Most people associate YouTube with instructional videos, music videos, and wasting time. Another group, however, sees YouTube as a significant money source for their internet business. MrBeast was the highest-paid YouTube channel in 2021, earning a record $54 million in revenue. Making money on YouTube requires time and work, but it may pay off handsomely.

The internet is a goldmine for making extra cash. People are making money through surveys and streams. However, consider opportunities other than part-time work. We’re ready to assist you in transitioning from a hobby to earning money online into a stable, perhaps even passive, income.

Furthermore, some enjoyable pursuits are more than just hobbies; they are potential money mines. With the right movements, these fun activities can turn into significant earnings. So, if you want to make the most of your spare time, consider one of these enjoyable hobbies. They are redesigning productive leisure, converting free time into financial benefit.

Below are some ways to earn passive income from your YouTube videos:

1. Earn with ads as a YouTube Partner Program member

Let’s get this one out of the way first. You must join the YouTube Partner Program to earn money from advertisements. And you can’t become a YouTube partner who includes ads on your channel until it surpasses the 1,000-subscriber threshold. You’ll also need a collective 4,000 hours of watch time on long-form videos within the past 12 months or 10 million Shorts views within the past 90 days. (See No. 5 for how to join the Partner Program with reduced eligibility requirements.) Check those big boxes and it opens the door to ad revenue.

A few additional requirements apply before you can become a partner:

• Your videos must abide by YouTube’s monetization policies. 
• You must live in an eligible area.
• You need to link a Google AdSense account.

Click the “earn” section in YouTube Studio to apply. YouTube says it typically gets back to you within one month of reviewing your application to let you know if you’re approved or not.

As a YouTube partner, you can earn money through ads, chat features and from YouTube Premium subscribers who watch your content. The platform also allows YouTube partners to earn ad revenue on Shorts, which are YouTube’s version of short-form TikTok-like videos.

• How many views on YouTube does it take to make money?

You don’t get paid per video view. Rather, you’re paid for the times when someone watches or clicks on an ad shown on your video.

Influencer Marketing Hub says that while payment varies, the average YouTube channel can expect to make about $18 per 1,000 ad views. That translates to $3 to $5 per 1,000 video views when you factor in the rate of ads actually viewed. The site has a YouTube calculator to gauge how much revenue you might make.

• So when do you start making money on YouTube?

You’ll be paid once your balance reaches $100. Say it takes approximately 1,000 video views to earn $4 from those viewers who saw ads. You would need 25,000 video views to make $100 through those ads. If you have a small channel, you might get paid only every few months. You’ll also want to be familiar with how Google, which issues AdSense payments, handles taxes.

2. Take a cut with affiliate marketing

Affiliate marketing might be the most beginner-friendly way to monetize your YouTube traffic, especially if you plan to make product review videos. It works like this:

• You find a company or seller with an affiliate program, such as Amazon Associates, and apply to join.
• Once accepted, you’ll use their process to create custom links to products you plan to feature in your videos.
• Demo, review or make reference to the products in your YouTube videos, and paste your custom affiliate marketing link(s) in the description field when you upload.

As an affiliate of a brand, you’ll earn a commission when a viewer clicks your custom link and purchases the product.

While Amazon Associates is a great way to make money on Amazon, endless other opportunities exist. Search on affiliate marketing sites such as ShareASale and ClickBank for possible corporate partners and products to feature. You can also search your favorite brands’ websites for information on how to become an affiliate.

If your channel eventually reaches more than 15,000 subscribers and you meet other eligibility requirements, you can explore the YouTube Shopping Affiliate program as a way to boost your earnings.

Don’t forget to properly notify your viewers about your affiliation with the brand or brands featured, and be sure to point them to the “link in the description” when you shoot your video.

3. Land a brand deal and make sponsored content

Companies interested in your channel’s audience might sponsor your videos or offer you product placement deals in exchange for a shoutout, called brand deals in the biz.

Read Also: Creating Passive Income With Podcasting: Monetizing Your Content

The operative word here is “audience,” which means these types of deals are more likely to present themselves when you develop a following. As your channel grows, you can contact the brands you’d like to work with directly or use resources like the aforementioned affiliate marketing sites to find corporate partners that complement your style of content.

With brand deals, you can receive lump sum payments, earn commission on a per-sale basis or get the product or service for free.

Keep in mind: If you do have an endorsement or use product placement in a video, you must notify YouTube by ticking a box in your video details.

4. Sell some merch

If you have merchandise or offer a service that’s relevant to your audience, let them know about it and provide links in your videos. For example, creator Marques Brownlee, of the popular tech review channel MKBHD, leaves a link to his own line of T-shirts and accessories in every video he posts.

Selling a physical product might require you to buy materials or find a manufacturer, but you can also sell downloadables such as e-books, art prints or virtual classes. Have a secure payment system in place before you advertise your goods.

Incentive to sell: While creating your own products can be a lot harder than pitching those of other companies, you could stand to make more money this way, since you’ll keep the bulk of your proceeds as the product owner.

5. Offer memberships

A membership model is another way to monetize viewership. With this method, fans of the channel pay a small subscription fee for perks and/or an exclusive tier of access.

Patreon is a popular third-party membership platform. YouTube has been rolling out its own channel membership feature, but you need to be part of the YouTube Partner Program to be eligible.

For channel memberships, you can join the Partner Program with 500 subscribers, 3 public uploads in the last 90 days, and either 3,000 public watch hours on long-form video in the last 365 days or 3 million Shorts views in the last 90 days. That’s as opposed to the higher Partner Program eligibility requirements if you want to earn revenue through ads on your channel.

As always, more viewers can lead to more revenue. Incentives such as members-only livestreams, chats or other perks may entice viewers to become paying members.

Breakout YouTube stars with millions of followers stand to make the most money, easily reaching seven figures. But even lesser-known content creators with a modest following can make some solid income on the side, or even full time.

According to Forbes, creator Jimmy Donaldson of the hugely popular channel MrBeast earned $54 million in 2023, in large part from the 237 million subscribers he’s racked up on YouTube. That kind of success is more the exception than the rule.

On the more modest side, Cinquanta Cox-Smith, a YouTuber focused on print-on-demand content with 11,900 subscribers, brings in about $120,000 in annual revenue, according to Career Ahead, a career-focused educational magazine.

Matt Par, a YouTube sensation who became successful as a teenager with a Top 10 list channel and now runs multiple channels including on how to make money on YouTube, tells viewers that the platform’s Partner Program can be a good income-building source. He says he earns $30,000 per month in ad revenue through the program.

How to Get Started

Create a YouTube Account

Before you can begin making money via YouTube, you need a YouTube account. Because YouTube is a Google company, it requires a Google email, or Gmail, to register. Once registration is complete and the YouTube account is active, it’s time to populate your account, also known as a channel, with content.

Creating an account does not automatically qualify you to earn revenues from it. YouTube account holders must follow certain guidelines, such as building an audience and maintaining a specific level of engagement. Amassing a group of followers validates why your channel should earn revenues.

Make Videos

To build an audience and gain views, YouTube content creators must consistently develop content that followers enjoy watching. Therefore, the next step is to create videos. There is no universal model for what works and what doesn’t work on YouTube. Some of the most popular content include professionally produced music videos and impromptu family videos recorded with a smartphone.

Using a smartphone is convenient and effective as most are outfitted with quality cameras. Recording in HD will produce a better quality video, so be sure to use the highest quality setting on your phone. If you want an even more professional video, you can use a DSLR camera and an external microphone.

You can edit your video with a desktop program like the free Windows Movie Maker, iMovie, or a paid program like Adobe Premiere for more robust features. YouTube also has a free editor with basic features. As you edit your video, be sure to not use copyrighted music. If you do, your videos won’t be eligible for YouTube advertising.

Upload to YouTube and Configure for SEO

Now that your video is complete, it is time to upload your video to the YouTube servers. You can drag and drop videos from your computer into the uploader, or you can add them individually by clicking on the upload arrow. Depending on the size of your video and your Internet connection, uploading could last anywhere from a few seconds to a few hours. You can upload multiple videos at a time as long as you do not close the upload page in your browser.

When your video is uploaded, or while it is uploading, you can fill out the information about it. Be as detailed as possible when creating a title, description, category, and tags. YouTube is the second-largest search engine in the world, and good search engine optimization (SEO) can be the difference between a few views and a few million views.

Promote Your Video

Now that your video is online, it’s time to get the word out. Share your video on social networks, blogs, forums, message boards, and anywhere else you can online. You can embed your video on other sites or link to the video so viewers can watch it on YouTube. Just be careful to avoid spamming because that would result in fewer views for your videos.

Promoting your videos helps you to gain subscribers and views. Increasing your audience base gets you closer to being able to earn money on your content. Once your channel is active and you have a catalog of content and a captive audience, you are ready to monetize your videos.

• YouTube Partner Program

The monetization process begins with an application to the YouTube Partner Program (YPP), which allows the account holder to earn money on their content (from ads and subscribers) and grants exclusive access to resources and tools, such as AdSense. YPP acceptance requires that the YouTube account holder is in good standing with YouTube, have a minimum of 4,000 public watch hours in the last 12 months, and have at least 1,000 subscribers.

Once accepted into the YouTube Partner Program, you can sign up for an AdSense account. AdSense is the primary advertising engine Google uses on its own sites and partner sites, including YouTube. When you create your AdSense account, you will need to input payment information and provide tax reporting information such as a social security number or employee ID number (EIN) for your business.

Your AdSense earnings are determined by the number of views the video receives, which advertisers show up on your video, and how many times the ads are clicked. High engagement and clicks are more important than total views, but the more views you receive, the higher the likelihood of clicks.

Depending on your video’s engagement levels, you can earn anywhere from 30 cents to $10 per 1,000 views. Making videos that people will actively watch until the end will earn you more than a video where people click away after only a few seconds.

Sponsorship

YouTube content creators have additional ways to earn revenues besides through ads and subscribers. Brands often look for influencers to promote their products and services. With the massive number of users YouTube attracts, its platform is great for advertising. Third parties can capitalize on YouTube’s user base through sponsorship agreements with its account holders.

Becoming a brand sponsor can be a lucrative option for YouTubers as companies pay them to act as brand sponsors, promoting the company, product, or service in their videos. The YouTuber often promotes the product without guarantees, and the sponsorship is usually incorporated into videos of unrelated content.

Endorsement

Much like sponsorships, endorsements are secured by agreements between a third party and the YouTube influencer. In contrast to sponsorship where the YouTuber solely promotes an offering, an endorsement is a promotion with the YouTuber’s stamp of approval. They stand by their claims on the product and issue a form of guarantee to their viewing audience. In exchange for endorsing a product, company, or service, the influencer receives a fee.

Merchandise

YouTube influencers with a popular channel and a strong fan base can earn additional revenues by offering merchandise, also known as merch. Branded merchandise, such as t-shirts and hats, connects fans to YouTubers and can create a deeper sense of loyalty among them. It’s another way of supporting the influencer beyond watching their content and subscribing to their channels.

Selling merchandise can be extremely lucrative, earning top YouTubers millions in revenue. Some influencers’ merchandise, because of their creative design, extends far beyond their community of followers. In return, those new merch customers often become fans of the YouTube content.

Summary

YouTube offers opportunities for all, but it’s not a get-rich-quick platform. It takes time, effort, and an engaged audience to make money on YouTube. The good news is, that with a little motivation and a lot of practice, you can find ways to earn before the coveted 1,000-subscriber threshold.

Keep these tips in mind as you get started:

• The more videos you make and upload, the easier it is to reach the viewing-hours threshold.
• The better you target your content to a specific audience or niche (e.g., film photography), the more likely your viewers will be to subscribe for more.
• Thoughtful, entertaining videos are more likely to get views, so it pays to put effort into planning and production.
• Don’t discount the power of a targeted title and standout thumbnail to attract viewer attention.