How To Create a Passive Income With YouTube

What is YouTube?

YouTube is a video sharing website that operates as a Google’s subsidiary.

YT allows users to upload videos that other users can view, rate, share and comment.

People from all around the world watch video content on this platform for over 6 billion hours every month! Can you believe it?

With such a huge audience, no wonder YT is one of the best digital marketing channels.


How can I create an income on YouTube?

There are a couple of main ways to get an income with YT:

One easy-to-understand way is the so called CPM (Cost per mille): it means YT will pay the author of a video a certain amount of money depending on how many views the video gets.

Generally a few cents of a dollar per 1000 views, if the video is attractive for advertisers (i.e. if YT can put an Ad at the beginning of it).

Now if you are as creative as PSY and upload a video that goes viral like Gangnam Style, you will make a fortune!

PSY had reached a stunning 1 billion views in 2013, generating 7,900,000$ in CPM, and still going strong!

Right now the most viewed YT video of all times is Despacito by Louis Fonsi ft Daddy Yankee, with over 6 billion views! Ok, how much are these guys making?!

One other indirect way to monetize with YT is, once again, by doing affiliate marketing.

Many Youtubers endorse products in their YT-videos. When one of their viewers clicks on a link at the bottom of the video page, and makes a purchase, the Youtuber will get a commission on that sale.


Practical example
More Free Time In Your Life – Embrace Time Freedom (watch video)

If you click on the link, you will get to a video Ad that I had on YT a while ago.

When users click on the link they get redirected to my website, where they might or might not make a purchase.

But there’s a little problem. 

Who’s ever going to click on my video? Can people even find it on YouTube?

As I mentioned above, that video is an Ad. So if I want it to get visibility I will have to pay YouTube to show it as an Ad at the beginning of some other video.

You know those ads you can skip after 5 seconds…

And the cost for me will depend on the total amount of views.

This is an example on how to leverage YouTube to direct traffic to a website (or a blog) where your visitors can finalize a purchase.


Case Study

I would like to show you one hands-on example of affiliate marketing. This time via YouTube.

Check out this video that I uploaded recently to advertise another website of ours.

Please sit back and enjoy the whole 3’28” length of it. It’s very relaxing, and you even get to see me playing with one of my favorite toys… 🙂

But just before the end, click pause, scroll down and read the video details.

Apart from directing traffic to the website shown on it, how am I making money with it?

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