YouTube appears to be the new gold mine of our century. Are you going to pan for gold? I am! Seriously, as much as I would love to make millions every year, I know that the people making lots of money also work very hard. We can’t see the amount of hours, money spent on equipment and sheer sweat they put in before they became a success. A little bit of gold dust would be nice, nevertheless!
Business Insider has a great article which calculates and breaks down the amount of money people earn on You Tube. PewDiePie (YouTube’s biggest star who critiques video games and makes jokes about them) supposedly pulled in revenue of $10.5M in 2014. After taxes and YouTube’s share, he may have made $4M. That is fantastic, but keep in mind he started doing this many years ago and the big payoff is only now. Another YouTube star is Michelle Phan (beauty and makeup) was calculated to have made about $150K in comparison. These stories are great, but how does one actually make money?
YouTube has ads that you see before and during video viewing. This is called “YouTube monetization.” The person who made or uploaded the video signs a digital agreement with YouTube so that ads can be placed into their videos and there is a split of roughly 50:50. The amount of money made depends on how many people watched the video and if they clicked on the ad or not. Also, longer videos have more ad placements. More details are available on this “Ad Rates Report” page about how YouTube and ads work.
Setting up a video to be monetized is not difficult at all, maybe 30 minutes, tops. However, to make any money, you need lots of eyeballs and different people to watch your video (and yes, YouTube can tell if the clicks come from the same household). Other than professional media (music videos, clips of tv shows) or cute home videos (babies, dogs, cats) which are sometimes bought by the news media; highly viewed videos are either technical (video game, makeup, space rockets, educational, amateur tv shows) or really low brow (pooping, barfing, falling).
Everything comes down to marketing. In our day and age, social media has opened the doors to people to do their own marketing instead of relying on professional companies. However, people are bombarded with marketing from all over the place, so it’s become harder to get someone’s attention. Having good content is always the most solid base for success, but if no one knows about it, then the content will become lost in cyberspace.
One area getting some attention are toy reviews and toy unboxing (opening a toy). Since I have a child, I thought that a good start would be making videos with toys. That $10 piece of plastic I bought should be good for something after it’s been played with for 5 min, right?! Actually, I spent more than $20 on secret Lego Disney figurines because there was a frenzy at Toys R Us with moms feeling up these packages for the figure they wanted while the men shook their heads in the corner. Still, it was quite exciting to open the secret Lego Disney package on camera because I didn’t know what was in it either (felt like doing toy porn and I’m sure that’s out there too)! This is sounding pretty sad…but I’ve had too much excitement lately over a health crisis in my family, so being excited about something boring is good!
In addition, I want my son to learn Chinese, so I have asked my mom to make videos of us playing with toys in Chinese. I have had a maximum of ….wait for this…30 hits!…so far on our video of Thomas the Train counting in Cantonese. The threshold of any money being released by You Tube is $100 and given I’m at $0.02 today (videos have been up for a week), it’s going to take a while!
Since having a child is like opening a black hole near your bank account, I think doing YouTube videos for fun in hopes of earning some money is a good idea anyways. I’ll be blogging about this occasionally when I’m less depressed because I think it’s a funny thing to do. Until then, I’m calling my mom to ask her to think of more video ideas, since our video of Thomas and Mickey buying fruit was viewed as “too Asian” by a friend!