Monetizing YouTube Shorts: What You Need to Know

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7 Min


Anastasia Bukhtiarova


27 Feb 2023

Monetizing YouTube Shorts

Beginning February 1, 2023, YouTube creators started earning money from YouTube Shorts.

This is a part of the platform's global monetization expansion program: YouTube has been promising to allow creators to monetize YouTube Shorts for a while already. This was a necessary update to the platform's work, as the Shorts format was not monetized at all, even though it quickly became incredibly popular. The only revenue that could be counted on was the YouTube Shorts Fund for the most successful creators. But the fund and the advertising percentage don’t function the same.

Previously, creators only earned from advertising in long-form videos, but now affiliates can earn a cut of the profits from ads that appear in the feed between YouTube Shorts. 

How YouTube Shorts Monetization Works

Every month, YouTube Shorts collects revenue from advertising between videos. This revenue is used to pay for music licensing and compensate creators of Shorts. Profits from this remuneration for YouTube partners is 45% — regardless of whether you use music in your short videos. 

The revenue share is proportional to the number of views your Shorts have in each country. The more Shorts earn on the platform, the more each individual creator receives. 

YouTube partners who agreed to the terms of the Short Video Monetization Module in January have already been earning from ads in the Shorts feed in YouTube Analytics since February 1. And if you haven’t yet done so — make sure to accept the terms as soon as possible. This will allow you to immediately start earning money from Shorts.  

In addition, all participants in the partner program, whether they plan to make Shorts or not, will have to accept the new terms by July 10, 2023... or stop being a YouTube partner. Creators who ignore the deadline will simply be automatically removed from the monetization program and will have to reapply.

How the Modular System of Terms of Monetization Works

Each creator signs the Basic Monetization Terms, which outline exactly what you can place on the platform and how you will be paid. There are separate monetization modules for: 

  • The view page (this is the main content of the creator) 
  • Shorts monetization
  • Commercial products such as sponsorship, super chat, etc. 

If you don't want to receive regular additional income from Shorts, you don't need to activate the monetization module. We have to say, however, that this would be a rather strange choice that would simply limit your options.

Changes to the Terms and Conditions of the Affiliate Program

YouTube aims to be a cohesive ecosystem of creators focusing on shared success. This allows the platform to compete successfully with other social networks and creators to earn more. 

In addition, the platform is interested in developing the Shorts format, which allows more creators to join the partner program. It's simple: the more partners there are, the more they and the platform earn. 

Starting mid-January 2023, new minimum requirements were put in place for creators of short-form videos to join the YouTube Partner Program. 

Creators can now join the YouTube Partner Program if they have 1,000 subscribers and 10 million valid short video views in the last 90 days. Members of the program will have access to all features and benefits of the YouTube Partner Program, including the ability to earn advertising revenue on longer-form videos. 

Some things will stay the same. You can still join the program on standard terms: at least 1,000 subscribers and 4,000 hours of views in the last 12 months, but in this case, short video viewing hours will not be considered.

So there are two ways to make money from short videos:

  • Create a new channel and upload short videos there, working towards gaining 1000 subscribers and 10 million views on the channel in 3 months. 
  • Upload short videos to an existing channel already connected to an affiliate program and monetize content from the first views.

But Why Make YouTube Shorts at All?

Here's a real-life success story, if you're still on the fence about whether to invest in this format.

Our partner MacDannyGun is a successful YouTube vlogger with over a million subscribers. He creates interesting and unique content that resonates with his audience. Since the YouTube Shorts Fund was launched, the creator has been uploading short videos to YouTube and getting paid monthly. 

MacDannyGun quickly realized the potential of the short video format. Through dedication and hard work, he doubled the number of subscribers to his channel to 637,000, allowing him to further monetize his videos and earn a steady income. 

By reaching a new audience with Shorts content, the channel increased views of its main regular content by more than 10 times. By regularly publishing Shorts, the creator doubled his income from the fund in six months and more than quadrupled his income from advertising on regular videos.

His success story is yet another reminder of the Shorts’ potential and the opportunities they open up for creators. This powerful new format helps creators earn more money, successfully promote their content, increase their audience, and ultimately grow their channels.

Ready to create Shorts and start increasing your income? As an official YouTube partner, we follow all updates on the platform and are always ready to help you create, monetize and promote Shorts. If you have any questions about Shorts and the new monetization model, feel free to contact us here.

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