YouTube is the world’s most popular platform to showcase your creativity, products or services to worldwide audiences. From travel and cooking videos to educational and informative content, millions of YouTubers upload videos every day.

Did you know? Over 122 million people use Youtube daily, with such a huge audience, the potential to make money on YouTube is very high. So it’s natural to have a question in mind, how YouTube pays money to YouTubers?

In this post, we’ll understand how YouTube makes money and shares that money with YouTubers. We’ll see how YouTube monetization works and also check other ways to earn money on YouTube.

Whether you’re just a beginner or are an experienced YouTuber, understanding these fundamentals will help you make informed decisions and maximize your earnings on YouTube.

Ok, before we start, let’s check some of the interesting numbers that I’ve found for you about YouTube.

Interesting YouTube Statistics

YouTube is the biggest video sharing platform in the world, with impressive numbers to back it up:

• Over 2.5 billion people use YouTube every month.

• About 47% of all internet users worldwide access YouTube monthly.

• In India, YouTube has the largest user base, with 462 million users, followed by the United States with 239 million users.

• 54.4% of YouTube users are male, while 45.6% are female.

• Around 40.9% of YouTube watch time happens on mobile devices.

• YouTube Shorts, the platform’s short-form video feature, had 2 billion active users globally by mid-2023.

• People watch over 1 billion hours of video on YouTube every day.

With such a massive audience, YouTube is a great platform for creators to showcase their talent and make money. So, let’s start with an understanding of YouTube monetization.

What Is YouTube Monetization?

In simple words, YouTube monetization is the way YouTubers can make money from their videos.

When you upload videos on your YouTube channel, you can make money through ads, memberships, and other features. YouTube shares part of the money it makes from ads with you, the YouTuber.

To start earning on YouTube, you have to be eligible for a program called YouTube Partner Program created by Google (Note: Google owns YouTube).

What Is YouTube Partner Program (YPP)?

In 2007, Google introduced the YouTube Partner Program, also known as YPP for the first time.

In YPP, YouTube allows YouTubers to earn money by running ads on their videos. YouTube shares a portion of its ad revenue with YouTubers, giving them a chance to turn their channel into a source of income.

But to join the YouTube Partner Program (YPP), there are some criteria you have to fulfill before starting to make money on the platform.

Eligibility Criteria For YPP

• 1,000 subscribers: Your channel needs at least 1,000 subscribers.

• 4,000 watch hours: You must have 4,000 valid public watch hours in the past 12 months. Alternatively, you can qualify with 10 million views on Shorts within the last 90 days.

• Follow YouTube monetization policies: Your content must comply with YouTube’s guidelines and community rules.

Get Google Adsense for YouTube

Once you meet the eligibility criteria, you’ll need a Google AdSense account to start receiving payments. AdSense is a platform from Google that processes payments you generate from YouTube ad revenue and other monetization features. AdSense ensures that YouTubers receive their money securely and on time.

By meeting these requirements, you can unlock YouTube monetization and start earning money from your content. Now, let’s see some of the main ways to make money on YouTube.

Ways YouTube Pays Money To YouTubers

By now, you might be very well aware of what the YouTube Partner Program is and how YouTube monetization works. Now let’s see the main ways that you can use to make money on YouTube.

1. Make Money Through Advertisement (Ads)

The main and most popular way for YouTubers to earn money on YouTube is through ads. When a viewer watches your video, and if your channel is eligible for the YPP, YouTube runs ads before, during, or after your videos. These ads are automatically shown by the YouTube algorithm to viewers based on their recent search history or interests.

What is the ratio of YouTube ad revenue?

When an advertisement runs on your video, the advertiser pays fees to YouTube as per the contract between YouTube and the advertisers. Whatever revenue is generated from your video, YouTube shares 55% with the owner of the video (YouTuber) and retains 45% of the revenue for itself.

When YouTube Pays Money for Ad Revenue

YouTube pays ad revenue between the 21st and 26th of each month, but only if the following conditions are met:

• Payment Threshold: Your YouTube payment account in AdSense must have reached the required payment amount.

• No Payment Holds: There should be no holds on your account.

The exact payment date depends on:

• Time Zone: Payments may be adjusted based on your time zone.

• Weekend or Holiday: If the 21st falls on a weekend or holiday, payments may be delayed until the next business day.

You can check your earnings by:

• AdSense Account: Your total earnings and recent transactions will be available in your AdSense for YouTube account.

How YouTube calculates earnings:

• Ad Views: You earn based on how many views the ads on your videos get and how long viewers watch them.

Factors affecting your earnings:

• Country of Origin: Views from countries with higher ad spending (e.g., the USA or Canada) can generate more revenue.

• Channel Size & Subscribers: Bigger channels with more subscribers tend to get more views, leading to more consistent earnings.

• Seasonality: Certain times of the year, like holidays, can result in higher advertising spend, increasing your revenue.

2. Earn Money Through YouTube Premium

YouTube Premium is a subscription-based service offered by YouTube that enhances the viewing experience for users. If you want to enjoy YouTube videos without any interruptions, a nominal fee is charged by YouTube. When a user subscribes to YouTube Premium, they get:

• Ad-Free Videos: No ads will disturb you while you are watching your favorite shows.

• Background Play: Videos will continue playing if you use other apps on your phone or your screen is off.

• Offline Viewing: You can download your favorite videos and watch them later without an internet connection.

• YouTube Music Premium: A subscriber can enjoy ad-free premium music both online and offline through the YouTube Music app.

• Exclusive Content: Users can access YouTube Originals, including movies, shows, and series created by YouTube and popular YouTubers.

What are the charges for YouTube Premium in the USA?

As of October 2024, there are three plans for YouTube Premium currently that YouTube has for their users in the USA.

1. Family plan: $22.99 per month for up to six members

2. Student plan: $7.99 per month after a one-month free trial

3. Annual plan: $119.99 per year, which is about a 15% discount

How YouTube Pays Money to YouTubers From YouTube Premium Subcription Revenue

Just like the advertising revenue ratio, YouTubers get 55% of the total revenue generated through YouTube Premium subscriptions, and 45% of the revenue is retained by YouTube. The total revenue is calculated based on the watch hours of the YouTuber’s videos watched by the YT Premium subscribers and overall engagement levels.

When Payments Are Paid For YouTube Premium Revenue

YouTube Premium subscription revenue payments are sent to YouTubers at the beginning of each month.

3. Make Money Through Paid Channel Membership

Channel-paid membership is another solid way to make money on YouTube. A paid channel membership program is a way that can generate fixed monthly income for YouTubers. When viewers become members, they get access to exclusive content, like behind-the-scenes videos, custom badges, and special emojis.

How It Works

To offer a paid channel membership to the viewers of your YouTube channel, you need to follow some steps to set up the Channel Membership feature.

1. Make Sure Your Channel Eligibility

Before you can offer membership to your viewers, make sure your channel meets the minimum requirements to activate the Channel Membership feature.

• YouTube Partner Program Approval: Your channel must be approved for YPP. This means that your channel is monetized and follows YouTube’s policies.

2. Activate Channel Memberships

Once you meet the eligibility criteria, here’s how to activate Channel Memberships:

• Sign in to YouTube Studio: Go to the YouTube Studio using your YouTube account.

• Go to Monetization: In the left-hand menu, click on Monetization.

• Click on the Memberships tab: If eligible, you will see the Memberships option in the monetization section. Click on it.

• Activate Memberships: Follow the prompts to activate Channel Memberships. This will allow you to start offering paid memberships to your subscribers.

3. Setup Membership Levels

Once the Channel Memberships feature is enabled, you’ll need to create different membership levels for your viewers to choose from. You can offer multiple membership options and rewards for each level. To create and set up levels:

• Choose Pricing for Each Level: You can set different monthly fees for each membership level (e.g., $1.99, $4.99, $9.99, etc.). Pricing varies based on your audience and content.

• Set Rewards by Level: Decide what rewards each membership level will offer. For example, higher-level members might get exclusive content, while lower-level members could get badges and emojis.

Types of Rewards for Your Members

Once you set up membership levels, you can offer different rewards for each membership level:

• Custom Badges: Show special badges next to members’ names in chats and comments based on how long they’ve been members.

• Custom Emojis: Let members use custom emojis, like your logo or inside jokes, in comments and chats.

• Exclusive Content: Share behind-the-scenes videos, early access to videos, or members-only live streams.

• Live Chat Perks: Highlight members’ messages in chats or create exclusive Q&A sessions.

• Special Recognition: Thank and recognize your members in videos or during live streams.

These perks help keep members engaged and show appreciation for their support. Members pay a monthly fee to enjoy these rewards, providing a consistent income for YouTubers.

4. Get Paid by Super Chat, Super Stickers, and Super Thanks

Super Chat, Super Stickers, and Super Thanks are the features that allow your fans to support YouTubers like you during the live video or regular videos. YouTubers may make money directly from their subscribers using these interactive features

How it works

• Super Chat: During a live stream, fans may pay to have their chats highlighted. This makes their message stand out and increases the likelihood that the creator will notice and respond to it.

• Super Stickers: Fans may buy animated stickers to use during live feeds. These stickers are entertaining and may be used to communicate feelings, sentiments, or just show support.

• Super Thanks: On regular videos, viewers may pay to offer a unique highlighted comment.

This allows viewers to express their gratitude for a video while also financially supporting the YouTuber.

5. Make Money by Selling Merchandise

Apart from all these ways YouTube pays money to YouTubers like you, you can also earn good money by selling your own branded merchandise on your channel.

Merchandise Shelf

You can display and sell your products right on your YouTube channel. This feature lets your viewers easily purchase your merchandise, like T-shirts, mugs, or hats, while watching your videos.

To set up the Merchandise Shelf on your YouTube channel, follow these steps:

1. Meet Eligibility Requirements:
   • You need to be a YouTube Partner, meaning your channel should be monetized.
   • Your channel must have more than 1000 subscribers .
   • You must comply with YouTube’s policies and guidelines.
2. Choose Merchandising Partner:
   • YouTube works with several merchandise companies like Teespring, Spreadshop, and Shopify. Choose a partner that suits your needs.
   • Sign up for one of these platforms and create your merchandise.
3. Connect the Merchandise Partner to Your YouTube Channel :
   • Go to YouTube Studio and sign in to your account.
   • In the left-hand menu, click Monetization.
   • Select Merchandise.
   • You will see an option to connect your merchandise partner. Follow the steps to link your account.
4. Activate the Merchandise Shelf:
   • After linking your merchandise partner, you can activate the Merchandise Shelf in the Customization section of your channel.
   • Go to the Layout tab in YouTube Studio, and you’ll see an option to add the Merchandise Shelf.
   • Enable it to show your merchandise on your channel.
5. Display Merchandise on Videos:
   • Once activated, your merchandise will appear below your videos, on your channel’s homepage, and under the Community Tab.
   • You can promote your merchandise during your videos and encourage viewers to visit the shelf to make a purchase.

This feature helps you sell merchandise directly on your channel and offers your viewers a quick way to buy your products.

6. Make Money Through Crowdfunding and Patronage

Creators can also earn money on YouTube by using external platforms like Patreon or Buy Me a Coffee. These platforms allow fans to support creators in two main ways:

• One-Time Donations: Fans can make one-time contributions to show their support for the creator’s content.

• Monthly Subscriptions: Fans can sign up for monthly memberships, giving creators a steady stream of income. In return, creators often offer exclusive content, shoutouts, or other perks to their subscribers.

Using crowdfunding platforms helps diversify income streams, reducing reliance on YouTube’s ad revenue. This way, creators can earn money even if their video views fluctuate. It also allows creators to build a loyal community of supporters who are invested in their work.

How YouTube Processes the Payment

When you make money on YouTube through ads, memberships, or other methods, YouTube processes the payment through Google AdSense.

Here’s how it works:

1. Ad Revenue Collection: When ads are shown on your videos, YouTube collects the money. This revenue is based on how many people watch the ads and interact with them.

2. YouTube Premium and Memberships: If you have YouTube Premium subscribers or Channel Members, YouTube will collect money from those subscriptions and add it to your earnings.

3. Payment Threshold: Before you can get paid, you must reach a minimum amount in your AdSense account. This is called the payment threshold. It can vary, but usually, you need to earn at least $100.

4. Payment Schedule: YouTube processes payments once a month, typically between the 21st and 26th. If you meet the payment threshold, your payment will be sent to your linked bank account or chosen payment method.

5. Payment Method: You can set up your payment method in your Google AdSense account. Payments are usually made via bank transfer, Paypal, checks, or other available options depending on your location.

By following these steps, YouTube makes sure creators receive their earnings in a timely manner for all the work they’ve put into their channels. You can use a YouTube channel monetization service to help maximize your earnings and track payments.

Tips to Make YouTube Pays You More

If you want YouTube to pay good money for your YouTube content, below are some tips you should consider while making your videos:

• Increase Watch Time and Viewer Satisfaction: The longer people watch your videos, the more likely YouTube will promote them. Create videos that engage audiences from beginning to end.

• Create Engaging, High-Quality Content: Always provide value to your audience. Create videos that give value, entertain, or inform. This will help you gain more subscribers, views, and user engagement.

• Optimize Titles, Descriptions, and Thumbnails for SEO: Include relevant keywords in your titles and descriptions so that your videos appear at the top in the search results. Also, create eye-catching thumbnails to attract viewers to click on your videos.

• Use YouTube Analytics to Track Performance: Check your YouTube Analytics often to see what’s working. Look at views, watch time, and who’s watching. Use this info to improve your videos and earn more.

By following these tips, you’ll help you grow your YouTube channel and make more money from YouTube.

Conclusion:

YouTubers can earn money in many ways on YouTube, not just through ad revenue. They can also make money from YouTube Premium, Channel Memberships, Super Chats, Super Stickers, merchandise sales, and crowdfunding platforms like Patreon or Buy Me a Coffee.

Each method helps creators make money in different ways. Whether it’s from fans directly or through other platforms, YouTube pays money to YouTubers in many ways.

FAQs: How YouTube Pays Money to YouTubers

1. How does YouTube pay YouTubers?

YouTube pays money to YouTubers mainly through ads, YouTube Premium subscriptions, paid memberships, and donations through live chat features like Super Chat. YouTube shares a part of the revenue with you.

2. How much does YouTube pay for 1,000 views?

The amount YouTube pays per 1,000 views can vary depending on factors like your audience, location, and the type of ads. On average, YouTubers earn about $1–$3 per 1,000 views, but this can change.

3. How do I qualify for YouTube monetization?

To be eligible for YouTube monetization, you need at least 1,000 subscribers and 4,000 valid public watch hours in the last 12 months. You also need to follow YouTube’s policies and set up a Google AdSense account.

4. How do I earn from YouTube Premium?

YouTube Premium subscribers pay a monthly fee to watch ad-free videos. YouTube shares a portion of this subscription fee with creators based on how much of their content is watched by Premium members.

5. What is YouTube Partner Program (YPP)?

The YouTube Partner Program (YPP) allows YouTubers to make money from ads shown on their videos. To join, you need to meet the eligibility requirements like having 1,000 subscribers and 4,000 watch hours.

6. When does YouTube pay its creators?

YouTube pays YouTubers between the 21st and 26th of each month if you’ve met the payment threshold in your AdSense account. Payments can be delayed if it’s a holiday or weekend.

7. Can I sell my own merchandise on YouTube?

Yes, YouTube allows YouTubers to sell their branded merchandise directly on their channel using a Merchandise Shelf. You need to be a part of the YouTube Partner Program to activate this feature.

8. What is Channel Membership on YouTube?

Channel Membership allows viewers to become paying members of your channel in exchange for perks like exclusive content, badges, and emojis. You can set different membership levels and rewards.

9. Can I make money from YouTube without ads?

Yes, you can make money through memberships, Super Chats, merchandise sales, and crowdfunding platforms even if you don’t rely on ads.