How to Calculate Your Royalties and Receive Payments for Your YouTube Videos

YouTube is the second-largest and most popular social network in the world, allowing influencers, entrepreneurs, and content creators to open their own channels to increase traffic, boost sales, and generate various income streams.

In Latin America, Brazil, Mexico, Colombia, and Argentina have the highest number of active users on the platform, who use it to watch videos, listen to music, and entertain themselves. However, calculating royalties and managing payments for video views can be a complex and confusing process.

As experts in digital content monetization, we'll guide you step-by-step on how to calculate your royalties and receive payments for your YouTube videos. We'll explore the different sources of income, the process of calculating royalties, and options for receiving payments efficiently, avoiding high fees.

Income Sources on YouTube

• Advertising: The main source of income for many YouTubers is advertising. Ads are shown before, during, or after your videos, and YouTube pays you a portion of the revenue generated from those ads. Ad types include video ads, overlay ads, and banners.
• Channel Memberships: YouTube allows creators to offer channel memberships to their followers. Members pay a monthly fee in exchange for exclusive benefits, such as additional content and custom emojis. Creators receive a portion of these monthly payments.
• Super Chat and Super Stickers: During live streams, viewers can purchase Super Chats and Super Stickers to highlight their messages. YouTube takes a commission and the rest is paid to the creator.
• Sponsorships and Collaborations: Besides direct YouTube income, many creators earn money through sponsorships and collaborations with brands. These deals can vary widely in terms of payment and conditions.
• Product Sales: YouTube also allows creators to sell products directly through the platform, whether it's official merchandise, online courses, or affiliate products.

Calculating Royalties on YouTube

Factors Affecting Income

Ad revenue on YouTube is influenced by several factors, including:

• Number of Views: More views mean higher income potential.
• Video Length: Longer videos can include more ads.
• User Engagement: Videos with higher interaction (comments, likes) tend to generate more income.
• Geographic Region: Income can vary based on the region from which the videos are viewed.

RPM and CPM

• RPM (Revenue per Mille): Indicates total revenue (including ads, memberships, Super Chats, etc.) per thousand views. This value gives you an overall view of how much you're earning per thousand views.
• CPM (Cost per Mille): Reflects the cost paid by advertisers per thousand ad impressions. Not all CPM income translates directly into earnings for the creator due to YouTube's commission.

Step-by-Step to Calculate Royalties

1. Access YouTube Studio: Log in to your YouTube account and go to YouTube Studio.
2. Check the Analytics: In the dashboard, select "Analytics" and then "Revenue."
3. Analyze RPM and CPM: Here you can see the RPM and CPM values, which will help you understand your ad revenue.
4. Calculate Income: Multiply the RPM by the number of thousands of views you’ve received in a specific period to estimate your total earnings.

Receiving Payments from YouTube

AdSense Setup

To receive payments from YouTube, you need a Google AdSense account. Here’s how to set it up:

1. Create an AdSense Account: If you don't have one, create an account on Google AdSense.
2. Link Your YouTube Channel: In YouTube Studio, go to "Monetization" and follow the instructions to link your AdSense account.
3. Verify Your Account: Google will send a PIN to your postal address, which you’ll need to enter in AdSense to verify your account.

Payment Methods

YouTube offers several payment methods, depending on your location. Common methods include:

• Bank Transfer: Directly to your bank account.
• Check: Sent to your postal address.
• Western Union Quick Cash: For cash withdrawals at specific locations.

Payment Threshold

YouTube has a minimum payment threshold of $100 USD. You won't receive a payment until your accumulated earnings reach this amount.

Avoiding High Fees

To avoid high fees when receiving international payments, consider the following options:

• U.S. Bank Account: Opening a U.S. bank account can significantly reduce transfer fees. You can do this through online services that offer accounts for non-residents.
• Money Transfer Services: Use services like Payoneer or TransferWise, which often offer better exchange rates and lower fees than traditional banks.

Frequently Asked Questions

1. How do I know if I’m receiving the correct payment for my ads on YouTube? You can check your earnings in YouTube Studio and compare them with the payments received in AdSense. If you notice discrepancies, contact YouTube support.
2. Can I change my payment method at any time? Yes, you can change your payment method in your AdSense account settings. Changes may take a payment cycle to reflect.
3. What should I do if I don’t receive my YouTube payment? Verify that your AdSense account is correctly set up and that you've reached the payment threshold. If everything is in order, contact AdSense support.

Calculating your royalties and receiving payments for your YouTube videos can seem complicated, but with the right information and tools, it’s a manageable process. Understanding how income is generated and calculated, as well as correctly setting up your AdSense account and choosing the best payment method, will allow you to maximize your earnings and minimize fees.

At Prodezk, we offer personalized service at every step of the way, ensuring a hassle-free experience in the U.S.