From Brand Deals to Creator Loans: Funding for YouTube Channels Explained

Explore diverse funding options for YouTube creators, including brand deals, merchandise sales, and innovative financing solutions to boost channel growth.

YouTube creators have more ways to earn money than ever before. Beyond ad revenue, creators can leverage brand deals, merchandise sales, and even creator funding options to grow their channels. Here's a quick breakdown of the key points:

  • Brand Deals: These account for 71% of creators' earnings after product sales. Payment types include flat fees, CPM-based payments, or affiliate commissions.
  • Merchandise Sales: Use YouTube's built-in tools like Merch Shelf to sell products tied to your channel milestones or events.
  • Creator Funding: Platforms like Fundmates offer upfront cash advances ($30,000–$1 million) based on future AdSense earnings, with no equity or long-term contracts required.

To succeed, focus on consistent, high-quality content, build a professional media kit, and plan your funding needs carefully. Whether you're selling merch, securing sponsorships, or exploring creator loans, diversifying income streams is the key to sustainable growth.

YouTube Revenue Basics

Product Sales on YouTube

YouTube's built-in shopping tools - like Merch Shelf, Shopping, and Live streams - make it easy to sell products directly through your channel. These tools not only bring in extra income but also help build a stronger connection with your audience. The revenue from these sales can be used to improve your content or even grow your team.

Here are some examples of creators who’ve nailed product launches:

  • The Boys celebrated reaching 3 million subscribers by co-designing milestone hoodies. This anniversary drop became a top seller.
  • Cassey Ho saw a 200% spike in sales for her POPFLEX designs during her #BlogilatesPlankChallenge.
  • Selena Gomez sold out her 'Rare' merch in under an hour using the Merch Shelf.

Tips to Boost Sales:

  • Launch limited-edition products tied to milestones to create excitement and increase demand.
  • Host live shopping events to showcase your products and encourage purchases in real time.

Strong sales can also make your media kit more attractive to potential partners or investors. Once you’ve tapped into product sales, it’s time to look at brand partnerships and legal considerations.

Making Money with Brands

Understanding Brand Deals

Brand sponsorships make up a significant portion - 71% - of many creators' earnings after product sales. To land these deals, focus on building a professional online presence and familiarize yourself with common payment structures:

  • Flat-rate: A one-time fee based on your 30–60-day average views.
  • CPM (Cost Per Mille): Typically $10–$30 per 1,000 views in the U.S.
  • Affiliate commissions: Earn 5–15% on sales generated through your links.

For a polished pitch, create a media kit that includes:

  • Your channel's stats and growth patterns.
  • Audience demographics (age, location, interests, etc.).
  • Content themes and engagement rates.
  • Examples of previous brand collaborations.

If you're a YouTube creator based in the U.S., the IRS considers you self-employed. Here's what that means for your finances:

  • Self-employment income: You must report all earnings from YouTube. If you receive $600 or more from a company, expect a 1099-MISC by January 31.
  • Quarterly taxes: If you anticipate owing $1,000 or more in federal taxes, you'll need to make estimated payments every quarter.
  • Recordkeeping: Use financial tools to track income and expenses accurately.

Choosing Between Direct and Platform Sponsorships

Direct sponsorships often pay more and give you full control, but you'll need to handle outreach, negotiations, and contracts yourself. Alternatively, platforms or talent agencies can connect you with opportunities and manage contracts - for a 15–25% fee.

When negotiating deals, make sure to cover these essentials:

  • Campaign goals and deliverables.
  • Timelines for content creation and delivery.
  • Audience disclosures to meet legal requirements.
  • A written contract, ideally reviewed by a lawyer.

With these strategies in place, you're well on your way to leveraging brand partnerships effectively. Next, let’s explore emerging funding models for creators.

How to get funding as a creator and manage your money

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New Funding Options

Creators now have access to direct financing options that can help grow their channels, beyond traditional brand sponsorships.

Understanding Creator Funding

Fundmates offers advances ranging from $30,000 to $1 million, based on AdSense forecasts over 6–24 months. The best part? There's no need to give up equity or commit to long-term contracts.

How Fundmates Works

Fundmates

Fundmates has provided over $50 million in funding to more than 100 channels. Their approach is simple: they share revenue from AdSense earnings over 6–24 months, allowing creators to retain full ownership and creative control.

Here are some key features:

  • AdSense-only revenue sharing: No other revenue streams are affected.
  • Ownership stays with you: They don’t take over your content.
  • Transparent tracking: Payments and performance are easy to monitor.
  • Short-term agreements: Flexible terms that fit your needs.

On top of funding, creators can benefit from the Fundmates Plus+ program (included for free with funding). This program offers support like video editing, thumbnail design, access to YouTube growth experts, free MCN access, content distribution assistance, and translation services.

Types of Creator Funding

Fundmates provides two main options:

  • Basic Funding: A short-term AdSense advance.
  • Fundmates Plus+: Includes added support such as editors, designers, YouTube experts, MCN access, distribution, and translation services.

To make the most of these options, evaluate your channel's capital needs. Compare revenue-share rates, term lengths, and the additional services offered to ensure they align with your growth goals.

Getting and Using Channel Funding

Once you've chosen a funding option, it's time to apply and plan how to manage your resources wisely.

Calculating Funding Needs

Start by estimating how much funding you'll need. Use YouTube Analytics to project your average monthly AdSense revenue. Consider factors like CPM, audience demographics, engagement rates, and ad formats. To fine-tune your estimate, try using Fundmates' video earnings calculator to set a realistic funding goal.

What You'll Need to Apply

Prepare these key materials for your application:

  • YouTube Studio performance metrics
  • AdSense statements from the past 6 to 24 months
  • A content strategy and growth plan
  • A detailed budget allocation

Applications that stand out typically show steady growth and a well-thought-out plan for using the funds. Fundmates evaluates applications based on past performance data to predict earnings over the next 6 to 24 months.

Managing Your Funds

Keep your spending organized by using accounting software or setting up a dedicated account. Allocate your funds to areas like equipment, production, marketing, and maintaining a reserve. Fundmates' tracking dashboard can help you generate monthly reports. Focus on investments that increase viewership and engagement, as these will drive revenue and help you meet funding obligations.

Summary

We discussed the essentials of YouTube revenue, including ad income, brand sponsorships, legal considerations, and the rise of new funding methods like Fundmates. Thriving channels typically combine multiple income streams such as ad revenue, Super Chat, memberships, merchandise sales, brand partnerships, and creator loans to drive growth and manage financial risks.

We also looked into newer financing options. Fundmates provides AdSense advances, offering creators upfront funding through short-term revenue-sharing agreements. To succeed, creators need to focus on data-driven planning, a clear content strategy, high-quality production, and active engagement with their audience.

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