So How Do YouTubers Make So Much Money? | The Odyssey Online
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Student Life

So How Do YouTubers Make So Much Money?

Plenty of YouTubers are making well over $1 million, but where is all that money coming from?

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So How Do YouTubers Make So Much Money?
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The video hosting service YouTube doesn't always make the list for top reliable careers, but in reality, most YouTubers who find success through their content are also earning a solid and, in most cases, hefty paycheck at the end of the month. Most successful YouTubers don't even have a college degree as most of them either started out of high school or are college drop-outs; they all however used YouTube as a guide in their lives while putting their names in the eye of the public. Although most YouTubers aren't willing to release their salaries to the public, it's a fact that at least the top ten most paid YouTubers are seeing seven digit incomes at the end of the fiscal year.

According to Business Insider, the highest paid YouTuber in 2016 was PewDiePie, a Swedish video game commentator who reportedly earned a total of $15 million in one calendar year. Second place goes to the famous prankster Roman Atwood, who reportedly earned $8 million that same year, while the comedian duo of Rhett and Link made $5 million placed them in tenth place for most paid YouTubers. Little do people expect a video maker to be millionaires, but in reality, there are plenty of YouTubers making a sizable amount of money.

But how do YouTubers make that much money? Well, it's obviously all connected to subscribers and video views. The most views and subscribers one amasses, the more publicity and popularity an individual receives – it's that simple. The common assumption is that YouTube pays their video makers $1 per thousand views, but that's not where their revenue comes from. See those annoying ads that start before every Youtube video? Well, that's where YouTubers mostly get their millions from. Google's AdSense technology is linked to a YouTuber's video in which the video maker would make 68 percent of the revenue earned from the ad, which is equivalent to about $0.18 per view; a view is counted when an ad is watched for over 30 seconds, but according to data, only about 15 percent of views will meet the requirement for it to be considered a view. Although it may not sound like a lot, when famous YouTubers like "PewDiePie" are creating daily videos that are generating an average of five million views, the money surely adds up.

But it doesn't stop there; most YouTubers make most of their salary not through YouTube but through personal sponsorships that they often promote throughout their videos. It's becoming common that YouTubers are putting their "discount codes" in their videos to promote products to their audience. Although it's hard to figure out what exactly YouTubers get paid for promoting products and companies since each contract is different, it's easy to figure out that those discount codes they offer are ultimately benefiting them much more than it will benefit you as a viewer. Popular sponsorships in YouTube include the athletic apparel company GymShark that is spread throughout the online fitness community and the pre-workout shakes from G-Fuel that have mostly been apart of the gaming community.

YouTube is an example of capitalism at its finest as the content creator gains fame and viewers and ultimately gets a hefty bonus by growing companies which then become a part of the eye of the public and widely successful; it becomes a win-win for both parties.

So, when in doubt, just know that YouTube shouldn't be brought down because, in reality, plenty of content creators are living their dream lives and their aspiration through YouTube. But just keep in mind that not everyone who makes a video will reach the same level of success; rather, it all involves hard work and (mostly) a dash of luck.

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This article has not been reviewed by Odyssey HQ and solely reflects the ideas and opinions of the creator.
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