Top 10 best paying niches if you wanna make money on YouTube. Today, we’re gonna take a look at some numbers.
I’m gonna be showing you some stats from my channel, to show you exactly how does it look like in comparison to all of the other niches, hobbies, gaming, real estate, investing, teeth whitening, dog training, to show you exactly what kind of niches you wanna be in so that if you’re thinking about starting a YouTube channel you know exactly what type of topics pay more.
and if you already have an existing channel you know exactly how to start pivoting, what it is that you talk about if you wanna start getting paid more from YouTube.
So we’re gonna start off with identifying a really crucial number called CPM, which is basically, how much are you getting paid per 1000 views? Now, this number CPM, changes and varies depending on the market or the niche that you are in.
For example, over here in my dashboard, you can see that the CPM for my videos are about $41 in the last 28 days. Now, because I’ve put this disclaimer out there, this CPM is actually a lot higher than average for a couple of reasons.
Number one, if you’ve been following, you know that I actually do not have monetization switched on for a really long time, and I only did that recently, because I heard that a lot of people say, that YouTube will actually push your videos more if you have your videos monetization switched on.
So the purpose of my channel isn’t to make money is just to get a bigger reach. So I switched it on for the purpose of the algorithm, that’s one. Number two, you’ll notice that the topics that I talk about is about money, entrepreneurship.
It’s very tutorial based, and for that reason, my CPM is higher than others. And if you would take a slightly larger sample size, I’m just gonna show you like this year, as well as CPM, is about $30.
So I would say that as this channel grows and as we get a bigger following, you’ll notice that the CPM will usually tend to slightly decrease over a larger sample size. So, first of all, if you are new to this channel, my name is Peng Joon, and what I do is I teach people how to monetize, what it is that you know, so whether it’s your passion, your hobby, something that you love doing, your life experience and transform that into a product, into something profitable on the internet.
So if you haven’t already done so, be sure to smash the like button and click on the subscribe, if this is something that interests you, if you wanna be able to see more videos just like this. So let’s begin by talking about the top 10 different niches, okay? I did some research and I’m gonna share with you this first piece over here, based on the highest paid YouTube stars at the end of 2019.
This seemed to be the most recent one that I could find online. We’re gonna take a look at these different channels because they’re all in different niches, to calculate exactly what the CPM is, to start giving you ideas.
And you’re gonna notice this trend that happens consistently. If you don’t already know, Ryan Kaji is in the toy reviewing niche. So, cater to kids, Ryan’s world. So in case you’re new to his channel, you’ll notice that a lot of his stuff is on reviewing toys, playing with them, and he’s been doing this for years.
Very, very consistent, one of the top earners out there. And the first thing we wanna do, is to take a look at what the CPM is, right? So how do you actually calculate CPM? It’s very simple, we’re just gonna do this maybe once or twice, we should start showing you how to calculate.
So this is the total views, okay, of this channel, which is, there’s a lot of digits in there, but that would be 41 billion with a B, right? So how do you calculate CPM? Which is how much you’re getting paid per thousand views.
And the best way to do that is to look at how much he’s earned, divided by the amount of views to give us a rough idea to how much is being paid per view. Then we need to multiply that by a thousand to get CPM, because this is a metric that we can use, sort of, we can compare apple to apple across different niches.
So we’re gonna put it to 25 million on the calculator divided by 41 billion. Here we go, okay? So this is how much is being paid per view. So to calculate the CPM, we need to multiply this by 1000.
So you can see here that this is 0.6. Now, what does this tell us? It tells us that based on the large sample size we’ve established for marketing, which is my example, okay, is roughly about, I think it was $30.
When we look at Ryan’s toys reviews, CPM was under a dollar, which was 0.6. So, first of all, what is a good conclusion so far based on what we’re seeing, if you are catered to a demographics that might not necessarily own a credit card or might not necessarily have money, like the kids market, you’ll notice that CPM is going to be usually a whole lot lower.
CPM also varies depending on demographics. US-based audiences, CPM is way higher than international. So, let’s do another example so that you can start seeing exactly how this works. Let’s take a look at number two, okay, called Dude Perfect.
I’ve actually don’t know most of the names here. I’m not somebody who actually watches YouTube, but let’s take a look at what it is that he does, okay? So I’m gonna go hit over to Dude Perfect, 53 million subs.
Let’s take a look at some of the videos– – To see what niche he’s in. Sleep in a bed of sand. So this is more towards like, okay, tricks, random stuff. So it’s very broad, right? It’s like, can you crush a diamond with a hammer, 58 million views.
World’s longest LEGO walk. So this is very broad, which kind of explains why there’s a lot of views, right? So let’s take a look at this next channel to kind of start calculating CPM again.
So this would be 11 billion views and he’s made $19 million from this channel. In other words, calculating CPM, it’s 19 million divided by 11 billion, okay? That would be how much he’s get paid per view.
So to calculate CPM, we need to multiply this by a thousand. So this would be 170. So notice something that’s happening right now, is that immediately we can tell that this $1.72, which is more towards ultra broad, I’m gonna put this as like random, broad, interesting stuff.
So what was that number? That number was $1.72. So, start to notice that when we changed the demographics, the target audience, and when we move towards a slightly older crowd, that’s when CPM would also increase.
But let’s take a look at some of the other niches so they can start getting an idea on how you can actually improve and get paid more from YouTube. Let’s take a look at Vanoss Gaming. And you can see 25 million subs.
So it’s like, this is a sign of getting old, okay? Well, I’m looking at this and I have no idea what these games are. So let’s take a look at an actual gaming channel to calculate CPM over a large sample size.
Again, let’s take a look at Vanoss Gaming and he has been paid $11 million. I think this, we can call it as you know, 13 billion. So 11 million divided by 13 billion, how much is being paid per view? Multiply that by a thousand, this would be the CPM, $0.
85 in gaming. Okay, now here’s the thing about gaming. One thing I wanna mention, okay, quick kind of disclaimer, just because a CPM is lower, it doesn’t necessarily mean that it’s a bad niche, why? It is because it is proven.
If you take a look at many of the top YouTubers out there, a lot of them are in this list, even though the CPM is not high, why? Because they make it up with volume. And naturally when somebody is watching a gaming channel, retention and watch time is just way higher.
Why is it way higher? It’s way higher because when people are watching a 30-minute game or 45 minutes or one hour long, it’s not a painful experience compared to watching a tutorial on how to set up a Facebook Ad campaign, right? Now, that one hour is tough.
It might feel like it’s eternity. On top of that, it is also easier for a creator to actually shoot that video, why? ‘Cause they’re just playing a computer game. There’s no mass production, there’s not much of a post edit required.
Where else or doing something else, like a marketing video, it might require more thought, more planning, more post production than gaming, okay? So, take into account these type of things when it comes to choosing a niche.
So how do we actually decide what market to go to would be this next image that I found on WordStream, and credit WordStream for coming up this infographics. And basically what this is, is the top 20 most expensive keywords on Google Ad.
So, a long time ago, Google bought over YouTube, which means the number one search engine in the world also owns the number two search engine in the world. And how they make money is by serving Ads, through Google Ad words.
And if you were to bid on these terms as an advertiser, these would be the most expensive terms. Now, by understanding what the most expensive terms are, what does that tell you? It tells you that if you created content around that topic so that advertisers can serve their Ads when somebody is watching a video, that is when you get paid more.
If you take a look at say, insurance, on average, the cost per click, if you are an advertiser bidding on a terminology that is related to insurance, case in point would be auto-insurance price quote, you will be paying approximately $54.
91 to bid on this term if somebody were to click on it, that’s the cost per click. Now, as a YouTube creator, now, obviously you don’t get to keep all 100% when an advertiser bids on your video, right? Obviously this is how YouTube makes money, is how Google makes money.
On top of that, the cost is also less, because it’s not a search engine result, but rather a related video. But this gives you a very good indication on where the money is. So let’s take a look at, like the top 10, right? Number one is insurance, number two is loans, number three is mortgage.
Now, just this alone, it tells you that financial markets are where the money’s at. So if you are talking about topics to do with money, insurance, investing, loans, that is when your CPM naturally is going to be higher, why? Because these are where the advertisers are paying big bucks.
So, if you take a look at number five to number 10, and in fact, there’s the top 20 over here, there is credit. So, if you are talking about fixing or getting good credit rating, right? Lawyers, donations, degrees, hosting, companies, trading.
So, notice something right now, even though these are the top paying markets in terms of cost per click, they would translate to a high CPM for you as a creator. Now, if you notice the top people that’s getting paid the most, most of them are not in this market, why? Because they make it up with the volume.
In fact, if we take a look at here, it doesn’t look like at first glance that these people are in the financial market, why? Because they make it up with the volume. So, what does this mean for you? Okay, number one, notice that tutorial based type of videos are usually a whole lot higher in terms of CPMs than entertainment broad videos.
However, entertainment broad videos usually pull in more views and will make up for the lower CPM. So you gotta understand that, being a creator, there are two main types of creators, right? There are the people that are vloggers, who’s going around showing lifestyle, entertainment, kind of thing.
You wanna think about what type of personality are you? Are you somebody that wants to teach? Are you more of an entertainer, right? And double down on that. Next one, number two, is think about the market that you are serving.
Are you serving a market, a demographics, that is elder, that is about money, entrepreneurship, because those markets, if you can relate to those topics, naturally will have a higher CPM. So here’s the summary, right? You’ve learned all these different CPMs, which niches pay higher and all these different factors, but it all comes down to just doing something, right? Start off with doing something that matters to you.
Start off by taking that first step. ‘Cause guess what? That first video nobody’s gonna watch it anyway. So I wanna be able to see what it is that you have been doing. So, one of the things I love for you to do, is leave a comment below.
I’m gonna randomly follow 10 of you guys that leaves me a comment. Share with us what it is that you do and why should we follow you? And as always be sure to smash the like button, if you have gotten value from this, and subscribe to this channel for future videos, just like this one.
I’m gonna link you other YouTube related videos, because if you wanna create content consistently and do it the right way, be sure to not make the mistakes that I made when I was starting up. So, I’m gonna leave them in the cards, leave them in the description, and subscribe to the channel for future videos just like this one.
See you in the next video.
