How to make money on YouTube – The American Dream $$$ -

It's the new American Dream: Quitting your job to become famous on YouTube.

Dozens, possibly hundreds of people, have built up huge audiences on Google's video upload site, and the media is full of stories of their success. The archetype is Jenna Marbles, who has millions of fans and makes an estimated $350,000 a year from her self-deprecating takes on life as an American female.

But before you buy a videocamera and tell your boss to shove it, consider what it costs to become a YouTube star. Turns out you can be one of the most famous people on the web and still barely get by.

The New York Times recently profiled Olga Kay, another YouTube star who does self-deprecating monologues on female American life (are you sensing a theme here?). It's a great story if you want some hard numbers on the costs and revenues of being internet famous:

Kay has earned $100,000 to $300,000 in each of the last three years. She has 1 million subscribers. That number is merely the gross revenue, however.

She makes 20 videos a week, all of which are filled with ads via Google's automated YouTube partners program.

Kay likely gets about $7.60 per 1,000 ad views, down from $9.35 in 2012, according to TubeMogul, which buys and sells video ads.

Ads are only run on a minority of videos shown. Roughly, a video creator will earn $2,000 for every million views. "And then YouTube takes 45 percent," the Times notes. (The IRS will take its cut of the remainder, too.)

Kay spends $500-$700 a week on editing costs.

In other words, Kay is probably getting by on less than 50% of what her videos make in gross revenue. In a $100,000 year, she might be looking at $15,000 annually, after YouTube's cut, taxes and editing costs, according to our back-of the-envelope math ($100,000 minus $45,000 for YouTube, minus 30% for the IRS, minus editing costs at $500 per week for 50 weeks).

Now most people learn how to make money on YouTube by signing up to become a partner with YouTube. By applying to be a YouTube Partner…when you upload your videos and agree to monetize your videos…you can get paid for having advertisement to be shown on your videos. Now the way for you to create a good income with this option is by the more viral your videos goes to create more advertisement being shown on your videos.  Here is what normally happens to people in this case or brand new…they are not getting any views on their videos…which mean no advertisement…which mean no money…lol. Another factor that plays into this is the amount your being compensated…
to be more blunt with you…if you can not even get 100 views on your videos which is the majority of people…your not going to see much money.

in my opinion. The way I generate money with my videos is by getting my videos ranked on the first page of Google or YouTube or close to it. By learning this concept allows me to get more views on my videos. More importantly, I am able to get targeted views on my videos that turns to Targeted Leads & Sales.