When many people look at the estimated networth of the YouTube superstars, they find it very difficult to believe that they can make such a hefty amount online and if possible, certainly not from YouTube.
Many people understand the case of Mark Zuckerberg and the online store owners but when it comes to the Vloggers and bloggers, many people don,t get it. I remember, 3yrs ago when i told a friend of mine that my dream was to become a full time blogger, he laughed until tears was coming out of his eyes. I felt like the latest mad man in NY. Just like my friend, many people don,t see the possibility of millions to be made via both avenues (blogging and Vloging).
They can,t imagine how an individual can make a six figure amount simply by publishing short DIY/how-to videos on YouTube.
How is it possible for a full time Beauty and fashion YouTuber like Nicole Guierero to make $1.8; an amount that many hardworking people with a good day job (9-5) can only dream of.
What really baffles many people and causes them to doubt/question the networth of the YouTube Superstars is what the YouTube supers stars do on YouTube.
According to many doubting Thomases, they don,t even deserve $50 per month (if Google was to give them a monthly salary for their videos) due to the fact that many of the YouTube Superstars regularly publish short DIY/how-to videos about basic things like how to brush your teeth, how to apply makeups (Nicole and Carli.s domain), how to look fashionable on a low budget etc which are services that you won,t even make $5 (if you were to be hired to teach somebody in real life). In many cases, what you will receive is THANK YOU lol.
Arguably, contrary to what you think, the estimated networth of the YouTube Superstars are accurate. I even think they worth more.
Somebody may likely want to ask; BUT WHERE IS THEIR MONEY COMING FROM??. Thats the question i,m going to answer in the next lesson.
Sources of Income of the YouTube Superstars.
Woo! (Hillary Clinton,s thing), we have finally come to the part you have been patiently waiting for. I know your adrenaline must be flowing faster now. You quickly want to know the abracadabra that the YouTube superstars are performing on YouTube to hypnotize Google (the owner of YouTube), to give them that hefty amount right? lol. I,m going to tell you all the sources of income of the YouTube Stars and how they make their money through the various means. Ok let,s get down to business.
These are the sources of Income of the YouTube superstars.
- Google Adsense.
- Monetization of their blogs
- Sales from their products or affiliate products.
- Paid Gigs.
Please take note that the amount of money that the YouTube superstars make through the above means, is as a result of their presence or popularity gained through the YouTube platform.
How the YouTube superstars make money online
Google Adsense is the number one source of income for the YouTube superstars and most YouTube Vloggers.
Google adsense is a pay per click advertisement partnership program run by the Google Company (the owners of YouTube).
YouTube Vloggers partner with Google via their Adsense advertisement program, so that Google can display some of their ads (the Google sponsored ads AKA ads by Google that you often see in their search results) on their videos on YouTube and each time the Google ads that have been displayed on their videos is clicked by a YouTube User (viewer) , the video owner will receive a commission (percentage) of what the advertiser is paying Google for the ad. It,s a joint advertisement partnership program (between Google and YouTube Vloggers (video owners). You still don,t undersand?…
Sometimes when you play certain videos on YouTube, an ad automatically pops up on the video frame. You can either choose to click on the ad, if you are interested in the product or service that,s being advertised OR cancel the ad and continue watching the video if the ad is irrelevant to you. haha! those are the Google sponsored ads i,m talkng about. I,m very sure that you must have clicked on one of those Google ads before.
If you click on those pop up ads, the adsense account of the respective video owners will be credited depending on the the cost per click of the ad.
The cost of each click on a Google ad may cost anywhere from $0.04 (£0.03) to $80 (£59) depending on the profitability of the niche choosen by a Vlogger. When an ad is clicked, the video owner receives 68% of the cost the click while Google takes 32%. Like i told you before, Google adsense is a joint advertisement partnership program. Simply put, both Google and the Vloggers are advertising together. So both parties share the ad revenue (the adsense pie) with Google taking 32% and its Adsense partners taking the lion,s share (68%) of the pie.
Let,s take for example that a click on a Google ad cost $8, the Vloggers get paid 68% of $8 each time the ad is clicked. Let,s do the Arithmetic together, 68% of $8, is about $5.44. So $5.44 will be the Vlogger,s share of the cost ($8) of the click while Google takes the rest; $2.56 (32% of $8=$2.56).
If just 100 YouTube users (viewers) can click on that $5.44 ad per day, the Vlogger (whose video the ad was displayed) will earn $544 per day.
Imagine that!!! just for 1 day they can earn an amount that is far greater than your 9-5 salary from their YouTube videos through the Google adsense program.
Now multiply that figure ($544) by 30. They will be making $16320 if just 100 web visitors can click on the $5.44 ad per day for 30 days.
Wo!!!!! if more people can click on the Google ad displayed on their videos, the greater their profit and its very easy for the Vloggers to achieve a high click through rate because Google mostly display relevant ads on the videos of its adsense partners thereby increasing the probability of their viewers to click on the Google ads. For example Google will display beauty related ads like cosmetic ads on DIY/How to videos about beauty stuff.
The videos of the YouTube superstars receive not less than of 150,000 views per day which makes it possible for them to earn an amount far greater than the amount mentioned above per month. It should be noted that the higher the number of views on a YouTube video, the greater the probability/possibility of many viewers to click on the displayed Google ad.
The Videos of the YouTube superstar and beauty Vlogger Nicole Guierrero has been watched over 266,133,813 million times and she currently has more than 3 million subscribers. Based on that amount of views (266,133,813), its very possible that not less than 10 million viewers must have clicked on the Google ads displayed on her videos making it very possible for her to have earn more than a million dollar via the Google adsense program so far.
Important point to note
Google charges its adwords advertisers and also credits the accounts of its adsense partners (the Vloggers) on a pay per click basis and based on every 1000 views (impression)…meaning that the adsense advertisers only pays Google when somebody clicks on their ads and Google also credit the accounts of its adsense partners only when an ad displayed on their video is clicked . This insinuates that if non of the video viewers ever clicks on the Google ads which have been displayed on the YouTube Vloggers videos, they won,t earn much through the Google adsense program. Google primarily uses a pay per click billing system to charge advertisers.
Apart from payment based on clicks, Google also pays the Vloggers a fixed amount for every 1000 views (impression). Google charges the advertisers based on 1000 views based on the notion that even if a viewer didn,t click on an ad, atleast they have seen the ad (which is also a form of publicity for the advertisers). Just like cost per click, cost per a thousand impression may also cost anywhere from $0.04 (£0.03) to $80 (£59) depending on the profitability of the niche chosen by a Vlogger. Let,s assume that that the average cost per 1000 views (impression) of Nicole,s niche (beauty and fashion) is just $1, with 266,133,813 views its very possible that she must have made more than a million dollar from impressions alone (excluding revenues from ad clicks).Divide 266,133,813 by 1000 and multiply the answer by 1 ($1) and you will know the amount she possibly must have earned from that amount of views (266,133,813).
Please take note that the $1 cost per thousand impression i have used in the example above is just an estimate, it might be lower or higher.
If you combine their adsense revenue earned from both clicks and 1000 impressions, it very hard not to believe that the YouTube superstars make more than a million dollar from YouTube per year.
Umm ok that,s the way the YouTube superstars make money from their videos through Google adsense program.
So the YouTube superstars deserve to earn more money than your boss true or false?.
It should be noted that most of the YouTube superstars also have blogs; where they also regularly publish text and picture based content about what they do on YouTube. For example Nicole Guierrero,s naturallynicole.com blog and Carli Bybel,s thebeautybybel.com blog. Google the name of your favourite YouTube superstar and you may find his/her blog. Their blogs often receive not less than 50,000 visitors per day. The YouTube superstars also primarily make money from their blogs through the Google adsense program in a similar manner (like in YouTube). They display Google ads on their blogs and each time the Google ads are clicked by a web visitor, they get paid. Apart from clicks, they also get paid a fixed amount on every 1000 page views (1000 impressions).
Apart from Google adsense, the YouTube superstars also make more money from their blogs by selling ad spots directly to big brands. They are able to make more money (than from the Google adsense program) because they don,t share their ads revenue and they are able to set their own ad rates. They often charge thousand of dollars for their ad spots and advertisers are very willing to pay because their blogs have their target audience and so ads placed on their blogs will always yield a very high return on investment.
Sales from their products or affiliate products.
After gaining popularity and credibility through the YouTube platform, most of the YouTube superstars often launch their own products or recommend related products to their millions of viewers, YouTube subscribers, Facebook fans,Twitter and instagram followers in order to make more money. Like we all know,when you become a superstar (gain credibility) especially in the music, fashion and beauty domain, any product or service you recommend, people will be very willing to buy (especially the wanna-bees).I personally call this their charismatic ability (ability to influence) as superstar power.
By using their superstar powers, the YouTube superstars are able to easily market their own products or related affiliate products online. Converting their fans or subscribers in to potential customers of their products or affiliate products is as easy as creating a DIY/how-to video or video review about any product they wish to sell.
Nicole Guierero and Carli Bybel make extra cash online by selling their make up kits (make up pallette) on Amazon and directly from their blogs. They make thousands of dollars through this means.
Due to the popularity of the YouTube superstars (gained through the YouTube platform), they are often invited to popular TV shows like Ellen, Steve Harvey and many other popular shows, to talk about their lives especially how they make their money online (which is a puzzle to many people). They get paid thousands of dollars for that.
Ok those are their 4 sources of income that i know.
Judging from the multiple streams of income above, what do you think is the right networth of the YouTube superstars? do they deserve to earn a million dollar online? Leave a comment below. If you know other sources of income of the YouTube Superstars, please also let me know.