What is RPM and why does it vary so much?

RPM stands for Revenue Per Mille (or per thousand views). It represents how much money a YouTuber earns for every 1,000 views their content receives. RPM varies greatly depending on the video's niche (finance channels generally have higher RPMs than gaming channels), the audience's location, and advertiser demand.

How can I start earning money from YouTube?

To start earning money through YouTube AdSense, you need to join the YouTube Partner Program, which requires at least 1,000 subscribers and 4,000 valid public watch hours in the past 12 months. You can also start earning immediately through affiliate marketing by placing links in your video descriptions.

What is the difference between Amazon Associates and other affiliate programs?

Amazon Associates is a large, general affiliate program for products sold on Amazon, often with small commission percentages. Other affiliate programs are often negotiated directly with companies, potentially offering higher commission rates (10-50%) and can include services or unique products.

How much can YouTubers earn from sponsorships?

YouTube sponsorships can be a major income source, often exceeding AdSense revenue. Earnings can be based on CPM (cost per thousand views), conversion rates, or brand awareness deals. A common benchmark mentioned is around $15 CPM, but this varies significantly by advertiser and creator.

What are the challenges of running a cohort-based course?

Cohort-based courses, like the Part-Time YouTuber Academy, generate significant revenue but are labor-intensive. They require substantial operational effort, team management, and can lead to increased fixed costs. The creator found it took focus away from core content creation activities.

How has the creator's profitability changed over the years?

The creator experienced increasing profitability from 2018 to 2021, reaching a peak of over $2.5 million. However, in 2022, despite increased revenue, profitability dipped to approximately $2.07 million due to a significant rise in costs, marking the first time profit decreased year-over-year.

How Much Money I Made as a YouTuber & Entrepreneur (2022)

Ali Abdaal

Education3 min read47 min video

Jan 5, 2023|1,209,309 views|43,101|1,415

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Key Moments

TL;DR

YouTuber Ali Abdaal details 12 income streams, earning $4.6M revenue and $2.07M profit in 2022.

Key Insights

YouTube AdSense revenue grew significantly from 2017 ($2.27) to 2022 ($653K), heavily influenced by niche and advertiser demand.

Affiliate marketing (including Amazon Associates) and sponsorships are major income sources, with sponsorships yielding $598K in 2022.

Digital products and online courses, particularly cohort-based courses like the Part-Time YouTuber Academy, generated substantial revenue ($1.76M in 2022 for the academy).

While revenue increased to $4.6M in 2022, costs also rose significantly, leading to a dip in profitability compared to 2021.

Niche selection (e.g., finance, business) can drastically impact RPMs and earning potential on YouTube.

Diversification across multiple income streams is key, but over-reliance on third-party platforms like Skillshare carries risks.

YOUTUBE ADSENSE REVENUE PROGRESSION

Ali Abdaal's journey began with minimal YouTube AdSense earnings in 2017 ($2.27), but this stream grew substantially, reaching $16,459 in 2018 and $42,385 in 2019 as he transitioned from medicine. The pandemic, coupled with a shift towards finance-related content, significantly boosted earnings, resulting in $129,262 in 2020 and a remarkable $464,552 in 2021. By 2022, AdSense revenue reached $653,299, driven by high-performing videos on passive income, investing, and website building, highlighting the impact of niche selection on advertiser bids and RPMs.

AFFILIATE MARKETING AND SPONSORSHIP INCOME

Beyond AdSense, affiliate marketing and sponsorships became crucial income streams. Amazon Associates, where Ali earns a percentage of sales from product links, grew from $548 in 2018 to $44,163 in 2022, fueled by popular video recommendations. Direct affiliate deals with companies like Epidemic Sound and Ghost, often negotiated with higher commission rates, contributed significantly, earning $235,665 in 2022. YouTube sponsorships, a major revenue driver, increased dramatically from $7,609 in 2018 to an estimated $598,744 in 2022, demonstrating the power of creator partnerships.

EXPANSION INTO PODCASTS AND NEWSLETTERS

The growth extended to other content formats. While the 'Not Overthinking' podcast started with minimal earnings in 2019 ($400), the more focused 'Deep Dive' podcast, launched in 2021, generated significant income, reaching $153,461 in 2022. The email newsletter, 'Sunday Snippets,' which began in 2018, started monetizing in 2022 through sponsorships, bringing in $97,739. These diversification efforts showcase a strategic expansion beyond traditional YouTube monetization.

DIGITAL PRODUCTS, COURSES, AND MERCHANDISE

Ali explored various digital products by selling a Ghost website template for $462 in 2022 and experimented with merchandise, generating $63,603. His Skillshare classes, particularly a video editing course, were incredibly lucrative, earning $859,106 in 2021, though this decreased to $778,131 in 2022 due to pricing changes. He also launched self-hosted courses like 'Creatorpreneur' and 'Camera Confidence,' earning $179,026 in 2022, emphasizing a move towards owning his educational assets.

COHORT-BASED COURSES AND BUSINESS GROWTH

The 'Part-Time YouTuber Academy,' a cohort-based course, became a dominant revenue source, earning $282,414 in 2020 and peaking at over $2 million in 2021. Despite a slight dip to $1.76 million in 2022 due to reduced marketing focus and price increases, it remains a core, albeit demanding, part of the business. This course highlights the significant revenue potential of live, intensive educational programs.

FINANCIAL OVERVIEW AND THE COST FACTOR

In 2022, Ali Abdaal's total revenue reached approximately $4.6 million. However, costs also surged to over $2.5 million, a significant increase from previous years, leading to a net profit of $2.07 million for 2022. This marked the first time profitability dipped compared to the previous year's $2.5 million profit, underscoring the high operational expenses associated with running a large content creation business and offering extensive educational programs.

Mentioned in This Episode

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