When would Youtube be a living wage?

[Tenslaster2980]

Basically, how many views/videos a week would you need to put out/get to have a living wage from Youtube?
I've noticed when you get about 800,000-1,000,000 views a video you get about $1000. Which is way above one day of 8 hours from the minimum wage. And after doing the math (and doing research), 8 hours a day of $7.25 an hour for 5 days a week is $290. Which is what the minimum wage should give you a week.
So basically, if (when I live on my own) I make more than $290 a week, couldn't you live off of Youtube?

 

[timeconsumer]

Your estimate of $1 per view is far from the norm. Very far. Youtube is paid by ad views and ad clicks, not necessarily video views. So your regular viewers need to click the ads for you to really make decent money. There are plenty of successful videos with over 50k views where the creator earned maybe $200.

 

[ss202sl]

http://www.complex.com/pop-culture/2015/02/youtube-users-who-make-the-most-money/ray-william-johnson

 

[boosted1g]

In the real world we have these things called expenses. Your rent is due on the 1st your car payment the 12th, etc, etc; the landlord, the bank, the electricity company they do not care that your videos did not get enough youtube hits this week, they want their money now.

You are also not factoring in real costs/expenses.

Since you are getting money from YouTube that is now a business. Youtube will report your earnings (if more then $600) on a 1099-MISC form to the IRS. Thus you will be forced to pay federal, state, Medicare and social security taxes. As an employee you only pay half of the social security and Medicare because your employer pays the other half, by doing this with youtube and being self-employed you will also owe the other half. You will also no have any health insurance, disability insurance, 401k or any other benefit which means that that also has to be added in to the cost.
And none of this is even counting what legal things that may be required for you to have a self-business in your state. Not to mention needing an actual CPA to do your taxes at the end of the year, licensing costs and everything else.

General rule of thumb, whatever your hourly rate is, double that and that is what it costs for a company to employee you and that it is roughly what it costs for you to employee yourself.

 

[Tenslaster2980]

In the real world we have these things called expenses. Your rent is due on the 1st your car payment the 12th, etc, etc; the landlord, the bank, the electricity company they do not care that your videos did not get enough youtube hits this week, they want their money now.

You are also not factoring in real costs/expenses.

Since you are getting money from YouTube that is now a business. Youtube will report your earnings (if more then $600) on a 1099-MISC form to the IRS. Thus you will be forced to pay federal, state, Medicare and social security taxes. As an employee you only pay half of the social security and Medicare because your employer pays the other half, by doing this with youtube and being self-employed you will also owe the other half. You will also no have any health insurance, disability insurance, 401k or any other benefit which means that that also has to be added in to the cost.
And none of this is even counting what legal things that may be required for you to have a self-business in your state. Not to mention needing an actual CPA to do your taxes at the end of the year, licensing costs and everything else.

General rule of thumb, whatever your hourly rate is, double that and that is what it costs for a company to employee you and that it is roughly what it costs for you to employee yourself.

About the employee thing: Are you sure I'd be a self-employee? Because if you work for Youtube aren't you an employee for Youtube? And yeah..I know about SS and Medicare taxes. But wouldn't I stay on my parents Health Insurance plan until I'm 26?

 

[Slumy__57]

You're not making a thousand dollars for 800 views, you will get closer to 3-5 dollars. And that's only if people view/click on your ads. On top of that, minimum wage is not something you are supposed to live off of. Minimum wage exists so that employers aren't more or less owning slaves. When you live on your own, you have quite a few expenses to pay for. Car, gas, insurance, phone, rent/mortgage, utilities, tax, food, etc. etc. It adds up quick, and a minimum wage job isn't going to cut it. You would need to get quite a few more views than 1000 to make a living off of youtube.

 

[Tenslaster2980]

You're not making a thousand dollars for 800 views, you will get closer to 3-5 dollars. And that's only if people view/click on your ads. On top of that, minimum wage is not something you are supposed to live off of. Minimum wage exists so that employers aren't more or less owning slaves. When you live on your own, you have quite a few expenses to pay for. Car, gas, insurance, phone, rent/mortgage, utilities, tax, food, etc. etc. It adds up quick, and a minimum wage job isn't going to cut it. You would need to get quite a few more views than 1000 to make a living off of youtube.

Apologies, I meant to put around 1,000,000 views.

 

[Tenslaster2980]

To anyone who's confused, I meant to put around 1,000,000 views. Not 1000.
Sorry about that, just think about Pewdiepie or Leafyishere's income from videos.

 

[boosted1g]

In the real world we have these things called expenses. Your rent is due on the 1st your car payment the 12th, etc, etc; the landlord, the bank, the electricity company they do not care that your videos did not get enough youtube hits this week, they want their money now.

You are also not factoring in real costs/expenses.

Since you are getting money from YouTube that is now a business. Youtube will report your earnings (if more then $600) on a 1099-MISC form to the IRS. Thus you will be forced to pay federal, state, Medicare and social security taxes. As an employee you only pay half of the social security and Medicare because your employer pays the other half, by doing this with youtube and being self-employed you will also owe the other half. You will also no have any health insurance, disability insurance, 401k or any other benefit which means that that also has to be added in to the cost.
And none of this is even counting what legal things that may be required for you to have a self-business in your state. Not to mention needing an actual CPA to do your taxes at the end of the year, licensing costs and everything else.

General rule of thumb, whatever your hourly rate is, double that and that is what it costs for a company to employee you and that it is roughly what it costs for you to employee yourself.

About the employee thing: Are you sure I'd be a self-employee? Because if you work for Youtube aren't you an employee for Youtube? And yeah..I know about SS and Medicare taxes. But wouldn't I stay on my parents Health Insurance plan until I'm 26?

You are not an employee of Youtube, you are a subcontractor, and thus classified as being self-employeed.

So you just expect your mommy and daddy to pay for your health care for you because you dont want to get a real job?

As stated above, minimum wage is not meant for you to live off of, minimum wage is so that you can pay bare-minimum expenses (rent for cheap studio appartment, food and a bus pass) while you get some type of education to get actual job skills.

 

[Slumy__57]

http://www.businessinsider.com/how-much-money-youtube-stars-actually-make-2014-2

 

[timeconsumer]

Sure, if you think you have the idea and personality that can generate that kind of traffic, go for it. Some of the most successful and wealthy entrepreneurs out there got that way because they took on enormous risk against all the odds. And I'm sure plenty of people along the way told them not to do it, get a real job, it will never work, etc. Maybe you have what it takes for that level of internet success. But just know you're shooting for the top 0.01%.

Otherwise, if you're worried about supporting yourself straight out of high school. Take the ASVAB and go join a military branch, try and get into a technical field with them. Or go into the police academy, on average it pays over $30k a year even during training. Get into Air Traffic Control (you need a few years work experience and/or college for this), call up some local unions like electricians, or elevator mechanics and see if they are taking interviews for apprenticeships. All of these are way better options than some minimum wage food service job.

 

[boosted1g]

Here is realistic numbers for what it costs to live on your own:

$750-800 for rent/apartment not in a dangerous neighborhood
$300 a month for reliable low end car
$100 car insurance
$100 electricity
$100 cable/internet
$300 food
$200 gas + spending money
$60 cell phone

That is almost $2000 a month needed to live on your own at a basic level, not drivng a BMW, not going out and buying new toys, just basic living.

 

[Slumy__57]

I'm gonna argue a little on those costs, I'm paying $125 a month for a reliable 06 corolla with low miles, and a minimal down payment, and insurance for someone on their own is gonna be a good bit higher than that. But other than that, those are pretty accurate numbers.

 

[Tenslaster2980]

In the real world we have these things called expenses. Your rent is due on the 1st your car payment the 12th, etc, etc; the landlord, the bank, the electricity company they do not care that your videos did not get enough youtube hits this week, they want their money now.

You are also not factoring in real costs/expenses.

Since you are getting money from YouTube that is now a business. Youtube will report your earnings (if more then $600) on a 1099-MISC form to the IRS. Thus you will be forced to pay federal, state, Medicare and social security taxes. As an employee you only pay half of the social security and Medicare because your employer pays the other half, by doing this with youtube and being self-employed you will also owe the other half. You will also no have any health insurance, disability insurance, 401k or any other benefit which means that that also has to be added in to the cost.
And none of this is even counting what legal things that may be required for you to have a self-business in your state. Not to mention needing an actual CPA to do your taxes at the end of the year, licensing costs and everything else.

General rule of thumb, whatever your hourly rate is, double that and that is what it costs for a company to employee you and that it is roughly what it costs for you to employee yourself.

About the employee thing: Are you sure I'd be a self-employee? Because if you work for Youtube aren't you an employee for Youtube? And yeah..I know about SS and Medicare taxes. But wouldn't I stay on my parents Health Insurance plan until I'm 26?

You are not an employee of Youtube, you are a subcontractor, and thus classified as being self-employeed.

So you just expect your mommy and daddy to pay for your health care for you because you dont want to get a real job?

As stated above, minimum wage is not meant for you to live off of, minimum wage is so that you can pay bare-minimum expenses (rent for cheap studio appartment, food and a bus pass) while you get some type of education to get actual job skills.

Firstly, both my sisters are still on my parent's Healthcare plan, and they both have real jobs.
Secondly, yes. Youtube can be a real job, have you seen Leafy, Pewdiepie and Markiplier? They've all made living jobs of this.
Thirdly, I used the minimum wage as an example. I know what the minimum wage is for and was just comparing it to semi-big/bigger Youtubers. If I were living on my own (which I don't, not even out of High School), I'd make sure I'd be making enough to pay for everything.

 

[boosted1g]

I'm gonna argue a little on those costs, I'm paying $125 a month for a reliable 06 corolla with low miles, and a minimal down payment, and insurance for someone on their own is gonna be a good bit higher than that. But other than that, those are pretty accurate numbers.

Sounds like you got a good deal on the corolla, good for you.

I said 300 assuming that 1) he is not going to get prime interest rates on the car with little to no credit, and 2) either he gets a car newer then 10 years old, or is accounting for the maintence costs.

That 10 year old carolla is going to start needing things replaced sooner or latter (sensors, cat converter, shocks, engine mounts, alternator, etc, etc).

People dont look at real cost of ownership. Just look at at all the 3rd generation luxury and sports cars ran inot the ground because the owner could barley afford the 7 year loan payment, but hey the bank was willing to sign that deal.

 

[Slumy__57]

Nobody is denying that you can make a living off of youtube. Very few end up doing so, however. Leafy, Pewdiepie, and Markiplier all have managed to make it to that point, most don't. That being said, you do have a chance of making it, but you could probably have better odds by buying a lottery ticket, it's probably not gonna happen. I'm not saying you shouldn't try, because you never know if you don't try, I'm just saying if it was a feasible option, way more people would be doing it.

You're not on your own until you sever all ties with your parents, btw, I'm not saying its a bad idea to stay on your parents plan, I'm still on my parents Phone, Car insurance, and Health plan because my dad's government and I save a lot of money by doing so, but if you wanna call yourself financially independent, you need your own Healthcare. Just saying.

 

[timeconsumer]

Tires, brake pads, oil changes, air filters, transmission and radiator flushes, fan/accessory belts, broken alternators, ....I do all my own basic maintenance and it still costs a ton.

 

[Tenslaster2980]

Nobody is denying that you can make a living off of youtube. Very few end up doing so, however. Leafy, Pewdiepie, and Markiplier all have managed to make it to that point, most don't. That being said, you do have a chance of making it, but you could probably have better odds by buying a lottery ticket, it's probably not gonna happen. I'm not saying you shouldn't try, because you never know if you don't try, I'm just saying if it was a feasible option, way more people would be doing it.

You're not on your own until you sever all ties with your parents, btw, I'm not saying its a bad idea to stay on your parents plan, I'm still on my parents Phone, Car insurance, and Health plan because my dad's government and I save a lot of money by doing so, but if you wanna call yourself financially independent, you need your own Healthcare. Just saying.

I know, I was going off on Boosted1g
Since he tried to insult me for something that's apart of the government.

 

[Slumy__57]

I'm gonna argue a little on those costs, I'm paying $125 a month for a reliable 06 corolla with low miles, and a minimal down payment, and insurance for someone on their own is gonna be a good bit higher than that. But other than that, those are pretty accurate numbers.

Sounds like you got a good deal on the corolla, good for you.

I said 300 assuming that 1) he is not going to get prime interest rates on the car with little to no credit, and 2) either he gets a car newer then 10 years old, or is accounting for the maintence costs.

That 10 year old carolla is going to start needing things replaced sooner or latter (sensors, cat converter, shocks, engine mounts, alternator, etc, etc).

People dont look at real cost of ownership. Just look at at all the 3rd generation luxury and sports cars ran inot the ground because the owner could barley afford the 7 year loan payment, but hey the bank was willing to sign that deal.

I did snag a pretty good deal on the car, haha.

Well tbh, maintenance on a Corolla or a Civic that is newer than 2000, is going to be very minimal. My brother drove a 99 Corolla into the ground and it only ever needed routine stuff like oil changes, tires, brakes, etc. But yeah, I guess on average, you would be a good bit more than 125 for a car payment. I do think 300 is still a little high, but still kinda irrelevant for the point we're making haha.