Earning from YouTube Shorts

 

Earning from YouTube Shorts: A Comprehensive Guide

YouTube Shorts, the platform’s short-form video feature launched in 2021, has become a powerful tool for creators to engage audiences and generate income. With over 70 billion daily views, Shorts offer a unique opportunity to tap into YouTube’s vast audience. However, monetizing Shorts requires understanding the platform’s policies, revenue models, and strategies to maximize earnings. This guide explores how to earn from YouTube Shorts, covering eligibility, revenue streams, factors affecting earnings, and actionable tips to succeed, all while adhering to YouTube’s guidelines.

Understanding YouTube Shorts and Monetization

YouTube Shorts are vertical videos up to 60 seconds long, designed for quick, engaging content similar to TikTok or Instagram Reels. Unlike long-form videos, Shorts are primarily consumed via the Shorts Feed, where ads appear between videos, not within them. This distinction shapes the monetization model, which differs from traditional YouTube videos.

To monetize Shorts, creators must join the YouTube Partner Program (YPP), which unlocks various revenue streams. The primary method is ad revenue sharing, introduced in February 2023, replacing the earlier Shorts Fund. However, Shorts also support other income sources like fan funding, brand deals, affiliate marketing, and merchandise sales, making them a versatile tool for creators.

Eligibility Requirements for Monetizing YouTube Shorts

To earn from Shorts, creators must meet specific YPP thresholds and adhere to YouTube’s policies. There are two pathways to join the YPP:

1. Standard Threshold:

   • 1,000 subscribers.
   • 4,000 public watch hours on long-form videos in the last 12 months.

2. Shorts-Specific Threshold:

   • 1,000 subscribers.
   • 10 million public Shorts views in the last 90 days.

Additionally, creators must:

• Reside in a country where the YPP is available (over 100 countries, including the US, UK, India, and Australia).
• Have no active Community Guidelines strikes.
• Enable two-step verification on their Google Account.
• Link an active AdSense account for payments.
• Comply with YouTube’s monetization policies, including Community Guidelines, Terms of Service, and advertiser-friendly content guidelines.

Once eligible, creators must accept the Shorts Monetization Module in YouTube Studio to earn ad revenue from Shorts. Views before accepting this module are not monetized. Content must also be original, as non-original Shorts (e.g., unedited clips from movies, TV shows, or other creators’ content) are ineligible for monetization.

How YouTube Shorts Ad Revenue Sharing Works

The ad revenue model for Shorts is unique due to the format’s structure. Here’s a step-by-step breakdown of how it works:

1. Pooling Ad Revenue:

   • YouTube collects all revenue from ads displayed between Shorts in the Shorts Feed each month. This includes revenue from YouTube Premium subscriptions when viewers watch Shorts.

2. Calculating the Creator Pool:

   • A portion of the ad revenue is allocated to the Creator Pool, with some funds reserved for music licensing if Shorts use licensed tracks. The allocation depends on music usage:
     • Shorts with no music: 100% of associated revenue goes to the Creator Pool.
     • Shorts with one music track: 50% goes to the Creator Pool, 50% to music publishers.
     • Shorts with two music tracks: 33% goes to the Creator Pool, 66% to music publishers.

3. Allocating Revenue to Creators:

   • The Creator Pool is distributed based on a creator’s share of total “engaged views” (views that meet advertiser-friendly guidelines). For example, if your Shorts account for 1% of total engaged views in a country, you receive 1% of that country’s Creator Pool.

4. Creator Payment:

   • Creators receive 45% of their allocated Creator Pool share, with YouTube retaining 55%. For instance, if your share is $900, you earn $405 (45% of $900).

Example Calculation

Suppose in Country A:

• Total engaged Shorts views: 100 million.
• Ad revenue from Shorts Feed: $100,000.
• 20% of Shorts use one music track, so $10,000 goes to music licensing, leaving $90,000 for the Creator Pool.
• Your Short has 1 million engaged views (1% of total views), so you’re allocated 1% of $90,000 = $900.
• You earn 45% of $900 = $405.

This model highlights that earnings depend on view counts, music usage, and geographic location, as ad rates vary by country.

How Much Can You Earn from YouTube Shorts?

Earnings from Shorts are generally lower than long-form videos due to lower Revenue Per Mille (RPM) rates. RPM represents the revenue earned per 1,000 views. For Shorts, RPM typically ranges from $0.01 to $0.16, compared to $1.25 to $30 for long-form videos. Below are real-world examples:

• TubeBuddy: Earned $32 for 1 million views (RPM ~$0.03). At 3.1 million views, they earned ~$100.
• Jenny Hoyos: Earned $1,200 from 22 million views (RPM ~$0.05). Her primary income came from brand deals and merchandise, not ad revenue.
• Higher RPM Case: A creator earned $2,433 from 139.8 million views (RPM ~$0.0174). Earnings were higher for Shorts without music.
• General Estimate: For 100,000 views, creators might earn $100–$500, depending on factors like niche and location.

Factors Affecting Earnings

Several factors influence Shorts earnings:

1. Audience Location: Higher CPM (Cost Per Mille, what advertisers pay per 1,000 ad impressions) in countries like the US or UK compared to regions with lower purchasing power.
2. Music Usage: Using licensed music reduces the Creator Pool share, lowering earnings.
3. Niche: Less competitive niches (e.g., interior design, finance) often have higher CPMs than saturated ones like gaming or music.