So, your YouTube channel is taking off — views up, subs up, ego up. They love you. They really love you. But then you check your bank account, and you think, ‘all that hard work for nothing.’
So many content creators spend time chasing the algorithm, posting non-stop, and designing the most creative thumbnails only to find that their creator income couldn’t pay for their Netflix subscription, let alone their rent.
Ladies and gentlemen, welcome to the creator’s paradox — where fame grows faster than funds.
I’m going to show you how to run your YouTube channel like a business and share some practical strategies to monetize, budget and track your revenue.
Rule Number One: YouTube Is A Business
I can tell you that one of the main reasons many YouTubers don’t grow financially is because too many of them treat YouTube like a passion project.
Treating your channel like a hobby won’t pay the bills — you need to approach it with a YouTube channel business mindset to actually earn income.
Sure it’s a fun creative outlet, but if you want to financially benefit from this platform, you’ve got to prioritise the business aspect.
Before I go any further, I would be remiss if I didn’t mention that audience growth doesn’t automatically mean income growth. So, there must be a multi-pronged focus on growing the subscriber count, as well as the revenue.
I don’t know about you, but I love business. It allows me to tap into my analytical side and I love working with numbers. The virgo in me also loves order, so I naturally like doing things the proper way, which is why I think the first order of business is to form an actual business.
That means getting an LLC.
Now, I’m not going to pretend for one second that getting an LLC is as simple as it sounds. At least it wasn’t for me. As someone who lives in Washington, DC, it took a lot of research, emails and calls to my local tax office to make sure I was compliant when forming my business.
If you don’t want to go through the entire process, I certainly understand. But, even if you choose to run a sole proprietor entity, make sure you’re still operating above board.
Try This YouTube Income Strategy
Every successful creator knows that building a sustainable YouTube channel business takes planning, monetization strategies, and consistent financial tracking.
If your desire is to make way more money than you currently are, you need to refine your approach.
- First, audit your revenue streams. Where is the bulk of your money coming from? Are there opportunities to increase your earnings?
- Identify your highest-performing content. There’s a reason why people gravitated towards that particular piece of content. Try to recreate it.
- Add monetization layers. Don’t just rely on Adsense. There is money to be made with affiliate marketing, merchandise and sponsorship deals.
- Set up analytics to track income sources.
- Reinvest earnings into growth. Don’t be so cheap that you don’t put money back into your business to improve your setup and streamline your operation. That may look like improving your set, getting better gear, hiring a video editor or a graphic designer to make your thumbnails. It may even look like paying for ads.
YouTube Likes Are Nice, but Direct Deposits Are Nicer
If you’re not making money on the platform, you have no idea what you’re missing out on.
The first time you start make serious money on your YouTube channel – I’m talking five and six figures, it will change your life.
But, again, you’ve got to strategise ways to increase your earnings.
So many YouTubers hyper fixate on growing their subscriber count that they forget that that numbers is a vanity metric. You don’t make more money the more subscribers you have.
If you want to make money, you’re going to have to focus on views and watch time.
The more people who watch your videos and the longer they watch them, the more YouTube can place ads in the video. This means more money for you.
The same hustle that builds your channel can build your bank account. But, that’s only if you treat your finances with the same respect.
The Business Side Of Being A YouTuber Means Separating Business From Personal
A bit of advice: separate your business and personal accounts.
Years ago, when I was living in The Bahamas, a popular PR firm owner needed a stamp to mail a personal letter. I watched her pay her business for the stamp.
Now, she could have just taken the stamp – after all, it was her business, and what’s a stamp cost – a few cents? But, she was determined to keep her personal affairs separate from her business affairs.
It was a powerful lesson for me. That’s why I don’t comingle funds, and I make sure to pay for my business’ subscriptions, equipment, stock from my business account. Never personal.
Track Everything. I Mean Everything
As money comes in and goes out, make sure you are tracking everything.
Track every income stream (AdSense, sponsorships, affiliates, merch, etc.) Keep an eye on how much you are spending out.
Invest in tools or people that save you time because as we all know – time is money.
I had to start relinquishing things – something that’s very hard for me to do because I am somewhat of a control freak. I just don’t trust people to do things the way I do them.
However, I was starting to get burned out, so I had to give up some control.
Pay Yourself A Salary (Even If It’s Small)
You don’t just want to be a slave to the machine. You are working hard and deserve to be compensated. So, make sure you are regularly paying yourself a salary.
The goal isn’t just to “make it.” It’s to keep it, grow it, and eventually, buy your time back.
Clout Won’t Pay Your Taxes
Don’t wait until tax season or burnout to get serious.
I am not ashamed to tell you that I am terrified of the IRS. I do NOT play with them. They are serious about getting their money, so you’d better have it.
When I didn’t set aside enough money for taxes, I paid dearly for it. Set aside 25–30% for taxes. You’ll thank yourself later. Oh, and trust me, I learned this the hard way. I’m still triggered.
These days, I have an accountant firm that handles things for me.
By the way, if you’re a creator and need accounting help, try Cookie Finance, it’s the one I use. The best part about them is their roster is exclusively made up of content creators.
Sign up here: https://info.cookiefinance.co/contact_2229 and use my special code: KD2229HD to get a special discount on the Essentials plan.
Set Financial Goals along With Subscriber Goals
So many of us are so focused on getting to 1,000, 100,000, or 1 million subscribers that we don’t set financial goals.
How much money do you want to earn each quarter? With your social media accounts, you can give yourself a raise whenever you want to. Just one of the huge perks of working for yourself.
So, set your financial goals and work towards them diligently, the same way you would when trying to reach subscriber milestones.
Own Your Own Digital Real Estate
Remember MySpace?
What about Vine?
Those social media platforms were on top of the world at some point. Now, they have gone the way of the dinosaur.
Social media platforms can go away overnight. So, it’s important that you own your own digital real estate.
I have had a blog for years – the very one you are reading right now. Is it as popular as my YouTube channel? No. But, it’s mine. I own it and I will never give it up. If, for some reason, YouTube shut down tonight (fingers crossed it won’t), I would at least have my own digital real estate that my viewers and supporters can pivot to.
As a business owner, you have to constantly think worst-case scenario. Don’t wait for the bottom to fall out to pivot.
Create An Email List
As a business owner, you need a way to reach your audience outside of your social media platforms.
If the only way you can talk to your audience is through the comments section, you’re in trouble.
Remember, we’re thinking worst-case scenario, and we don’t want to lose access to our supporters because the platform went away or threw you off.
Optimise What You Already Have
So many content creators are focused on churning out new content day after day. It’s exhausting – like being on a mental hamster wheel.
Sure, you need to have brand new content to keep your audience engaged, but you should also take the time to optimise the content you already have. That may mean updating thumbnails and SEO tags or freshening up the description box.
Add affiliate links to your evergreen content.
Your creative freedom depends on financial discipline just as much as your next upload.
So, start seeing your channel as a business — because it is one.
Disclosure: This post may contain affiliate links. If you sign up through any link on this blog post, I may get a small commission.
Great article!
Hi Said! Thanks so much for taking the time to read the post. I truly appreciate it.