For many content creators, the opportunity to earn a living on YouTube is the holy grail. With success stories like Todrick Hall and Justin Bieber, it’s easy to see why.

In some cases, YouTube can catapult people to stardom. More often, it can become a viable way to make money doing something you love.

But despite how easy it is to create a channel and upload videos, making money on YouTube can be anything but straightforward. From complex monetization schemes to an everchanging algorithm, maximizing your earnings can feel like an impossible climb.

To help, this article offers eight straightforward tips on how to make money on YouTube.

How YouTube monetization works

YouTube monetization lets creators earn money from various sources, like ads displayed in their videos, subscriptions, channel memberships, and Super Chat.

The earnings are typically shared between YouTube and the creator, enabling successful channels to profit based on their views and audience engagement. Let'd dive in to eight tips to help make money on YouTube!

1. Build a channel with a narrow focus.

How do you make money on YouTube? Step one is to forget about money altogether.

The first and arguably most important task is identifying the audience you’ll serve—in other words, who’s going to watch your channel?

Getting familiar with the most popular categories on the platform may help spark some ideas, but you don’t necessarily want to mimic what’s working for others.

Instead, we recommend finding the sweet spot between your own interests, hobbies, or passions, and the keywords that show the most promise.

For instance, if you wanted to start a channel about content marketing, you might start by searching YouTube to see if it’s a viable topic or survey the competition. Based on what you find, you’d ideally find a way to differentiate your content from what’s currently ranking.

Like Google Trends and Tubebuddy, several free and paid tools can help you research keyword volume and search trends on YouTube. Use keywords to identify target opportunities, but remember to stick to topics within your niche that your audience will care about.

2. Get acquainted with Adsense.

Anyone wondering how to get paid on YouTube (unlike Vimeo and other platforms) usually starts by understanding Google Adsense.

As an advertising program, Google Adsense enables content creators to make money on YouTube by allowing ads to run during their videos. How much money you’ll make is a bit of a mystery, but one thing we know for sure is that it’s heavily influenced by views and subscribers.

For example, if your best performing video earned 5,000 views in a month and 1 percent of those viewers clicked an ad, your payout is a function of ad clicks x advertiser bids.

In this scenario, you earned 50 clicks. If an advertiser bid 25 cents per click, your payout is roughly $12.50.

It’s not a very lucrative way to make money on YouTube unless your channel earns hundreds of thousands of views each month. With Google’s 45 percent share of ad revenue, content creators only get to keep around half of the money their videos generate.

In other words, that $12.50 payout is more like $6.87.

3. Become a YouTube Partner.

Before you can take advantage of Google Adsense, you’ll need to join the YouTube Partner Program. To qualify, you must:

Comply with YouTube’s monetization policies
Live in a participating country or region
Have 1,000 subscribers and at least 4,000 watch hours
Have an Adsense account linked to your YouTube channel(s)

If you’re just getting started, earning subscribers and qualifying watch hours will require the most effort, but you’ll also want to make sure your channel meets YouTube’s policies and guidelines.

YouTube uses a combination of humans and automated workflows to review applications, which can take up to a month (thankfully, you can track your progress here). If you’re rejected from the program on your first attempt, you’ll need to wait another 30 days before you can re-apply.

4. Create sponsored content.

Success with influencer marketing comes down to leverage.

Generally speaking, if you have a decently sized audience and relevant, advertiser-friendly content, you’re in a much better position to secure partnerships with brands willing to pay top dollar — eventually.

According to Video Influencers, a channel aimed at helping content creators build influence and income, here are five proven ways to get sponsors on YouTube:

Reach out: Don’t wait for companies or brands to reach out to you. Find the companies and brands that might want to work with you. Don’t just think big—in the beginning, you may have more success with smaller or local companies.
Niche down and brand up: When potential sponsors visit your channel, it should be super obvious what you’re about and what kind of content you’re producing. Enable potential sponsors to spot alignment quickly with a solid niche and the branding to match.
Network: Sometimes the difference between not getting sponsored and getting sponsored is simply being present, whether that means periodically reaching out via email or engaging with a brand’s social media. Stay connected throughout the year to stay top of mind.
Sponsorship marketplaces: Sites like Grapevine connect eligible content creators with brands. You’ll need 2,000 subscribers to gain access to different brand deals and sponsorship opportunities on Grapevine. Eligibility may vary on similar sites.
Work on your content: The best way to get brand deals and sponsorships is to grow a channel that brands want to work with. While earning premium deals can often take years, an early-stage channel with a strong brand can still benefit from things the creator doesn’t have to pay for, like free products.

5. Allow your fans to send tips.

Becoming a YouTube Partner allows for more than ad-based revenue. It also enables content creators to passively collect donations through its Super Chat feature.

There are two main caveats to Super Chats: YouTube keeps 30 percent, and you’ll need to go live to receive them. The good news? Live streaming on social media is an extremely effective tool to drive real-time engagement on your channel.

Here are a few best practices when going live on YouTube:

Handle the technical stuff ahead of time

There are three ways to record live streams on YouTube: via webcam, mobile, or streaming software. If you decide to use streaming software like Vimeo, YouTube recommends setting it up at least two hours in advance. They also recommend keeping an eye on bandwidth to avoid broken or choppy streams.

Define a clear purpose for your live stream

The real-time nature of live streaming might suggest it’s alright to shoot the breeze, but if you’re serious about making money on the platform, every live stream should serve a clear purpose for viewers. Whether you’re making an announcement or hosting an AMA session, we recommend building structure into your presentation and having a plan to engage with your audience.

Give potential viewers an ample heads up

Although your subscribers can always catch the replay, it never compares to participating in the discussion in real-time. Plus, more viewers generally means more revenue. To build anticipation and maximize attendance, announce your stream in advance and spread the word on other social platforms.

Consider Super Chat alternatives

Super Chat is a native feature built directly into YouTube’s interface, which makes it an obvious choice when considering the user experience for your viewers. Unfortunately, Super Chat is also limited by YouTube’s 30 percent cut. To mitigate this, some content creators encourage viewers to donate via other avenues like Cashapp and PayPal during live streams.

6. Create and sell channel memberships.

Channel memberships are one of the most effective ways to drive recurring revenue on YouTube.

With channel memberships, viewers who “join” your channel pay a monthly fee to gain access to member-only perks like badges, emoji, and early-access or exclusive content.

Like the YouTube Partner Program, you must meet certain eligibility requirements to create and sell channel memberships:

You’re in the YouTube Partner Program
You have more than 1,000 subscribers
You live in a participating country or region
Your channel isn’t set as made for kids
You comply with YouTube’s policies and guidelines
Your channel doesn’t have a significant number of ineligible videos

Pricing your memberships will depend on audience demand and the exclusivity of your membership perks. For instance, does your niche lend itself to gated Q&A sessions where only members can participate during a live stream?

Reserve those kinds of high-value perks for your highest tier memberships and save the badges and emoji for the least expensive tier.

7. Sell products or merchandise.

If you have a successful channel, you will eventually want to make money outside of Youtube.

Selling products or merchandise works best when you already have an audience of devoted followers. From coffee mugs to sweatshirts, selling branded merchandise enables you to make money and connect more deeply with your audience.

Best of all, if you have a large following, your channel can act like a referral engine that can consistently drive traffic to your store.

While YouTube offers the option to integrate your products directly onto video pages with its merch shelf feature, you’ll need at least 10,000 subscribers on a non-music, not-made-for-kids channel to qualify.

Luckily, the most accessible option — a simple link to your website — can also get the job done. Comedian and Myers-Briggs enthusiast Frank James includes a link to his shop in every video description (and he’s got way more than 10,000 subscribers).

8. Monetize your videos outside of YouTube.

For content creators, one of the biggest obstacles to making money on YouTube is the lack of control over factors that influence monetization.

At its discretion, YouTube may demonetize your content — and even if that never happens, you’re still at the mercy of its algorithm when it comes to showing up in user feeds and search results.

The solution? Monetize your YouTube videos outside of YouTube.

Use Vimeo OTT to make money from your YouTube videos

With Vimeo OTT, content creators can build their own video subscription channel with advanced selling options that give them more control over their earnings. Setup subscriptions, ads, and one-time purchases for all your live and on-demand videos, and make your content available on the apps your viewers already use.

If you are a video creator, you may want to explore how Vimeo can help you make, share, and manage videos. Learn more about features like video hosting, our text-based video editor, timeline editor, video graphics, image to video converter, and more.

Dania McDermott