Making Money from YouTube

Yesterday’s post about YouTube elicited some interesting comments and e-mails in my inbox... people wondering how one can make money by uploading videos to YouTube. As I wrote yesterday, more than 48 hours of video are uploaded to YouTube every minute. So your chances of cutting through the noise aren’t good at all. That said, I’m a firm believer in the old saying “Talent will always win out.” Talent, in the case of YouTube could be defined as anything adorable, wacky, shocking, hilarious or just plain different. If you look at the most viewed videos, they invariably fit into one of those categories.

So let’s say you’ve managed to capture a moment that fits into one of those categories. And let’s say that there are no copyright infringements, meaning: you aren’t using music you don’t own the rights to, or other copyrighted material that YouTube expressly prohibits in their Terms of Service. Assuming all that, how do you make money off your video?

Here’s the business model YouTube employs, which allows everyday folk like you and me to disrupt the traditional Hollywood models of production, distribution and monetization.

1. When a video on YouTube reaches a certain number of views, meaning it’s trending over a short period of time or accumulating views via the long tail (some vids explode years after they’ve been uploaded), YouTube will reach out to the channel owner (a channel on YouTube is just a unique user account associated with an e-mail address) and ask to partner with him/her.

2. At that point, the channel is now able to share in YouTube’s revenue stream. YouTube makes money by serving up ads. Some ads appear before the video plays. These are called pre-roll ads. Some of the pre-rolls can be skipped after 5 seconds, others you have to watch in their entirety before a video plays. When YouTube first launched, there were no ads. Over time, they’ve slowly introduced more and more pre-rolls and users don’t complain too much because, hey, they’re pretty short by comparison to TV ads and many can be skipped by clicking a button. There are also display ads that appear over the lower third of the video sometimes, toward the bottom of the viewer. These, too, can usually be closed with a click. And there are also ads on the actual channel page. Together, all these ads blend and add up to an average CPM of $2.

3. CP-what? CPM or cost-per-thousand. It’s actually cost per mille, the Latin for thousand. What this means is: Every time 1,000 people view a video, YouTube pays you $2. We won’t get too technical here and define what a “view” is because there are different rules for different videos, but basically when that view counter moves up a tick from 234 to 235, YouTube counts it as one view. So if a video is viewed 2,000 times, the channel is paid $4. Presumably, YouTube is making about the same off the video as the channel is, so the gross revenue from the video is probably more like $4 per 1,000 views.

4. This may not seem like much money, but when you consider that some videos are being viewed millions of times, it starts to add up. Well-known YouTube channels, like FreddieW, upload videos every week. At the moment, his channel has close to 354 million views (and he has more than one channel!). Doing the math then, 354 million divided by 1,000 = 354,000 x 2 = $708,000. So it’s through many videos and many channels that YouTubers are able to make a nice living off their work.
5. Okay, so you’re probably not going to be the next FreddieW. But still, a single video hit, like Charlie Bit My Finger, can also make a good deal of money. As I wrote yesterday, that video has been seen about 367 million times, which translates to about $700,000. Enough, perhaps, to put little Charlie and his brother through college.

Can You 'Hear' These Silent GIFs?

GIFs are silent—otherwise they wouldn't be GIFs. But some people claim to hear distinct noises accompanying certain clips. Check out the GIF below as an example: Do you hear a boom every time the structure hits the ground? If so, you may belong to the 20 to 30 percent of people who experience "visual-evoked auditory response," also known as vEAR.

Researchers from City University London recently published a paper online on the phenomenon in the journal Cortex, the British Psychological Society's Research Digest reports. For their study, they recruited more than 4000 volunteers and 126 paid participants and showed them 24 five-second video clips. Each clip lacked audio, but when asked how they rated the auditory sensation for each video on a scale of 0 to 5, 20 percent of the paid participants rated at least half the videos a 3 or more. The percentage was even higher for the volunteer group.

You can try out the researchers' survey yourself. It takes about 10 minutes.

The likelihood of visual-evoked auditory response, according to the researchers, directly relates to what the subject is looking at. "Some people hear what they see: Car indicator lights, flashing neon shop signs, and people's movements as they walk may all trigger an auditory sensation," they write in the study.

Images packed with meaning, like two cars colliding, are more likely to trigger the auditory illusion. But even more abstract images can produce the effect if they have high levels of something called "motion energy." Motion energy is what you see in the video above when the structure bounces and the camera shakes. It's why a video of a race car driving straight down a road might have less of an auditory impact than a clip of a flickering abstract pattern.

The researchers categorize vEAR as a type of synesthesia, a brain condition in which people's senses are combined. Those with synesthesia might "see" patterns when music plays or "taste" certain colors. Most synesthesia is rare, affecting just 4 percent of the population, but this new study suggests that "hearing motion synesthesia" is much more prevalent.

[h/t BPS Research Digest]

Live Smarter
The Google Docs Audio Hack You Might Not Know About

To the uninitiated, Google Docs may take some warming up to. But although it may seem like any other word processor, Docs offers its fair share of nifty features that can make your life a whole lot easier. The only problem is that few people seem to know about them.

The Voice Typing function is one such example. As Quartz discovered, this tool can be used to drastically cut down on the time it takes to transcribe an interview or audio recording—a feature that professionals from many fields could benefit from. Voice Typing might also be useful to those who prefer to dictate what they want to write, as well as those with impairments that prevent them from typing.

Whatever the case may be, it's extremely easy to use. Just open a blank document, click on "tools" at the top, and then select "voice typing." A microphone icon will pop up, allowing you to choose your language. After you've done that, simply click the icon when you're ready to start speaking!

Unfortunately, it's unable to pick up an audio recording played through speakers, so you'll need to grab a pair of headphones, plug them into your phone or voice recorder, and dictate what's said as you listen along. Still, this eliminates the hassle of having to pause and rewind in order to let your fingers catch up to the audio—unless you're the champion of a speed typing contest, in which case you probably don't need this tutorial.

According to Quartz, the transcription is "shockingly" accurate, even getting the spelling of last names right. For a how-to guide on the Voice Typing tool, check out Quartz's video below.

[h/t Quartz]


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