Best Ways to Make Passive Income on YouTube

There are many ways to make passive income on YouTube and in this article I am going to share with you my own personal strategies that work.

When I started my first YouTube channel I just focused on the YouTube Partner Program and affiliate marketing. 

But I soon realized I was leaving money on the table by not monetizing with other strategies that can be truly passive. So, if you're going to start a channel, make sure you incorporate these strategies I will list for you - as long as they make sense.

Not all of these will be applicable to you, but if they make sense, be sure to make them part of your strategy to generate passive income.

Key Takeaways

• You can earn passive income on YouTube through multiple avenues beyond ad revenue
• Strategies like affiliate marketing, merch, channel memberships, sponsored content and digital sales provide income with minimal ongoing effort.
• Effective use of YouTube's monetization ecosystem can lead to sustainable passive income for years to come.

Let's jump into the ways you can make passive income with YouTube!

1. YouTube Partner Program

The YouTube Partner Program has really expanded over the years. In this program I make money not just with ads, but there are other methods they have developed that has enabled me to make money beyond ad revenue. Here are all the methods I use:

Adsense

Under YPP, creators can earn money through AdSense, where advertisers pay to display brief advertisements, video ads, or banners during the playback of the creator's content. 

To be eligible, you must:

• Have 1000 subscribers and a count of 4000 watch hours in the previous 12 months.
• Have 1000 subscribers and 10 million valid public "shorts" views in the previous 90 days

You get paid for every 1000 views. The amount per thousands views depends on the niche you are in. For example, some niches I am in will pay just $2 to $5 per 1000 views while others are getting close to $30 per 1000 views. 

The higher amount is due to how much advertisers are willing to pay. If there is more competition, this will drive up the advertising cost which means more money for you. 

You will get paid 55% of what the advertisers spends. For example, if an advertiser spent $100 from ads displayed on your channel, you would get $55 of that. 

YouTube Premium

YouTube Premium revenue is another advantage of YPP. Many creators think that they won't earn anything from viewers of YouTube Premium because they have no ads - but this isn't true! I still get paid when a YouTube Premium member watches my content.

The amount varies depending on how much Premium members watch the creator's videos compared to others.

Super Chats & Super Stickers

Super Chat allows viewers to donate money to creators during live broadcasts, while Super Stickers are interactive images that viewers can purchase and use in the chat. This is something I didn't really use right away because I needed to grow my channels first. As soon as one of my channels started getting popular, I started using both Super Chats and Super Stickers. 

Now, I wouldn't say that this is really that passive because it's not something you can do in your sleep. You need to interact with your audience for this to work. However, it's something that can grow over time and besides, you should interact with your audience, they will appreciate you more!

Channel Memberships

YouTube Channel Memberships are a great way to generate passive income on the platform. By offering exclusive perks and content to subscribers who pay a monthly fee, creators can earn money from their loyal fans while providing them with additional value.

One of the key benefits of channel memberships is the recurring revenue stream they provide. Unlike one-time donations or ad revenue, which can fluctuate from month to month, channel memberships offer a steady and predictable source of income for creators.

Shopping

If you have your own online store, you can connect it to your YouTube channel. To connect, go to your YouTube Studio, $EARN, then SHOPPING and click on the "Connect Store" button.

You can have one or multiple stores connected. When you make it easy for people to buy your products from your store without having to leave YouTube, it makes a great strategy for passive income.

Super Thanks

Super Thanks is another feature that allows viewers to show their gratitude by paying for highlighted comments on video pages. This functionality gives creators another means of direct audience support and interaction, and - passive income!

Join button

Finally, the Join button on a channel's page enables subscribers to become paying members directly from the creator's channel. This simplifies the process of joining Channel Memberships, enhancing potential income for creators.

2. Affiliate Marketing

Affiliate marketing is my other favorite way to make passive income on YouTube. For all the niches I am in, I always find a way to market affiliate products. Once you understand your audience and what they like, you can find products that your audience will be interested in and link them in the description box below the video.

Registering for affiliate products is easy, just go to the website of the product and look for an affiliate program. Or, you can find products on sites like Clickbank, Amazon, JVZoo, etc.

3. Digital Products and Courses

Another way to earn passive income on YouTube is by creating your own digital products or courses. Viewers are often drawn to content that educates, provides solutions or enhances skills.

By leveraging this demand, you can make some pretty good money selling digital products to your audience. Here's a tip - ask your audience if they'd buy a course if you were to create one. It's a great way to gauge if it will work or not!

The simplest way to do this is with an ebook. They are inexpensive to produce and can be sold repeatedly with no additional cost per unit. Creators often compile their expertise into e-books that provide value to their audience.

Online Courses: Your online course can range from a simple PDF to comprehensive video series hosted on platforms like Teachable or Udemy. 

Here's a quick guide on what digital product you can create and the platform you can link to from YouTube to sell it on:

4. Merchandise (Print on Demand)

Selling merch can be a very lucrative way to make passive income with your YouTube channel but it's not something you'll be able to do right away. You need to establish your brand first and have a good subscriber base of devoted fans.

Once you reach that status, you might consider selling merchandise through print on demand. 

This method allows you, as a creator, to design and sell your own branded products without managing inventory or handling shipping. When a customer places an order, the print-on-demand company prints the item and ships it directly to them.

They can capitalize on various types of merchandise, such as:

• Apparel: T-shirts, hoodies, and hats
• Accessories: Phone cases, bags, and stickers

All you need to do is come up with a design and the print-on-demand service will handle it. Some of the more popular ones are:

• Printful
• CustomCat 
• Spring

5. Sponsored Content

At some point when your channel is getting a lot of views and subs, brands are going to approach you for sponsored content. Now, I would suggest that you be careful in choosing the brands to work with. Trust me, it's not worth it to piss off your audience with too much sponsored content or worse, products that don't interest your audience. It happened to me before and it can kill your channel pretty quick.

However, sponsored content can be lucrative and you could just work with one or two brands. They will continue to pay you for mentioning their products or services as long as you keep mentioning them in your videos. This can mean passive income for many months to come.

Key Considerations:

• Audience Match: The creator’s audience should align with the brand’s target market.
• Transparency: Regulations require disclosure of sponsored content to viewers.
• Creative Control: Content creators often negotiate the extent of creative control over the sponsored content, maintaining the authenticity of their channel.

6. Endorsements

There's a pretty big difference between an endorsement and "sponsored" content as I just mentioned. With an endorsement, it typically involves you personally recommending a product or service based on your genuine experience and satisfaction with it.

With sponsored content, you may or may not have used the service or product you are promoting to your audience. This makes endorsements much more trustworthy because endorsements are perceived as more authentic if the audience believes you are sharing your honest opinion rather than being paid to praise the product.

So, if you use a product that you absolutely love and can get paid to endorse that product on your channel, that's passive income that can last for as long as you want.

7. Licensing Your Content

You can generate passive income with your YouTube channel by licensing your content to other media outlets.

This strategy involves granting permission for other entities to use your videos. The process can be both lucrative and straightforward, as creators retain ownership of their content while earning from its use by third parties.

To have any success with this strategy, you should:

• Build a portfolio of high-quality videos.
• Research potential clients, such as television networks, online publishers, or educational platforms, who might be interested in your content.
• Establish clear licensing agreements that specify usage terms and compensation.

To build passive income with licensing, you can achieve this by:

• Direct Contact: Reaching out to businesses that might benefit from your content.
• Licensing Platforms: Utilizing online marketplaces that connect video creators with buyers.
• Representation: Working with an agency that specializes in content licensing.

8. Crowdfunding and Donations (Patreon, Buy Me a Coffee)

Using platforms like Patreon or Buy Me a Coffee are very popular with a lot of YouTubers. 

Typically, you will either offer something in return for donations such as access to members only videos, meet-ups, live chats, etc. Patreon is known for this and there are a few different membership types you can set up for your YouTube audience.

The other extreme are companies like "Buy Me a Coffee" where you don't need to provide anything in return. People are happy to send you a few bucks just to say thanks for your content. This is the easy route, but not nearly as profitable as Patreon.

I mean, you'd want something in return wouldn't you, right? 

Figure out what works for you but both of these can mean passive income on autopilot for your channel.

9. Consulting and Coaching Services

Is your YouTube channel is a niche where you could provide consulting/coaching services? 

This won't apply to you if your channel is more entertainment based but let's say for example you are in the investment or real-estate niche. You could offer personalized services outside of YouTube for a fee.

As you get a stream of steady clients, this can generate some pretty hefty passive income. Now, I know what you're thinking - this isn't very passive because you have to put in the work. But, if you love what you do, it will be passive to you. If that makes sense.

10. Build an Email List

An email list serves as a direct line of communication with an audience, enabling you to create a relationship with viewers beyond the YouTube platform.

You'll need some type of a "freebie" to get people to sign up for your list. Maybe this could be a cheat sheet or a link to a video that is something you can't show on YouTube.

Once you have them on your list, you can set up an email campaign that provides value - either information in your niche or unseen videos. In between that, you can promote affiliate products and make passive income from that.

You'll need an autoresponder email program to do that, like GetResponse. 

Different Ways to Create Content For YouTube

Creating content for YouTube can be approached in various ways, each with its own level of personal involvement, type of audience, and creative process. Below are some different ways to produce YouTube content.

Create a Branded Channel

With a branded channel, you are  typically the face and voice behind the content. This involves a high level of personal involvement sharing personal expertise, personality, and unique perspective. Examples of channels like this are tutorials, vlogs, or reviews, all tied together by the creator's personal brand.

Create a Faceless, Automated YouTube Channel

If you are  looking to generate content with less personal exposure, creating a faceless, automated YouTube channel is an option. These channels focus on high-interest topics like listicles, compilations, or narrated stories. Your input will be voice-over narration with stock footage or animations. You don't need to go on camera so it's appealing for a lot of people that are camera shy.

Automated or AI-Generated Content

Another way is to create Automated or AI-Generated Content, using AI tools to generate scripts, voiceovers, and sometimes even video elements. If you're not very creative then why not let AI do this part for you. It's very hands-off. Most of the work will be doing the editing.

Conclusion

Establishing a passive income stream on YouTube requires effort up front. However, with the right strategies, you can ultimately reap benefits over time. As mentioned in this article, you can go well beyond the YouTube partner program by incorporating affiliate marketing, sponsorships, selling your own digital products & courses, merchandise, crowdfunding and more.

Choose the right strategy for you.

Need more help? Check out my review of the best YouTube courses.