YouTubers generate income directly through the app as well as pairing the site with third party sources. Many YouTubers will begin their own lines of merchandise as their channels begin to grow. This can be anything from clothes, plushies, accessories and beyond. They would have to sell their merchandise through a third party source but can promote their own products on their channel. The main source of income provided to creators directly from YouTube is ad based. By including ads within their videos, content creators can generate income based on the number of views a video receives with ad impressions. YouTube has now started taking 50% of each video’s revenue, so oftentimes creators will use other third party resources in addition.
One example of such is Patreon. Patreon allows fans to subscribe to a payment plan to help support their favorite YouTubers. The site also gives the option to upload exclusive content only accessible to subscribers. Another way content creators create revenue is through partnering with businesses. Oftentimes businesses will sponsor YouTubers, and in return the YouTubers will promote their products or services within their videos. This can also include things like affiliate links and creating ads for them.
Instagram is another large app that many people use to make money. The way creators generate income on Instagram is very similar to YouTube in some ways, but differs in others. Instagram doesn’t generate income for its creators in any way, and it is left up to the creators themselves to use third party sources with it to make money. This consists mostly of partnering with businesses as an influencer or with sponsored ads, or through promoting your own products. Many people on Instagram are influencers, and are paid to create posts that advertise a product. The aim is to get people attention and make them aware of the product. Income for this ranges depending on your reach, being your number of followers and how many views you typically receive on a post. Creators will also partner with brands to become an affiliate, where they attempt to sell more products for the company. They usually will then make their income through specific links or codes, which then gain them commission from sales when used.
The other way that people can use Instagram to create income is by selling their own products through the site. These can range from promoting physical products, digitally downloaded products, or more. Through Instagram Shopping, you can link a specific product page to a photo to allow users to quickly access items they would like to purchase, rather than having to go to the website and dig around for the specific product.
Sources:
“Evan Edinger: The Five Ways YouTubers Make Money.” BBC Newsbeat, BBC, 18 Dec. 2017, www.bbc.co.uk/newsbeat/article/42395224/evan-edinger-the-five-ways-youtubers-make-money.
O’Connell, Brian. “How Much Do YouTubers Make? Revenue Streams and Top Performers.” TheStreet, 12 Oct. 2018, www.thestreet.com/technology/how-much-do-youtubers-make-14743540.
Roach, Andrew. “Selling on Instagram: A Beginner’s Guide to Instagram Shopping.” Oberlo, Oberlo, 3 Oct. 2019, www.oberlo.com/blog/instagram-shopping.
Xue, Jennifer. “5 Ways You Can Make Money on Instagram in 2020.” Oberlo, Oberlo, 1 July 2020, www.oberlo.com/blog/make-money-instagram.