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    Tuesday, August 8, 2017

    How much does youtube pay per view?

    On average, you can earn $.80 per 1,000 views monetized by banner ads, or, $5-$8 per 1,000 views on a video monetized by rollout ads (the commercials before the video). So, on a video with 1,000,000 views monetized by rollout ads, you could earn $5,000-$8,000.Youtube/Google shares ~45% of their ad revenue from the content with the content creator. The ad revenue is collected when a viewer clicks on an ad. This is known as Cost Per Click. Now, CPC can vary based on the ad. You can expect an accounting firm to pay a higher CPC than a toothbrush company because their Customer Lifetime Value (CLV) is higher. Youtube/Google is going to choose the ads they place based on the highest likelihood of a click. Factors that come in to play include the individual viewer and the data Google has on them, and the subject of the video.Now, in my opinion, these earnings are all too low. I would not use this as my primary monetization strategy. Getting a lot of views is hard work. And if I want viewers to be loyal to my content, annoying commercials might not be ideal. Instead, I'll take my $.80 per 1,000 views and be happy. 

    There are much more profitable ways to monetize a Youtube video than on views alone.Take a topic you know and love. Something you would enjoy building content on, and for which you have a unique expertise, a unique perspective, or a great personality for. In this case, let's say your content will be about sleep. Build a channel focused on the importance of sleep and how to get more of it. Over time, gain a loyal following (subscribers on Youtube as well as an e-mail list on your site). In addition to encouraging viewers to subscribe to the channel, you should also send them to your own site for exclusive content. This is the most important part. The blog is your 'home base' where you will build your 'tribe', so to speak. People you can continuously promote to within the valuable content you provide to THEM - Life objects is really easy to source products and services directly to an audience nowadays via drop-shipping (we will define this term soon). And because you are building a very targeted audience, you will be able to connect your viewers with products that will enrich their lives (and make you a profit).Most people understand the basic premise of an e-commerce store. You buy low, you sell high. What's in between is yours to keep. But, there's typically a lot more to it. Who's going to make the product? How am I going to ship it out? How am I going to pay for inventory? 

    Etc.You don't even know if you can successfully sell the product. So to build all this infrastructure, not to mention pay for it, would pose a significant risk.Fortunately, wholesalers, and even people on places like Etsy want to move product. So, you can initiate a fairly simple but common relationship with them called drop-shipping.With drop-shipping, you set-up a sales page or store, and anytime a customer places an order for, let's say, a specialty pillow, your site sends an automated e-mail to your supplier. This e-mail tells your supplier "hey, CUSTOMER_NAME just ordered PRODUCT_NUMBER to be shipped to CUSTOMER'S_ADDRESS."Your customer pays you $150 for the pillow. Your supplier sends the pillow directly to your customer with any branding you have arranged, and they charge you $30 for the pillow and fulfillment.$120 is your gross margin. If you spend $20 on average to make that sale and perform any administrative activities, $100 is your net profit (before taxes).The drop-shipping relationship eliminates any need to buy inventory upfront, store it, or ship it. You pay as you go.Truly, your only required expense is $1/day for web hosting. 
    That gets you up to 25k visitors anywhere. Compare that to $5,000 month for a physical retail shop's rent, where your potential customer base is severely limited.Now you're asking, "Who the hell is paying $150 for a $30 pillow?"Who said it was a $30 pillow?$30 is what you pay to source this generic, unbranded, memory foam pillow. You took that pillow, called it FeatherTouch, made a nice logo with one of the many tools out there, and built a beautiful product sales page on your own (really easy, no experience necessary). Plus, your youtube subscribers trust you. And this is your product, and the reviews are good.What you pay for the pillows or who ships them is irrelevant to the end user, so long as they perceive the pillow to be worth $150 and they receive it in the mail.Why is the FeatherTouch worth $150? Well sir, $150 is an incredibly insignificant investment considering you can't put a price tag on a great night's sleep for the next 10 years. You spend 8 hours a day sleeping with your pillow under your head. That's 1/3 of your life. $150 is not a cost, it is an investment.That's your value proposition. Mix that in with some features, but mainly benefits and you have a great framework for your sales page copy and all of your marketing messages.So, those first 1,000 sales. Let's say in addition to your YouTube promotions, you go around posting really helpful sleep habits articles, maybe some videos, other related content, all around the web. Really, you want to test about 20 different ideas for marketing channels then capitalize on what works.

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