Making Money On YouTube
Ten independent YouTube stars made over $100,000 in 2010. That is the finding of a study done by TubeMogul. By independent they mean YouTubers who were not part of a traditional media company or corporate campaign. A prime example is Natalie Tran, who is reportedly the most subscribed to YouTube user in Australia and is said to bring in over $100,000 from her YouTube video postings. An article in the New York Post reports that some YouTube partners are making over $1 million from their efforts.
How? It varies. There are a few potential revenue avenues for YouTube entrepreneurs. These include banner ads, pre-roll and overlay ads sponsorship and merchandise sales. Some YouTubers have sponsors, but for most, revenue comes from banner ads placed near their videos. YouTube splits its ad revenue with partners 50-50. And although it’s an incremental process, it’s amazing how much some are generating from their banner ads.
Few are getting rich, but some have quit their day jobs and are full time YouTubers, and others have hit the big time. For videos and YouTube channels that generate a real buzz and drive traffic, the rewards can be amazing. Not only do these YouTube stars generate a following and various money streams, many establish themselves as personalities. By passing the traditional star making machine these trailblazers have been able to create their own opportunities. Not only are they establishing themselves via YouTube and generating various cash flow streams, many of these are crossing over from the net to more traditional media outlets establishing themselves in print, film, CDs, and TV. Welcome to the new star making machine.