How to Make Money on YouTube [And Outside It With Your YouTube Videos]

This guide will be rather practical. If you’re here, I know you’re only interested in learning how to make money on YouTube. In that case, I’ll get right into what you seek.

There are generally two revenue streams to cash out on YouTube, namely:

1. YouTube Partner Program, or (and)

2. External methods

Making Money on YouTube With the YouTube Partner Program (YPP)

YPP is YouTube’s way of rewarding creators for their engaging content. It is the most direct way to make money on YouTube. And it is 100% legit.

Check out this video from YouTube.

The best part of the YouTube Partner Program is that it includes several monetization features—at least six of them.

In total, there are 8 different ways you can make money directly on YouTube, namely:

1. Ad revenue

2. Shopping

3. Revenue from YouTube premium subscribers

4. Channel memberships

5. Super chat & super sticker

6. Super thanks

7. YouTube Shorts monetization

8. YouTube BrandConnect

📌 RECOMMENDED READING: How to Join the YouTube Partner Program in Clear Steps

Now, let’s explain how each monetization strategy works.

Ad Revenue

Advertising revenue is one of the easiest ways to make money on YouTube via the YouTube Partner Program. You don’t have to do anything outside of joining the YP program.

However, joining the YouTube Partner Program is not a 5-minute task. You must fulfill some requirements. The basics are:

• Monetization policies and

• Threshold subscribers, uploads, & watch hours.

📌Good news: the updated YPP has low thresholds.

Afterward, set up your Adsense account and ad displays and formats. Luckily, you can do all that right from the YouTube studio.

“Video ads are automatically chosen based on context like your video metadata and whether the content is advertiser-friendly.” – YouTube Support.

📌 What are the ad format types on the YouTube Partner Program?

Tip: create more long-form video content to adapt different ad types.

Shopping

YouTube Shopping works like typical affiliate marketing. It lets you tag useful products in videos, shorts, and live streams. In return, you’ll get commissions for your efforts.

However, you can only tag products from YouTube-approved sellers. Here are some of them:

📌 What if your desired brand is not on the list?

Suggest new brands to YouTube with its creator interest form.

Seller restrictions aside, the shopping feature also has country restrictions. Currently, the program is available only to YouTube creators in Korea and the USA.

Here are some other eligibility requirements to note:

Tip: look beyond earning from other brands’ products. If you haven’t already, venture into e-commerce and feature your own products.

Revenue From YouTube Premium Subscribers

Premium subscribers pay at least $8 to block ads (and other perks) when watching a video. Ideally, this fee should benefit only YouTube. Since there are no YouTube ads, there shouldn’t be any for creators, right?

Well, the case is different.

As a member of the YouTube Partner Program, you’ll still get a share of the YouTube Premium revenue. Here is how it works:

• Viewers pay a fee for YouTube Premium

• They watch your video

• You get a cut of the fee depending on your YouTube views

📌 What happens when viewers download for offline view?

According to YouTube Support, “watch time for downloaded videos is recorded like online.” In other words, you’ll still get that cut.

Channel Memberships

This monetization feature is similar to YouTube Premium Subscription. They both require monthly, recurring subs. But unlike the latter, you own the entire revenue.

More importantly, you decide all the rules — the price, the tiers, and the rewards.

All you need to do is entice viewers to subscribe to your channel membership. Here is how it works:

• For starters, meet the eligibility requirements.

• Then, set up the membership feature for your channel.

• Craft an irresistible offer to your fans to convert them to paying members

• Set three pricing options (low, moderate, and high) with different perks

📌 Tip: do beyond generic perks like badges. Try appealing rewards like exclusive benefits and third-party integrations.

Super Chat & Super Sticker

The Super Chat and Super Stickers features are for live stream monetization. But they differ. Here is how:

• Super Chat only highlights a text. This way, fans’ comments can stand out in live chats.

• On the other hand, Super Sticker is an upgraded Super Chat. Once used, the fan’s comment will be highlighted, and animated images will be displayed to the right.

Either way, fans’ comments will stay at the top of the chat for a period, depending on the purchase amount.

Note: Super Chats & Super Stickers only work with live chat or comment. Otherwise, you won’t make any money from the features, even if you are eligible.

Super Thanks

Super Thanks is similar to “Super Chat & Super Sticker.” In fact, they offer the same thing—a fun way for fans to appreciate your content and stand out while at it.

The difference between “thanks” and the “other super” features is live chat. Unlike “chat” and “sticker,” it is incompatible with live chat.

Outside that, fans can super-thank you on your long and short YouTube videos. Here is how it works:

• Toggle on Super Thanks under YouTube Studio > Monetization settings

• The thanks button will appear on all old and new videos – barring live and premieres

• Your fans click on the button to appreciate you with money

📌 Tip: always reply to a Super Thanks comment.

YouTube Shorts Monetization

This feature helps you get paid for the ads in your shorts. It works on an ad-sharing formula.

Frankly, the formula is exhaustive. But here is a practical example:

📌 Isn’t short money too small?

The percentage is less significant than typical ad revenue. However, here are a few things you might not be considering:

• Despite the money earned from shorts, the “watch time” of the original video will still fetch you more money.

• Shorts now have super thanks, and you can get extra fun funding.

• Shorts are a great way to repurpose your content for traffic boost and exposure. Getting paid while doing it is great, regardless of the amount.

YouTube BrandConnect

This feature is similar to “shopping” in many ways. It involves partnering with brands and is currently restricted to a few locations.

However, BrandCinnect is much more than affiliate marketing. It is like a marketplace for creators to connect with brand content jobs. How does it work?

• First, join the BrandConnect program via YouTude Studio. You won’t see the feature if you’re not eligible.

• Next, set your preferences

• Check deals that match your preferences > Negotiate a deal

• After, you can work on the branded content campaigns

• Lastly, monitor the campaign to see what is working and what is not.

Note: BrandConnect is a self-service tool, so you will do all the work and communicate with clients using the tool.

Now that we’re done with YouTube Partner Program (YPP), let’s discuss how to make money on YouTube using other platforms.

External Ways To Make Money on YouTube

Here’s the overview:

1. Sponsored content

2. Affiliate marketing

3. Crowdfunding

4. Licensing your content

5. Merch

Sponsored Content

This is simply earning by promoting a brand within your video.

You can do this at the beginning or end of your video.

And the good part?

You don’t have to cut YouTube since you strike the deal yourself.

Promotion deals can happen in two ways:

1. Approaching brands with your offer.

2. Don’t just wait around. Be ready to pitch to these brands. If they like it, they’ll partner with you. Then, you can start creating sponsored posts for them.

3. Brands approaching you.

4. With enough followers and consistent posts in a specific niche, brands may come to you themselves. 

Bonus tip:

It is best to create sponsored videos that align with your niche. This way, your viewers will not be distracted.

Also, they will see these promotions as your recommendations since they trust you.

Affiliate Marketing

Affiliate marketing on YouTube means directing customers to third-party advertisers.

In other words, you promote brand products to your viewers. Then, ask them to use your affiliate link.

Any time someone buys through your link, you earn a commission.

How cool is that?

Let me show you how this works:

1. First, find or accept products that relate to the content of your channel.

2. Then, create promotional content explaining what you like or don’t like about the products and showing how they work.

3. Then, add a link viewers can use to get the product.

Another way to do this is to make a video tutorial showing how you use the tool.

My advice:

Be honest with your target audience. You have nothing to hide. Let them know you are earning some cash if they use your link.

Since you recommend something you believe in, it is a win-win for everyone.

Crowdfunding

If you want monetary support from your viewers, crowdfunding is the answer.

It is a great way to build community while funding your next viral video.

It’s like having your fans chip in to support your next big project.

But, if you are going to do this, be ready to deliver. 

Otherwise, your viewers will stop trusting you.

You can also shoot a short video (like a thriller) to keep your viewers excited about the new project.

Popular crowdfunding platforms you can use include Kickstarter, Indiegogo, and Patreon.

Licensing Your Content

Another way to make money outside YouTube is to charge other creators for the right to use your video.

This usually happens when you create a viral or unique video everyone wants to see.

So, keep improving on your content.

Media outlets and creators may contact you to use your video if it aligns with their niche.

You can also list your videos on marketplaces. Here, anyone can find and buy the right to use your video.

Here’s the catch:

1. You will make money from the content.

2. You will gain new viewers. This is because more people will see your content outside of your channel.

Merch

If you already have fans who love your channel, selling custom products is a great way to make money on YouTube.

Aside from this, you get to build a community where you can connect with your audience.

This makes your viewers feel close to you.

You can sell your merch or recommend products from brands you partner with.

Check this:

You can still sell your merch even if you’re not a YouTube Partner.

But you won’t have access to a merch shelf on your channel.

Bonus tip:

Be ready to promote your merch through your videos and social media platforms.

Summary

There are generally 13 ways to make money on YouTube and videos, ranging from ad revenue to merch sales. However, they can all be grouped into 2 revenue sources:

1. YouTube Partner Program and

2. External monetization

And as I’ve shown you in this article, all the monetization options work together.

So, don’t pick a favorite. Use them all to bank on your YouTube traffic.

Cheers to creating & uploading videos and making money from them!

📌 FURTHER READING: How to Make Money on YouTube Without Making Any Videos