How do people make money from youtube?

Today, the new source of income has become passive income. Because there is no boss. One of the best platform for passive income is youtube. In last three years, there is tremendous new youtube channels opened. Every one wants to be part of this great opportunity. Places where there were no records of good income in last 100 decades, at such places people are making six digit income from youtube. This is the power of youtube.

But the question here is, how do people make money from youtube?

First of all youtube does not pay for uploading videos.

So then who pays?

Adsense. Naam to suna hoga. It is a product of Google. Adsense is popular for providing ad for youtube and websites.

Therefore it means, adsense shows ad on a youtube video and the respective video owner gets commission for the ad.

What is the percentage youtube video owner gets?

The commission rate is 65%.


What kind of ad appear in youtube videos?

1. Banner ad (Banner type ad appear at the bottom of the video)
2. Skippable Ad (Video ads that appear while playing video which we can skip after 5 seconds)
3. Non Skippable ad(Video ads that appear which we can not skip and we are bound to watch completely)

People assume by closing banner ads, it will grant revenue. But this is not true. Revenue for banner ad, youtube video owner gets only if user clicks on the banner and then a new webpage opens and spends little time. Other wise there is no revenue for the banner ad.

Youtube video owner is going to get revenue for skippable ads only if user watches more than 20 second of video. However if user skips the video ad (after 5 second) then there is no revenue for it.

Youtube video owner is going to earn revenue for each non skippable ad appears.

Is there option available to show non skippable ad only?
Yes. There is option to show non skippable ads only. One can set to show skippable videos only or banner ads only.

So where is the problem?

The problem is, ads are not available all the time to a particular video. When a user watches a youtube video, at the back end, bidding takes place which is purely programmatically. The one which bids highest appears on youtube video. If none of the ads bid then no ad appears.

There fore by setting one particular format is going to reduce the chances of having good revenue. Thats why it is advised to keep all the three formats on.

Youtube shares in detail information about how your youtube videos are performing and how the revenues are generated.

Is there any other option available to have income from youtube?

Yes. There are plenty. Few of them which are widely followed

1. Sponsorship through Famebit

Famebit is a popular company which provides sponsorships from top brands to youtube channels. The minimum sponsorship price is 10$. Any youtube channel which has 5000 subscribers are eligible for Famebit.

2. Sponsorship from Brands

Brands are opting to promote their product through popular youtube channels. One can approach brand and offer to promote their products in their upcoming video. This deal goes in lakhs.

3. Product Reviewing

Brands want popular youtubers to use a product and review in front of the people. It helps them to reach large amount of audience. For this, brand pay youtube channel owner.

4. Affiliate marketing

Affiliate marketing is one of the popular medium to have passive income these days. In short, affiliate marketing, is promoting products of a company at various platforms and upon sale, company share profit. In general 10 percent commission is shared. Just imagine, you have shared 2 lakh rupees laptop information in your youtube video description, and 100 people visited the link and out of them 10 people purchased it. Calculate how much commission you have earned in single day.

Next time, when you visit youtube video, check the description, you would notice, the description box is filled with affiliate links.