Google must have had a very powerful shaman, or perhaps a very strong business intuition, when they decided to buy YouTube in 2006. YouTube, which at that time was just a small, independent website a year old, was bought for $ 1.65 billion Or the equivalent of Rp 23.76 trillion (exchange rate of Rp 14,000 per US dollar) that makes the whole world shocked. Is that so special?
But the question of YouTube's privilege is answered almost immediately, because since its purchase to date, YouTube has become the biggest name in the internet world! A name that not only makes money much bigger for Google, but also for most of its users!
Whether planned or not, YouTube evolves into a kind of industry in itself, with users who can make YouTube a land for earning income, or even as a profession!
They are more familiarly called the term "YouTuber".
YouTubers, individuals, groups, communities, to big companies, produce their own unique videos, specifically to be featured on YouTube, and believe they do not believe, some of them are successful and make YouTube a source of livelihood.
By making videos fit their Passion, YouTube helps them become passionpreneurs!
But the truth is, where did the money and income come from the YouTubers? Given us as a spectator does not pay at all to watch their work, how do they earn money?
There are several ways or potential that become the source of money for the YouTubers.
First, the "Monetizing Options" from Google / YouTube
When YouTuber, or your example, uploads a video on YouTube, you are given the option of turning on the "Monetize" option or monetizing it. This means that you allow Youtube / Google to place ads within your videos, and in return, you will get revenue share from those ads, with a 45 percent share for YouTube and 55 percent for Youtuber / you.
Basically, there are three types of ads that appear and are counted as sources of income. The ad that appears at the beginning before the video, called "In-Stream Ads", is in the top-right corner of a browser page called "Display Ads", and that's under the video, "Overlay Ads". YouTube and you, earn money every time someone sees these ads.
The system used to calculate the amount of income from this ad is CPM, or Cost Per Mille, that is, the advertising value is paid per 1,000 views of the video. This means 1 US dollar CPM shows advertisers will pay 1 US dollar for every 1,000 views of that ad on your video.
You can watch my video above to get an overview of CPM formulas, rough estimation formulas, and sample calculations of income from YouTube ads on YouTube videos!
Second, "Brand Deals"
Having a high subscriber and viewer means you have a faithful mass viewing your video. And in this information age, the masses are kings. YouTubers who have mass can attract a lot of potential for sponsors, advertisers outside YouTube, or even an investor program into their youtube channel, and this is another source of income from YouTuber.
By getting sponsors, YouTuber can get paid to place brand placements or advertisements outside of Google's system in their videos, at varying prices, depending on how popular the channel is, and how profitable the sponsors are.
Third, "Celebrity Jobs"
As you also have noticed, lately more and more stars in the mainstream media, and national or international celebrity born from YouTube. Some of them are even successful worldwide, such as Justin Beiber and Psy. From Indonesia itself, we know Eka Gustiwana, Sacha Stevenson, or a successful program from Raditya Dika born from YouTube and now aired by Kompas TV.
YouTubers open themselves and their talents to the public, and with this, open up opportunities for public projects, from being a public speaker, TV host, to actors in the big screen movie.
And this is the third income potential of YouTuber.
For me personally, the coolest thing about YouTube for us passionpreneurs, is that it opens opportunities, possibilities, and opportunities to get in touch with the general public and the global community.
And with this opportunity, we get the opportunity to develop what we really like, open the market, make videos according to our passion, and build a profession that we really are!
Youtube rpm is shit! Let's hope some of the new up and coming decentralized versions of youtube will pay better with less intrusive ads. And fuck their censorship!
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