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How Do People Make Money On YouTube?

Hey! This is a video post from a YouTube video I created answering the question: How do people make money on YouTube? So click on the video just above this for an in-depth look at all of the powerful business models, and for those of you that prefer to read, the script is below.

Let me know in the comments which strategy you think is best for making money on YouTube?

How Do People Make Money On YouTube (The Evolution of YouTubers)

Many people say that money doesn’t buy happiness, and in my opinion, that’s absolutely true, but what money does buy is choice, and its what you do with those choices that count.

  • You could choose to be your own boss.
  • You could choose to spend your life travelling the world.
  • You could choose to go to sleep at night feeling financially comfortable.

Or if you’ve ever watched the Wolf of wall street then you could make some completely different lifestyle choices entirely!

Some of you will assume that in order to make money you need to have money.

To invest in stock, equipment, staff and anything else that’s needed to kickstart a business and risk everything.

Well good news, this isn’t the 1980s.

Anyone can make money and build their own business, and in some cases, without spending a single penny.

The internet changed everything.

And this post is all about showing you one free way to make money online – by embracing the power of YouTube.

The beast of video.

So stay tuned to the end, I am going to explain and answer, how do people make money on Youtube.

I will show you how they go from disheartened beginner to financial freedom in some cases, and how you potentially can too.

And no, this isn’t a short term gimmick. These are long term sustainable strategies.

I will show you the evolution of YouTubers as they grow in confidence and authority and more doors open to them. And this could be you.

Ali Abdaal – YouTube Success Story

Look at Ali Abdaal whose channel has blown up over the last year, and he has earned over a million in 2020.

It covers multiple income streams so that he’s not reliant on one single thing, and we are going to explain all of these shortly.

So the question is, are you ready to make some money on YouTube?

Can I Realisitically Make Money On YouTube?

Let’s begin – with some real talk.

Whilst my YouTube channel is all about making money online using digital marketing skills anyone can learn, I only cover legit strategies.

I can’t stand the number of fake hacks and nonsense that’s out there, the hyped-up fast money rubbish that gets all of the clicks and views, but works for no one.

So remember – no matter what people tell you, in order to make money you have to put the work in.

Youtube is no different.

What I am about to explain are multiple ways you can make money on youtube – anyone can do this but many will give up without really trying.

Unfortunately, you won’t be drinking Pina Coladas by the pool, after you’ve published just 3 or 4 videos.

But once you do start getting the traction it will be so worth it – trust me.

On top of the financial gain, You will also find many more benefits from having a youtube channel – its hands down one of the best decisions I’ve made.

Stage 1 – The Beginning

This is where we all begin.

Zero subscribers and zero views, and this is the toughest phase of youtube because you need to learn the skills, find your voice and regularly hit publish without any kind of reward.

If you are at this point then let me reassure you, with enough consistency and desire to improve you will push beyond this. It may not feel like it at times but focus on getting better each video you produce.

Your methods of making money on YouTube are limited, you can’t run adverts until you’ve qualified your channel, and gained that first 1000 subscribers and your content has had 4000 hours watched…..

That is a tough place to be in, and why many of us look around and ask how do people make money on YouTube when it’s so difficult?!

But don’t despair there is some hope.

There is a way that we can earn a little money back for our efforts, a way to validate our progress, and that’s through affiliate marketing.

This is my number one business model. You make money by recommending products.

So even if your video only has 25 views, you only need one of those to be a buyer and that could earn you a commission for any products you recommend in your video, or the description box.

Clearly the higher the number of views the better the chance of making money, but its a start.


Way before I was making ad revenue I was earning affiliate commissions, sometimes they were ongoing monthly payments and other times they were high ticket where I would earn $500 or a thousand dollars.

You need to find good quality products and services that resonate with your audience and offer them a solution to their pains and problems.

For example, I promote a coaching program from my own mentor, it pays a very high commission, but also i know that anyone that buys it will absolutely love it.

I’ve seen him change peoples lives and unlock their potential – so I will happily promote it. If someone buys it then its the ultimate triple win.

I get a commission and warm fuzzy feeling from helping someone, he gets a new student, and the buyer gets access to someone with real expertise who will help them with their own business.

Win Win Win

You can add affiliate links to your videos on day 1, and I’ve tonnes more videos on this strategy as well as free training from my coach in the description.

Stage 2 – Growth

You will have been creating content for a while, and if you’ve been consistent enough you will start getting some traction. Some familiar faces in the comments section and little flurries of activity when you launch each new video.

By now you are probably also addicted to refreshing the youtube studio app and seeing how many views you’ve had. Edging closer to that magical amount where you can apply to the youtube partner programme

It took me over a year, but I have seen people do it in a fraction of that time depending on the niche and their work rate.

When the day finally comes, you fill out the application form, cross your fingers and send it back to YouTube.

Sit patiently and wait for a YES.

At that point, you can officially say you make money whilst you sleep. Because youtube will place adverts on your videos each time someone watches 24 hours a day, 7 days a week.


There are a few factors involved with how much money you will make such as your niche choice and audience location,

If you want to see some real stats and figures that the gurus wont share with you, then I’ve posted my first few youtube paychecks just to be transparent with earnings potential. Just watch this:

As well as some top tips to multiply what you could be earning.

But over time you will know that each video you publish has the potential to earn more money for your channel.

Once monetised you also get access to some additional features such as super chat and super stickers which if you live stream on youtube will allow people to make a donation to you in order to ask a question.

So At this point, you will also have a 1000 subscribers and building a loyal core following.

Depending on what your channel is about you may also want to add some merch – especially if you are focused on building a brand.

If you don’t know what merch is, its basically t shirts, hoodies, and anything that can be printed on.

Now Youtube allow you to do this via the partner programme but you do need to have increased your subscribers to 10 thousand, so what I would suggest is that you use an external merch site like redbubble.

Where you can easily:

  • Create an account
  • Upload some designs
  • Choose your sale price, so that you make a profit on top.

It’s very easy to set up and get started, all you do then is link to the merch in the video and description.

Stage 3 – Momentum

When you have just about pushed that boulder all the way up the mountain and over the edge, and now your getting more subscribers in a day than you did in a month.

You are getting ad revenue and regular affiliate sales and real momentum.

You will have published enough content now to have really improved your knowledge and refined your message. You are confidently sharing your expertise with the world via the power of YouTube.

So why not package up all that awesomeness that’s rattling around your head and make a course.

Sounds scary doesn’t it, but you can ease yourself in gently and use a knowledge platform like skillshare where a lot of the hard work is done for you and you just need to add content.

These courses don’t have to be huge they are bitesize really – and as a creator, you will make money for people watching your courses, but also you can earn a referral bonus each time you recommend someone.

If you are feeling brave then you can go one step further and build out a full digital product.

I know many course creators who are selling their products for several thousand dollars – again, you can use online platforms such a teachable, thinkific or kajabi.

But you do need to do your own marketing compared to platforms like skillshare who will generate traffic but at a much lower selling point.

Stage 4 – Jackpot!

Your channel is growing rapidly, you have multiple income streams and a real brand that’s growing.

People want to know how you became a 4-year overnight success. They want to emulate your achievements and also get that access to you – you can earn money through coaching and consulting, become the teacher rather than the student.

Equally, your subscribers trust your opinion and will buy products and services you recommend, which is why brands and product owners are desperate to throw sponsorship deals at you.

One-off payments on top of affiliate earnings for you to endorse what they are selling.

YouTube advertising is very different from traditional TV advertising where the audience can be very broad. Companies know that certain influencers have very focused and specific audience demographics who are interested in certain subjects.

It allows them to pay influencers and put their products in front of qualified buyers.

More money in your pocket.

Don’t take the foot off the gas though. Reinvest that money. Grow your skills, diversify your platforms.

The world is your oyster.

The Circle Of Awesomeness

For anyone who hasn’t yet started, or is wading through treacle at the beginning of this journey then hang in there. I want to share something that has always encouraged me, its something my coach told me called the circle of awesomeness.

Each time we take a tiny ACTION, we look for a RESULT. It could be our first ever video view or first subscriber.

That result shows that today we are further ahead than we were yesterday. Its progress.

It gives us BELIEF. So use that belief, to go back and take your next action, create some more content, but this time, improve it ever so slightly.

Once that action leads to a result, again it will grow your belief, and in turn inspire the next action.

This becomes a loop. and before long you realise that you are hitting your milestones….

You have more subscribers, more views, more money each and every day.

Your consistent approach, and desire to improve is paying off.

Now that’s one of the many things that my coach taught me, and if you are in the position to invest in a program where a proven expert supports and guides you, then I would highly recommend it.

My own coach is a 7 figure affiliate marketer, and he is helping tonnes of people like me, who want to learn new skills, and earn more money get started and succeed with online businesses.

If you want to know more about the program I am part of, then check out this free training which show you exactly how to get started with affiliate marketing.

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