YouTubers can earn revenue from Google AdSense. Additionally, they can supplement their income through affiliate links, merchandising, and 3rd party memberships using platforms such as Patreon.[25] Popular channels have garnered corporate sponsors, who pay to be included in the videos.[25] In 2018, Walmart, Nordstrom, and others sought YouTube stars as influencers.[26]
In the early days of YouTube, there was no way to monetize videos on the platform. Much of the site's content was homemade and produced by hobbyists with no plans for making money on the site.[27][28] The first targeted advertising on the site came in the form of participatory video ads, which were videos in their own right that offered users the opportunity to view exclusive content by clicking on the ad.[29] The first such ad was for the Fox show Prison Break and solely appeared above videos on Paris Hilton's channel.[29][30] At the time, the channel was operated by Warner Bros. Records and was cited as the first brand channel on the platform.[30] Participatory video ads were designed to link specific promotions to specific channels rather than advertising on the entire platform at once. When the ads were introduced, in August 2006, YouTube CEO Chad Hurley rejected the idea of expanding into areas of advertising seen as less user-friendly at the time, saying, "we think there are better ways for people to engage with brands than forcing them to watch a commercial before seeing content. You could ask anyone on the net if they enjoy that experience and they’d probably say no."[30] However, YouTube began running in-video ads in August 2007, with preroll ads introduced in 2008.[31] In December 2007, YouTube launched the Partner Program, which allows channels that meet certain metrics (currently 1000 subscribers and 4000 public watch hours in the past year)[32] to run ads on their videos and earn money doing so.[31] The Partner Program allowed for the first time YouTube personalities to make a living from the platform.[33]: 7
During the 2010s, the ability for YouTubers to achieve wealth and fame due to success on the platform increased dramatically. In December 2010, Business Insider estimated that the highest earner on YouTube during the previous year was Dane Boedigheimer, creator of the web series Annoying Orange, with an income of around $257,000.[34] Five years later, Forbes released its first list of the highest-earning YouTube personalities, estimating top earner PewDiePie's income during the previous fiscal year at $12 million, more than some popular actors such as Cameron Diaz or Gwyneth Paltrow.[35] Forbes estimated that the tenth-highest earner that year was Rosanna Pansino at $2.5 million.[a] That year, NME stated that "vlogging has become big business."[37] The rapid influx of wealth within the YouTube community has led some to criticize YouTubers for focusing on earnings more than the creativity and connection with their fanbase that some claim was at the heart of the platform before expanded monetization.[38][39][40] In August 2021, it was reported Kevin Paffrath made $5 million in just the first 3 months of 2021 and his Youtube analytics showed he made "several million" in ad revenue within the prior 12 months.[41]
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