Ever wondered how your favorite YouTuber can afford that luxurious lifestyle, complete with flashy cars, stunning vacations, and top-tier gear?
Well, you’re not alone! One of the biggest sources of revenue for YouTubers is sponsorship deals, a financial boon that’s often shrouded in secrecy.
Today, we’re pulling back the curtain on this lucrative revenue stream, with a deep dive into how much brands actually pay YouTubers. Plus, we’ll address some frequently asked questions that you’ve been itching to know the answers to!
What is sponsored video content? Understanding YouTube Sponsorship
On YouTube, sponsored content refers to a video that a brand has paid the Youtuber to ideate, create, and distribute. It’s a native advertising form, where the creator crafts content that aligns with the objectives of their channels, but cleverly mentions a brand message or a product within the video.
Most sponsored content doesn’t sound promotional at all, but creators are required to make a disclaimer for any content that they have been paid to promote.
Paid promotions tend to have more specific demands than affiliates or product reviews.
Also, all YouTube sponsorships must abide by the FTC and YouTube’s legal guidelines.
Other ways to make money on YouTube
Besides sponsored content, YouTube also presents you other ways to monetize your channel. Now, most of these monetization methods are available via the YouTube Partner Program.
Examples:
- Affiliate links: Promote products or services in your videos and earn a commission for every sale that is made through your unique referral link. (Affiliate sponsorship)
- Merchandise sales: Create and sell your own merchandise such as t-shirts, hats, or other branded items to your audience.
- Crowdfunding: Set up a Patreon or other crowdfunding platform where your subscribers can financially support your channel on a monthly basis in exchange for exclusive content or other perks.
- YouTube Premium revenue: If your content is part of the YouTube Premium subscription program, you can earn a share of the revenue generated from premium subscribers who watch your videos.
- Public speaking and events: You can leverage your YouTube success to secure speaking engagements or host events related to your niche, where you can earn money through ticket sales or appearance fees.
- Consulting and coaching: If you have expertise in a particular field, you can offer consulting or coaching services to your viewers for a fee.
- Online courses and educational content: Create and sell online courses or educational content related to your niche to your audience. You can use a tool like Teachable or Academy LMS (Lifetime deal)
Brand Sponsorship vs. YouTube Partner Program
The YouTube Partner Program (YPP) and sponsorships are two of the most common revenue streams for content creators on YouTube, but they operate in quite different ways. YPP is YouTube’s official monetization platform, where creators earn money through ads displayed on their videos, channel memberships, and YouTube Premium revenue.
The key advantages are its steadiness and automation—once you qualify and set it up, earnings can be relatively consistent and require little ongoing effort. However, YPP revenue is often tied to views and average watch time, which means you’ll need high numbers to make a substantial income.
You also need to meet certain criteria before you can be accepted into the program. For instance, you need atleast 4,000 average video watch time hours, and atleast 1,000 YouTube subscribers.
Sponsorships, on the other hand, involve direct partnerships with brands to promote their products or services within your videos. These deals can often be more lucrative on a per-video basis and can be tailored to fit the specific content and audience of your channel. They provide the flexibility to negotiate terms and compensation, and may not require massive viewership to be worthwhile.
However, sponsored partnerships usually demand more time and effort in negotiation, content planning, and promotion. They may also come less frequently and can be more unpredictable as a revenue source.
Both methods have their pros and cons, and many creators utilize a combination of both for a more diversified income.
How much do sponsors pay YouTubers?
The amount that companies and brands pay YouTubers can vary greatly depending on factors such as
- Audience size
- Average channel viewer engagement rate
- Channel niche
- Specific terms of a sponsorship deal
- Time of the year
- Size of the sponsored brands. Big brands generally tend to pay more.
As such, there are some content creators who are paid a few hundred dollars per sponsored video, while others may receive tens of thousands of dollars for the same.
On average though, sponsors pay Youtube vloggers anywhere between $10 to $50 per 1,000 views.
In a limited-sample size survey conducted in 2020 by the owner of Finance Quick Fix, YouTubers got paid an average rate of about $0.09 per video view for sponsored YouTube videos. This rate translates to nearly $90 for every 1,000 views. Most of the respondents were in the personal finance space.
Ultimately, the amount that YouTube content creators charge for sponsorships is negotiable and varies depending on the individual creator, audience size, potential reach, and the sponsor’s budget.
YouTube channel sponsorship stats
- According to Collabstr, most YouTube creators charge an average of $510 for sponsored mentions
- Influencer Marketing Hub estimated that over 4000 analyzed brands spent a total of $515 million total in sponsorship deals in 2022.
- Tech brands sponsored the most videos
- Most common industries that do sponsored deals include tech, gaming, health and wellness, food and drinks, and entertainment.
- Promo code campaigns are the most popular types of sponsored content
Top YouTube sponsors with great brand deals
In no particular order, brands big with sponsorship deals on YouTube include:
| Skillshare | Honey | Nord VPN |
| Keeps | Crunch Labs | Express VPN |
| ThreadUp | Hellofresh | Verizon |
| Dollar Shave Club | DraftKings | Epic Games |
| Hulu | PlayStation | Sephora |
| Magic Spoon | Squarespace | Established Titles |
| Meta PC | Envato Elements | Audible |
| Shopify | Blue Apron | Function of Beauty |
| Manscaped | Betterhelp |
Top creators who are big on sponsored content
Some of the big-name channels that tend to collaborate with a good number of brands each year include:
| Unbox Therapy | Donut Media |
| MMG | Mr Beast |
| PewDiePie | Rhett and Link |
| Ben Shapiro | JeromeASF |
| UFD Tech | Linus Tech Tips |
Factors affecting your sponsorship rates
Sponsors consider several factors when determining a fair price to pay you. Some of these factors include:
- Audience size and demographics: Sponsors are interested in reaching a specific target audience, so creators with a larger and more engaged audience will generally be able to command higher sponsorship rates. Audience size is often measured in terms of the number of subscribers. The demographics of the audience, such as age, gender, and geographic location, can also affect the sponsorship rates.
- Engagement and conversion rates: Sponsors are interested in creators who have a high level of engagement with their audience, such as likes, number of views, comments, and shares.
- Niche and content: Sponsors are interested in creators who produce content that aligns with their brand values and target audience. Creators who are in a niche that is highly sought after by sponsors, such as beauty or gaming, can command higher sponsorship rates.
- Type of content: Is it a dedicated review video, a mere mention, or an integrated ad? This affects pricing too!
How many subscribers do you need to get sponsorship deals on YouTube?
On YouTube, you can land sponsorship deals with as little as 500 subscribers. If brands notice your channel is growing rapidly, they may reach out to you since your rates are still relatively low.
However, as a general consensus in the online community, you need at least 1,000 subscribers before you can even think of approaching brands. With 10,000 subscribers, you start getting a constant stream of offers for sponsored collaborations.
While you can get sponsorship deals with as little as 500 subscribers. Brands who can spot your channel growing fast can contact you since your rates
Having between 10,000 and 100,000 subscribers makes it easier to land sponsorships.
Ultimately, companies want to see consistency, an engaged audience, and a clearly defined niche that is relevant to their industry before providing sponsorships.
Attract sponsors: How to find youtube partnership deals
To find potential sponsors on YouTube, you can consider the following strategies:
- Continually push out high-quality content within your niche
- Contact the brands you already have purchased products from and introduce your channel to them
- Search for brands that match your content and pitch your idea
- Join a YouTube influencer marketing platform
- Consider working with a YouTube sponsorship agency
- Attend industry events and connect with founders and marketing managers
- Network with other established and successful YouTubers. Talk to other YouTubers who have sponsorships and ask them how they found their sponsors. They may be able to give you some helpful advice.
Sponsorships on YouTube (FAQs)
How do YouTubers find sponsors?
Many YouTubers find potential sponsors through platforms dedicated to connecting brands with YouTube influencers. Others may be approached directly by brands or may reach out to companies they are interested in.
Can small YouTubers get sponsorships?
Absolutely! While the pay may not be as large, smaller channels often have highly engaged audiences that are extremely valuable to brands.
Do YouTubers get paid if viewers skip ads?
Ad revenue is separate from sponsorships. If viewers skip ads, it can affect ad revenue but it won’t impact the agreed sponsorship payment.
What do sponsors get in return for sponsoring YouTube content?
Sponsors of YouTube content can receive various benefits in return for their sponsorship. Some common benefits include: product promotion, boosted brand visibility, wider audience reach, direct sales, new leads, new customers, influencer endorsements, etc.
Can you make money on YouTube without sponsors?
Yes, many YouTube creators make money without sponsors. One way to do so is through the YouTube Partner Program (YPP), which allows creators to monetize their videos through ads.
By consistently producing high-quality content, building a large subscriber base, and optimizing videos for search engine optimization (SEO), creators can earn ad revenue directly from YouTube.
Also, creators can make money on YouTube through merchandise sales, crowdfunding, and affiliate marketing.
Are brand deals worth pursuing, or are YouTube Ads enough as your primary monetization strategy?
Brand deals can be worth pursuing as an additional monetization strategy alongside YouTube Ads. They often offer better rates compared to YouTube Ads.
But why do sponsors pay so much?
Sponsors pay significant amounts to YouTubers for targeted audience reach, high visibility, and the credibility that the creator brings to their product or service. Additionally, the content has a long lifespan and often receives cross-platform promotion.
How much does it cost to sponsor a YouTube channel of over 500,000 subscribers?
The cost of sponsoring a YouTube channel with over 500,000 subscribers can range from approximately $5,000 to $50,000 per video. These figures depend on factors such as channel niche, viewer engagement, and the type of sponsorship content.
How do sponsorships affect viewership?
If done well, sponsorships don’t have to impact viewership negatively. The key is to partner with brands that are relevant to your audience.
Is it mandatory to disclose sponsorships?
Yes, in most countries, disclosing any paid partnerships is not just ethical but also a legal requirement.
The Bottom line
Sponsorships are a lucrative income stream for YouTubers, ranging from a few hundred to tens of thousands of dollars. Understanding your worth and the market rate can go a long way in helping you negotiate the best deals.
So, the next time you see your favorite YouTuber rave about a product, you’ll have a better idea of the financial gears turning behind the scenes.
Happy YouTubing!
