Research from experts – How does monetization on Youtube work

In this article, our team – AudienceGain will provide you with a deep insight on how monetization on Youtube works

With a huge amount of videos being broadcasted every day, Youtube is truly an effective tool for making money online. However, with a larger number of visitors from all genders, young adults to the elderly, have you ever wondered how the YouTube algorithm works?

In fact, YouTube’s algorithms help manage the distribution of suggested videos when you visit and use them to retain audiences as long as possible, as well as advertisements that it displayed on your videos

As a result, how will Youtube pay the creators from the profits from the ads? 

Let’s find out!

Youtube Algorithm

More than 70% of people watch what the Youtube algorithm suggests. In fact, the Youtube algorithm guides the behavior of viewers, and it also greatly influences the creators, who produce the videos.

how does monetization on youtube work

Is Youtube’s cutting-edge AI really that smart?

How does the algorithm “exactly” work? 

Well, if the algorithm is that smart, why doesn’t it suggest exactly what the user wants to see? Because it’s going to be great and much faster. 

Nowadays, the main factor to decide a successful video is the “watch time“. which refers to the “audience retention rate”. Specifically, one of the most common ways to make money from Youtube is to participate in Youtube Partner Program (YPP). In order to do that, creators have to get 4000 hours of watch time and 1000 subscribers in a year.

how does monetization on youtube work

The Recommended video vs the “Right” videos

As for Youtube, the longer the video’s duration, the more advertisements the algorithm will distribute on videos to users. But in fact, it’s the whole 2 billion Youtube users, not a specific targeted number. Thus, those advertisements may be not what the audiences are looking for. 

Besides, due to the emphasis on watch time, Youtube will give a better performance on  recommending videos of instructional content, conspiracy theory or news. Such content does not violate YouTube itself, but in a way, it may be inappropriate and offensive to a particular number of audiences.

Let us set a scenario right here! A teenage girl searches for green and healthy recipes and workout videos to plan going on a diet, because she is quite ashamed of her overweight look. Based on her search, Youtube will continuously suggest related-content videos.

Well, that is so handy, quick, and completely legal.

Legal contents may not be suitable for teenagers

But that’s just the beginning. There will certainly be a few extreme contents popping up. For example, weight loss pills advertisements, low-carbs or even no-carbs diet, intermittent fasting,…. are going to be all over her homepage, thanks to the advance of the algorithm. 

Furthermore, an intro is inviting and sometimes bluntly criticizes the appearance to hit the viewers’ psychology.

With that being said, such content is completely unsuitable for the little girl. Not only Facebook or Instagram, Youtube has also made body-shaming a negative trend. On the one hand, this isn’t completely the creator’s fault, but we can’t exclude the algorithm’s function that enhances this kind of cognitive bias.

On top of that, for those who see YouTube as an information channel, the news from these social networks can spread fake news, causing many people to receive extreme information.

The more sensitive and controversial the content is, the easier it will be for viewers to click and watch for longer, and the more recommended by the system.

To conclude, the Youtube algorithm can be very toxic, but if you look at the positive side, it can give the creators lots of merits, as well as the money. 

How does Youtube monetization really work? 

In general, the Youtube algorithm is not only based on watch time to evaluate creator videos.  It also does a lot more than that. There are audience retention, click-throughs, audience engagement and some other “behind the scenes” factors that we have never seen before.

In terms of monetized channels, Youtube will also rely on the above factors to calculate the amount of money that the platform earns, in addition to the revenue you get. 

How does Youtube monetization work for its source of capital? 

how does monetization on youtube work

Advertising Campaign – Youtube’s source of income

From which source does Youtube get money to pay you? This is a frequently-asked question. We all know that this platform does not sell any items on their site, it does not sell tangible products. What it does is to showcase advertisements on the creator’s videos.  

Overall, the platform will distribute and show ads on videos of monetized Youtube channels. Youtube has a great source of revenue from individuals, organizations and businesses who want to promote their products, services and messages. And this is where this video-sharing platform makes the money from. 

How does Youtube monetization work to pay creators? 

Basically, some businesses will pay commission if customers make purchases through your videos in which Youtube shows the ads. At this point, you will also receive a commission from this account. 

Thus, you need to focus on increasing views and subscribers for a higher chance and great proportion of income.

To be more detailed, Youtube has two ways for Youtube partners to make money from their monetized channel

Google Adsense

When monetization is enabled, creators will sign up for a Google Adsense account. This account will pay you monthly on behalf of Youtube via banks or Western Union (mostly). Besides, you must earn at least 100 dollars to proceed with the payment.

Google starts the paychecks on the 20th, 21st and 22nd every month. 

Youtube Network

Network is a major Youtube partner handling the advertising distribution, with monthly payment for channel’s owners through Paypal, or bank transfer. 

Furthermore, Network also supports copyright issues and content collaboration from multiple Youtubers.  

How much does Youtube pay for views?

1 million views equals $3000-$5000

With higher views, how much will you be paid? According to unknown different sources, Youtube will pay about $0.03 for each advertisement view through an Adsense account. In addition, it is between $ 0.03 – $ 0.05 for each video view.

Nevertheless, the amount of money you receive depends on many other factors, such as the number of video views, the length of the videos, the quality of the advertisements, the number of users clicking on the ads and the amount of time that the users view the ads. 

On average, with 1000 advertisement views of one video, Youtubers can make the most of $30, plus with $3-$5 from views. This is a very high paycheck for major Youtube channels.

With that being said, for every 1,000,000 views, the figure is $3000-$5000 from video views,  which makes the goal of becoming an Youtube influential person very appealing. However, as we noted, the money you get also depends on how many ads appear on your videos.

Additionally, for Google Adsense, you will be provided 68% of the revenue when displaying ads, so if a video generates $1000, you will receive $680.

How many views are enough?

how does monetization on youtube work

Is the more really the better?

In fact, that is not really an accurate question. Although Youtube still calculates the amount of money you make based on the number of views, since the monetization policy changes, the number of watch hours must be the most essential. 

Short videos will insert less ads so the money they generate will be less than that with longer duration.

For example, if a 5-minute video and a 30-minute one having 10,000 views each, would you think the money the creators received is the same? Absolutely not. Not to include the content quality, the views from both videos can generate the same amount of profits, but that from the ads views aren’t. 

In addition, advertisements will appear on videos with related themes. Thus, the content you create should be the ones that businesses often choose to advertise on Youtube.

For example, several contents associated with F&B fields, fashion and cosmetics are regularly advertised a lot on Youtube. Considering making videos about them would be an ideal choice for making money from Youtube channels. 

The other methods for Youtube monetization

Currently, Youtube Partner Program is one of the forms of making money on Youtube that attracts the largest number of participants all over the world, due to its easy-to-access nature, sustainable income, and large number of users.

That being said, Youtube also has extra four features for Youtubers to help them not only monetize, but also widen their income. 

  • Super chats & Stickers: Normally “Super Chats and stickers” are used during live streams. Viewers in the live chat can reward you with monetary donations varying up to $500. 
  • Channel Memberships: This is a sponsorship-like feature. It gives fans the ability to sponsor $ 4.99 per channel for a month, which also gives them access to exclusive digital products, as well as optional badges and emojis. 
  • Youtube Premium revenue: formally known as Youtube Red, mainly for free-downloading features. 
  • Merchandise Shelf: The merchandise shelves are only displayed on eligible monetized channels. Plus, this is absolutely appreciated for creators to display their original merchandise as gifts in return for their engaged audiences

The rewards: Golden and Silver button

how does monetization on youtube work

Silver and Gold play buttons – the rewards fỏ dedicated creators

Apart from the material aspect, Youtube will also have interesting rewards for the creators. Gold and silver play buttons are the platform’s signature prizes that every creator wants to get.

To be more specific, if your channel has 1,000,000 subscribers, you will get the gold button, and 10,000 subscribers for the silver button. 

This is a tribute from Youtube for the creators due to the values that creators deliver to the platform. This is also an encouragement that fosters creators to continue producing more engaging videos to increase views and subscribers

How to check

Youtube Analytics tool will give you an overview of the benefits you gain from your videos. Follow these steps to know: 

  • Sign in to YouTube Studio.
  • In the left menu, select Analysis data.
  • On the top menu, select Revenue.

As a consequence, you can check the estimated monthly revenue, as well as the transaction revenue report for an overview of your estimated earnings each month. 

Should I buy the watch hours? 

Many creators consider buying Youtube watch hours and finding an effective video promotion campaign for their channel from reputable providers, and this is completely legal.

As for us with our service of buying 4000 Youtube watch hours, AudienceGain assures you with eligible authentic views and which 100% meet Youtube’s regulations.

Indeed, Youtube monetization work is really tempting, so why don’t you accelerate the process of increasing views and subscribers to quickly stabilize your financial status? 

AudienceGain, as a reputed Digital Marketing company, is the most effective solution to get the Youtube view you wish for higher online earnings.

Our Promotion Campaign also distributes views across all of the videos and fosters other people to watch your content. This makes Youtube’s algorithm assure that your channel has a stable balanced growth.

In a nutshell, sign up for us straight away and contact our support team for more information on how our service works. 


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