The Complete Guide to Monetizing YouTube Shorts in 2024

Since its launch in September 2020, YouTube Shorts has taken the world of short-form video content by storm. These quick, engaging clips have become a favorite of both creators and viewers alike.

With the increasing popularity of Shorts, we're sure you may be eager to learn how to monetize your bite-sized creations.

So, in this comprehensive guide, you'll discover everything you need to know about YouTube Shorts monetization in 2024. We'll delve into the different ways you can make money through Shorts, the eligibility requirements, how much you can earn, and more.

Plus, we'll introduce you to Simplified, a powerful tool that will supercharge your YouTube content creation efforts.

Let's dive in!

Understanding YouTube Shorts

Source: YouTube

YouTube Shorts are vertical, short-form videos that last up to 60 seconds. They can be a 60-second continuous video or multiple 15-second videos combined.

Shorts are designed for quick, engaging, and visually captivating content — perfect for the mobile viewing experience.

One unique feature of YouTube Shorts is that viewers can interact with your content in various ways while watching it. They can share, comment, like, dislike, or even subscribe to your channel directly through the video.

Unlike some other short-form video platforms like Instagram Stories and Snapchat, the content you upload as YouTube Shorts remains on the platform and doesn't disappear after a set period.

Note: If you post a video that is 60 seconds or shorter, it will be automatically classified as a 'Short' by YouTube.

With 2 billion monthly logged-in users as of July 2023 YouTube Shorts offers you a great chance to reach a vast audience & grow your presence on one of the world's largest video-sharing platforms.

Related: What Are YouTube Shorts And How to Leverage Them For Your Business

How Does YouTube Shorts Monetization Work?

In 2021, YouTube introduced Shorts monetization through the YouTube Shorts fund, which was initially a $100 million initiative.

The purpose of this fund was to motivate Shorts creators to embrace this new content format by rewarding those who produced the most captivating content.

However, this fund was phased out when YouTube officially launched the Shorts ad revenue-sharing model in February 2023.

With that being said, here's how to monetize YouTube Shorts:

1. YouTube Shorts ad revenue sharing

To become a YouTube Shorts creator, you'll need to join the YouTube Partner Program (YPP), but the way revenue is shared for these short videos differs from the usual method for longer videos.

To make it fair and efficient, a portion of the ad revenue is collected in a "Creator Pool" based on the total views of all Shorts. This Pool is then distributed among creators.

This is how the Pool works:

• Revenue from ads shown between Shorts in the Shorts Feed is collected in the Creator Pool. This money is used to reward creators and cover the costs associated with music copyright.

• If you upload a video without music, all the revenue generated from its views goes into the Creator Pool.

• If you upload a video with music, the revenue is divided between the Creator Pool and payments for music copyright claims, depending on how many music tracks were used in the video.

• The total amount in the Creator Pool is then distributed to creators based on their portion of the overall views.

Related: How to Add Awesome Music to Your YouTube Videos for Free!

Source: YouTube Help

You might be wondering why YouTube uses this Creator Pool approach, right? Here's why:

• Shorts have a unique ad format and are distinct from longer videos on YouTube. So, they require a different way to distribute ad revenue.

• It allows all Shorts creators in the YouTube Partner Program to benefit from ads, not just those with ads directly alongside their videos.

• It also ensures that creators' ability to make money from their content isn't affected by the use of music.

Let's illustrate how this works. Say you use one music track in a Short and you were supposed to earn $1000 from it, the revenue is split 50/50.

So you would receive $500, and the music publishers would receive $500.

Regardless of whether you use music or not, you'll always receive 45 percent from the ad revenue-sharing model.

The following revenue types aren't included in the Creator Pool:

• Revenue from views of Shorts by creators who haven't accepted the Shorts Monetization Module

• Revenue from views of Shorts uploaded by music partners

• Revenue from views of Shorts that are considered ineligible

• Revenue from ads shown when a user opens the Shorts Feed is opened before actually watching a Short

• Revenue from ads displayed on the navigational pages within the Shorts player.

To start sharing in Shorts ad revenue, monetizing partners will need to accept the Shorts Monetization Module – terms that let you earn from ads and YouTube Premium in the Shorts Feed.

Shorts ad revenue sharing will apply to your channel’s eligible Shorts views starting on the date you accept.

Note: Shorts views accrued before accepting the Shorts Monetization Module are not eligible for Shorts ad revenue sharing.

Related: How To Create Engaging YouTube Vertical Ads Using Simplified

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2. YouTube Premium subscription revenue sharing for Shorts

You can also earn from YouTube Premium subscription revenue. YouTube Premium is a paid subscription service that offers special features like an ad-free experience & the ability to play videos in the background.

YouTube allocates 45% of the net revenue generated from YouTube Premium subscriptions to monetizing creators for their Shorts content.

A portion of the YouTube Premium subscription fees is set aside to cover the expenses associated with music licensing.

Your earnings are determined based on your share of subscription Shorts views in each country.

6 Other Ways to Make Money Through YouTube Shorts

While the YouTube Partner Program (YPP) remains the only ad-based method for monetizing YouTube Shorts, there are other ways for you to generate income.

1. Selling subscription memberships

Enabling YouTube's channel memberships allows you to charge monthly payments in exchange for perks like exclusive content, live chats, badges, and emojis. This feature can be accessed in YouTube Studio under the "Earn" section, specifically within the "Memberships" tab.

2. Through YouTube Shopping's features

You can also monetize your YouTube Shorts by using YouTube Shopping to promote your products. If your Short features products, you can tag them during the upload process.

This allows viewers to browse and purchase products without leaving YouTube while watching your Short.

3. Through YouTube fan funding

Once you're accepted into the YPP and meet the eligibility criteria for each fan funding feature, you can gain access to Super Thanks, Super Chat, Super Stickers, and Channel Memberships.

Two relevant options for Shorts creators like you are:

• Super Thanks: Viewers can purchase a one-time animation that only they see on top of your Short. They can also post a customizable comment. Super Thanks offers different price points, and you'll receive 70% of the revenue after taxes and fees are deducted.

• Channel Memberships: This program allows you to reward paid members with perks like badges, emojis, exclusive content, and live streams. Creators can set multiple membership tiers with different monthly price points, and they keep 70% of the earnings, with YouTube taking a 30% commission.

4. Collaborating with brands

Instead of relying on YouTube to sell ad space for you, you can directly collaborate with brands to negotiate sponsorship deals.

Brands often pay creators to create and publish product reviews, endorsements, or other content. To explore paid partnerships, you can establish a creator website, approach brands directly, or join influencer platforms that connect creators with brands.

5. Joining an affiliate program

Affiliate programs offer creators the opportunity to earn revenue based on clicks to links hosted on their YouTube channel or other platforms.

For example, the Shopify Affiliate Program partners with educators, influencers, and content creators who educate their audience about entrepreneurship.

Related: Influencer Marketing: What It Is And How To Get Started

6. Using Patreon

Patreon allows content creators to earn money through paid subscriptions. This YouTube feature primarily caters to video content, making it a great option for monetizing your YouTube Shorts.

For example, you can use Shorts to offer a sneak peek of a more in-depth video and inform your audience that the full content is accessible through one of your Patreon membership tiers.

Alternatively, you can use Patreon's Community tab to engage with your patrons, building a loyal community.

It differs from YouTube channel memberships as there are no strict requirements like minimum subscribers or watchtime thresholds when creating a Patreon account.

However, the choice between the two platforms depends on your unique needs and the perks you wish to offer. We suggest that you explore each program to determine which aligns better with your goals.

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Eligibility Requirements for YouTube Shorts Monetization

To qualify for full YouTube Shorts monetization, there are specific criteria you need to meet. First, you must have a minimum of 1,000 subscribers. You also need to achieve one of the following:

1. Obtain 10 million valid public Shorts views within the last 90 days.
2. Accumulate 4,000 valid public watch hours from long-form videos within the past 12 months.

Source: YouTube Help

If you haven't reached these thresholds, don't fret. In June 2023, YouTube introduced an expanded version of the YPP that allows newer creators and those with a smaller following to monetize through YouTube Shopping and fan funding.

However, this does not grant you access to Shorts ad revenue sharing or YouTube Premium subscription revenue sharing.

To be eligible for this expanded program, you need to meet the following requirements:

1. Have at least 500 subscribers.
2. Post three valid public uploads in the last 90 days.
3. Accumulate three million valid public Shorts views in the last 90 days, or alternatively, reach 3,000 valid public watch hours from long-form videos over the last 12 months.

Source: YouTube Help

Some other requirements you need to meet are:

• Understand and adhere to YouTube's Channel Monetization policies.

• Reside in a region where the program is available (note that the expanded program is limited to certain countries for now).

• Ensure that your channel does not have any active Community Guidelines Strikes.

• Enable 2-step verification for your Google account.

• Have an active AdSense account.

Related: YouTube Secrets: How To Write Engaging Titles That Get Views

How to Start Monetizing YouTube Shorts

Follow these steps to become a part of the YouTube Partner Program & start monetizing your YouTube Shorts:

• Start by logging into your YouTube account.
• Click on your profile picture located in the top right corner, and then select "YouTube Studio."
• On the left-hand menu, click on "Earn."

• If you meet the eligibility criteria, you will see an "Apply" button. Click it to begin the monetization process. If you don't meet the requirements yet, click on "Get Notified" to return later once you qualify.

• Click "Start" to review and accept the base terms for the YouTube Partner Program.

• Next, you need to link your existing AdSense account. If you don't have one, you can start the process of setting up a new AdSense account.

• After completing these steps, you'll need to wait for YouTube to review your application. During this process, both automated systems and human reviewers will assess your channel to ensure that it adheres to all of YouTube's policies and guidelines. The process typically takes around a month, but occasional delays can occur due to high application volumes, technical issues, or resource constraints.

If your initial application is not approved, don't worry. You have the option to appeal the decision within 21 days, or you can continue to upload original content. After a 30-day waiting period, you can reapply.

If this isn't your first rejection or you've reapplied previously, you may reapply after a 90-day waiting period. In such cases, it's likely that a significant portion of your channel doesn't currently comply with YouTube's policies and guidelines. Be sure to review these policies in detail and make the necessary adjustments to your channel content before reapplying.

• Once your application is approved, return to the "Earn" section in YouTube Studio and accept the terms of the "Shorts Monetization Module" to begin monetizing your YouTube Shorts.

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How Much Can You Earn Through YouTube Shorts Monetization?

Creators generally earn between $0.04 to $0.07 per thousand views, translating to $40 to $70 for a million views.

The revenue from YouTube Shopping tags in your Shorts would largely depend on your product promotion and product pricing.

In the case of Super Thanks, your revenue relies on how much your audience values your content and the connection you establish with them.

Overall, the earnings from YouTube Shorts are unlikely to replace what creators typically make from longer YouTube videos.

Where to see your Shorts Feed ad revenue

YouTube Analytics will start displaying estimated daily Shorts Feed ad revenue along with other performance metrics when available, or from the day you start monetizing with Shorts ads. Learn more about how to check your YouTube revenue.

Tips and Best Practices for YouTube Shorts

Source: Unsplash

Here are some valuable tips and best practices to help you boost your earnings through YouTube Shorts:

1. Be familiar with YouTube's monetization policies

If you're looking to monetize on YouTube Shorts, your channel should adhere to YouTube's channel monetization policies.

This includes following guidelines on repetitive or reused content, YouTube's Community Guidelines, Terms of Service, Copyright, and Google AdSense program policies.

2. Be consistent with creating & posting your content

Another effective strategy is to maintain a regular and consistent schedule for creating and uploading Shorts. This will help keep your audience engaged and build a loyal following.

Plus, according to YouTube, staying active is crucial for your income in the YouTube Partner Program. If you haven't shared a new video or posted on the Community tab for six months or longer, YouTube may disable monetization for your channel.

Related: How To Upload YouTube Shorts From Any Device

3. Engage with your audience

Interact with your audience by responding to comments and encouraging interaction. The more engaged your viewers are, the more likely they are to watch your Shorts and support your channel's growth.

4. Be concise

As the name suggests, YouTube Shorts are all about brevity. So, you need to keep your content concise and engaging. Try to convey your message or story within a short time frame to capture and maintain your audience's attention.

5. Post at the right time

Analyze your audience's online behavior and post your content when your target viewers are most active. This maximizes the chances of your videos reaching a broader audience and increasing your income potential.

With Simplified's YouTube Shorts Scheduler, you can easily schedule & publish your YouTube Shorts content at the optimal times.

On the content calendar, all you need to do is select YouTube Shorts, add your content, choose the date and time for your post, and you're all set!

6. Use relevant hashtags

Incorporate relevant hashtags in your video descriptions. These hashtags can help your content reach a broader audience and increase its discoverability on YouTube. However, try not to use too many hashtags, as this can make the post look cluttered and spammy.

With Simplified's AI Hashtag Generator, you can generate targeted hashtags for Shorts that will drive engagement and skyrocket your reach.

7. Jump on relevant trends

Finally, keep an eye on the latest viral challenges, memes, and popular topics in your niche. Creating content that aligns with current trends can help your videos gain more views, as people tend to search for and engage with trending topics.

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Enhance Your YouTube Video Creation & Marketing Efforts With Simplified

Simplified is an all-in-one content creation platform that leverages AI to help you supercharge content creation.

It offers a comprehensive suite of features to help you optimize your Shorts content, boost engagement, and streamline your YouTube Shorts creation.

Here's what you can do with this amazing tool:

• Create YouTube Shorts: You can edit, create, and publish stunning videos and viral-worthy content with the AI Video Editor. Add pro transition effects, and animate elements to make your videos pop! Plus, you can access tons of customizable YouTube Shorts and YouTube video templates for free!

• Generate video captions & subtitles: With Simplified, you can automatically generate highly accurate captions and subtitles for your videos. You can also convert your subtitles to multiple languages for a wider reach.

• Schedule & publish Shorts: Simplified allows you to schedule and publish your YouTube Shorts without a hassle.

• Add music: You can also add background music, songs, and sound effects from Simplified's free stock library to your Shorts.

• Create thumbnails: Create irresistible thumbnails for your Shorts to increase click-through rates and entice viewers to click on your content. You can start from scratch or use any of Simplified's thumbnail templates.

• Add banners to your channel: Customize your channel with eye-catching banners that represent your brand and make a lasting impression on your viewers.

• Generate video scripts: Never run out of video ideas for your channel with Simplified's AI Script Generator.

• Generate video titles & descriptions: Get help with crafting attention-grabbing video titles and descriptions with Simplified's AI Writer.

• Generate hashtags: Optimize your video's reach and visibility by automatically generating relevant hashtags that align with your content and target audience.

• Collaborate: Collaborate with your team in real time & streamline your workflow.

Best of all, you can get started with Simplified for free — forever!

Wrapping Up

In conclusion, this comprehensive guide has covered all you should know about YouTube Shorts monetization in 2024.

We've highlighted the potential revenue streams, eligibility requirements, application process, and tips to enhance your earning potential.

And, as a bonus, we introduced you to Simplified, a powerful tool to help you create, optimize, and schedule your Shorts effortlessly.

Now, with this information at your disposal, you can effortlessly maximize your revenue potential and make the most of the YouTube Shorts platform.

Optimize Your YouTube Shorts & Boost Your Earnings With Simplified!

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