For new and aspiring YouTube creators wondering how much money can you make on YouTube, we’ve got you covered. Did you know there are YouTubers making millions per year?

Creating YouTube videos can actually be quite lucrative, believe it or not. You can create content around your passion, work from home, choose your dream work schedule, and earn an unlimited amount of income!

There are many ways you can make money on YouTube. We’re going to cover them in this article.

Read about:

• YouTube monetization and how much money you can make on YouTube
• How YouTubers make money
• 5 ways to monetize your YouTube Channel
• How much a YouTuber with 100,000 subscribers makes
• How much you can make from one million views
• Realistic earnings as a YouTube creator

Let’s dive in!

How Much Do YouTubers Make?

YouTube monetization is about making money from your YouTube channel. How much money do YouTubers make? There are various monetization paths you can pursue. We’ll cover that in this article, including how to qualify for some of them, how they work, how much you can make, and more helpful info.

According to this source, YouTube creators reported earning between $82 and $83,000 per month! Quite a large range, indeed. The amount you can make as a YouTuber boils down to many factors. Some can be beyond your control, but with time and consistency, you improve your chances of making money as a YouTuber.

What Can You Do to Ensure You’re Making the Most as a YouTuber?

There’s no tried and true formula, but there are best practices you can put into place to help you make the most money as a YouTuber:

• Choosing multiple income streams to monetize your channel
• Creating and publishing YouTube videos consistently
• Creating high-quality YouTube videos
• Engaging with your audience
• Focusing on building a strong personal brand

Now, let’s get into five ways YouTubers make money!

How Do YouTubers Make Money?

YouTubers make money in many different ways. That’s the beauty of YouTube. There’s more than one income stream available to monetize your content!

The highest-earning YouTubers monetize their channel in multiple ways. Here are 5 ways YouTubers make money with their channels:

• YouTube Partner Program
• YouTube Shorts
• Affiliate marketing
• Brand partnerships and sponsored posts
• Selling products and services

How to Make Money with the YouTube Partner Program?

The YouTube Partner Program is YouTube’s ad network. Once eligible, YouTube creators have advertisements placed on their videos, earning money based on the number of views their ad-monetized videos receive. As a YouTube partner, you’ll earn money on each ad view you receive.

For example, a YouTube video with a $20 RPM (revenue per thousand) on a 200,000-viewed video will earn $4,000 for that video from ad revenue.

Imagine 10 YouTube videos per month performing at that level.

One video alone can support a full-time income in this example. More videos can produce a very lucrative income stream for the YouTube creator.

But, the RPM you earn per video fluctuates, and the number of views received on YouTube videos fluctuates as well. So, it’s not as clear-cut as you might imagine.

Also, YouTube creators must qualify to join to YouTube Partner Program by meeting these requirements:

• Receiving 4,000 public watch hours in the last 12 months
• Have more than 1,000 subscribers
• Agreeing to the YouTube Partner Program Terms and Conditions

Once you’re a YouTube partner, you’ll have the chance to start monetizing your videos with ads.

How Does YouTube Premium work?

YouTube Premium (formerly YouTube Red) gives viewers a way to view YouTube ad-free, offline, and in the background. This is a recurring paid service that also includes:

• YouTube Music
• YouTube Kids

For YouTubers that are monetized from the YouTube Partner Program, you might wonder how they get paid for the ads on their videos if Premium users pay to skip the ads. YouTube partners that get their videos watched by Premium viewers get a cut of their membership fee as compensation. So, YouTubers can still financially benefit from Premium users viewing their videos.

What Are YouTube Shorts, and How Can YouTubers Make Money with Them?

YouTube Shorts is YouTube’s short-form video experience. Creators can post short video clips up to 60 seconds long on YouTube. Using creative tools like music, text overlay, and adding music can make these short-form videos extremely engaging and garner up to millions of views.

Current YouTube Partner Program creators who make YouTube Shorts will be eligible to have ads placed on the short-form videos. Those ad-monetized videos will give YouTubers a chance to earn money from their Shorts.

Read more about how to create a YouTube Short and how they work.

How Do YouTube Super Chat and Super Stickers Work?

Monetizing your YouTube channel with Super Chat and Super Stickers is available if you’re in the YouTube Partner Program.

• Viewers can buy live chat messages that stand out
• Messages can be pinned to the top of the live chat feed

How Do YouTube Channel Memberships Work?

YouTube channel memberships are like exclusive clubs that YouTube creators set up. Channel members get:

• Exclusive content
• Access to perks like loyalty badges and live streams
• Access to exclusive posts and chats
• A chance to show their support to YouTube creators

Becoming a channel member happens from the YouTube desktop site or YouTube app. It’s available on YouTube creators’ accounts that have channel memberships in place. If a channel membership is available, viewers can click the “Join” button to join as a member. Not all creators have set up a channel membership.

For YouTube creators, you get 70% of the membership revenue after taxes and fees. This is a smart way to create community among your viewers, giving your top fans a way to support your content.

Read more about how YouTube channel memberships work.

How to Make Money Through YouTube Affiliate Marketing?

YouTube affiliate marketing is about monetizing your YouTube videos with affiliate marketing.

This can be a lucrative path new Youtubers take to monetize their channels while waiting to qualify for the YouTube Partner Program. It’s also a good way for seasoned YouTubers to make money as well.

Creators like Eric Worral are making up to $40,000 per month from YouTube affiliate marketing!

It’s a smart way to monetize your YouTube content and a path to passive income, too!

How Does YouTube Affiliate Marketing Work?

Refer your viewers to affiliate products related to your videos. Then, post your affiliate link:

• In the video description
• As an end screen
• As a pinned comment
• In the Community tab

When viewers click the affiliate link and take action (like making a purchase), you earn a commission!

Monetizing Your YouTube Channel with Brand Partnerships and Sponsored Posts

Brand partnerships and sponsored posts happen for YouTube creators when a company wants to be advertised on the YouTube channel. An agreement is forged between the company and the YouTuber in which the YouTuber is paid to talk about the brand with their audience.

This can be:

• A brief mention at the beginning, middle, or end of the video
• A full feature video entirely dedicated to the company
• An ad segue embedded somewhere in the video

There are many ways to structure a YouTube sponsored post, and it’s one of the best ways to monetize a YouTube channel.

How to Monetize Your YouTube Channel by Selling Products and Services

Selling your own products and services gives you an opportunity to monetize your influence and sell to your YouTube audience.

This can be selling:

• Merchandise like hats, hoodies, socks, or T-shirts
• Handcrafted goods like candles, soap, jewelry, etc.
• Digital goods like digital planners, MS Excel spreadsheets, Notion templates, ebooks, etc.
• Services like personal coaching, consulting, accounting, bookkeeping, or other services

The sky’s the limit!

Create your product, then connect it to a payment processor and distribution channel, and you can have a functional business on your hands!

Examples of payment processors are Stripe, PayPal, etc.

Examples of distribution channels can be a Shopify online store, Teachable school account, or Gumroad store.

How Much Does a YouTuber Make With 100k Subscribers?

A YouTuber with 100K subscribers can make thousands per month. Sarah Lavender, with 100K subscribers at the time of this publishing, earned between $1,000 to $6,000 per month.

This source estimates $600 to $4,000 per month for a YouTube account with 100K subscribers.

How Much Do You Make From 1 Million Views on YouTube?

From 1 million views on YouTube, with an average RPM of $4, you would make $4,000. That could be:

• $4,000 from 1 one-million viewed YouTube video or,
• $4,000/month for one million views in a month with that average RPM or,
• A total of $4,000 earned for one million views lifetime

Keep in mind, though, that this is an estimate for YouTube Partner Program income only. You can earn far more from other monetization channels like sponsored posts or selling your own products.

For example, a brand may pay $20,000 for a sponsored post on YouTube that results in one million views.

Or, if you sell products at an average conversion rate of 2.5% on one million views for a $10 product, that could result in $250,000 in sales!

You can see how earnings can range a lot for one million views, depending on the monetization channel you’re using.

Check out this post if you’re wondering how much money is 1 billion views on YouTube worth.

How Much Money Can You Realistically Make on YouTube?

How much YouTubers can realistically earn from YouTube can swing wildly in both directions. This article shares an income of $82 to $83,000 per month, according to creators!

But, how much you make as a YouTuber is based on so many fluctuating variables from:

• The number of subscribers your channel has
• How active you are on the platform
• What your ad RPM is and,
• How you monetize your channel
• Location

And this is just the tip of the iceberg! Many more factors can come into play here.

What’s the bottom line?

Some YouTubers can earn a very lucrative living. Others can financially struggle as they try to find their audience and get their channel off the ground.

Like blogging, there’s no way to know how successful a channel can be, but there are YouTube tools that can help you improve your chances.

One such tool is TubeBuddy, a keyword research and optimization tool to help you get more views on your YouTube videos with YouTube SEO. This TubeBuddy review shares more about how it works, its features, its pros and cons, and more.

Do you think the potential money is worth it to be a YouTuber?

Working your way through each of the steps in this article about how to validate your business idea will save you time, and money, in the long run.

Idea validation helps determine if a potential customer will buy your product or use your intended services.

Most importantly, you will know whether your business will be profitable.

Read on as I share the seven essential steps that will assist you when validating your business idea.

How to Validate Your Business Idea

Market validation is the process of finding out if your product or service is in demand by consumers. You need to do it so you don’t leave the odds of your startup’s success up to chance. This is where the power of assumption could get you nowhere in a hurry, so don’t cut corners.

Idea validation will go a long way to not wasting time and resources on a product that may not appeal to the market.

By validating your idea, you will foster confidence among the people you approach for finance. Even existing businesses need a solid business plan if they approach investors, financial institutions, or crowdfunding groups on behalf of a lean startup. Only then will they “talk money.”

Once you have worked your way through validation, you will have a blueprint of your business model. You will know how your product aligns with the wants and needs of potential customers.

Doing proper product validation will strengthen your service offering if it is in demand. And that will entice people to make purchases.

1. Clarify Your Business Idea

Having a clear vision and well-defined goals is important when starting a business.

Start the process with a Q&A session with yourself:

• What problem will my business solve?
• How can I provide my customers with value?
• Why would customers pick me over my competitors?

This validation groundwork will help shape a purposeful direction for your venture. It will also form the foundation of the steps to follow as you confirm your business idea.

So this next step’s goal is to identify what makes your product idea or service offering unique. You want to be sure that your startup idea is one that customers would choose over the thousands like you out there!

2. Do Market Research

Market research plays a crucial role in understanding your industry, customers, and trends in the market. Your target market relates to the group of people who use your business category.

Start by collecting information about your target market’s demographics, behaviors, and preferences. Use your products and services to address their needs using information about their desires and pain points.

I delve a little deeper into how to go about learning more about your target audience later.

On we go!

Analyze market trends and study your competitors to identify potential opportunities and challenges. Conduct surveys, interviews, or focus groups to gather insights from your target audience about your great idea.

We live in a spectacular age where tech resources are improving by the day – make use of it! Work smart and not hard by using the hive of information available on the internet. You can maximize online resources, industry reports, and social media analytics (Facebook ads).

Collect data and information used by others from Google Analytics, Google Trends, and Google AdWords. You can also check out digital marketing intelligence like Semrush for insights.

Questions to Ask

Here are a few questions to help you along as you consider how to validate your business idea. They cover essential aspects such as problem validation, market analysis, competitive differentiation, value proposition, revenue generation, and validation methods:

• What specific problem or need does your business idea address, and who experiences it?
• Who are your direct and indirect competitors, and how does your idea differentiate itself?
• What value or benefit does your business idea provide, and how does it outperform existing alternatives?
• How will your business generate revenue, and have you analyzed its profitability and scalability?
• What validation methods have you used or plan to use to gather feedback and refine your idea?

Doing thorough validation research will help you make informed decisions. Then you can tailor your offerings and position your business for success.

3. Identify Your Target Audience

So, now that you have done some market research, you need to identify your audience. Your audience is your target customer who tends to make use of businesses like yours.

This is where the AI Tool ChatGPT can be of help in giving you basic answers to questions you may have. It can help you refine the characteristics of your business category’s ideal customers.

Consider demographics such as age, gender, location, and income level when you prompt the chatbot. Remember, this will only be a general idea of your ideal customer because ChatGPT’s knowledge base is not up to speed with current market analysis.

AI can help you understand customer behaviors, preferences, and purchasing habits. By pinpointing past habits, you will have greater insight. That way, you can know what problems your product or service will solve for them.

Do some networking with people who fit the profile. Get them to take part in surveys and interviews to gather insights. This will help you create detailed buyer personas that represent your target audience.

These first “customers” will form the basis for growing the interactive client base you should aim for.

4. Analyze the Competition

Analyze other companies like yours if you want to understand your business category’s landscape.

Further questions to ask would be:

• Who are your direct and indirect competitors?
• What products, services, pricing, and marketing strategies do they offer clients?

Look for gaps or areas where you can differentiate your business from the ones already out there. Understand their strengths and weaknesses to identify potential opportunities for your venture.

A helpful tip is to conduct a SWOT analysis. In case you don’t know what SWOT stands for, it’s an acronym for Strengths, Weaknesses, Opportunities, and Threats.

Here’s an example of a SWOT analysis that covers a hypothetical business you might be up against.

This is a SWOT analysis for a fictional software company.

Strengths:

• Qualified and experienced development team
• Cutting-edge technology and software solutions
• Strong reputation and positive customer feedback
• Efficient project management and delivery processes
• Well-established partnerships with industry leaders

Weaknesses:

• Limited marketing budget and brand recognition
• Small customer base compared to competitors

Opportunities:

• Growing demand for software solutions in emerging markets
• Potential for expanding customer base through strategic marketing efforts

Threats:

• Intense competition in the software industry 
• Rapid technological advancements requiring continuous innovation

By analyzing the competition, you will gain valuable insights that will help you position your business to your advantage.

5. Create a Minimum Viable Product (MVP)

Creating an MVP lets you test your business idea with a basic version of your product or service.

Once you know what your product’s core features are, you can create a prototype. Use this simple version to test-run a mini-version of what your business will be offering. Once you have done that, gather feedback and iterate based on your interactions. Use a small group of target users or stakeholders to help you with this step.

These valuable insights will also grow confidence in your ability to adjust.

Now you will be ready to plunge into spending resources on the full-scale model.

Launching an MVP will cut your risk and optimize your product development process. It will ensure that your final offering meets the needs and expectations of your target audience.

6. Gather Feedback and Iterate

I want to highlight how important this part of the process is. Gathering honest feedback from industry experts, potential customers, advisors, and stakeholders is crucial for improving your small business idea!

Do this at various stages, such as product development, after launch, and through customer interactions.

Take all criticism as constructive, and use all the information you gather to improve your offering.

Once you are on the go, pay special attention to surveys, customer interviews, or online feedback platforms to gather insights. Acknowledge both positive and negative feedback.

Make the necessary adjustments to enhance your product, service, or business strategy. Get used to this part of the process because successful companies never stop gathering feedback and iterating.

7. How to Validate Your Business Idea – Financial Considerations

I will spend a little more time on this step. Without the startup finance to back you up, you are pretty much stuck at having a good idea.

• Determine your startup costs. This includes expenses such as equipment, inventory, office space, marketing, and legal fees. Calculate these costs and create a budget. This way, you will have a clear understanding of your financial needs.
• Consider your sources of funding. Are you a startup founder that will be self-funding your business? Or, will you be seeking loans from banks or pursuing investments from venture capitalists or angel investors? Weigh up the pros and cons of each option and determine the best fit for your business.
• Develop a financial plan. Forecast your revenue and expenses for the first few years of operation. Consider factors such as pricing, sales projections, and overhead costs. This will help you understand your financial sustainability and make informed decisions. 
• Keep an eye on your cash flow. Check your income and expenses often. This way, you can ensure you have enough funds to cover operational costs. Avoiding cash flow shortages is key. Nobody likes unexpected outlays. Make a point of implementing proper bookkeeping and financial tracking systems. You want to maintain accurate records.
• Consider legal and tax obligations. Consult with professionals to ensure you meet regulations, licenses, permits, and tax requirements. Failure to do so can lead to financial penalties and legal issues down the line. Don’t go there!
• Review and adjust your financial plan often. As your business evolves, your financial considerations will change. Stay proactive and make necessary adjustments to optimize your financial performance. This will ensure long-term success.

Why Validating Your Business Idea is Essential

Validating your business idea is essential because it allows you to assess market demand. It also ensures that there is a customer base willing to buy what you’re offering.

Refine your concept by engaging with potential customers, gathering feedback, and doing research. This way, you can address weaknesses or flaws and increase the chances of long-term success.

Validation also helps attract investors or secure funding. It provides tangible evidence of market interest and potential profitability, mitigates risks, and makes necessary adjustments.

If you have doubts about your business idea once you have gone through the validation process, you may want to look at other options. Here are some articles worth reading:

Conclusion – How to Validate Your Business Idea

In conclusion, validating your business idea is a vital step toward building a successful venture.

By understanding your market, you can refine your offering. The feedback will pave the way for a powerful and impactful business.

Embrace the process of validation! Embark on your journey with confidence, and don’t cut corners. When you are on the path to creating a thriving enterprise that will meet the needs of your target audience, you will have the confidence to succeed!

Once you are ready, register your limited liability company (LLC) with state and local governments. You can get all the necessary registration details from the U.S. Small Business Administration website. Alternatively, you could get a company like Northwest to help you with that.

All the best with your new venture!