I hope, that you can find some legitimate work from home, or perhaps you might be able to earn a little extra money.