Is Monetizing YouTube all it’s cracked up to be?

Yes, getting monetized on YouTube is a great milestone to reach. It feels good to get that like stamp of approval from YouTube. But is getting monetized on YouTube really as great as it seems?

In episode 18, I share my journey from earning 12 cents to $14,800 in a year and the realities of ad revenue. Discover why relying solely on ad revenue might not be the best strategy and how creating your own digital products can be more profitable.

VIDEO: Is YouTube Monetization all it’s cracked up to be? | Ep. 18

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Is YouTube Monetization Really Worth It? A Better Strategy for Content Creators

As a content creator, getting monetized on YouTube feels like a major milestone. That coveted stamp of approval from the platform can be exhilarating. But is YouTube monetization really all it’s cracked up to be? Let’s dive into this topic and explore a potentially more lucrative strategy for content creators.

My YouTube Monetization Journey

When I first started on YouTube back in 2015, I had no idea that creators could earn money from their videos. I was simply looking for a place to host content for my blog. Imagine my surprise when I opened the YouTube Creator Studio app and saw that I had earned 12 cents!

Those 12 cents may not sound like much, but I was over the moon. My content had generated revenue out of thin air! This was before YouTube implemented monetization milestones, so creators could start earning immediately.

Over time, that 12 cents grew to $12, then $100, and eventually more. In fact, the most I ever made from YouTube ad revenue in a single calendar year was $14,800. This was in 2021, my sixth year on the platform, during the height of the pandemic when viewership was at an all-time high.

The Misconception About YouTube Revenue

Recently, I had a conversation with someone who asked how many subscribers they would need to “live off” YouTube ad revenue. I’ll be honest – I died a little inside hearing this question.

Here’s the truth: the number of subscribers you have is largely irrelevant when it comes to ad revenue. What matters is views and watch time. But more importantly, there’s a widespread misconception that uploading videos and getting paid by YouTube is a viable business model.

To generate significant revenue from YouTube content, you need to treat it like a business. And when you do that, you’ll quickly realize that the effort required to create videos versus what YouTube pays in ad revenue is a pretty poor return on investment compared to other potential revenue streams.

The Risks of Relying on YouTube Ad Revenue

Putting all your eggs in the YouTube monetization basket comes with significant risks:

Platform dependency: YouTube can decide at any time that your channel is no longer eligible for monetization.
Quality compromise: The pursuit of views and watch time can lead to creating content that’s less helpful or valuable to your audience.
Limited control: You have no say in the ads shown on your videos or how much revenue you earn per view.

A Better Approach: Create Your Own Revenue Stream

Instead of chasing YouTube monetization, consider this alternative strategy: create and sell your own digital product. Here’s why this approach is superior:

You’re in control: You decide what to create, how to price it, and how to market it.
Build a customer list: Unlike YouTube ads, you’re generating a list of buyers you can market to in the future.
Unlimited earning potential: Your earnings aren’t capped by YouTube’s RPM (Revenue Per Mille) rates.

The Math: YouTube Ads vs. Your Own Product

Let’s break down the numbers to see why selling your own product can be more lucrative than relying on ad revenue.

YouTube ad revenue is measured in RPM or revenue per 1000 views. According to Niche Pursuits, RPM can range from $1 to $22 per 1000 views, depending on your niche. Let’s use $12 as an example.

If you publish a video that gets 1000 views, you’d earn about $12 in ad revenue. If you did this every week for a year (52 videos), you’d potentially earn $624.

Now, let’s say you created a simple $12 digital guide related to your niche. If you sold just one copy for every 1000 views, you’d make the same amount as the ad revenue. But isn’t it likely you’d sell more than one copy per 1000 views? Plus, there’s no cap on how many you can sell!

A Real-World Example: The Gardening Niche

Imagine you have a YouTube channel about backyard gardening in the Northeast. You create a $12 guide that includes a planner, calendar, and checklist for when to plant, what to plant, soil tips, and garden layout optimization.

Your YouTube videos could cover all these topics, attracting your ideal customers. Even if your gardening channel only earned $4 RPM (which is more typical for lifestyle niches), selling your guide would likely outperform ad revenue significantly.

Why This Strategy Works

No revenue cap: Unlike YouTube ads, there’s no limit to how much you can earn from your product sales.
Targeted audience: People watching your niche videos are more likely to be interested in your related product.
Long-term asset: You create the product once and can sell it indefinitely.
Simplicity: Your digital product doesn’t need to be complex. Even a simple, useful guide can provide great value to your audience.

Getting Started with Your Own Digital Product

Don’t overthink it! You don’t need to create a massive course or program. Start with something simple like a guide, planner, or checklist. Use tools like Google Docs to create it, export as a PDF, and you’re ready to go.

Once you have your product, you can set up what I call a “Set It and Forget It” YouTube Funnel. This strategy allows you to build a binge-worthy channel that grows your audience and generates revenue for your business.

Related: Etsy Marketing with YouTube

Conclusion: Monetize Yourself, Not Just Your Channel

While YouTube monetization can be a nice bonus, it shouldn’t be your primary focus or revenue strategy. By creating and selling your own digital products, you’re building a more sustainable, controllable, and potentially more profitable business model.

Remember, the best revenue stream is the one you have the most control over. So why wait for YouTube to monetize your channel when you can monetize yourself?

Ready to take your YouTube strategy to the next level? Check out Episode One of the Video Brand Infusion podcast, where I cover exactly how to set up a “Set It and Forget It” YouTube funnel that works for courses, programs, services, and yes, even simple digital downloads!

If you have an online business with a course, program, or any other kind of offer, and you’re not currently generating consistent sales on autopilot, I’d like to introduce you to the hands off youtube funnel that has made me over $20k on a $147 course! That way, you too can make consistent sales of your offer, with the beauty and simplicity of organic, evergreen traffic from YouTube! Start here with my free “AIT Method” training.