How to Start a YouTube Automation Business? (Step-by-Step Guide for Setting Up a Cash Cow Channel in 2024)

October 22, 2024

To start a YouTube automation business: 

  1. Select a YouTube niche.
  2. Create a branded YouTube account.
  3. Build a high-quality YouTube automation team.
  4. Use tools to automate YouTube processes.
  5. Monetize your YouTube automation channel.

Starting a YouTube automation business requires understanding the basics of YouTube guidelines, channel analytics, SEO, and niche selection. YouTube automation channels have been gaining traction for a few years as a legitimate way to make money online and it’s no surprise why. Global Media Insight says there are currently 113.9 million YouTube channels. 

A YouTube channel can earn $18 to $1,000 weekly, depending on your ads and views. Successful YouTube automation experts like Noah Morris can earn $30,000 or more monthly. That's some serious cash flow. You don't need to show your face or get involved in the business. Noah, a 20-year-old, is based in Dubai and runs 20 faceless YouTube channels, attracting 2.5 million subscribers. You can make money from YouTube automation. Use the right strategies for community building, viewer retention, and branding.

For 10 years, I've been earning money online. I've tried various online businesses. These include affiliate marketing and making YouTube videos about it. I can tell you which business models can help you achieve financial freedom. In this article, we’ll show you how to start a YouTube automation business. We’ll also go over the main pros and cons, plus important questions to consider before starting a cash cow channel. At the end, I’ll share the best online business that helped me earn over $52K in monthly passive income.

1. Select the Best YouTube Automation Niche

A good starting point for finding a profitable YouTube automation niche is to consider your own strengths and areas of expertise. If you are a software engineer, a great idea is to use your knowledge to create a channel. Teach people how to develop their own programs.

Keep in mind that not all niches are equal. Some niches are substantially more competitive than others, and those are usually the niches with the highest RPM payouts as well. Advertisers will pay a lot to run YouTube ads in high-value niches like "personal finance" or "how to make money online." So, channel owners enjoy larger paychecks if they monetize through the YouTube Partner Program. 

However, that doesn’t mean you can’t succeed in those niches; it just means it will be harder. You can find a unique angle for your content. You should stick to establish your space in the niche. 

According to Make Money Matt, choosing the right niche is super important if you want to make money with YouTube automation channels. He added that some of the best niches for 2024 are Health and Wellness. It will always be popular because people care about their health. It also has great ways to make money. You can do affiliate marketing, get sponsorships, and sell courses. Matt Par also pointed out that Finance and Investing is a gold mine, with high CPMs (cost per thousand views) of $30 to $50. This puts it in the S-tier for long-term demand and high earning potential.

2. Create a Branded YouTube Account

With just a personal Google account, you’re able to like videos and subscribe to channels on YouTube. However, if you want to create your own channel and publish content for the public, you need to create a YouTube channel. You have the option of creating a personal YouTube account or a branded account for a business. For a YouTube automation channel, set up a branded YouTube account. It lets multiple users access and manage the account. Also, a branded YouTube channel keeps your personal information private. Here’s how to create a branded YouTube account. 

  1. Go to YouTube.
  2. Click “Sign in” in the upper right corner if you aren’t already logged into a Google account. If you’re already signed into a Google account, click on the account icon and choose “Switch account," then “Add account."
  3. Select “Create account” and choose “My work or business." Then, complete the basic info for your new automation channel to set up your branded YouTube account. 
  4. After setting up the channel, you can add other channel managers if you wish. 

Also, you'll need to add channel art like a branded logo and banner to show your audience that your channel is legit. You can create these yourself with free tools like Canva, or outsource it to a professional like you'll do with most of your channel tasks. 

VidIQ's Rob Wilson says to grow your YouTube automation channel, set up a branded account. It's especially important for businesses. Use a separate Google account for your YouTube channel. It keeps your work and personal life apart. This helps with security and managing your channel later. This also lets you add other people to help run the channel without giving them access to your entire Google account. Rob says a branded account helps unlock key features for success. It verifies your channel, so you can post longer videos and add custom thumbnails. It also makes managing your channel easier, with settings like profile pictures and channel names. It also has tools to help you build a unique, professional presence on YouTube.

3. Build a High-Quality YouTube Automation Team

You may have to do much of the work yourself in the beginning if you’re trying to start a faceless YouTube channel on a small budget. If you want to make a YouTube automation channel, you'll need a team. They will create your videos and manage the channel.

Fortunately, many freelancer websites can help you hire quality, cheap remote workers for your business. The best freelancer sites to hire talent for your YouTube automation business are Upwork, Fiverr, Guru, and Freelancer.

Youri van Hofwegen says to build a YouTube automation team. You must ensure your team delivers videos on time. He learned that, without proper incentives, freelancers might not prioritize your work. This could lead to late deliveries and disrupt your schedule. To solve this, Youri introduced positive and negative incentives. A positive incentive could be a bonus for on-time delivery. He uses a negative incentive: deducting a small amount from the payment if the video is late. This system creates accountability and ensures your work becomes a priority. Since using this method, late deliveries have become rare, and his team consistently delivers videos on time.

Youri says the system works well. However, it should be used only if late deliveries are common. If your team is already delivering on time, there's no need for it. This approach keeps everything on schedule. It ensures videos are ready when needed.

4. Use Tools to Automate YouTube Processes

You can leverage various workflow tools to automate YouTube processes like Asana, Trello, or Clockify. These tools let your YouTube automation channel assign work, track hours, and schedule content. Deloitte Insights reports that 36% of companies use BPM software to automate workflows. PwC's 2024 Global Workforce Hopes and Fears Survey shows that 50% of business leaders plan to automate more repetitive tasks.

In addition to workflow tools, use a YouTube automation tool to improve your operations. The two best YouTube automation tools are TubeBuddy and VIDIQ. They offer free and paid tools to help grow your YouTube channel. They automate data analysis, research, video editing, and video optimization.

According to the HowToAI YouTube channel, using AI tools can make it much easier to create and automate YouTube Shorts. The creator says tools like Short X can do much of the work. They can write scripts, add voiceovers, edit, and post videos. This allows creators to produce videos quickly, helping them post more often without spending too much time on each video. However, you must improve the AI content to meet YouTube's engagement standards. The video stresses the need for good prompts, strong hooks, and consistent branding. They help create better scripts and catch viewers' attention.

5. Monetize Your YouTube Automation Channel

Once your YouTube channel gets enough views and subscribers, it's time to monetize it. YouTube automation channels monetize by allowing ads on their content via the YouTube Partner Program. Google's info page says your earnings under the YouTube Partner Program are not guaranteed. Your earnings depend on the number of viewers watching your videos.

Getting monetized on YouTube can take time. It might happen quickly, or it could take months or even years. Sprout Social says it usually takes YouTube at least a month to review monetization applications. It could take longer since real people review each one. 

A Reddit user shared their experience, saying there is no set time for approval. They stressed the need for consistency in gaining subscribers and watch hours. It took them 11 months to get monetized, with most progress happening in the last 4 to 5 months.

A Quora user said that the time to get monetized depends on your content's quality, popularity, engagement, and subscriber count. It can range from a few months to over a year. 

Requirements for a channel to be eligible for the YouTube Partner Program include:

  • Over 4,000 watch hours in the last 12 months.
  • At least 1,000 subscribers.
  • Lives in a country where the Youtube Partner Program is available.
  • Has a linked AdSense account.
  • Adheres to all YouTube monetization policies.
  • Free of active community guideline strikes.

According to GeekbotAI, making money on YouTube through automation has become much easier with the help of AI tools. GeekbotAI shared that they used AI to speed up the process. They monetized a new YouTube Shorts channel in one month. GeekbotAI focused on viral content and popular celebrity hashtags. It gained thousands of subscribers and millions of views in a short time. This AI-driven approach saves time in making videos. It allows for quicker uploads and better engagement. It leads to faster monetization. 

What Are the Pros and Cons of Starting YouTube Automation Business?

YouTube Automation Business Pros

Passive income potential: Passive income is making money without being involved in the work that generates it. You outsource your YouTube automation channel to your team. This allows you to earn passive income.

Not constrained by channel creator: Unlike traditional YouTube channels, automation channels are not limited to a single creator. Their content is not constrained by anyone's availability. 

Multiple income streams: A YouTube automation channel can earn money in many ways, not just from ads. There are many ways you could potentially monetize a YouTube automation channel.

YouTube Automation Business Cons

Establishing a successful channel takes time: According to HubSpot, it takes an average of 22 months for a YouTube channel to reach just 1,000 subscribers. To make a decent income on YouTube, you'll need at least 100,000 subscribers.

Requires capital to invest: YouTube automation expert Joey Gaule says you can get simple videos made for $30 to $50 if they use only stock footage and voiceovers. To make high-quality animated videos, you'll need to spend $100 or more per video.

YouTube is extremely competitive: There is a ridiculous amount of content already on YouTube. Zippia says 500 hours of new videos are uploaded to YouTube every minute.

How Much Money Do You Need to Start a YouTube Automation Business?

You need $1,000 or more per month to start a YouTube automation business if you plan to produce about 12 videos. To grow your channel and engage your audience, you should post consistently, at least three times a week. This regular posting schedule helps build a loyal viewer base, which is essential for your channel’s success.

Isah Jimoh says to plan for tasks when outsourcing for a YouTube channel. These include keyword research, thumbnails, voice-overs, scripts, video editing, and descriptions. Isah Jimoh explains that the costs for these services can vary. For example, keyword research might cost $3 to $17 per video. Thumbnails can range from $5 to $50. Voice-overs may cost $15 to $570. Script writing can be $15 to $200. Video editing might be $40 to $210 per video. Also, one-time costs for things like a YouTube banner and logo design are usually $20 to $25.

What Are the Key Metrics to Know in Starting YouTube Automation Business?

  • RPM. RPM or revenue-per-mille, is a metric that tells you how much you’ve earned on average per 1,000 video views. 
  • CPM. CPM, or cost-per-mille, is a metric that shows how much advertisers have spent on average to show ads on 1,000 of your videos.
  • Watch Time. Watch time measures audience retention on videos, or the total time viewers spend watching your videos.
  • CTR. CTR, or click-through rate, is a measure of how many people click on the YouTube video if they’ve seen the thumbnail.

What Aspects of a YouTube Automation Business You Can Outsource When Starting? 

1. Research and Optimization

To make your faceless YouTube channel a money-making machine, you need to find ideas for it. You'll also need to optimize the video title and description for YouTube's algorithm. For that, you'll need someone to do the research. A YouTube SEO expert will use the right keywords. This will help most people find your videos via YouTube search.

2. Scriptwriting

A good scriptwriter may be the most important hire for your automation channel. The scriptwriter finds interesting points to engage the audience. They also set the tone of your videos. A professional scriptwriter knows how to keep the audience watching. They know how to present information to achieve that. The writer plays a major role in your channel's watch time. Plus, if you hire a voice actor, you need to tell them exactly what to say in the video.

3. Voice Over

Ever notice how some voices can demand your attention more than others? That’s the power a good voice-over actor can have on your YouTube content. For channels that don't use YouTube influencers, a high-quality voice-over actor is vital. It helps to create content that holds viewers' attention.

4. Video Editing

You won’t grow your channel unless you get YouTube viewers to choose your videos over the millions of other options available. So, it's crucial to have someone on your team who knows YouTube marketing trends. They should have the skills to create captivating thumbnails. This is key to your channel's success. The thumbnail is the first visual people see. It must grab their attention and make them click to watch your video.

5. Channel Management

You can automate your YouTube channel's content creation. You can also outsource its management to full autonomy. A YouTube channel manager manages your channel in the YouTube Studio. They schedule videos and track YouTube analytics. They suggest content tweaks to the team when needed.

What Are the YouTube Automation Business Mistakes to Avoid When Starting?

  • Reuploading: Some people mistakenly believe that YouTube automation is just re-uploading content. They think it requires no work. Unfortunately, re-uploading another creator's content may work on TikTok. However, you're likely to get a copyright strike on YouTube.
  • Using Copyrighted Music: f you use copyrighted music in your YouTube automation videos, YouTube will flag your video. You won't be able to monetize it. You can't earn from the YouTube Partner Program if you use copyrighted music in your video. There is a lot of royalty-free music on the web. You can use it in your videos, but it can't be mainstream music. 

Is YouTube Automation Legit or a Scam? 

YouTube automation is legit. As with most business models, it is possible to automate a YouTube channel by outsourcing tasks to freelancers and software tools. However, fully outsourcing YouTube channel management to earn passive income is likely fail. 

youtube automation advice reddit

A Reddit user, a worker at a YouTube automation firm in Australia, says you can outsource tasks like video editing and scriptwriting. However, you should handle high-level tasks like topic creation and niche selection to ensure they're done right. 

Additionally, YouTube automation is legal. It is legal to create and publish content on YouTube that comes from freelancers and tools you employ for your content creation business. However, YouTube automation businesses must follow copyright laws. So, verify that you have the legal right to use any information and videos in your YouTube content.

Is Starting YouTube Automation Worth It in 2024?

Yes, starting YouTube automation is worth it in 2024 for those willing to invest time, resources, and effort into creating engaging and valuable content. The number of YouTube users is growing. Per Oberlo's data, there will be 2.9 billion YouTube users by 2025. It provides content creators with a solid market.

Also, YouTube is far from saturation. There is a substantial amount of content on YouTube. Statista reports that creators upload 500 hours of new video every minute. However, it does not mean the platform is saturated. It is competitive. To avoid visibility issues on YouTube, you must publish high-quality videos. They should target new or underserved niches.

Conclusion: Local Lead Generation Is Easier to Start Than YouTube Automation Business?

Local lead generation is easier to start than YouTube automation business because of its lower cost of capital. Starting a local lead generation business only costs between $500 and $1,000 on average. You need at least $3,000 to start YouTube automation. You must pay your content production team. That will help you automate the process of content creation.

Starting a YouTube automation business is exciting. It offers the freedom that passive income brings. However, before any chance of passive income, you must: choose a winning channel idea in the right niche, invest money to create each video, and be patient while the channel gains momentum on YouTube's algorithm. This may take a few years. It's a long wait. Many things could go wrong, like a trend change that makes your niche idea obsolete.

I prefer local lead generation for passive income generation. Local lead generation has a low capital requirement. It's also less saturated becasue of its natural barriers to entry, like geography. This factor narrows down your competition. The skill set required in local lead generation also limits the number of players in the market. If you like to start a more affordable but scalable source of passive income, learn about the local lead gen biz through our program.

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