YouTube Monetization Formula
Foreword from Susan
As of April 6, 2017, channels that have fewer than 10,000 views cannot run ads on their videos. Learn
more about recent changes to the YouTube Partner Program on the YouTube Creator Blog.
This is YouTube’s attempt to “clean up” the content on their platform. Even though it hinders your
ability to monetize immediately, you can feel better that at least you will no longer be competing
with the low quality channels that have proliferated on this service for a long time.
Everything on this How-To Guide remains relevant and this is the correct procedure to
follow.
If you have questions, send me an email at [email protected]. I hope you enjoy this as much
as I enjoyed writing it!
Create a YouTube Account and Channel
1. Login to the Gmail account you want to use for YouTube.
Click on the set of nine dots and select YouTube.
2. Login to YouTube. Click on your photo to bring up the Creator Studio
option:
If you don’t have a channel it will ask you to
create one
3. Click on Create Channel to see this next window.
If you have a Brand Name, you will need to use
that instead of your name (see the arrow
pointing to the option to use another name).
Otherwise, just click on Create Channel.
4. Your Channel is created.
In this example, I’m using my
own name to name my Channel.
Add a Channel Description.
5. Add Channel Art.
YouTube recommends the size of the channel art to be: 2560x1440 and no larger than 4 megs.
However, there is no need to do this manually if you don’t know Photoshop. Use Google to find
FREE YouTube Channel art images. Find an image you like.
Notice that the image will be large but YouTube will only show a small part of it on a desktop
computer. The large size is supposed to be shown on TV displays. I wished it worked like
Facebook where you can adjust the positioning of the image – BUT it does not work that way.
Here’s a link for you to find some art: http://www.tubegeeks.com/free-youtube-one-channel-art2013-07/
Criteria for Monetizing a Video
1. Videos must have Original Content. You cannot monetize any video that uses material that is
copyrighted by someone else. This includes any art and any music in the video.
2. Make sure you apply for an AdSense Account. This is how you will get paid. AdSense will
require a street address from you. You will get a check from Google when you make at least $100.
If you make over $400 then you will get a 1099-MISC form from Google. It is best to check with
your CPA instead of relying on articles on the Internet regarding taxation.
You should read the YouTube guidelines here when you have more time. Don’t take the legal stuff
for granted: https://support.google.com/youtube/answer/97527?hl=en
3. You need at least 10,000 channel views before you apply. Gone are the days of the quick
approvals. How to get 10K views? Simply create more quality content. One of my videos got 2.4K
views in one week.
4. The status of your channel should be clean. YouTube will do a channel review.
5. You can monetize cover songs – only if the owner has permitted it. YouTube will put a
message next to your video if the song qualifies. You will need to watch this feature because I heard
sometimes the owner will change licensing on you. Change is pretty much standard on YouTube so
just stay in touch with me and I will send out updates periodically using my newsletter.
Here are the Guidelines on cover videos:
https://support.google.com/youtube/answer/3301938?hl=en&vid=0-642138745521488491006639
Monetization
1. Two ways to get there. On your channel, Status and Features
Look for this
You can use this link to get there:
https://www.youtube.com/account_monetizati
on
2. Next Screen
3. Get the URL of your Channel
NOTE on the URL of your YouTube Channel. It will be funny-looking until you get 100 subscribers.
You need 100 subscribers to make a custom URL (plus additional requirements).
Why do you want Subscribers?
Besides getting a custom URL for your channel, subscribers get an email when you publish new
content.
From a monetization standpoint, you do not directly get money from YouTube by having
subscribers. Only qualified Views and Clicks are counted towards your revenue.
However, the more subscribers you have, the more likely you can get Brands to advertise with you
directly later on. So make sure that you strive for both views AND subscribers.
4. This will take you to the AdSense service of Google where you PASTE the URL where it
says My Website. Then click Accept Association.
4. You will then get this message. The waiting begins…
5. Check your Gmail for anything coming from Google.
You will get status updates from Google. Simply read whatever they send you but there’s not much
more that you have to do. The email will have your AdSense ID so you may want to make a note of
that.
WHAT Not to Do
Never put your website URL on the AdSense application. If you do that and your site does not have
content, it will be denied for lack of content. Even when you upload several videos to YouTube, the
automated approval process does not seem able to distinguish between the two. It will keep checking
your website for content and put you on a cycle of denial. So don’t do what I did.
My AdSense account has since been approved because I pumped a lot of content into my demo website.
Configure Monetization as a Default on your Channel
You can set the Upload Defaults for all videos in your channel. You can make
changes to the settings of an individual video later as you upload it.
Ad Format Types, Explained:
Display Ads – shown by default (see the graphic). The video has a
yellow label that says Ad. Only shows in Desktop|Laptop viewers.
Overlay In-Video Ad – a little box that pops up and it has and X on the
right corner so the viewer can close it. If the viewer clicks on it, it
usually takes them to an Ad page and you get revenue from that click.
Only shows in Desktop|Laptop viewers.
Skippable Video Ad – a video Ad that can be skipped after 5 seconds.
If the viewer watches for 30 seconds or half of the Ad video time (if
shorter ad is shorter than 30 seconds) – then it counts as a Paid View
in your stats. Shows in Desktop, mobile devices, TV, and game
consoles
Sponsored Cards – an information graphic
shows on video (usu the corner) and
when the viewer clicks, a bigger card is displayed. See the example
on the left.
This card is clickable by the viewer. Usually designed to re-direct to
the advertiser’s Landing Page.
Shows in Desktop and mobile devices.
What is a True-View Ad
Skippable Video Ads are called True-View Ads because they are watched only when the viewer
wants. The viewer gets the option to skip the Ad after 5 seconds.
There’s another type of Video Ad called the Non-Skippable In-Stream Ad which is available to
content that is longer than ten minutes.
In this format, the viewer has to watch the whole ad. However, Google documentation states that
this type of ad has higher abandonment rates. Here’s the reference:
https://support.google.com/youtube/answer/188038
However, I have noticed that for certain shows like Stephen Colbert or Saturday Night Live, this
type of Ad doesn’t seen too annoying when it is located at the start of the video (PRE-ROLL) when I
really want to see the content.
Take this into consideration later on when monetizing long-form videos.
CPM and CPC
CPM is Cost Per Mille (thousand) is the cost for 1,000 True Views of an ad on your videos.
The average CPM is 7.60 but the number can vary depending upon your advertisers.
CPC is Cost Per Click on each pay-per-click Ad on your video. Those Overlay Ads or Sponsored
Cards that re-direct the viewer to an advertiser’s landing page generate revenue for your channel.
Cost Per Click also varies depending upon your advertisers.
Do you have any advice on improving Channel Revenue?
1) You can increase the visibility of your videos by optimizing your Video Titles, Descriptions and
Tags with keywords that can help viewers find your video. You can use the same rules of keyword
research used by SEO (Search Engine Optimization).
Or just follow this simple rule of thumb:
Think about what someone who might be interested in your videos. What would she type in the
search window? Add those words to those three places in your video.
2) Focus on creating good content that your target will want. Study your Analytics and see what
people really like – and make more of those videos.
3) Last but not least, remember the Top 5 YouTuber’s Formula: PLAY!
Sue-Zen says, “All work and no play makes Me a dull YouTuber…”
I’m on Quora.com where I like to answer WordPress questions, currently at 56,000 views.
If you feel this article is useful to others, please send them to my website so they can download the
article and sign up for my newsletter.
Here is the link: YouTube Monetization Formula
Useful Links:
Social Blade (where you go see YouTuber statistics – check out Pewdiepie’s stats)
I found a cheaper copy of the Vegas Movie Studio Platinum 13 Video Editor @59 bucks! This is cheaper
by 30 dollars! It’s on the Steam Network which is a well-known distributor of games and software.
Pexels.com is a website where you can get free photos and videos.
Pixabay.com is a free photo website.
Caveat on Photos: Always check for the model releases whenever you use free photos with people in it.
I heard that sometimes those people who upload free photos to their channel never bother to get a
legal model release. So be careful of this because the legal burden falls on you.
Alternatively, if you want to use people photos, use a Premium Service like this one below:
123RF.com is a paid stock photo website with higher quality images for $1 or $2 each. This is the service
I use. It has higher quality photos and much easier to find what I need.