How to Make Money on YouTube

Complete step-by-step guide to monetizing your YouTube channel in 2024. Learn proven strategies to earn from ad revenue, sponsorships, affiliate marketing, and more.

Step 1: Meet YouTube Partner Program Requirements

Before YouTube will show ads on your videos and pay you, you must be accepted into the YouTube Partner Program (YPP). This isn't just a formality— YouTube wants to ensure creators produce quality, advertiser-friendly content before connecting them with brands spending millions on ads.

The requirements exist to filter out low-quality channels and ensure creators are serious about building an audience. While these thresholds might seem high when you're starting out, most consistent creators reach them within 6-12 months. Here's exactly what you need:

  • 1,000 subscribers - Proves you can attract and retain an audience
  • 4,000 watch hours in last 12 months (or 10M Shorts views in 90 days) - Shows people actually watch your content
  • AdSense account - How YouTube pays you (free to set up)
  • Follow all YouTube policies - Community Guidelines, Terms of Service, copyright rules
  • Live in an eligible country - YPP is available in 100+ countries
  • 2-step verification enabled - Protects your account and earnings
Full requirements breakdown →

Reality check: 4,000 watch hours equals 240,000 minutes of viewing. If your average video is 10 minutes with 50% retention (5 minutes watched), you'd need about 48,000 total views across all your videos in a 12-month period. That's roughly 130 views per day on average.

Step 2: Enable Monetization

Once you hit the thresholds, YouTube will notify you that you're eligible to apply. Don't wait—apply immediately. The review process can take 1-4 weeks, and every day you delay is potential earnings left on the table. The application process is straightforward but requires attention to detail.

  1. Go to YouTube Studio

    Navigate to studio.youtube.com and look for the "Monetization" tab in the left sidebar. You'll see your progress toward requirements and an "Apply" button when eligible.

  2. Click "Monetization" in left menu

    This will walk you through YouTube's Partner Program terms. Read them carefully—you're agreeing to let YouTube place ads on your content and share revenue with you.

  3. Follow steps to apply to YPP

    You'll accept terms, sign up for Google AdSense (or link existing account), and set your preferences. Make sure all information is accurate—errors delay approval.

  4. Wait for review (1-4 weeks)

    Human reviewers check your channel for policy compliance. They're looking for original content, proper copyright usage, and adherence to Community Guidelines. Keep uploading during this period.

  5. Link AdSense account

    If you didn't do this earlier, you'll need to create and link your Google AdSense account. This is how YouTube pays you. Use the same email as your YouTube account to keep things simple.

  6. Set ad preferences

    Choose which ad formats to enable. Most creators enable all formats for maximum revenue, but you can disable certain types if they don't fit your content style.

What if you're rejected? YouTube will explain why (usually reused content, policy violations, or misleading metadata). Fix the issues and reapply after 30 days. Most rejections are fixable—don't give up.

Step 3: Choose Your Monetization Methods

Once you're monetized, the real strategy begins. Successful creators don't just turn on ads and hope for the best—they actively build multiple revenue streams that complement each other. Start with ad revenue as your foundation, then add 1-2 additional methods that align with your content and audience.

The best monetization strategy depends on your channel size, niche, and how much time you can invest beyond creating videos. Here's how to think about each method and when to implement it:

Start Immediately: Ad Revenue

This is your baseline. The moment you're approved for YPP, enable ads on all eligible videos. It's 100% passive—YouTube handles everything, you just make content. Don't expect to get rich from ads alone, but it provides consistent income that scales with your views.

  • Enable ads on your videos (skippable, non-skippable, display, overlay)
  • Earn $1-5 per 1,000 views on average (varies dramatically by niche)
  • Zero extra work after initial setup—completely passive income
  • Scales automatically as your channel grows
Calculate your ad revenue potential →

After 5K Subscribers: Sponsorships

This is where most YouTubers start earning "real money." Brands will pay you significantly more than ads to feature their products in your videos. A video with 50,000 views might earn you $150 from ads, but a sponsorship for that same video could pay $1,000-2,500.

Don't wait for sponsors to come to you. Once you have 5,000-10,000 engaged subscribers, start pitching brands in your niche. Create a simple one-page media kit with your stats and reach out to companies whose products you genuinely like.

  • Reach out to brands directly or join influencer marketplaces (AspireIQ, Grapevine, FameBit)
  • Create a media kit showing your audience demographics and engagement rates
  • Start with $10-20 per 1,000 views and increase rates as you grow
  • Only promote products you actually believe in—trust is everything
Calculate what to charge for sponsorships →

Any Time: Affiliate Marketing

You can start this on day one, even before monetization. If you're reviewing products, doing tutorials with specific tools, or recommending anything purchasable, add affiliate links. Many creators earn their first dollar from affiliates weeks before they're eligible for ad revenue.

  • Join Amazon Associates (3-10% commission), ShareASale, or niche-specific programs
  • Add affiliate links in video descriptions and pinned comments
  • Disclose affiliate relationships (legally required, builds trust)
  • Works best with honest reviews and product comparisons
  • Tech reviewers can earn $500-5,000/month from affiliates alone

Revenue Potential by Channel Size

Here's what you can realistically expect to earn at different channel sizes:

Channel SizeMonthly ViewsAd RevenueWith Sponsorships
Small (1K-10K subs)10K-100K$30-500$100-2,000
Medium (10K-100K subs)100K-1M$300-5,000$1,000-20,000
Large (100K-1M subs)1M-10M$3,000-50,000$10,000-200,000
Mega (1M+ subs)10M+$30,000+$100,000+

Best Practices to Maximize Earnings

Making money on YouTube isn't just about hitting requirements and turning on monetization. The difference between earning $500/month and $5,000/month often comes down to strategic decisions about your niche, content format, and revenue mix. Here are the tactics that separate full-time creators from hobby channels:

Choose a Profitable Niche

Not all views are equal. A gaming channel and a finance channel with identical view counts can have 10x difference in earnings. Advertisers pay premium rates to reach audiences interested in high-value products and services.

High CPM niches:

  • Finance/Investing: $10-25 CPM (credit cards, investing apps)
  • Tech/Software: $7-15 CPM (SaaS tools, business software)
  • Business/Marketing: $8-18 CPM (courses, consulting)

Gaming and entertainment channels earn $1-4 CPM. Same effort, fraction of the revenue.

Optimize for Watch Time

Longer videos = more ad breaks = higher revenue per view. But length means nothing if people click away. The goal is maximum watch time, not maximum video length.

  • 8-15 minute sweet spot: Allows mid-roll ads without feeling padded
  • Hook in first 30 seconds: Tease the value, cut the fluff
  • Use pattern interrupts: Visual changes, music shifts, camera angles to maintain attention
  • Create binge-worthy series: Multi-part content keeps viewers on your channel longer

Target High-CPM Countries

Where your viewers live dramatically affects your earnings. US viewers are worth 3-5x more than viewers from developing countries because advertisers pay premium to reach purchasing power.

  • United States: Highest CPM rates ($4-12 average)
  • Tier 1 countries: Canada, UK, Australia, Germany ($3-8)
  • Tier 2: Western Europe ($2-5)

Create content in English and address topics relevant to these markets when possible.

Diversify Revenue Streams

Relying solely on ad revenue is risky. Algorithm changes, CPM drops, or demonetization can tank your income overnight. Smart creators build multiple income sources.

Target revenue split:

  • 40% from ads: Your passive baseline
  • 40% from sponsorships: Active but high-paying
  • 20% from products/affiliates: Scalable over time

This mix protects you and usually results in 2-4x higher total earnings than ads alone.

Common Questions

Frequently Asked Questions

Small channels (1K-10K subs) typically make $30-$500/month from ads, but can earn $100-$2,000+ with sponsorships. Medium channels (10K-100K subs) earn $300-$5,000 from ads and $1,000-$20,000 with all revenue streams combined. Top creators make $30,000+ monthly.

Affiliate marketing is the fastest - you can start earning from day 1 with no subscriber requirements. Add affiliate links to your video descriptions and earn commissions on sales. Ad revenue requires 1,000 subs and 4,000 watch hours first.

No! While you need 1,000 subs for ad revenue, you can make money immediately through affiliate marketing, sponsorships (with engaged audience), selling products, or services. Many creators earn more from these than ads.

With affiliate marketing, you could earn $100 in your first month if you drive sales. For ad revenue, most creators take 6-12 months to hit monetization requirements, then another 1-2 months to earn $100 from ads (depending on RPM and views).

Finance and investing ($10-$25 RPM), business and marketing ($8-$18 RPM), and tech reviews ($7-$15 RPM) are the highest-paying niches. They attract premium advertisers and command higher sponsorship rates.

Related Resources

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