This post covers the many aspects of a network partnership. This will include: CPM’sRevenue Share Contract Length Payment Threshold Perks/Benefits Support Promotion Community Reputation CPM’s & Revenue Share CPM is an abbreviationfor Cost per Mille (Mille being the Latin word for 1000). This is the common measurement that advertisers will use when selling ad’s to be displayed on your videos. CPM’s vary depending on your channel content and the network you are with. You should note that a Network cannot quote CPM’s but give you an average range (e.g. $3-8). Nor can a network guarantee any revenue either. CPM is calculated in dollars ($).
When researching what Network to join, you really want to find their average range of CPM, you also want to find out if your CPM is capped or uncapped. An uncapped CPM is better because you may be likely to earn more revenue at times when ad’s are selling well. Some people may prefer a fixed CPM, a fixed CPM is different to a capped CPM. Fixed is where it always stays the same and that is what a person will always earn. Gross and Net CPM Now, what many people do not understand is the difference between Gross and Net revenue. Gross revenue is the total revenue you would make before Google and your Networks cut are taken. You can work this out by using this formula: Playback CPM x Monetized views Net revenue is after Google and your Network has taken their cut. You can work your Net CPM out by taking your Gross revenue and taking the 45% (Google’s cut) from your gross revenue. From there, you can take off your Network’s cut, and that is the share you will receive.
What should I look out for when joining a network?
When looking to join a Network, try and find as much information about their CPM’s as possible. High CPM is one thing, but a terrible revenue split on top of it will not be beneficial. Try and aim for a high CPM and a good revenue split. Remember, networks are more willing to negotiate a higher split if you are a larger channel. Contract Length Remember when choosing a network, it is important that you look at how long you will be locked-in with a network. Only go with something you feel comfortable with. Don’t sign your channel away to a network, it is a horrible experience, particularly if the network doesn’t live up to expectations. Make sure you read your contract and all the small print, as it may be hidden somewhere within there. Additionally, you may find yourself lucky and have a no lock-in contract, however only a select few networks actually offer this, and the requirements to receive it are often high. Payment Threshold It is very important you know when a network is going to pay you. Some networks may have a threshold, which means you are not paid until you meet that threshold. Just be careful and make sure you know what your threshold is so you know when you will receive your payment. Also, if you are a small channel, be wary of long it will take you to reach that threshold. Benefits/Perks Some networks may have more benefits/perks over others. This could include many things. A few examples of the features you may want to look for are: Partner dashboard to track earnings Click-bomb protection Free music library Sponsorships Partner forums Referral program Abilities to earn more revenue (e.g. Fullscreen’s Gorilla Campaigns). This is just some examples of the many features a network may offer, some may appeal to you while it may not appeal to others, so do your research whether what network will offer you what features.
You want a network which offers you great support. A dedicated partner support rep would be really great for you as they can help you with many situations you may find yourself in during your YouTube career. They can assist you and address any problems you may have and do their best to resolve them. Don’t feel like a pest to them either, they are there for you. You may want to look at how the network offers you support; this could be via phone, skype, email. Do your research and find information about their reliability and how helpful they are. You don’t want to join a network which you don’t have access to speak to anyone in there. Community Look at other people who are a part of the network and try to get in contact with them and ask them about their experiences with the network. It is best to contract more than just 1 person in their network, as many people have different experiences. While some people may be satisfied with their network, others won’t. So it is important to get both sides of the argument and the positives and negatives of each.
Usually, a network with a higher reputation has this because they are well-established. Other networks on the other hand, may not have a good reputation. It is important to look at which networks people like and respect and others people don’t. It should not just be a deciding factor though, because reputations change very easily. But just remember that, a network with a higher reputation is likely to be a better network.
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