When it comes to online video, there's no platform bigger than YouTube. With more than 2 billion monthly users, it's a prime advertising spot for many businesses.
Reading this article you'll learn more about YouTube adsense, which is YouTube's advertising platform. We will look at how YouTube adsense works, how you can get started with it and some tips on how to manage your finances with the help of Wise Business account.
You have probably heard or seen videos of how one YouTuber or the other made some ridiculous amount of money from YouTube. There are numerous blog posts, forums, and even videos that talk about how to make money on YouTube.
While there are many ways to do so YouTube ads are a good way of earning money with your Youtube channel.
To start making money on YouTube, you need to turn on monetization features for your YouTube channel. Of course, it is important that you have a decent amount of subscribers and viewers who regularly watch your content. You will also need an Adsense account to earn from YouTube ads, but more on that later.¹
For you to make money with your YouTube account, you have to turn on monetization features, and there are some requirements that your account needs to meet.
Let's take a look at the minimum requirements for joining the YouTube partner program:
There are multiple ways to make money with the YouTube partner program. Here are the features through which you can make money on YouTube, and the eligibility requirements:
Advertising Revenue: You can earn ad revenue from video, display and overlay ads. This is the most common method of monetizing a YouTube channel. You must be 18 years or have a legal guardian that is older than 18 years to handle payments via Adsense. You also have to create content that meets YouTube advertiser-friendly content guidelines.⁴
Channel memberships: Your subscribers are members who can make recurring monthly payments in exchange for some special perks that you offer. To qualify for this monetization option, you must be 18 years or older and have more than 30,000 subscribers.
Merchandise shelf: Your fans can also browse and buy official branded merch that you showcase on your watch pages.To qualify, you have to be at least 18 years of age and have more than 10,000 subscribers.
Super chat and Super Stickers: Your fans can pay to get their messages highlighted in chat streams. You have to be at least 18 years old and live in a region/country where a super chart is available.
YouTube Premium Revenue: You can earn part of the fee that a YouTube premium subscriber pays when they watch your content. To qualify you have to create content viewed by a YouTube premium subscriber.
To join the YouTube Partner Program, you need to set up an approved adsense account to earn money and get paid by YouTube. It is important to note that you can only have one Adsense account under a payee name.
To set up Adsense for YouTube, you can use your existing account if you have one or create a new one. It is also possible to monetize multiple YouTube channels with the same Adsense account. Note that when linking your YouTube channel to a new Adsense account, don't create the account through www.adsense.com. Doing this will cause your account to be disapproved, and monetization disabled for your YouTube channel.⁵
Here are the steps to create a new Adsense account for YouTube if you don't have one:
Sign into your YouTube account and go to Studio Youtube.
Click Start on the “Sign up Google AdSense” card. You need to enter your YouTube account password and re-authenticate.
Then choose the Google account you want to use to sign into Adsense.If you have an existing Adsense account, you must log in with a Google account that is registered with the existing Adsense account.
Once you are logged into your Adsense, verify that the email at the top of the page is the correct one. If it's not, click “use a different account” to change to the correct account.
Follow the instructions shown on your screen to create a new Adsense account. Provide your contact information where requested for and submit your Adsense application.
Once you’re done, you'll be redirected back to YouTube studio, and you'll be shown a message that your Adsense application has been received.
Adsense will send you a mail once your account has been approved. You should note that may take several days for it to be approved.
Once your Adsense account is connected, you’ll see a green “done” sign on the “Sign up for Google Adsense” card, although it may take up to 48 hours for it to become fully active
While you might have heard stories of YouTubers making huge amounts of money from their channels, you need to know exactly how much you get paid by YouTube.
The amount of money that YouTube pays partners depends on several factors, such as the number of views received by the video, the number of clicks on ads, the quality of the ads clicked on, and video length.
With Adsense, Google takes on 32% of the revenue, so for every 100 advertising dollars, YouTube pays $68 to the publisher. However, the actual rate that advertisers pay varies, usually between $0.10 to $0.30 per view. On average, however, an advertiser pays $0.18 per view. This means that on average, a YouTube channel receives $18 per 1,000 ad views, which equates to $3 - $5 per 1000 video views.⁶
The most important things to note is that the more views and subscribers you have on your Youtube channel, the more money you are likely to make from your Youtube Channel via Adsense.
As a resident of the UK, your earnings as a YouTuber will fall under personal income, and you would be required to pay the tax by yourself. Google does not pay your tax for you or deduct from it, and so, you’ll need to reach out to your local tax advisor to find out how you’ll pay your tax on your YouTube earnings. However, Google does request for your tax information for some regions as required by law.⁷
Adsense pays their publishers when their earnings are above a certain threshold, with the lowest usually being $100. The most common way of getting paid is by bank deposit. You will fill your bank account details and your earnings from Google Adsense is paid into your account.
When sending payments to your account from a different currency, Google exchanges it to your currency at the standard exchange rate and sends it to your bank account. However, there is a possibility of a markup being added to the conversion rate, either by Google or your local bank. This means that you would lose some of your money when receiving payment from AdSense.
Unfortunately, you cannot use your Wise Account to get paid by Adsense. However, after withdrawing your well deserved earnings, if you need to make payments for international providers, you can benefit from a Wise Business multi-currency account.
Running an Youtube channel, as a side hustle or full time job, takes lots of time and effort, and to take the business to another level it is quite possible that at some point you'll need hire some help.
If that is the case, with Wise Business you can pay for international invoices, online services and freelance professionals to help grow your digital business, always with the real, mid-market exchange rate – no expensive mark-up slapped on top.
| 💡 Here’s an example of this in action: |
|---|
| Let's say you need to hire a freelancer to help you scale your business, maybe an editor or writer to create you screenplays. You find an amazing freelancer who resides in the US, and so, you need to pay this person in US dollar (USD). With the Wise business account you can easily hold money on your local currency, and when you need to pay your freelancer's invoice, you can send an international transfer, paying the real conversion rate, without the hiding fees that the old-school banks usually charge you. Wise Business isn’t only a handy tool for international transfers. If there’s a chance you’ll be receiving payments in any other currencies, your multi-currency account offers one of the cheapest ways to manage, convert, send and spend your money. |
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Sources:
Sources last checked March 03, 2023.
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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