Traditionally, stars are born on television or in the movies, but in more recent years, YouTube has been behind the making of many celebrities. These “YouTubers” have loyal followings and millions of subscribers. A glance at any of PewDiePie‘s (the top YouTuber in the world) videos will show that millions of people are watching his videos. This begs the question, do YouTube stars gain profit from their videos? If so, how?
The answer lies in a mathematical algorithm that varies from YouTuber to YouTuber. Every 1,000 views garners a custom amount known as an RPM (rate per mille). The RPM is based on a variety of factors including the number of subscribers, views, and even the time of year. Even the most popular YouTube star can have an RPM of $10, which translates to a unit rate of one cent per view.
Smosh, are some of the biggest YouTube stars in the world. After YouTube’s cut, they earned an estimated $448k-$6 Million from their nearly 28 million subscribers and 4.6 billion views. The comedy duo consisting of YouTube veterans Ian Hecox and Anthony Padilla, became well-known for their parody videos of games and pop culture. Rumor has it, they have plans to air their own comedy show on television. (via BusinessInsider)