How Much YouTubers Make: Average RPMs (+ the Best Ways to Make Money)

Understanding YouTube Earnings: A Comprehensive Guide

Calculating expected earnings for a YouTube channel can seem daunting at first, but it primarily revolves around a key metric known as CPM, which stands for “cost per mille.” The term “mille” is derived from Latin, meaning “thousand,” so CPM indicates the cost an advertiser pays for every 1,000 impressions or views of their ads. As a content creator on YouTube, you can earn money through ads, and it’s essential to understand how this system works.

Typically, YouTube retains 45% of the advertising revenue, leaving creators with the remaining 55%. This figure is referred to as RPM, or revenue per mille. It’s important to note that both CPM and RPM can vary widely based on several factors, including the geographical location of your audience, the type of content you create (such as long-form videos versus Shorts), and the overall topic of your content. For instance, Analyzify reports that the average RPM for long-form YouTube videos is approximately $3.00 globally, while for YouTube Shorts, it drops significantly to around $0.05.

To put these numbers into perspective, if you maintain an RPM of $3, you would need to achieve 100,000 views in a month to earn around $300 in ad revenue. While this might sound like a high target, growing your subscriber base and consistently uploading new content can help you reach this milestone. For instance, achieving 1,000,000 views on YouTube Shorts would yield approximately $50 in revenue, demonstrating the challenges and opportunities within the platform.

To help visualize the potential earnings, we’ve included a chart that outlines how much you could earn based on various monthly view counts for long-form content:

This chart offers a glimpse into the earnings potential on YouTube based on various levels of viewership. However, keep in mind that these figures represent averages, and your actual earnings can fluctuate significantly based on your content niche. Analyzify provides insights into potential earnings across different YouTube niches, which can help set realistic expectations:

These figures are based solely on advertising revenue and reflect a global average. Notably, the U.S. tends to have some of the highest advertising spending worldwide. Therefore, creating content tailored to U.S. audiences can potentially lead to higher RPMs and increased earnings.

Now, let’s explore additional legitimate ways to generate income on YouTube. It’s not just about ad revenue; there are numerous strategies to monetize your channel effectively.

The Highest-Earning YouTube Content Creators

Many of the top-earning YouTube creators focus on entertaining and humorous content aimed at younger audiences. While channels covering a wide array of topics can generate significant income, viral videos that resonate with younger viewers often attract the most views, leading to increased earnings. For example, in 2023, Ryan Kaji, a 12-year-old creator, stood out among the highest earners, raking in approximately $35 million. Kaji’s channel, Ryan’s World, which his parents started when he was just three years old, gained fame for unboxing and reviewing toys.

If you remain skeptical about the earning potential of YouTube, consider this: Kaji has amassed an estimated net worth of $100 million before even reaching his teenage years. In 2023, MrBeast, another prominent creator known for his elaborate stunts and challenges, topped the charts with earnings of $85 million. The gaming niche is also lucrative, with many creators earning seven figures annually. Platforms like Twitch complement YouTube, allowing creators to expand their earnings through live streaming, subscription options, and viewer donations.

Here’s a comprehensive list of some of the highest-earning YouTubers in 2023, according to Statista:

• Mr. Beast (Jimmy Donaldson): $82 million
• Rhett & Link: $35 million
• Preston Arsement (PrestonPlayz): $35 million
• Ryan Kaji: $35 million
• Jake Paul: $34 million
• Mark Edward Fischbach (Markiplier): $30 million
• Logan Paul: $21 million
• Brent Rivera: $17.5 million
• Huda Kattan: $13 million
• Marques Brownlee: $8.5 million
• Mark Rober: $6 million

These figures reflect the total revenues generated by these YouTube stars from all their business ventures, not just their earnings from YouTube ads. It’s essential to understand how these creators diversify their income streams to maximize their earnings potential.

Earning Methods Beyond Ads

Many of the highest-paid YouTube stars have leveraged their popularity to launch their own product lines or secure licensing deals with major brands. For instance, Kaji’s brand includes thousands of Ryan’s World products available at major retailers like Walmart and Target. Similarly, the group Dude Perfect has collaborated with Nerf to create branded products for fans interested in replicating their trick shots at home.

Moreover, some YouTubers have transitioned to television or film deals due to their online fame. A portion of Kaji’s substantial earnings stems from a Nickelodeon series based on his channel. Additionally, an increasing number of YouTube stars are capitalizing on their following on other platforms, such as TikTok, which seems poised to keep growing.

While the top earners represent the exception, it’s worth noting that many YouTube creators earn a comfortable income through consistent effort and dedication. In fact, Forbes estimates that approximately 1 million YouTubers generate a six-figure income on the platform, with that number expected to rise significantly in the coming years.

Ways to Make Money on YouTube

Now that you have a clearer picture of the top earners, you might be curious about how they make their money. There are several effective methods to monetize your YouTube channel. Let’s explore the most popular options:

#1. Show Ads In Your Videos

The most straightforward way to earn money on YouTube is through advertising revenue via the YouTube Partner Program. While various factors affect your earnings, generally, achieving more views on your videos leads to higher ad revenue. The potential earnings can range from a few hundred dollars a month to six figures annually.

To qualify for the YouTube Partner Program, you must have either 1,000 subscribers and 4,000 valid public watch hours within the past 12 months or 1,000 subscribers with 10 million valid public Shorts views in the last 90 days. Once you meet these criteria, you can easily turn on monetization for your videos. With ads enabled, you earn money from ads displayed before, during, or alongside your videos.

#2. Get Tips From Viewers

YouTube introduced the tipping feature, “Super Thanks,” allowing viewers to send money directly to creators as a form of appreciation. This feature enables fans to express their gratitude while also providing creators with an additional income stream. The tipping options range from $2 to $50, with creators retaining 70% of their earnings.

#3. Sell Custom Merchandise

YouTube Shopping lets creators showcase and sell their products directly on their channels. This can be an incredible way to boost earnings, especially if you have a loyal fan base. While the potential for merchandise sales can be higher than ad revenue, you need at least 10,000 subscribers to enable YouTube Shopping.

#4. Charge For Subscriptions to Your Channel

You have the option to offer channel memberships, providing exclusive perks for paying subscribers. Memberships can be priced between $1 and $49.99 per month. While this can lead to substantial earnings, it requires a dedicated audience willing to pay for additional content.

#5. Use Affiliate Marketing

Promoting products from other companies and earning commissions on sales generated through your referrals is a popular monetization strategy. You don’t need a large following to begin affiliate marketing, making it an accessible option for many creators.

#6. Be an Influencer or UGC Creator

Brands are increasingly looking to partner with influencers to reach specific audiences. YouTubers can get paid to create sponsored content, leveraging their established following for brand promotion. UGC (User-Generated Content) creators focus on producing relatable content that brands can use in their marketing strategies.

#7. Get Donations

Fans may choose to donate to support their favorite creators. While this method may not yield substantial income, platforms like Buy Me a Coffee, Tipeee, and Patreon can facilitate the process.

#8. License Your Content

Creators can license their content to other companies, allowing them to use videos with specific guidelines. This can potentially generate significant income if there’s demand for the content you produce.

How Much Do YouTubers Make: Closing Thoughts

YouTube is the second most popular website globally, just behind Google. Due to its vast audience and the growing demand for video content, it presents one of the most lucrative side hustle opportunities available today. While top YouTube stars can earn tens of millions of dollars each year, many creators find success and a comfortable living through consistent content creation. Over time, as you build a library of content, you may even develop a passive income stream through ad revenue. This allows you to focus on creating engaging videos while capitalizing on your previous work.