YouTube continues to constantly reinvent itself and, as a result, keeps creating new opportunities. What once started mainly with funny cat videos and simple DIY tips has today grown into a fully-fledged platform where millions of creators build an income.
Thanks to YouTube Shorts, your content is more accessible and your reach grows faster than ever. In this article, you’ll learn how to turn your passions into income through YouTube and discover how to correctly declare this income.
Why YouTube?
You don’t need to be a big name or have thousands of followers to turn your passion into a YouTube channel and a source of income. Even a small, niche-focused channel can quickly generate revenue. Therefore, decide what your content will be about: tutorials, practical tips, or insights into a topic you excel in.
Don’t be discouraged by the content that already exists. New channels still have plenty of opportunities to grow today. Above all, choose something you genuinely enjoy doing, because the more fun you have creating videos, the more strongly that feeling will come across to your audience.
How much can you earn with YouTube?
There are many ways to make money with YouTube. One of them is getting views on your videos. YouTube doesn’t have a fixed rate, but in Belgium the average is around €1 to €4 per 1,000 views.
How much you earn exactly depends on many factors. One of them is the topic of your video. Videos about finance, entrepreneurship, marketing, and tech generally perform better. With an international audience, your views and income can also increase quickly.
👀 Tip: videos with practical tips about finance and technology usually have the highest advertising budgets.
Other factors include the demographics and location of the audience, the use of ad blockers, the size of the channel, and engagement with the videos. Videos that receive many likes, comments, and long viewing times are more attractive to advertisers and can therefore generate higher revenue.
How can you make money with YouTube?
YouTube also offers several other ways to make money, and you can perfectly combine them. Broadly speaking, all revenue models on YouTube fall into two categories:
- Ways where you are paid directly by YouTube, such as through the YouTube Partner Program and YouTube Shorts.
- Ways where you use YouTube as a platform but receive income from external parties, such as through affiliate marketing and sponsorships.
1. The YouTube Partner Program (YPP)
YouTube earns revenue through advertising. Do your videos get a decent number of likes and views? Then YouTube is happy to share a portion of that revenue with you through the YouTube Partner Program.
This happens via ads shown before, during, and after your videos. In addition, the YPP also gives you access to extra features such as fan funding and shopping. Since June 2023, the program has been split into two levels:
1️⃣ Early Access Version
This version is intended for smaller creators and has lower entry requirements. You can already generate income here through fan funding and other features, but not yet through ads. You can see it as a first step toward the full program.
2️⃣ Full Version
In the full version, you can earn money from ads shown before, during, or after your videos.
When are you eligible?
To apply for the YPP, you must meet these basic requirements:
- You must comply with YouTube’s policies.
- You must have no warnings for violations of the community guidelines.
- Two-step verification must be enabled for your Google account.
- You have or create an active AdSense account and link it to your YouTube channel in order to receive payments.
- In addition, you must meet the requirements of the YPP level you are applying for:
Early Access Version:
- 500 subscribers
- 3 valid public uploads in the past 90 days
- 3,000 watch hours in 12 months or 3 million Shorts views in the past 90 days
Full Version:
- 1,000 subscribers
- 4,000 watch hours in 12 months or 10 million Shorts views in the past 90 days
After your application, YouTube reviews your channel using a mix of automated and human checks. You usually receive a decision by email within a month. If you are rejected, you can object within 21 days, or upload new content and reapply after 30 days. Note: after repeated rejections, you must wait 90 days before trying again.
Once you are accepted into the YPP, you receive a share of advertising revenue and YouTube Premium revenue.
How do you earn money with the YouTube Partner Program? 🤑
With the early access version, you only have access to fan funding features. In this case, your fans provide the majority of your income.
- Fans can interact with you during livestreams and premieres through Super Chat and Super Stickers. These are eye-catching messages and stickers that fans can buy to support you and make their messages stand out.
- If you, as a creator, promote your own products in your videos, your fans can easily buy these products directly from your content via YouTube Shopping.
- Through channel memberships, your biggest fans can enjoy exclusive benefits, such as loyalty badges, emojis, and exclusive content. These are available to members when they make a monthly payment as a channel member. The big advantage here is that you, as the creator, choose which rewards you offer and how much each membership level costs.
- Through Super Thanks, your fans can show their appreciation for your content. These are cheerful animations of clapping hands that viewers can purchase. Only they can see them on the video of your channel. Buyers also receive a prominent, colorful reply in the comments section of the video, making it easy for you to recognize and thank your biggest supporters.
In the full version of the YPP, two additional options are added:
- Ad revenue, where you generate a share of the income from ads on watch pages and ads in the Shorts feed. If you upload a video longer than 8 minutes, you can place mid-roll ads in your video.
- YouTube Premium revenue, where you receive a share of the subscription fees from YouTube Premium subscribers when they watch your content.
2. YouTube Shorts
YouTube Shorts are YouTube’s response to TikTok and Instagram Reels. With Shorts, you can record and share short videos of up to 60 seconds. The advantage is that you need little time to film and edit everything; all you need is a phone and an idea. You can use YouTube Shorts as a new or additional source of income.
How do you earn money with YouTube Shorts?
To earn money with YouTube Shorts, you also need to be part of the YPP. The money you receive directly from YouTube also goes entirely through the YPP.
- Ads in the Shorts feed: YouTube sells ad space to companies and shows these ads between Shorts videos. You cannot decide yourself whether ads appear in your Shorts. The revenue from these ads is collected by YouTube and then distributed between YouTube and the Shorts creators.
- Fan funding: This is direct support from your viewers and fans. Examples include Super Chat and Super Stickers during live Shorts, and Super Thanks or channel memberships for regular videos.
3. Affiliate marketing
You can also earn money through YouTube via external parties; in that case, you are paid by them and not by YouTube. You don’t need to be part of the YPP for this. One way to earn money this way is through affiliate marketing.
How does it work?
As an affiliate marketer, you promote products or tools that you use yourself. When someone makes a purchase through your link, you receive a commission. This is an accessible way to start earning money through YouTube, as no minimum number of followers is required.
🚨 Note: always be transparent with your viewers and let them know that you receive a commission for the products you promote.
4. Sponsorships
You don’t have to be a big YouTuber to get sponsorships. Brands are increasingly looking for small creators with a specific target audience who can promote their products.
How do you find a sponsor?
There are various platforms where you can get in touch with brands looking for creators to promote their products or services. For example:
- BrandConnect, YouTube’s built-in feature for finding sponsorships. This platform uses data about your audience to match your channel with brand partners.
- Shopify Collabs, where you can find brands that match your content and values.
5. Free advertising
YouTube is not only used as a direct source of income; it is also a platform where you can advertise your own products or services for free. This makes it a way to increase your visibility and customer base as a business.
For example, you can promote your books, but also other products or services from your secondary occupation. These could include Canva templates, e-books, or courses.
Do I have to pay taxes on my YouTube income?
Great that you’re making a profit with your YouTube channel! But what about the tax side of things?
As a Belgian resident, you must declare all your income to the tax authorities, including what you earn through YouTube.
Do you mainly make YouTube videos as a hobby, but one of them goes viral? Then you may receive a one-time payout. This falls under miscellaneous income in your tax return and is taxed at 33%.
Do you earn money on a structural basis with your channel, for example because you regularly post new videos? Then the tax authorities consider this as professional income. In that case, it is fiscally advantageous to have a self-employed status, as a main occupation, secondary occupation, or as a self-employed student.
As a self-employed person, you pay taxes according to progressive tax brackets (25–50%), but you can also deduct professional expenses, such as a computer, microphone, camera, or other equipment you need.
✔ Self-employed in secondary occupation
If you are in paid employment and start a sole proprietorship, you automatically become “self-employed in secondary occupation”. This allows you to combine two incomes.
✔ Self-employed student
If you are a student, you may qualify for the status of self-employed student. Some conditions do apply.
Attention: be sure to take into account, among other things, child benefits, your health insurance, exactly which taxes you pay and how much you pay in social security contributions. These are the five key figures for self-employed students.
✔ Self-employed in main occupation
Has your YouTube channel launched and do you want to fully commit to it without another job? Then you can become self-employed in main occupation. Setting up a sole proprietorship is fortunately not that complicated.
Choose the right structure:
- Sole proprietorship
This is the most accessible option for starting YouTubers. The startup costs are low and you can easily do the bookkeeping yourself. This way, you can first test whether your YouTube career is truly viable.
- Corporation
If you earn more, it may be interesting to switch to a corporation. You can pay yourself a salary and leave the rest of the profit in the company, which allows you to pay less tax. The administration is more complex, but an accountant can support you well with this.
💡 Tip: start with a sole proprietorship and switch to a corporation when your income is high enough.
➡️ Unsure about what is best for you? In this article, we explain the differences between a sole proprietorship and a corporation in more detail.
Are you not a bookkeeping wizard yourself and would you like to be supported by a team of professionals in your rise as a YouTube phenomenon? Then you can easily make use of Dexxter to fully focus on your online career, without wasting too much time on administrative and tax matters.
What are you waiting for? Turn that camera on!
Take your first steps into the online world of YouTube with confidence! Choose a niche that suits you or your (future) business. The more specific and original your content, the faster you’ll grow. Even if you start small, post new content regularly and stay authentic.
The fast-changing world of YouTube is waiting for you and your new ideas, just don’t forget your administration!
