Are you carrying the idea of becoming a YouTube entrepreneur? For some, it might look like a great escape from mundane and bizarre corporate cubicles to a more unconfined life. However, the question is: how much views you need to become successful in the ecosystem. Is it one million views that you need in order to make a living by being a content creator on YouTube? Let’s have a look.
The truth about 1 million views:
You are likely to earn $ 2000 for one million views on YouTube through its partnership programs. That is not the end of the story a popular comedy channel spent more $ 20, 000 in creating its channel that contained 3,000 clips. At the end of the day, they just managed to generate $ 2000. Now, the question is how sustainable YouTube business is?
In addition, $ 2, 000 per one million views is just estimation, not a reality because there are a host of other things come into play in the whole monetization system. In order to understand the process, you need to understand those influencing factors.
CPI (Cost per Impression):
CPI, also known as CPM (cost per mile) is the biggest determining factor. That means CPM is the rate that YouTube pays you for one thousand views. Note that amount is excluding YouTube’s share of the advertising revenue. In fact, YouTube first takes its share that is roughly 45%.
In addition, you have skip-ads and ad blockers too that also impacts the CPM rate. That means you will be only paid for the ads that have been viewed. You cannot expect everyone to watch the video because as mentioned earlier some users have placed ad blockers while others simply skip.
A study suggests that only 15 percent of viewers are likely to watch ads on YouTube. That would mean that out of one million views, you are likely to get paid for the 1, 50, 000 views which would be just about $ 300.
150,000 views x $2/1000 views
Moreover, the CPM rates are inconsistent. Apparently, the rates range from one dollar to ten dollars. YouTube also has a complex algorithm to determine the monetization process that includes your audience segment, content quality, ad price, and engagement rate.
In addition, other factors like viewership country also impact the revenue generation on this platform. For instance, if your channel witnesses more traffic from tier-1 Countries like USA and UK, then you are in a slightly better position.
If you look at the way it operates, you would realize that it would be really hard to get enough viewers. However, even if you manage to get into the upper range, the amount that you would be earning could be well below $ 2000 for one million views.
Views x CPM
1 million views x ($2/1000 views)
CPC (Cost per click):
This is different from CPM because with CPM you are paid for the views, however, in case of CPC the viewer has to click on the ads rather than just viewing them. Through CPC, you would get a certain amount of revenue per click that the advertiser had agreed to pay.
Do not get disappointed about those factors that hurt the potentiality of your earning capability on the platform. You can certainly use one million views to your advantage if you can play a little smart and deploy other marketing and revenue generation strategies.
Other revenue generation tactics:
If you can manage to create an audience base, then you can approach brands for sponsored advertisements. Apparently, this is considered to be the best way of generating revenue outside the AdSense. However, the cost would greatly depend on the quality of content and your target audiences’ digital behavior.
Affiliated marketing is yet another impactful method of earning revenue however it could be a tricky affair to execute affiliated ads. That means you have to place the ads strategically so that your viewers click on the link. A blatant approach here could back-fire your whole strategy.
In addition, you have to be relevant in your approach. The real game lies in finding the right products and services for your niche.
Certain segments like video gaming and Martial online coaches can generate a huge amount of money by attracting paid subscribers. However, you need to have at least 1,000 views to enable this option. In addition, you should find out whether this option is available in your region or not.
If you are thinking of quitting your day job and start a YouTube channel, you just need to rethink your strategy. That does not necessarily mean that you have to leave that idea. Essentially, it means you need to understand the fact that idea is one thing and actuality is quite another thing.
It might take you months before you could generate a dime on YouTube. So, do not just get too excited by outlandish ideas, keep calm, and weigh all your options and viability before making any decision.