David Hellyer tells us about his dejected view about the YouTube partner program. David says….
How do I know i won’t ever make any money out of the partner program? Simple really, I don’t receive anywhere near enough views. Top YouTubers like Nalts, LisaNova and Renetto can reasonably expect to get 10,000 - 20,000 views per video regardless of what it is, with some getting far more! Views is the key thing here. BusinessWeek reported this week that click-throughs on social networking sites are significantly lower than that recieved on other sites (4/10,000 rather than 20/10,000). This is significant because the partnership that YouTube offers is one that shares revenue with you from funds raised by GoogleAdwords. A friend of mine recently started a website and has advertised using GoogleAdwords as they are extremely effective. He pays something in the region of 15p per click-through. This means that even if i were to get Renetto’s views i would only ever recieve at most 60p per video (assuming YouTube passed on the whole 15p to me - which we both know they wouldn’t). Well we all like getting pocket money don’t we… any revenue sharing under the current partner program on offer would definately be pocket money. Except YouTube clearly state in their T&Cs that they will not pay out any money due to partners until it reaches $100.00 (£50.00)… that’s a whole lot of 60p videos!
Kent Nichols (of the Ask a Ninja fame) gave a follow up to this, with some advice for David Hellyer and other Internet TV makers… and even video sharing sites…
[David Hellyer is] a British fellow, so 60p translates to $1.17ish [USD] at today’s exchange rate.
I recently spoke to another partner with a high traffic track record and they said their best quarter in the [YouTube Partner] program has been $500. $500 for three months and a million views. Awesome. (gulp). [That’s sarcasm BTW.]
Now that YouTube is setting the floor for what sharing sites will pay to creators, this give other sites incentives to pay higher fees to creators of popular content.
[Other video sharing sites… you should] Exploit that.
Kent goes on to say….
Other video sites want to cut into YouTube’s marketshare, but how can they compete with YouTube? Cold, hard, cash. MetaCafe’s $5 CPM would’ve netted my friend $5000 for the same million views, not spectacular, but still a tenfold increase. LiveVideo is trying this tactic, we’ll see how that goes. Vuguru, 60Frames, and MySpace are doing it too, although on a much more selective basis.
As a creator you should be always striving to find the best deal for you and your content, and if you can’t get a great deal, stick with the site with street cred and keep looking for a better deal and get better at making content.
Kent’s advice for Internet TV creators is….
Remember to use these [video sharing] sites as much as they are using you. Establish an audience, make a little money, drive as much traffic to your site and use their free bandwidth.
And brand your content as cool and yourself as a creator of cool things.
But then as quickly as possible move on. One show is not a career. It is a stepping stone. Have a vision for yourself and your career and proceed with it. Have new ideas for new shows, and own, own, own as much IP as you possibly can.
And please don’t limit your thinking to just online video. Film, TV, and books all need new cool content and they are in the habit of paying people more than $1.17 for their work.
Good advice for those who are trying to make a living off of Video Blogging, Internet TV, Video Podcasting, Vodcasting, of whatever you want to call it.
YouTube isn’t the only “game in town”. And there’s no reason to be exclusive to just them.
Do what’s best for you, your career, and your business.