There’s several ways to make money on YouTube. Most creators depend on Adsense, which can be a great source of income if you have a large viewership every month. Other creators depend on brand deals and sponsorships, which can also be a great way to make money on your YouTube channel. There’s a third option, though, for generating revenue that many creators don’t consider that’s actually perhaps the most lucrative option of all. I show you what that option is in this video and how to learn to best take advantage of it.

Back Story

Over 4 and 1/2 years ago I started this channel, Video Creators, and in the period of about five months, grew it to about 3,000 subscribers. When it was at 3,000 subscribers that’s when I went full-time on this channel, because it was generating about $10,000 a month.

Now, how did I do that? I’m going to share with you guys a few different ways to think about making money on YouTube. There’s three main models. And there’s a lot of them, whether it’s affiliates or whatever, there’s a lot of different ways to do it. But maybe let’s talk through the three main ways people do this on YouTube.

And in terms of full disclosure, this is all coming from my brand new video course called Turn YouTube Into Your Career. So let’s get started by looking at the first model that most of you guys, by default, are probably pursuing here on YouTube and that is the AdSense Model.

Now, you guys are probably familiar with how AdSense works. A break down of that model looks something roughly like this. An advertiser will give some money to Google, which gets split with you, typically at it like a 45-55% revenue split, 55% of it going to you. And then, that ad gets then displayed on YouTube, where your viewers see it.

And the only reason this model works is because some of your viewers will see that ad and give a lot more money back to the advertiser, who then in turn gives more to Google and YouTube and that cycle continues. And that model, you can certainly make a decent living. I know many creators who are just killing it in AdSense that are getting millions and even hundreds of millions of views a month and are doing quite well.

New Model

But a lot of creators are discovering a second model, which actually has a potential to earn a lot more money than the AdSense model, which is what we will call here the Sponsorship Model or the Brand Deal Model. And the way that looks is pretty similar. The brand or the advertiser gives more money to you as a creator. And you don’t have to split it with Google. But the rest of the process is the same.

You are going to then put it on YouTube where your viewers are going to see it. And the only reason that this model works is because your viewers are going to see that sponsor, that advertisement, and then turn around and give more money back to the brand, back to your sponsor.

If your viewers don’t do that, then both of these models break down very quickly. Advertisers are not going to keep pumping money into YouTube and into brand deals, unless the audience on the other side is giving them more money than they put into it. And I don’t mean like just a little bit more money, like those brands, they want to make a lot more money off of this. So if they pay you $5,000, they would love to see around $25,000 come out of that deal back into their pockets from your viewers.

A Third Model: Cutting out the Middle Man

Now, both of those models are great and they’re are ones that I do here on this channel also, but there is a third model that can be even far more lucrative and earn a lot more money than those two. And that is simply by cutting out the people who are taking cuts of the revenue that your audience is paying to someone.

This model looks something more like this, where you put your product or your service in front of your audience, the people who love you, know you, like you, trust you on YouTube. And then, they buy that product directly from you.

Every model, the way this works, the only way you’re going to go full-time on YouTube and turn this into your career, is if your viewers pay somebody to do that. The money is coming from your viewers, however you slice it. I’ve called it the New Model, but it’s not really new. It’s just like a new way of thinking for a lot of creators.

Now, I know the first thing you’re probably thinking though is like, Tim, I can’t make a product to sell. I’m just like a vlogging channel, or I’m just like a gaming channel, or a cooking channel, or whatever. It makes sense for you, Tim, because you have a clear product. Like you’re offering teaching and training and like that. That makes sense, but I’m just more of like an entertainment channel or whatever.

Products can be generated around any channel

I know that’s a common thing that a lot of creators have. But you can totally do this, regardless of whatever niche or industry that you’re in on YouTube. And that’s what my course called Turn YouTube Into Your Career, that’s exactly what that whole course is about. It’s how do you develop this business model around your channel, that’ll let you earn money and go full-time on it much more quickly than you otherwise could.

I also want to hear from you guys in the comments below. What are your goals for you personally on your YouTube channel? Is it to turn it into a career? Is it to go full-time? And if so, what are the action steps that you are taking to get to that point? If you don’t have any actions steps or plan, my course as action steps with almost every single lesson that you can start putting in to place.

So if you want a step-by-step proven plan you can check out the course. But I want to hear what you have and what you’re working towards in the comments below. That would be awesome. Share with each other, encourage each other, and learn from each other down there.

My new course, “Turn YouTube Into your Career,” teaches you how to make money on YouTube