YouTube has become an internet sensation today. Everybody has heard about it. I have heard of it, you have heard of it, even your grandma must have heard about it. But there is a part of YouTube that people are not much familiar with. And that it is the money making process.
YouTube is as good a platform as any and those who are looking to make money.
But there is another side to this coin minting. The earnings from this site are not fixed. I mean they are fixed for a person but not for everybody. Yes, a lot of people have asked “Why?” and yes, I will answer to you below.
But first, lets understand what your income depends on and how it works. YouTube pays you per 1000 views and that range people describe as being from $0.33 – $2.5.
But that is not the end of it, people have also been paid up to $5 -$10 in some cases and that is the case for popular channels who haven’t tied up with any other MCN (Multi – Channel Network). They are paid higher so that they continue creating awesome content and grabbing millions of views. It is done so that these creators don’t fly away from YouTube. If they didn’t take the step to raise these channels’ incomes then these channels would go to other MCNs or do some job outside YouTube.
YouTube avoids by paying you more, to keep you engaged and to keep you doing what you do.
Enough of that crap. Now let me tell you why does YouTube pay you. YouTube pays you because they know that their site would end if they don’t pay you anything at all. Nobody would want to keep making videos without no profit. And that is why YouTube pays you.
YouTube makes money through advertisers. You must have seen those ads that run before videos. Well, you go to a small channel who has ads enabled and you’ll find that their ads are not as premium as those on the some better doing channels. YouTube takes money from those advertisers and takes 45% of the money and it gives 55% to the channel.
Now that you know how YouTube makes money and how you make money from it, let’s understand why this business model is perfect.
YouTube gives money on the basis of location, views, likeness of video, how many flags you get, etc.
If YouTube were to give the amount of money everywhere then people from small countries that don’t earn much will adopt this as an earning method and they can spend too much and spoil themselves in the rush to make money. So YouTube might appear to be discriminatory but it is not. It actually is making people safe. So now you don’t have to curse YouTube for not paying you much because you are where you are.
Views are the most important part of the video because that is what you’re paid for but apart from that, with views you should have a nice amount of likes on your video. That is actually what makes your payment go higher. If YouTube feels like there is some channel that they are not paying enough they mostly look at their likes to increase the pay. And also, if you get a lot of flags from a lot of different sources then most likely your video will be taken down and along with that your income will also go down.
Other than the above mentioned, Subscribers also matter a lot. If you have a lot of subscribers then it means that you are to get half that amount of views at least on every video and since it ensures a fixed audience for ads, YouTube is likely to pay you more and place premium ads on your videos.