Marques Brownlee, a well-known name in the technology community has risen to that stage after years of work. While many wonder how Brownlee and other YouTubers earn money from their channels, he explained about his YouTube business in a podcast of The Verge’s podcast “Decoder.”
Here’s How Marques Brownlee Earns
Marques Brownlee started saving up his highschool allowance to buy a new laptop, and other petty essentials to start a new YouTube channel. And in 2009, Brownlee made his first YouTube video, which is a review on the media-centre remote that came with his new laptop.
Today, he rose to have over 13 million subscribers and earns through several ways from his popularity. These include Google ads major, brand sponsors, and selling merchandise. He detailed all these in the latest episode of the “Decoder” podcast done by The Verge. Starting with Google Ads, he said that “YouTube ads is the primary, fundamental way that YouTubers make money.”
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This works by you allowing YouTube to display ads at the start of your video, and you earn a commission for that because you drew viewers onto it. This source is volatile, says Brownlee, since it depends on the advertisers spending budget and campaign strategy. Thus, they add multiple sources of income.
Google’s AdSense program
This is much like the ads on a website you visit, but in videos now. Interested creators should signup for this program where they should have at least 1,000 subscribers and 4,000 watch hours to be eligible. Upon activating, Google places filtered ads in the middle of videos and earns money from advertisers for that. In this, it takes like 45% ad revenue and leaves the rest to the creator.
While many deals directly with the brands, high-end YouTubers like Brownlee sets an agent to look after their contracts. Here, he assigned WME, whose “lawyers will look over the contract and negotiate the terms,” reducing the legal burden off him. They’d take their cut and set up everything for him, to start working and earning.
At last, YouTubers sell branded merc to their followers like T-shirts, hoodies, and other branded accessories through their channels, or sometimes through a dedicated online store like Shopify. While some pass orders to someone to fulfill, some maintain a warehouse to ship the readily. For Brownlee, it’s the site Cotton Bureau.