For content creators and influencers, gaining subscribers and followers is a key goal. But what does each new subscriber actually translate to in monetary value? The amount of revenue that each subscriber generates can vary widely depending on factors like the content platform, types of monetization enabled, engagement rates, niche, and more. Let’s break down some of the key factors that determine how much money one new subscriber is worth.
Platform Differences
The platform that a creator uses can greatly impact how much revenue each subscriber generates. For example:
- YouTube – Video views are a key driver of YouTube ad revenue. According to Influencer Marketing Hub, on average YouTube pays around $7.60 per 1,000 ad views. For YouTubers with 1 million views per month, that could translate to around $7,600 in monthly revenue just from YouTube ads. The actual revenue per subscriber varies significantly though based on view count and engagement.
- Facebook – One report estimates the average revenue per Facebook follower at $0.11 per month. However, Facebook advertising revenue relies more heavily on engagement and clicks versus sheer follower count.
- Instagram – For influencers on Instagram, Influencer Marketing Hub estimates typical earnings of $0.25 to $0.50 per follower per month. However, actual revenue depends heavily on engagement rate.
- Patreon – On platforms like Patreon where creators offer exclusive content and perks for monthly subscribers, earnings per subscriber vary greatly. According to Comparitech, the average Patreon creator earns $16.17 per patron. Higher tiers of membership tend to drive more revenue.
- Newsletters – For email newsletters and Substack, subscriber value varies greatly. One estimate suggests a range of $0.50 to $5+ per subscriber per month depending on factors like industry and engagement levels.
As you can see, revenue per subscriber or follower can range from just a few cents on ad-driven platforms to $5+ on membership-driven platforms. The content platform plays a major role in earning potential.
Types of Monetization
Creators have many options today for monetizing their content and subscribers. More monetization methods unlocked can increase the revenue generated per subscriber. Some types of monetization include:
- Advertising revenue – Display ads, video ads, sponsored posts, affiliate links
- Fan funding – Platform tips/payments, membership programs, subscriptions
- Merchandise sales – T-shirts, mugs, prints
- Paid premium content – Special videos, courses, tutorials, downloads
- Licensing content
- Writing brand partnerships
- Paid events – Workshops, meetups, speaking engagements
Combining several monetization methods, especially recurring passive income streams like memberships and merchandise sales, can maximize the lifetime value derived from each subscriber.
Engagement and Interaction Rates
It’s not just the quantity of subscribers that matters, but also the quality. Subscribers that actually watch, read, like, comment on, and share content are much more valuable from a monetization perspective. Here are some key metrics and benchmarks for engagement:
– Instagram – Accounts with higher engagement see $0.85 to $2.50 per follower monthly according to Later. An engagement rate of 3-5% is considered good.
– YouTube – Videos with higher views, comments, likes, and shares perform better with the YouTube algorithm, driving more views and revenue. Benchmarks vary widely though based on niche.
– Email newsletters – Open rates above 20% are considered good, with click rates from 2-5% being strong. Higher open and click rates signal engaged subscribers.
– Facebook – Page posts see an average engagement rate of 2.4%, per Quintly. This varies based on post type and niche factors.
Essentially, subscribers that interact more can drive more revenue through things like:
– More ad revenue
– More affiliate sales
– Higher merchandise sales
– Increased likelihood of becoming paying members
– More perceived influence for bigger brand deals
Engaged subscribers are simply worth more financially. Creators should always be optimizing to drive engagement rates higher among their subscriber base.
Niche and Industry Variations
The money per subscriber also comes down to the niche and industry a creator is in. Some niches simply monetize better than others, and align better with certain revenue models. For example:
- Finance – This niche lends itself well to digital products, premium courses, affiliate marketing, and sponsorship deals. According to NichePursuits, personal finance sites average $96 in affiliate revenue per email subscriber annually.
- Gaming – Ad revenue and merchandising play a big role here. Popular gaming channels on YouTube make about $3.50 per 1,000 video views, reports Influencer Marketing Hub.
- Beauty & Fashion – Sponsorships with beauty brands are common, as well as merchandise sales. On YouTube, these verticals earn $2 – $4 per 1,000 views typically.
- Technology – Display ads and affiliate revenue are common monetization methods. An email subscriber in the tech niche may generate $70+ annually.
Studying the monetization trends and earnings benchmarks for your niche helps estimate the potential value per subscriber. Optimizing your monetization approach for your niche is key to maximizing subscriber revenue.
Subscriber Value Estimates by Platform
Based on some of the averages and estimates mentioned above, here is a breakdown of benchmark subscriber value ranges by platform:
YouTube
- CPM (cost per thousand views): $7.60
- Subscriber value per month: $0.10 – $1.00
YouTube earnings vary widely though based on view counts. Top YouTubers make well over $1 per subscriber through strong view counts, premium ad placements, sponsorships, and merchandising.
- Average revenue per follower: $0.11 per month
- Subscriber value per month: $0.05 – $0.20
Facebook revenue relies more on engagement and clicks versus pure follower size. Highly engaged audiences drive more ad revenue.
- Average revenue per follower: $0.25 – $0.50 per month
- Subscriber value per month: $0.15 – $1.00
Instagram tends to monetize better than Facebook for influencers leveraging sponsorships. But there is high variance based on engagement rates.
Patreon
- Average per patron: $16.17 per month
- Subscriber value per month: $3 – $25
Patreon enables recurring membership revenue for loyal followers. Higher tiers dramatically boost subscriber values.
Email Newsletters
- Average revenue per subscriber: $0.50 – $5+ per month
- Subscriber value per month: $0.50 – $15
Newsletter revenue can vary greatly based on niche, content strategy, affiliate programs, and engagement. Some niches drive much higher returns.
Podcasts
- Average revenue per listener: $0.08 – $0.10 per month
- Subscriber value per month: $0.05 – $0.15
Podcast earnings are primarily driven by advertising and sponsorships. Engaged, loyal audiences command higher ad rates.
Factors That Impact Subscriber Value
Let’s summarize some of the key factors that influence the revenue earned per subscriber:
- Platform – Some platforms monetize much better than others.
- Monetization Models – More diverse monetization can increase subscriber values.
- Engagement Rates – Highly engaged subscribers deliver more revenue.
- Niche – Some niches align better with lucrative monetization models.
- Content Strategy – Valuable, premium content drives more revenue.
- Content Quality – Higher production value attracts bigger advertising deals.
Optimizing these factors for a given audience and niche is key to maximizing the earnings per subscriber.
Measuring Subscriber Lifetime Value
The most accurate way to measure subscriber value is by calculating subscriber lifetime value (LTV). This estimates both the average monthly value derived from a subscriber, along with predicting how long that subscriber remains engaged.
For example, an Instagram follower may drive $0.50 per month on average through sponsorships. But only 50% might still be actively following after one year. In this case the lifetime value would be $0.50 * 12 months * 50% = $3 LTV.
Software tools are available to track metrics like churn rate and monthly recurring revenue that factor into lifetime value. Some key stats to measure include:
- Subscriber acquisition cost
- Average revenue per subscriber monthly
- Churn or turnover rate
- Subscriber lifetime in months
- Gross margin percentages
Combining these metrics allows both forecasting future subscriber revenue, as well as focusing your efforts on the highest value subscribers. Maximizing returns from existing audiences is often easier than constantly growing an audience from scratch.
Ways to Increase Subscriber Revenue
Here are some proven tactics to consider for boosting earnings per subscriber:
Drive More Engagement
More interactions, shares, comments and overall engagement leads directly to higher subscriber revenue through increased visibility, sponsorships and other methods. Create engaging content that gets people participating.
Offer Exclusive Perks
Loyal subscribers that get access to exclusive content, tools, or deals are much more valuable. Consider adding a paid membership tier with bonus materials and perks.
Upsell Products/Services
Additional purchases for things like courses, software, services and merchandise increases revenue earned from each existing subscriber. Even a small percentage converting to buyers can have a big impact.
Improve Conversion Funnels
Optimize your sales funnels to convert as many viewers and traffic into subscribers as possible. More subscribers means more potential revenue sources.
Promote Affiliate Programs
Adding affiliate links and promotions to your content is an easy win, converting existing traffic into incremental revenue. Just avoid over-promoting.
Build Email Lists
Email subscribers often monetize better than social followers. Focus on collecting emails and nurturing email subscribers to increase subscriber revenue.
Offer Memberships
Recurring membership revenue helps maximize the value derived from loyal subscribers. Consider adding a subscription membership program.
Double Down on High-Value Content
Not all content drives equal revenue. Analyze performance to determine your most valuable content that attracts viewers and converts subscribers. Then produce more of that high-performing content.
Optimizing Content Production
To maximize returns from your audience and subscribers, be strategic with the types of content you produce:
- Promotional Content – Some content should directly promote things like affiliate links, products, and lead generation offers. This converts subscribers into buyers.
- Educational Content – How-to tutorials, guides, and informational content builds authority and trust. This strengthens engagement and loyalty.
- Entertaining Content – Fun, engaging videos and stories keeps audiences watching more. This increases ad revenue.
- Repurposed Content – Re-editing and repurposing existing content into new formats saves production time. It also reaches wider audiences.
Balancing these types of content keeps audiences engaged, converts subscribers to buyers, and maximizes the value derived from your followers. Try tracking engagement metrics for each content piece to determine what resonates most with your audience.
Conclusion
While specifics vary greatly, most content creators generate somewhere between $0.10 to $5+ per subscriber monthly on average. Multiple monetization methods combined with highly engaged, high lifetime value subscribers can push earnings to the higher end of that range though.
Optimizing content and marketing to boost subscriber engagement, loyalty, email capture rates, and conversions will all help maximize the revenue derived from each subscriber. Patience and persistently improving monetization strategy is key to increasing subscriber earnings over time.
