Opening Up about Money - Why no one talks about it

let's talk about everyone's favorite subject other people's money I'll not only share with you exactly how much money my YouTube channel made in 2022 but also how that breaks down into specific revenue streams let's get to it [Music] I've done one of these income breakdown videos every year for the past four years now so if you need some bathroom break watching material you can check out that playlist and see the evolution over the years but as I state every year the reason I'm doing this is not to gloat or show off or Flex or otherwise be a jackass I'm sharing this fairly private part of my life because I used to be curious not a lot of people especially in this space do this so I think it's a way for me to give back and I know there's probably a lot of other curious people out there so I hope this helps lift the veil of YouTube give you a peek behind the scenes and show how tubers like myself make any money last year was weird looking back I kind of think of 2022 as the tale of two halves and here's why in the first half of the year I had a full-time day job and I did YouTube kind of on the side as I had been doing for the prior four years and I actually also decided to slow down the Cadence of my video uploads you see prior to the start of the year I made a video with a very clickbaity title called quitting YouTube in which I explained that I needed to really reevaluate my work-life balance and I concluded that taking my foot off the gas might actually be the best way to do that so from January to June I only put out about eight videos compared to the typical 12 to 13 I would normally put out in that time frame but in June I also wrapped up an accidental product development cycle here on the miter saw trying to fix dust collection and I say accidental because I didn't intend on spending two months doing it but honestly it fell directly in line with what I really enjoy doing and that's the creative design process now designing products and selling them wasn't exactly new to me I was selling products and plans through my Etsy store for two years leading up to this point but I felt like I struck a nerve with the woodworking community in a good way by addressing one of the most universal truths of the wood shop miter saws so that was the first half of the year the second half of the year was kick-started by me quitting my day job and doing YouTube full time wait didn't you say you were taking your foot off the gas pedal yes I know I actually made a video explaining that decision if you want to go check it out I'm not going to rehash the whole thing here but basically it came down to following my passion and just taking a leap of faith so starting in July of 2022 I fulfilled every eight year old's dream and became a full-time YouTuber so my foot was probably smashed back on the gas pedal and I proceeded to put out 15 videos in the second half of the year a big chunk of which were centered around the overdue and over budget campout shed project which included weekly uploads for about two and a half months and for anyone out there who makes or edits videos that included weeding through and stitching together two terabytes of video footage let's just say it was not a sustainable Pace but in parallel what that well distraction I was working to grow the product side of the business I scaled up my print farm and began designing a dust collection shoe for the Bosch axial Glide miter saw after teasing it for five months which was announced and released in December just before the whole holidays so in total I put out 24 videos including two I removed because they weren't doing so hot and this is compared to 25 videos I put out in 2021. in terms of subscribers we started the year at 171 000 and ended at 221 000. for a gain of almost exactly 50 000 subscribers that's pretty cool except it's actually less than the 55 000 gained in 2021. the total view count throughout the year finished at 5.5 million views compared to 4.2 million views the previous year in September of 2022 marked five years here on YouTube wow so the first half of last year was kind of like a slow walk through the woods gazing at flowers enjoying nature the second half was like stumbling on a mother bear with Cubs and sprinting through the forest try not to die so before I dive into exactly how much I made I'll first break down the income streams that I use to monetize my channel here on YouTube turns out there's tons of ways this is just how I do it and the first one is goods and merchandise and it's basically exactly what it sounds like I sold 99.9 of my goods through my Etsy Shop the shop Nation store but in 2023 that's changing I'm proud to say that I now have my own online store that I built using Shopify which is conveniently the sponsor of today's video and Shopify isn't a website builder it goes way beyond that it's actually an online business Builder I actually started my online store journey by building it out myself I was frankly shocked with how easy it was but after a couple weeks of tinkering here and there and trying to squeeze into my schedule I realized that if I wanted my store to be great I needed help so I partnered with a Shopify expert who Unleashed their force of programmers to carry out my wishes and this is where Shopify really shines see it's an extremely popular online business platform so just about every web development firm out there is fluent in it meaning finding help is super easy but at the same time it's actually so user friendly that that I could have actually built it myself had I had the time my decision happened to be purely time-based but what I love is that when the web development firm hands me back my site I can still get in there and tweak and modify things because the interface is so good what's also cool is Shopify is a huge App Store filled with tools to further enhance your business like print on demand Services product reviews and even social media Integrations so if you're interested in starting an online business start today with a free trial by heading to shopify.com shopnation all right let's get back to revenue streams the second Revenue stream is affiliate marketing now these are links to products that I share with my audience that are tagged to an affiliate account like Amazon if you then decide to purchase items using those links either affiliate get a little bit of a kickback in the form of a commission or percentage of the sale now the price to you or me the consumer is exactly the same but this is an easy way to support your favorite creators that's why if I watch a video I always use the provided links because I know it helps them out the third Revenue stream is Google AdSense this is what most people are familiar with and associate with YouTube income when your channel gets to a certain size typically a thousand subscribers and four thousand View hours you can elect to turn on ads which are run by Google these are the ads you typically skip through before the video and intermittently throughout it even my three-year-old has gotten shockingly good at timing the skip ads button but this income is actually a profit split between me the YouTuber and Google the rate and actual earnings depend on a lot of factors like watch time and even video topic and for context the average rate an Advertiser would pay to run an ad on my channel in 2022 was 22.86 per thousand views of that my average RPM or rate per thousand views was 8.91 just if you were wondering what it is and finally the last Revenue stream for me is sponsorships these are most commonly pre or mineral ads delivered by the person in the YouTube video like the Shopify ads you watched every second of these typically involve a contractual agreement between me the Creator and a brand or an entity representing the brand they're essentially paying the content creator for the eyeball exposure of Their audience that's right selling your eyeballs but you don't care about all that do you you're here for the money let's get into it for goods and merchandise in 2021 I made 91 396 and in 2022 I made a hundred and eighty thousand seventy one dollars this represents a monstrous 97 growth over last year and notice I said made these numbers represent the income after Etsy got its sweaty little fingers all over it and took out their fees as well as any marketing spend and shipping that I purchased through Etsy my total sales on Etsy in 2022 were about 225 000 Excuse me while I vomit my mouth as I think about the twenty five thousand dollars in Etsy fees after last year's income video some folks asked what the split is between digital and physical goods and in 2022 it was roughly one-third digital two-thirds physical now for affiliate marketing in 2021 I made forty six thousand two hundred and forty four dollars and in 2022 I made thirty seven thousand thirty eight dollars this represents a 20 decrease from last year and I'll chalk this up to two things it turns out a big chunk of affiliate income in 2021 and we're from like three or five products from two videos so when that dried up it hurt and also as we all know e-commerce absolutely exploded in 2020 and 2021 so maybe people's buying habits just tightened up in 2022. I don't know the next category is Google AdSense in 2021 my channel pulled in 40 847 and in 2022 I did forty six thousand five hundred and thirty four dollars this is an increase of about fourteen percent over last year what's interesting here is that the first half of the year was actually really low in terms of AD rate earnings a combination of less video uploads and lower ad rates based on economic conditions meant that I was actually on Pace to make less than the previous year and then the campus shed project kind of pulled the channel up out of the gutter it turns out the YouTube algorithm loves weekly video uploads that people mostly enjoy watching go figure and finally the last category is sponsorships in 2021 I made thirty two thousand sixty two dollars and in 2022 I made sixty five thousand four hundred and ninety five dollars this 104 growth over last year was straight up hustle after switching to full time and realizing that my kids don't eat if Dad doesn't leave the cave and go out and kill something then I went into full sales mode and spent a lot of time securing sponsorships and when we tally it all up in 2022 my channel made 329 138 dollars this is compared to 210 549 in 2021 which equates to a 56 Revenue growth overall and that's pretty crazy considering the wacky year that it was but what's even crazier is that almost half that income came in the last three months of the year now if you're a numbers dork like I am here's the revenue stream breakdown by percentage goods and merchandise represented almost 55 of the total income compared to 44 in 2021. affiliate marketing was 11 which is way down from 22 percent in 2021. Google AdSense was 14 which is down slightly from 19 in 2021 and finally sponsorships represents 20 of my income which is up from 15 in 2021. so definitely some interesting shifts in where my money is coming from for example the impact of sponsorship dollars seems to be increasing every year while the Reliance on things like affiliate marketing keeps going down now whenever someone talks about income especially when it pertains to a business we should at least talk about expenses and my expenses in particular were up quite a bit in 2022 compared to the previous year partially because of a stupid shed but also because I'm choosing to reinfest in the business for example at the start of 2022 I had two 3D printers to print products for my Etsy shop and by the end of the year I had 25. it's getting a little ridiculous I've got this little farm here which I made a whole video about and I've got this whole new Farm here which you're just now seeing and then these six printers which are retaking over my wife's office oh and then these two in my office which are getting a little bit of a tune-up I've obviously made a calculated decision to buy all those 3D printers and there's a good reason for that and one of the tools I used to make that decision is understanding my income and how it breaks down which ultimately tells me where to spend my time and effort moving into 2023. and for that I've got some goals let's talk about them now going back to that video I made this past summer where I announced I was going full time on YouTube I made this comment I've got big hairy audacious goals that I want to tackle and a lot of it centers around bringing products to Market I'm doing that at a really tiny scale like with the dust collection shoots that I'm making for this saw as well as some other saws that I'm developing but really that's just the beginning so in 2023 you're going to start to see me take action on these claims I will of course bring you guys along for the ride but I thought it'd be cool to set some goals that we can then review during next year's income video to see how we did goal number one put out 25 YouTube videos in 2023. this goal is actually meant to throttle myself and not go overboard and do this crazy Sprint like I did this past fall with the shed build series I think the every two week Cadence of videos works for me and is going to help me balance out some of the other initiatives that I'm going to tackle this year and to add to that I'm going to re-center the channel around this shop greatness concept because after all that's kind of why I started the shed was a very fun and entertaining tangent but it doesn't have a whole lot to do with making your shop awesome how can I help you make your shop better because Lord knows I can't help you build a shed goal number two 2. double the income yes six hundred and sixty thousand dollars in 2023 and I'm well aware that as numbers get bigger they become harder and harder to double but I think I've got to plan on how I want to do that and a large component of that certainly centers around bringing valuable products to Market which help achieve shop greatness and finally goal number three more family time as my wife can attest to I put in a ridiculous amount of work hours this past year going into business for yourself almost always means you work more hours as the old adage goes why work 40 hours for somebody else when you can work 80 hours for yourself and part of that was largely motivated by fear but I think I've escaped the metaphorical bear that I was out running at the end of the year so my goal is of course to push hard and do well for a family but also like spend time with them because that's kind of what's important inside tangent as an engineer I hate that I'm making this a goal because it's not specific or measurable but I'm hoping it's a reminder to take a breath and enjoy the ride if you're not subscribed go ahead and do that right now you do not want to miss what I have planned I mean even if I go down on a ball of flames it'll at least be entertaining right I appreciate you all have a great 2023 let's get after it see ya

Channel: Shop Nation

Views: 336,840

Keywords: shop nation, shopnation, youtube income, channel income, youtube income details, how much i made on youtube, make money on youtube, 2022 income, 2022 income breakdown, shop organization, youtube earning, youtube earn money, full time youtube, youtube business, how much do youtubers make, how much money do youtubers make, how to make money on youtube, money on youtube, money youtubers make

Id: 6WDbd-z-iPM

Length: 12min 34sec (754 seconds)

Published: Fri Jan 13 2023