# How does it work?

Industry Leaders - - Swish -

Have you ever come across (an­noy­ing) com­mer­cials while watch­ing Youtube videos? Yeah, we all have been there. That com­mer­cial which you need to watch be­fore the ac­tual video be­gins is called pre-roll. Youtube gets paid for ev­ery 1000 times a pre-roll pops up. The amount varies, but usu­ally, Youtube earns some­where be­tween \$20 and \$25 for ev­ery 1000 pre-roll ad views. This is re­ferred as a CPM (Cost Per Thou­sand).

When­ever a Youtube chan­nel gets enough fol­low­ers, the owner of the chan­nel can ap­ply to be­come a mem­ber of their Part­ner Pro­gram. Youtube Part­ners can earn a part of the CPM that is earned by the videos on their chan­nel. Typ­i­cally a Youtube Part­ner may earn around \$5 to \$7 for ev­ery thou­sand times an ad is viewed on their chan­nel, leav­ing the rest for Youtube. Let’s do some math: Sup­pose a Part­ner earns \$7 CPM, so Youtube gets \$18 CPM. If the Part­ner’s chan­nel is able to gain 2 mil­lion views, di­vid­ing 2 mil­lion by 1000 is 2000, mul­ti­ply­ing that by \$7, the Part­ner earns \$14000. This is re­ally a rough cal­cu­la­tion, as the pre-roll won’t pop up in each and ev­ery video that is up­loaded by the chan­nel due to cer­tain rea­sons. A pre-roll won’t be shown if the user al­ready watched one in a pre­vi­ous video, the ad also won’t be vis­i­ble if it is tar­geted to a spe­cific au­di­ence. The pre-roll that is viewed with­out be­ing skipped nat­u­rally earns much more.

Okay, you might be think­ing how would one make mil­lions just by earn­ing CPM? Well, you can if you are one of the Youtube’s most pop­u­lar stars who have bil­lions of video views and are pro­vid­ing con­tent that will drive plenty of views on a reg­u­lar ba­sis. Be­low is a list of some of the Youtube’s big­gest stars who are lead­ing in their field and are earn­ing tons of money through their unique tal­ents. You can have a look at their earn­ings as well as the type of work they do, but don’t blame me if you get tempted to leave your job and start mak­ing home videos! And, these num­bers don’t even in­clude ad­di­tional rev­enues that they gen­er­ate by mer­chan­dise, af­fil­i­ate pro­grams, li­cens­ing, and spon­sor­ship. These dig­its only rep­re­sent the amount that they make solely due to their video views. Also, the list dis­plays the Youtu­bers who are lead­ing in their field; they may or may not be the top ones on the list, but are among the high­est earn­ing Youtu­bers listed by Forbes.