Most YouTubers don't make money off of their videos, but certain popular video creators make a lot of money through ad revenue. While the actual annual income of YouTube channels varies greatly, it's certainly possible for one to generate more than $1 million a year. In 2014, even the 20th-most-popular YouTube channel makes between $134,000 and $1.32 million dollars.
Any revenue generated through YouTube is subjected to a 45 percent cut, which is the amount of money that YouTube takes. The money on these videos is generated by ads, which pay through either a "cost-per-view" or "cost-per-click" basis, as determined by the advertiser. Many popular YouTubers focus on specific types of content – most commonly video games or toys.
YouTubers have the potential to make a lot of money from ad revenue, and the most popular YouTube channel, Sweden-based PewDiePie, makes an estimated $825,000 to $8.47 million a year, even taking into account YouTube's 45 percent cut. This is largely due to the large viewer base, which is 23.9 million strong. The second-most-popular YouTuber, BluCollection, has a potential yearly income of $660,000 to $6.38 million, with 628,000 subscribers. Even less popular YouTubers have the potential to make money, with all 20 of the most popular YouTubers making between several hundred thousand and several million dollars each year.