Estimation Estimation Calculate the YouTube turnover per year
Five-digit sums every month - that's how much you can earn with YouTube
How much money can you make with Youtube? Much has been speculated about this question in the past few weeks and months - but there was no really reliable information. Because no canal operator has so far been ready to provide information on the amount of its income. But now Philipp Steuer, whose videos have so far been viewed more than five million times on YouTube, is allowing rock stars to take a look behind the curtain for the first time in a guest post for Online Marketing. The numbers are quite impressive - but read for yourself.
“How can you make money with YouTube?” This is the question that journalists and media people ask me most frequently in the course of my work. I would like to give you the answer to that in this article, including a little insight into the financial world of a YouTuber.
First of all: All views only reflect my personal opinion.
Video advertising as the main source of income
As most of you should know, Youtubers receive a share of the advertising revenue that YouTube / Google earns with upstream advertising clips or in-video ads in their videos. Google directly withholds 45 percent of the money, the remaining 55 percent ends up with the video maker.
You earn around 1 euro for every 1,000 clicks. This means that, for example, one of the more successful YouTube channels with over 30 million views already earns around 30,000 euros from the advertisements alone. The exact amount varies greatly depending on the season. Most of the advertising is placed just before Christmas; Months like January, on the other hand, are bad times from the perspective of Youtubers, since the advertising companies have spent the rest of the annual budget at Christmas time and the budgets for the new year have usually not yet been determined.
Do you want more information on the perfect YouTube strategy? Then take a look at the OMR report “Youtube Pro Tactics”. You can find it here.
I recommend the Socialblade service to anyone who wants to get a rough idea of the approximate earnings of YouTubers. There you will find an "Estimated Monthly Earnings" value on the respective video maker pages, the maximum and minimum values of which are generally far apart. If Socialblade estimates the channel operator's income to be between 2,000 and 35,000 euros, for example, you can, based on my own experience, assume relatively reliably that the actual sum is in the upper end of the lower third - that would be 12,000 euros in the example.
An example of a channel's earnings estimate on Socialblade.com (screenshot)
What you shouldn't forget here: The 30,000 euros from my first example are not tax-free. The net amount is around 20,000 euros in the end, which should still be enough for a relaxed life.
Lucrative product placements
In addition to the clicks, product placements are another and extremely important source of income for many video makers. Such advertising deals are usually processed by the respective marketing / sales department of the network in which the Youtuber is located.
A product placement can take various forms. Either the Youtuber simply holds the desired product in the camera. Or he visits a sponsored event and does a vlog about it. Or he plays a new video game in advance, which will only be available to viewers in the store a few weeks later. The possibilities are very diverse - and that is precisely why there have been isolated problems in recent years. Especially in the beauty sector, where a large part of the videos consists of product reviews, the viewer often does not know whether Lipstick XYZ is really a personal highlight of the video maker or a resourceful product placement of a brand manufacturer. The latter would be illegal surreptitious advertising. For my part, I have observed both cases several times. As in any other industry, there are - surprise - black and white sheep.
From a legal point of view, a product placement must always be marked. Many YouTubers do this by placing a small "P" on the upper screen of the video in the appropriate case. In the video description, there are often other labels such as “Thanks to Brand XYZ for supporting the video”.
The price for a product placement varies greatly and depends on the size and reach of the YouTuber as well as on the frequency with which the product to be integrated is to be shown. That is why I cannot give a general value at this point. From my own experience, however, I know that a one-time product placement of one minute on a medium-sized YouTube channel (50,000 to 100,000 monthly views) and an average video range of 40,000 clicks can bring the channel operator over 2,000 euros.
If you compare this sum with the advertising revenue, it quickly becomes clear how lucrative product placements are. For such an amount to end up in the account through advertising, a video from the YouTuber would have to be viewed more than two million times.
More advertising in the video description
The two sources of money mentioned so far cover the main money needs of the respective YouTuber. But that's not all. All you have to do is take a look at the video description. For example, the so-called Let's Players, who play games in their videos, also very often place advertisements there. With information such as “We use this equipment” or “This is where we host the server”, they link the relevant products or providers. This, too, is of course advertising and is remunerated by the respective company with a monthly fixed amount, often in the five-digit range. For advertisers, these expenses seem to be worth it. In a case I know of, a link to the server alone has been clicked on over 112,000 times between December 6, 2014 and today.
The thing about the t-shirts
Almost every major YouTuber also sells their own t-shirts and clothes that are printed with the respective logo, slogans or similar. Such merchandise items are often bestsellers on large channels. The YouTuber usually receives a profit share of three to four euros per item of clothing from the partner retailer. That may sound like peanuts at first. But if you take a look at the website of the shop "3dsupply", through which the currently best-known motifs are sold by YouTubers, you get an impression of the amount of money that is already being earned with this business. The monthly sales of the first page are in the mid three-digit range. Since the shop handles all services such as printing, shipping and payment, the video maker has no additional work, but can still look forward to a monthly extra income of 1,000 to 2,000 euros with his word-image brands.
Fans can buy merchandising from YouTubers via the 3dsupply online shop (screenshot)
A millionaire through YouTube?
The numbers may sound very, very impressive at first. Thousands of young people today also want to become YouTubers in order to realize their dream of quick wealth and notoriety. However, this plan will not work for very few - I strongly advise against neglecting school or studying for YouTube at this point.
Because: Those YouTubers who are currently at the top have been active on YouTube for years. The guys from YTitty alone started making videos eight years ago. Sure, times have changed. But the effort for videos is extremely high and takes up a lot of time. I myself always come under time pressure through a normal +40 hour week when I want to produce my weekly video after work.
Of all YouTubers worldwide, less than one (!) Percent can make a living from it. But those who did it are currently leading a very good life. And to answer the question from the beginning: Yes, you can very well make money with this YouTube.
About the author
Philipp Steuer runs a channel on YouTube under his own name, in which he presents curious news every week, and with which he has generated around 90,000 subscribers and five million views so far. The 24-year-old, who studied online editing, is currently working as a network manager in the online video area in Cologne. The digital company Google was one of Steuer's previous positions.
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