Youtube Channel

How Profitable Is A Youtube Channel? (Updated for 2024)

Pat Walls

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Updated: October 5th, 2024

How Profitable Is A Youtube Channel? (Updated for 2024)

So you want to start a youtube channel?

And the first question that came to your mind was, “well, are youtube channels actually profitable?”

With a market size of $292B - there’s plenty of business to go around.

Especially considering:

You could start a youtube channel with as low as $100
Based on our data, youtube channels generate an average of $1.75M per year
You could see gross margins as high as 80% with youtube channels

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a youtube channel.

Let’s dive in!

Is a youtube channel profitable?

Yes, a youtube channel is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.75M per year with an estimated gross margin of 65%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your youtube channel.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your youtube channel is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a youtube channel worth it?

If you’re wondering if a youtube channel is worth it, the answer is a big YES. With youtube channels, you have the potential to earn $1.75M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $292B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a youtube channel to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful youtube channels case studies.

Examples Of Profitable Youtube Channels

Here are a few examples of profitable youtube channels, and a few more details about them:

1. Higher Levels ($120K/year)

After transitioning from engineering to tech sales and quickly excelling, Eric was shocked by the lackluster tech sales bootcamps charging $2,000 without delivering results. Motivated by this gap, he began offering free advice on YouTube, which rapidly grew, culminating in a platform generating $10,000/month organically and helping hundreds secure top tech sales jobs.

Is it profitable? Yes
What's the gross margin? 80%
How much money it makes: $120K/year
How much did it cost to start: $750

We Make $110K/Year on YouTube Helping People Break Into Tech

Case study synopsis: In just 2 years, Eric and Kris grew their YouTube channel 'Tech Sales With Eric' into a full educational platform, higherlevels.com, generating over $10,000/month in revenue from organic YouTube traffic, and are now exploring paid advertising and affiliate marketing to fuel their hyper growth phase.

Read this case study

Read by 4,037 founders

2. Music For Pets ($1M/year)

"In 2011, Amman Ahmed decided to invest what was left of his student loan in a company called Roundwaves, to make soothing audio to help busy people unwind.

He found composer Ricardo Henriquez online, and they started working together on a series of relaxing audio tracks.

However, both quickly noticed that not only were humans pleasantly zoning out to the backing tracks, but pets were responding as well.

Henriquez is based in Central America’s smallest country, El Salvador, a country known in part for infamous gangs such as MS-13.

His dog Zuki suffered from anxiety whenever the noises of gun violence filled his neighborhood, so he came up with the idea of composing specifically to relax his dog. "

Is it profitable? Yes
How much money it makes: $1M/year
How much did it cost to start: $1K

How This Guy Built A $1M Business Helping Your Pet Relax

Discover how Amman Ahmed turned a $50 investment into a $9.6 million/year business by creating soothing audio tracks for pets on YouTube, Spotify, and more, with only $5,000 spent on marketing over the years.

Read this case study

Read by 7,593 founders

3. EM Cosmetics ($960K/year)

Phan was introduced to the world of beauty at a very young age. Watching her mother, a beautician, work, she developed an admiration for the transformative power of makeup. While attending Ringling College of Art and Design, her passion for beauty and knack for creativity led her to start a blog and YouTube channel to share her makeup looks and skincare tips.

Is it profitable? Yes
How much money it makes: $960K/year

How Michelle Phan Built Her YouTube Channel To 8M Subscribers

Learn how a self-taught beauty artist leveraged YouTube and social media to grow her brand EM Cosmetics, achieving an impressive revenue of $960K/year by engaging millions of followers with makeup tutorials and skincare tips.

Read this case study

Read by 319 founders

Learn more about starting a youtube channel:

Where to start?

-> How much does it cost to start a youtube channel?
-> Pros and cons of a youtube channel

Need inspiration?

-> Other youtube channel success stories
-> Marketing ideas for a youtube channel
-> Youtube channel slogans
-> Youtube channel names

Other resources

-> Youtube channel tips
-> Blog post ideas for a youtube channel
-> Youtube channel quotes

How much can you make with a youtube channel?

With a youtube channel, you can make an average of $1.75M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $100. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

How much does a youtube channel make a week?

Based on our data, average weekly revenue for a youtube channel ranges around $36.5K. As such, you could see monthly revenues of $146K.

To know if your youtube channel achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your youtube channel.

How much do youtube channels owners make?

The income of a youtube channel owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established youtube channel is about $36.5K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a youtube channel owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Youtube Channel Profit Margins

Generally speaking, a youtube channel can expect profit margin of around 65%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a youtube channel, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, youtube channel owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, youtube channel owners can ensure long-term sustainability and profitability for their business.

Youtube channel owner salary

The salary of a youtube channel owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established youtube channel, in a prime position, might see an average weekly salary around the ballpark of $23.7K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a youtube channel may be a promising business to start - but the success of your youtube channel mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable youtube channel.

Part of

Starting A Youtube Channel: Everything You Need To Know

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