A video gets a million views. Does the creator get rich? Who else gets a piece? Guess first, then play.
A shoe company pays YouTube to show its ad before videos that people like you watch.
Runs the website, stores the videos, finds the advertisers, and keeps part of the ad money.
Gets the rest of the ad money, then pays for editing, gear and taxes out of it.
Pays nothing. Your attention is what the advertiser is buying.
Fact: on long videos, YouTube's Partner Program gives creators 55% of the ad money and keeps 45%. The split of the creator's 55% (team, gear, taxes) is an illustration.
Advertisers pay more to reach some audiences than others. A video about money or tech often earns more per view than a video about games, because those advertisers pay more. The number creators watch is RPM: what they earn per 1,000 views.
RPM values and sponsor fees are illustrations; real numbers vary a lot by audience, country and season. Assumes 8 videos a month; a sponsor pays $20 per 1,000 views of its video; merch earns about $0.60 per 1,000 views.
Many creators earn more from sponsors (a company pays them directly to talk about a product), merch (hoodies, plushies), and memberships than from YouTube ads. Ads pay a little on every view. A sponsor pays a lot for one video. That's why you hear "this video is sponsored by…" so often.
And here's the part most people miss: you never pay YouTube anything, yet it's one of the biggest businesses in the world. When something is free, ask: what is being sold? Often the answer is your attention.
Next time you watch a video, count the ways the creator might be getting paid: the ad before it, the sponsor in the middle, the merch link in the description. Then think about who paid for each one.
Anything you love making could earn money one day. The trick is knowing who is paying, and why.
— Mom