Facebook has become an extremely popular platform for businesses, influencers, and content creators to earn money. If you are using Facebook to make money, it is important to understand how to calculate your earnings accurately. In this comprehensive guide, we will walk you through everything you need to know about calculating your Facebook income.
Types of monetization on Facebook
There are several ways creators can monetize their content and earn money on Facebook:
- Facebook Ad Revenue – Earn a revenue share from ads displayed alongside your content
- Facebook Stars – Earn money from fans who purchase and send virtual stars during Facebook Live videos
- Affiliate Marketing – Promote and sell other brands’ and businesses’ products for a commission
- Selling Own Products – Sell your own physical or digital products directly on Facebook
- Brand Sponsorships – Get paid by brands to promote their products or services
- Donations – Accept monetary tips and donations from supporters through Facebook Stars or other payment platforms
Calculating Facebook ad revenue
One of the main ways creators make money from Facebook is through ad revenue sharing. If you are enrolled in the Facebook Monetization program for content creators, you can earn a portion of the revenue generated from ads displayed before, during or alongside your videos.
Facebook pays creators 55% of the ad revenue generated from their content. To determine your estimated earnings, you’ll need to calculate:
- Estimated Monetized Playbacks – The number of times your monetized videos were viewed for at least 60 seconds. This info can be found in Facebook Analytics.
- RPM (Revenue per 1000 Monetized Playbacks) – The estimated revenue generated for every 1,000 monetized playbacks. This depends on region, audience, content type etc.
The formula to calculate your estimated Facebook ad earnings is:
Estimated Monetized Playbacks x (RPM/1000) x 0.55 = Estimated Earnings
For example, if you had:
- 250,000 Estimated Monetized Playbacks
- $5 RPM
Your estimated Facebook ad earnings would be:
250,000 x ($5/1000) x 0.55 = $687.50
Calculating Facebook Stars earnings
Facebook Stars are virtual goods your fans can purchase and send to show support during Facebook Live videos. 1 Star is worth 1 cent, and Facebook shares revenue with creators when Stars are purchased.
As a creator, you earn 1 cent for every Star received, so tracking your Stars earnings is simple. Just tally up the total number of Stars you received in your analytic metrics for each broadcast.
For example, if you received 50,000 Stars total, your estimated Stars earnings would be $500 (50,000 x $0.01 per Star).
Calculating affiliate marketing earnings
Affiliate links allow you to earn a commission from leading followers to shop featured products or services. Common commission rates are:
- 5-15% for digital products
- 10%+ for physical products
- 30-50%+ for services like travel booking sites
To determine your estimated affiliate earnings:
- Identify each affiliate link you used and the commission percentage
- Track clicks and conversions for each link in your affiliate or creator dashboard
- Multiply each conversion by the commission percentage to get your estimated earnings
For example, if you referred 10 hotel bookings through Booking.com at an 8% commission rate, your estimated earnings would be:
10 bookings x $250 average booking value x 0.08 (8% commission) = $200
Calculating earnings from product sales
Selling your own products is a great way to supplement your income. Your profits will depend on the volume of sales and how much revenue you generate after costs.
To determine your estimated earnings:
- Calculate your total revenue from product sales
- Subtract your cost of goods sold, platform fees, shipping and taxes
- The remainder is your estimated profit
For example, if you sold 100 units at $10 each for $1,000 revenue, and your costs were:
- Product cost: $4 per unit = $400
- Selling fees: 5% of revenue = $50
- Shipping: $3 per order = $300
- Taxes: $30
Your estimated profit earnings would be:
$1,000 revenue
– $400 product cost
– $50 selling fees
– $300 shipping
– $30 taxes
= $220 profit
Calculating brand sponsorship earnings
Brand sponsorships involve collaborating with a brand to promote their product or service to your audience.
Sponsorship fees are typically based on your audience size, reach and engagement. Common social media sponsorship rates are:
| Followers | Fee per Post |
|---|---|
| 10,000 – 50,000 | $100 – $250 |
| 50,000 – 100,000 | $500 – $1,000 |
| 100,000 – 500,000 | $1,000 – $5,000 |
| 500,000 – 1 million | $5,000 – $10,000 |
| 1 million+ | $10,000+ |
To estimate your sponsorship earnings:
- Determine your current follower count and typical engagement rates
- Research average sponsorship rates for accounts similar to yours
- Negotiate a competitive sponsorship fee per post
- Track number of sponsored posts you create
- Multiply sponsorship fee by number of posts
For example, if you have 75,000 followers, charge $750 per sponsored post, and completed 6 sponsored posts, your estimated sponsorship earnings would be:
6 posts x $750 per post = $4,500
Calculating Facebook donations
Die-hard fans may donate money directly to your Facebook account using Stars or other payment methods to help support your work.
To determine your estimated donation earnings:
- Track total donations received via Facebook Stars
- Add up monetary support received through third-party sites like Patreon
- Tally other direct donations through Paypal, Venmo or other methods outside of Facebook
For example, if you received:
- 25,000 Stars valued at $250
- $100/month support on Patreon for 5 months = $500
- 3 direct $50 donations through Paypal = $150
Your estimated donation earnings on Facebook would be $900.
Step-by-step guide to calculating total earnings
To calculate your total estimated earnings on Facebook:
- Compile your income metrics – Collect viewer metrics, sales data, sponsorships completed and donations received for each monetization method.
- Calculate earnings per method – Use the formulas and examples provided above to estimate your revenue from each monetization source.
- Add up earnings per method – Sum the individual earnings totals from ads, Stars, affiliates, products, sponsors and donations.
- Subtract taxes and fees – Remember to account for any taxes, withholdings, or commission fees Facebook may deduct from your earnings.
- Compare with Facebook Insights dashboard – Check your total against the creator earnings dashboard in Facebook Insights to confirm.
This comprehensive approach will help provide an accurate picture of your Facebook income streams and total estimated earnings.
Top tips for maximizing Facebook earnings
Here are some top tips for unlocking more Facebook monetization opportunities:
- Build your audience – Having an engaged following is the foundation for revenue generation.
- Activate monetization features – Turn on ads, Stars, badges, etc. in the Facebook creator dashboard.
- Analyze metrics – Identify high-performing content to create more of what generates views, engagement and conversions.
- Provide value – Don’t just sell. Offer entertainment, information and utility that your fans appreciate.
- Diversify income streams – Combine various monetization methods so you have multiple earning sources.
- Promote affiliate links and products – Showcase relevant brands, services and items your audience may be interested in.
- Partner with brands – Run sweepsakes, sponsored content, takeovers and other creative partnerships.
Frequently Asked Questions
How often are Facebook earnings paid out?
Facebook issues payouts for ad revenue on a monthly basis once you meet the $100 USD minimum threshold. Stars earnings are paid out approximately 45 days after the month they were accrued in.
What are the requirements to monetize Facebook videos?
To earn money from Facebook videos, you must apply for the Facebook Monetization Program. Requirements are 10,000 lifetime views on your video content and at least 4,000 hours of watch time in the last 60 days. You also need at least 1,000 subscribers to your video page or channel.
How do Facebook ads work?
When you monetize videos, Facebook will automatically place targeted ads before, during or after your content. You’ll earn 55% of the revenue these ads generate through views and clicks.
Can I earn from Facebook on mobile?
Yes, the majority of Facebook consumption now occurs on mobile. So you can earn ad revenue, Stars and more from both desktop and mobile viewers.
Do I need a Facebook page to earn money?
To earn ad revenue specifically, you need a Facebook video page or creator channel. But even with just a regular personal or business page, you can still leverage methods like affiliate links, selling products, and sponsorships.
Conclusion
Calculating Facebook income requires tallying earnings from various sources. But it provides helpful insight into what content and tactics are most lucrative. Ensure your analytics are set up to accurately track conversions and payouts. With the right monetization strategy, Facebook can become a significant revenue stream for creators.