YouTube has become one of the largest video-sharing platforms on the internet, with over 2 billion monthly active users. While it is well-known that YouTubers and influencers can make a living off the platform, many businesses and entrepreneurs may not be aware of the potential opportunities that YouTube offers to them. In this blog post, we will break down the YouTube economy and how marketers and businesses can make money on the platform.
The YouTube Economy
Before we dive into the ways businesses and marketers can make money on YouTube, it is important to understand the players involved in the YouTube economy:
- Google: The company that created the search engine, Gmail, and YouTube, which serves as the platform for videos.
- YouTube Creators: These are the individuals who create content and build channels on the platform.
- Viewers: The consumers who watch videos on the platform.
- Businesses and Marketers: These are the parties that want to advertise their message or product to the viewers.
The Give and Take of the YouTube Economy
As a marketer or business owner, it is important to understand the give and take of the YouTube economy. You can pay Google through Google Ads to advertise your message or product on YouTube videos that your target audience is watching. When you give Google money, they share a portion of it with the YouTube creators, which incentivizes them to create more videos.
Businesses can make money by showing their ads and messages to specific audiences on YouTube. If viewers like what they see, they can go to the website and download the lead magnet or purchase the product. In this way, the creators, Google, and businesses can all make money from the ecosystem.
How Can Marketers and Businesses Make Money on YouTube?
There are three primary ways that businesses and marketers can make money on YouTube.
Sell a Product or Service
If you have a product or service to sell, you can create messaging and videos around it that help serve the audience. Advertising on Google or YouTube is done through the Google Ads platform, and businesses make money when someone purchases their product or service.
Become an Affiliate
Another way to make money on YouTube is to become an affiliate. As an affiliate, you sell someone else’s product or service and help them get more customers. You do not have to worry about the fulfillment of the product as it is already taken care of by the business. You can spend your own money on advertising, and when someone purchases the product, you get paid for it.
Build Your Email List
YouTube is primarily a top-of-the-funnel marketing or advertising platform, meaning that most people who watch your videos will not buy directly after watching them. However, you can use YouTube to generate leads by building your email list. You can offer a download or training in exchange for viewers’ names and email addresses. Once you have their email addresses, you can sell your product or service through email marketing.
YouTube can be a valuable platform for businesses and entrepreneurs to make money by reaching a vast audience. By understanding the players involved in the YouTube economy and the ways in which businesses can monetize their presence on the platform, marketers and entrepreneurs can leverage YouTube to grow their business and reach more customers.
If YouTube ads is something you or your business are interested in but not sure where to take that initial first steps then you will want to check out our YouTube Ads Workshop
We spend 3 days taking you from writing your video ad script, shooting your video ad, researching your perfect audience to launching your YouTube campaign.