YouTube AdSense: How to Make Money on YouTube

Remay Villaester (May)
6 minute read

When it comes to online video, there's no platform bigger than YouTube. With almost 2 billion in monthly users, it's a prime advertising spot for many businesses. In this article we’ll take a look at YouTube adsense, which is YouTube's advertising platform. We will look at how YouTube adsense works, and how you can get started with it. We also look at how you can save money when getting paid from Youtube using Transferwise for Business.

What is YouTube Adsense?

You have probably heard or seen videos of how one YouTuber or the other made some ridiculous amount of money from YouTube. There are numerous blog posts, forums, and even videos on YouTube that talk about how to make money on YouTube. While there are many ways to make money on YouTube as there are with other social media platforms, YouTube ads are a good way of earning money on YouTube.

To start making money on YouTube, you need to turn on monetization features for your YouTube channel. Of course, it is important that you have a decent amount of subscribers to a YouTube channel and viewers who regularly view your content. you will also need an adsense account to earn from YouTube ads, but more on that later.¹

What are the requirements to turn on monetization features?

For you to make money with your YouTube account, you have to turn on monetization features, and there are some requirements that your account needs to meet.

Let's take a look at the minimum requirements for joining the YouTube partner program:

What to keep in mind?

There are multiple ways to make money with the YouTube partner program. Here are the features through which you can make money on YouTube, and the eligibility requirements:

  • Advertising Revenue: You can earn ad revenue from video, display and overlay ads. This is the most common method of monetizing a YouTube channel. You must be 18 years or have a legal guardian that is older than 18 years to handle payments via adsense. You also have to create content that meets YouTube advertiser-friendly content guidelines.

  • Channel memberships: Your subscribers are members who can make recurring monthly payments in exchange for some special perks that you offer. To qualify for this monetization option, you must be 18 years or older and have more than 30,000 subscribers

  • Merchandise shelf: Your fans can also browse and buy official branded merch that you showcase on your watch pages.To qualify, you have to be at least 18 years of age and have more than 10,000 subscribers.

  • Super chat and Super Stickers: Your fans can pay to get their messages highlighted in chat streams. You have to be at least 18 years old and live in a region/country where a super chart is available.

  • YouTube Premium Revenue: You can earn part of the fee that a YouTube premium subscriber pays when they watch your content. To qualify you have to create content viewed by a YouTube premium subscriber.

How to set up an Adsense account for YouTube?

To join the YouTube Partner Program, you need to set up an approved adsense account to earn money and get paid by YouTube. It is important to note that you can only have one adsense account under a payee name.

To set up an adsense account for YouTube, you can use your existing adsense account if you have one or create a new one. it is also possible to monetize multiple YouTube channels with the same adsense account. Note that when linking your YouTube channel to a new adsense account, don't create the account through Doing this will cause your account to be disapproved, and monetization disabled for your YouTube channel²

Here are the steps to create a new adsense account for YouTube if you don't have one:

  1. Sign into your YouTube account and go to Studio Youtube.

  2. Click Start on the “Sign up Google AdSense” card. You need to enter your YouTube account password and re-authenticate.

  3. Then choose the Google account you want to use to sign into adsense.If you have an existing adsense account, you must log in with a Google account that is registered with the existing AdSense account.

  4. Once you are logged in to adsense, verify that the email at the top of the page is the correct one. if it's not, click “use a different account” to change to the correct account.

  5. Follow the instructions shown on your screen to create a new adsense account. Provide your contact information where requested for and submit your Adsense application.

  6. Once you’re done, you'll be redirected back to YouTube studio, and you'll be shown a message that your adsense application has been received.

  7. Adsense will send you a mail once your account has been approved. You should note that may take several days for it to be approved.

  8. Once your Adsense account is connected, you’ll see a green “done” sign on the “Sign up for Google Adsense” card, although it may take up to 48 hours for it to become fully active

How much does YouTube pay?

While you might have heard stories of YouTubers making huge amounts of cash from their channels, you need to know exactly how much you get paid by YouTube.

The amount of money that YouTube pays partners depends on several factors, such as the number of views received by the video, the number of clicks on ads, the quality of the ads clicked on, and video length.

With Adsense, Google takes on 32% of the revenue, so for every 100 advertising dollars, YouTube pays $68 to the publisher. However, the actual rate that advertisers pay varies, usually between $0.10 to $0.30 per view. On average, however, an advertiser pays $0.18 per view. This means that on average, a YouTube channel receives $18 per 1,000 ad views, which equates to $3 - $5 per 1000 video views.³

The most important things to note is that the more views and subscribers you have on your Youtube channel, the more money you are likely to make from your Youtube Channel via Adsense.

YouTube earnings and tax liability for UK residents?

As a resident of the UK, your earnings as a YouTuber will fall under personal income, and you would be required to pay the tax by yourself. Google does not pay your tax for you or deduct from it, and so, you’ll need to reach out to your local tax advisor to find out how you’ll pay your tax on your YouTube earnings. However, Google does request for your tax information for some regions as required by law.⁵

How to get paid on YouTube?

Adsense pays their publishers when their earnings are above a certain threshold, with the lowest usually being $100. The most common way of getting paid is by bank deposit. You will fill your bank account details and your earnings from Google Adsense is paid into your account.

When sending payments to your account from a different currency, Google exchanges it to your currency at the standard exchange rate and sends it to your bank account. However, there is a possibility of a markup being added to the conversion rate, either by Google or your local bank. This means that you would lose some of your money when receiving payment from AdSense.

Consider using TransferWise Multi-currency account to receive your pay and take advantage of currency exchanges at the real exchange rate for a small and transparent fee that is up to 14x cheaper than PayPal. With TransferWise you can receive payments in different currencies for free, convert them to over 40 different currencies all at the real exchange rate.

Start saving today with TransferWise


  1. Google Support - How to earn money on YouTube
  2. Google Support - Setting up an AdSense account for payment
  3. Influencer Marketing Hub blog post
  4. Google Support - Tax Liability

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