Feb 9, 2017

How to Earn Money On YouTube: The Ultimate Guide

written by passivejournal
in category Passive Blog

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I am sure, you have read many ‘ultimate guides’ till date about this exact same topic. Let me promise you that this one is different. I am not going to tell you the basic stuff that you read everywhere. I have something important to discuss how to earn money on YouTube.

Now, before I start digging into the topic of earning money on YouTube, I should tell you that YouTube, especially YouTube Adsense has never been my main source of income. I have never been into the YouTube game directly, the traditional way. Having said that, there are actually different methods to earn money on YouTube and it does not always have to be via ads.

Wondering how? Well, don’t worry. There’s a reason why I call this one an Ultimate Guide.

How to Earn Money On YouTube

How to Earn Money On YouTube?

There are different methods to make money with YouTube. The methods that we will talk about in this article are:

  • Adsense Ads (The Traditional Method)
  • Link Renting
  • Affiliate Marketing
  • Sponsorships

Disclaimer: If you are someone who doesn’t believe in creating good content for YouTube and only wants to cut/paste and edit existing videos to make new ones, I can’t help you. I have seen people from South East Asia do that and I am extremely sad about that. You might earn some $$$ in the short run but you will never be able to become “rich” that way. You become rich only when you provide value.

Adsense Ads (The Traditional Method)

This is the traditional method to earn videos. You can earn with display ads just like regular Google Adsense ads on a blog. Companies pay YouTube so that YouTube displays their ads on different videos. YouTube simply gives you a share of the amount when people watch those ads on your Video. Sounds simple? It actually is. Let’s look at the steps.

Step 1: Create Value

Find a topic that you are good at. You do not have to be the best but yes, you need to know enough so that you can create videos on that topic. If you are a regular user of YouTube, you know that there are countless topics that you can make videos about. There are different unique angles to look at it. After all, some people simply record their cat playing and earn $5000/month. On the other hand, someone who knows a lot might not end up earning anything at all.

It is not important for you to show your face while you record videos. It all depends on the type of video that you are creating. If you are doing a movie review, showing your face might be a good idea. If you are teaching animations, maybe not.

The only way to earn using the traditional AdSense method is if you can create value. You will create your brand in a way so that people wait for your next video. Find a fun topic or simply start documenting your life. You will slowly start to see that people are subscribing and looking at your content.

Step 2: Monetize

After you have uploaded your first video, you are ready to monetize your content. You will find the details here. However, monetizing one video will not make any revenue for you. You have to create videos on a regular basis to see a good income from this method. The best idea is to create a regular schedule and upload videos. For example, may be one video in every 2 days is a good start.

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Step 3: SEO

Most people stop at step 2 and thus, they never make a good amount from YouTube Adsense. You have to understand that no matter how good your video is, unless you are appearing to the search result of people, there is no way for them to find you, right?

Let’s see an example. Let’s assume that I will launch an YouTube channel about traveling.

Now obviously, my channel will have videos like traveling tips, traveling guide, 10 places to travel for fun lovers, 10 great places for bungi jumping and so on, right?

Let’s say I upload a video on 10 Traveling Tips That every Traveler Should Remember!

Now what?

If I type “traveling tips” on YouTube, you can see that there are already a number of videos out there. If my video doesn’t appear in that first page, will people who are searching for traveling tips ever find me? The answer is NO!

traveling tips youtube earning


That is why, SEO is important. You can never make great amount of money from your YouTube channel unless you do SEO for your videos.

There are different methods that you should use to make sure that your video appears at the top when people search for those keywords. Now, how to make that happen?

It will take a different article to talk about YouTube SEO. But here are some basics to keep in mind:

  • Always give a 300+ words of unique YouTube description that has your keywords in it
  • Always name your video file properly before uploading. Don’t upload a file that is named Video0072. Upload a video file that has the same name of your title. So something like, 10 Traveling Tips to Know. Also, do the same for your Thumbnail picture file’s name.
  • Always upload a clear Thumbnail Image. Thumbnail image is extremely important as this carries 50% chances of whether people will click on your Video or not.
  • Create backlinks for your Video URL. This is also important. If you can create good backlinks for your YouTube channel and especially for the specific URL of your video using proper keywords, your video will rank higher than others’.

Step 4: Quantity is the King

Quality is important but at the same time, you have to understand that when you are dealing with display ads, quantity is the game. Let’s do a math to understand the whole process.

On an average, a new channel earns around .75 cents to $2 USD per 1000 views initially. Obviously, it varies depending on where you are from and the language of your video. But that’s the average. Now let’s say you have one video that gets around 1000 views a day. So this video will earn you around $2 a day. That’s nothing.

So let’s say you create one video every two days. Most popular YouTubers actually create one video a day. So you should do at least one in every two days being a new one. Within 2 months, you will have 30 videos, right?

Now let’s do that math again. Now you have 30 videos and with that same $2 ratio, you are now making $60 a day or $1800 a month. Now obviously, some of these videos will not work. Some won’t rank, some will have other issues. But then agian, some will get you extra money too, right?

Link Renting

The second method that we will talk about is link renting. Link renting is another fun method to earn money from YouTube. In this method, you don’t focus on the display ads. Rather, you ask people to give you money in exchange for a link of their content/product on your description box.

Let’s use an example once agian to make this concept clear. Let’s say I have that traveling tips channel and now, I create a video on How to Find The Best Hotel in Thailand. In this video, I will talk about things to remember while looking for a hotel in Thailand. Things like good wifi, free breakfast and all.

Now, after I have created the video, it is time to rank it, right? We already discussed the SEO part. So we do those and rank the video within the top 3-5 positions for search terms like ” hotels in Thailand, Thailand travel tips, best hotels in Thailand” and so on.

After I have ranked the video, I contact 10-20 hotels of Thailand and tell them that, look, my video is ranked at the top for these search terms. If you want, I will be giving your hotel’s website’s link in my YouTube video’s description for $500 a month. Obviously you do your negotiation but you will be amazed to know that it is actually a very easy process.

They would love to rent links on your video and that’s how link renting works.

Affiliate Marketing

Most of my readers at Passive Journal are Amazon Affiliate Marketers so you guys know what I am talking about here. This is again, a lot like link renting but here, you don’t get a monthly deal from a business. Here, you get a commission. So for example, if for that same video (How to Find the Best Hotel In Thailand), I don’t want to do link renting then I have another option.

I can go to travel sites like booking.com for example and become their affiliate. After I become their affiliate, they will give me a dedicated link and whenever people will rent a hotel from Booking using my link, I will get a commission. So I will put that link in the video description and may be will also tell people to use that link when I am doing the recording.

Simple, right?

Booking.com is obviously not the only affiliate that you can go for. You can also target CPA (Cost Per Action) offers using this same method. In fact, you can also sell Amazon Affiliate Items in the same process as well.


We all understand how Sponsorship works. Companies (especially digital companies like Apps, Digital services) will come to you and offer you sponsorship deals. What you will have to do in return is to simply do a small advertisement of them in the initial or end part of your video. Something like, this video is brought to you by ‘that’ app. Go download that. The app offers these and these.

Sponsorship money widely varies depending on clients. I have seen my friends earn up to $5,000 per video sponsor deal. I am sure, there are people who earn in millions. I am not friends with them unfortunately.

At the end of the day, if you can create an actual brand of your channel, you can use all these methods together to earn money on YouTube. It sounds tough, but if you are ready to put in the work, it is not that difficult.

Now, as you read this article till now, have a look at my two favorite YouTubers. They are fun (nothing related to Income or business).

Both of them became millionaires only with the help of YouTube from nothing. You can do the same, trust me.

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Comments (3)

  • Razib
    Feb 11, 2017

    Ur writing was very enlightening but it was made on d assumption that youtube pays u by Views on ur Videos, but I think they pay u by d Views ON THE ADs in ur videos. As u said above, “On an average, a new channel earns around .75 cents to $2 USD per 1000 views initially ” . Or perhaps it was a little mistake , correct me (or correct ur sentence) if I m wrong here.

    • passivejournal
      Feb 17, 2017

      You are absolutely right Razib 🙂 I meant per 1000 ad views.


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