Have you ever wanting to start a YouTube automation channel to get views? If so this guide goes over how you can make money from your videos, and also go over the YouTube automation business model. You can use it as a cash cow or grow it into something until your heart's content.
Be sure to take advantages of these 12 AI tools for build a YouTube automation business.
Understanding the YouTube Automation Business Model
At its core, YouTube Automation is an innovative concept that allows creators to build and manage automated YouTube channels without being the ones physically creating the content themselves.
Instead, entrepreneurs create a team of skilled professionals, outsourced from platforms like Fiverr or Upwork, to handle the different aspects of video creation. The team typically consists of a script writer, a voice actor, a video editor, a thumbnail artist, and a channel manager.
YouTube Automation's real allure lies in its potential to generate passive income. Once the videos are created and the channel gains momentum, the revenue keeps flowing in without the creator's constant involvement. This "set-it-and-forget-it" (Still need newer content to stay relevant) approach allows entrepreneurs to enjoy the fruits of their labor while they focus on other aspects of their business or personal life.
How Does YouTube Automation Business Profit
One of the most intriguing aspects of YouTube Automation is the variety of revenue streams it offers. Creators can monetize their automated channels through the following methods:
YouTube Partner Program
The CPM (Cost Per Mille) business model in the context of YouTube automation works based on the number of ad impressions a video receives per one thousand views.
When a YouTube channel is part of the YouTube Partner Program (YPP) and monetizes its videos through ads, it earns revenue from advertisements shown to viewers.
Ad Revenue Calculation: The revenue generated from ads on YouTube videos is calculated based on CPM, which stands for the cost per thousand ad impressions. Advertisers bid on ad space, and the CPM represents the price they are willing to pay for one thousand ad views.
Monetization Eligibility: To be eligible for monetization through the YouTube Partner Program, a channel must meet specific criteria, such as having at least 1,000 subscribers and 4,000 watch hours in the past 12 months. Once a channel meets these requirements and gets accepted into the program, it can enable monetization on its videos.
Ad Placement: YouTube places ads on videos based on various factors, including the viewer's location, device type, and viewing history. Advertisements can appear as pre-roll ads (before the video starts), mid-roll ads (during the video), or post-roll ads (after the video ends).
Ad Engagement and CPM: The actual CPM earned by a channel can vary significantly based on factors such as the ad's format, the target audience, the video's content, and the time of year. Only high CPM niche videos in the category such as finance, tech, real estate and similar niches get higher CPM.
So pick your niche very carefully for the maximum payout.
Revenue Share: YouTube shares a portion of the ad revenue with the channel owner. The exact percentage varies but is generally around 55%-45% in favor of the content creator. This means that for every dollar earned through ad impressions, the creator receives approximately 55 cents, while YouTube retains the remaining 45 cents.
Users who pays for YouTube Premium that skip ads, the creator will fairly receive a cut of that as well.
Channel Performance: The overall performance of the YouTube channel, including factors like video views, watch time, engagement, and subscriber count, influences the potential for higher earnings. Channels with more engaged and growing audiences are likely to see higher ad revenue.
Placing mid-roll ads on the videos allows creators to earn revenue based on the number of views the ads receive. (Put yourself in the shoes of advertiser. Advertiser pay to show ads across YouTube & google, where the ads may shows on your video, you get a portion of the advertiser's money)
As the channel gains traction and reaches a substantial audience, brands may approach creators for sponsored shout-outs or product placements in the videos.
Creators can leverage affiliate marketing by promoting products or services in their videos and earning a commission for every sale made through their unique affiliate links. (Different product videos and influencer videos can lead to selling affiliate courses, physical products and more)
Cost Per Action marketing involves earning money for every desired action taken by viewers, such as clicking on a link or signing up for a service. (Only works if you are in a niches where it's easier to do so)
YouTube Automation Business Day To Day Operation
It may sound simple to make money from YouTube. Yes, it's easy, but video production can be difficult. It takes time, creativity and lot of physical labor if you are starting new. Ultimately it's about storytelling and videography.
You can do this on your own, or hire a team. At the start, doing everything yourself is a good way to learn. However, in order to grow, you need a team unless it's something you really enjoy working on your own.
Video Idea Generator & Manager: This individual comes up with video ideas and ensures the videos are uploaded on time. The level of responsibility can vary, depending on your preferences.
Scriptwriter: The scriptwriter takes the video ideas and crafts compelling scripts for each video.
Voice Over Actor: Once the script is ready, the voice-over actor records themselves reading the script, providing the narration for the video.
Video Editor: The video editor takes the voice-over and script and assembles video clips, text, and images to create a complete video.
Thumbnail Designer: The thumbnail designer creates visually appealing thumbnails for the videos, enticing viewers to click and watch.
Monetization Strategy: To make the YouTube automation business model profitable, you earn revenue from YouTube through ads shown on your videos. This income is used to pay your team members for their services.
~12 Videos per Month: To break even with 12 videos per month and an RPM of $10, you need an average of 4,000 views per video.
30 Videos per Month: If you increase video production to 30 videos per month, with the same RPM, you'll need an average of 4,000 views per video as well.
Expanding Revenue with Time: The beauty of a YouTube channel is that once a video is uploaded, it can continue generating revenue for an indefinite period. Older videos can accumulate views over time, contributing to your channel's revenue.