What is the potential to make money from youtube videos?
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Mostly it depends on the competition among the advertisers who are willing to advertise their product or service through different youtube channels. Often when you see youtube videos live then the Ads you see in between are the Ads advertised by the advertisers and Google make money from those advertisers. Whatever Google earns from those advertisers it gives a share or percentage of it to the YouTubers whose channels were used to run the AD.
Some of the advertisers advertise with Google in a particular niche only while others don't care about the niche if their product is quite general in nature and meant almost for all the individuals working over the internet.
For example, Grammarly is a tool mostly all people need as this tool help you know what mistakes you have done while writing anything on the web or in any of the docs. The advertisers such as Grammarly will then never bother about a niche while advertising with Google through their youtube.com platform. In that case, Google will run Grammarly's AD through all the youtube channels irrespective of the category or niche and so all the YouTubers will be able to make money.
But when an advertiser select to run its Ad in a particular category only then that Ad is not shown by Google in other categories and so the YouTubers belonging to those other categories don't make any money as no Ads was shown via their channel. Though they will make money when some other advertisers will advertise with Google related to their category.
The amount of money you will make also depends on > what kind of audience you have for your channel. Google looks at > what kind of audience is regularly watching your videos uploaded on your youtube channel.
Google recognizes your audience through the keywords they typed > in the youtube search box and landed on your video or even through the referrals when someone clicked your video while they were watching a similar video like yours. In that case ( when users landed your video through referral) they take the keyword into consideration which was used by the user in watching his/her earlier video before watching your video. So this is not difficult for Google to know, with the help of their technology, what kind of audience you have with the help of keywords.
Cost per view (such as 3 cents per view), in case of videos, set by Google, for the advertisers, for different categories (niche) is dependant on the daily budget of the advertisers and how much they are willing to pay per view. Google estimates the cost per view by the daily and monthly budget set by the advertisers (how much money the advertisers are willing to spend). If Google sees the average daily budget (per view) set by the advertisers is more then they pay to the YouTubers more for the views when the advertisers' Ad is run. If the competition among the advertisers grow then the cost per view set by the advertisers automatically go up and that way Google is able to pay more to the YouTubers after taking out its own fixed share.
The main factor deciding > how much money you will get paid per view or per thousand views of your videos is the cost per view (or cost per thousand views) as set by the advertisers for your particular niche and Google estimates that using the daily budget of the advertisers.
You can make use of a free tool called "keywords everywhere" which gives a great idea about which are the highest paying keywords for Google Adsense and those will be the same for even youtube videos. Go to > keywordseverywhere.com to download this tool and it will be added as an extension to the web browser you use. Then when you will search any keyword in Google.com, at the top it will show the volume and popularity of that keyword by its cost and accordingly you can make your youtube videos based on that keyword to earn more per view. Make sure to get the free API and activate the tool before using it else it won't work.
There are so many youtube channels already running and there is also a tool which can approximately (almost exactly) tell you how much money each youtube channel is making. Just go to socialblade.com and enter the name of the youtube channel in the search box above to know how much money each day, each month and each year that youtube channel is making. This is the best free tool to get the complete idea about the potential of making money through youtube videos.
On average it is only possible to make $1 to $5 per five thousand (5000) views. Considering the worst case scenario of making $1 per 5000 views, you will need to get 15,00,000 (15 lac) views per month to make $300 per month. You can even make $300 per day if you can get 15,00,000 (15 lac) views per day. Views are actually not difficult to get if your channel goes viral and if it is based on a particular niche. Usually, technology and finance are the best categories to earn more from youtube videos.
Also, people who are showing product reviews via the youtube videos are making more money as then they also make money from the affiliate links which they give under their youtube video description. They buy from Amazon, make a review, upload to youtube, and give also their affiliate link in the description so that the users can buy through their affiliate link and they get the 8% to 16% commission from Amazon.
Remember the internet is a huge marketplace and so you should not get bogged down by the stats. I remember a stock-market related video got viral and it got 70000 views in just a day.
Written by: Rajesh Bihani ( Find me on Google+ )