YouTube Shorts Monetization: What You Need to Know

YouTube Shorts Monetization: What You Need to Know

The explosion of the TikTok platform has forced many content creators to reconsider their strategy. While almost all of them previously devoted hours and hours to making long-form tutorial or explainer videos, we are seeing more and more short-form content as attention spans dwindle and creators find it allows them to produce a greater quantity of content in a constant battle for views.

Short-form videos take much less time to create, but are often just as effective in gaining views, and are becoming increasingly more effective towards growing your reach online. But none of the short-form platforms have figured out how to properly monetize this content and reward creators for their efforts. Until Now.

YouTube recently announced that its Shorts creators will soon qualify for the YouTube Partner Program (YPP), with eligibility beginning in early 2023.

So what does this mean for content creators? How about YouTube? And what about TikTok, who now faces a head to head battle with one of the most experienced advertising partners to ever exist?

The YouTube Partner Program

Before we get into what this means for other platforms, let’s consider what we know. We know that YouTube, which of course is owned by Google, currently is the best in the world at sharing ad revenue with its content creators.

In the past, this revenue was only available to long form video creators that achieved 1,000 subscribers and 4,000 watch hours, and any Shorts videos were excluded from such monetization.

Now, with the new announcement from YouTube, Shorts creators will earn 45% of ad revenue from their videos. YouTube Chief Product Officer Neal Mohan announced that this is the first time a revenue share will be available to short-form creators on any platform. 

This new form of Shorts monetization has some of the world’s largest creators such as Mr. Beast calling for anyone creating short form videos to shift their focus to YouTube Shorts.

For an introduction to all of the different ways to make money on YouTube, see this:

YouTube video

Further Reading: 17 Smart Ways How to Get More Subscribers on YouTube

How Does YouTube Generate Revenue?

Of course, YouTube’s revenue sharing model only works if they are able to generate revenue to pay its creators, so how do they plan to monetize Shorts?

YouTube currently charges its advertisers for a placement either at the beginning or throughout its long form videos on the platform. But this strategy doesn’t make sense for short-form content.

Therefore, YouTube has taken after Instagram & TikTok, and will give advertisers a placement in between Shorts videos to promote their message. In other words, as you’re scrolling through your Shorts feed, you’ll see 3 or 4 videos from your typical channels, then a paid advertisement.

Generally, businesses are happy to place their ads seamlessly into the feed, while your typical shorts creators see no effect on their content.

How Does The YPP Pay Creators?

Ok so how does this revenue sharing model work? How do you as the creator make money?

YouTube has announced that it will give 45% of all revenue it generates to its creators that join the YouTube Partner Program. Since the advertisements stand alone as their own video within the feed, the solution is to pool the revenue and distribute it at the end of the month.

This is an interesting method for paying creators, as it incentivizes a commitment to YouTube Shorts considering the more ad revenue YouTube makes, the more money everyone makes.

As far as how much each individual creator makes, it will be based on the share of total shorts views the channel is responsible for that month.

Long story short, if you’re a short-form video creator, it’s time to take YouTube Shorts seriously as it offers one of the best opportunities to make money online right now.

Here’s how YouTube announced this to the world:

YouTube video

What Are The Eligibility Requirements?

Of course, to make money on the platform, you must apply and be accepted into the YouTube Partner Program. To be eligible, short-form creators are required to achieve 1,000 subscribers and amass 10 million Shorts views over the course of 90 days.

Joining the YouTube Partner Program by way of Shorts will allow creators to monetize their efforts based on their share of views. Joining the program will also provide access to additional monetization tools that will allow you to boost your income! 

Further Reading: 15 Useful Tips on How to Get More Views on YouTube Videos

What Does This Mean For TikTok?

This is bad news for TikTok. YouTube has a tremendous amount of experience with the ad revenue share model, and has been successfully rewarding its creators for years now. This level of promotion as far as YouTube Shorts Monetization is more than enough reason for creators to focus more heavily on YouTube than TikTok or any other platform for that matter.

In the past, both YouTube and TikTok paid their creators through what both commonly refer to as a creator fund, with a fixed dollar amount being distributed to its users. However, these payouts are minimal and don’t compare to the earning potential of the YouTube revenue share model.

YouTube’s official announcement states that they expect their current Shorts Fund recipients to earn way more money under the revenue share model, which is built for long term sustainability. This effort to double down on the revenue share model should benefit creators as well as YouTube in the long run, with both making more money together. In other words, it is a win-win for both creator and platform!

This is a direct shot at TikTok and their Creator Fund, which will have to announce big changes in the coming months if it wants to keep up with the 800-pound gorilla that is YouTube.

Further Reading: Estimate Your YouTube Earnings with These 13 Money Calculators

Get Started With YouTube Shorts

So now that we’ve covered YouTube Shorts as an opportunity to set yourself apart as a content creator, let’s talk about how you can get started on the platform if you’re brand new to putting out content online. 

Of course, this could mean putting yourself in front of a camera for the first time or figuring out a system to automate the creation and uploading of your YouTube Shorts content. 

If you plan to get in front of the camera, you have plenty of options as far as what niche you select, whether it’s to show off the latest fashion trend or provide workout demonstrations for the health & fitness people out there. However, let’s talk about how to grow your channel without showing your face.

Here’s how YouTube would like to inspire you to create more YouTube Shorts!

YouTube video

How to Do YouTube Shorts Automation

For those of you that are uncomfortable appearing in front of a camera and broadcasting your face in the abyss of the internet, YouTube Automation could be the side hustle you are looking for. Here’s how it works. 

1. Pick A Niche

First, you choose a niche for your video content. This could be any number of things, but let’s take travel as an example. Travel is an extremely popular niche on YouTube as people love to get inspired to visit new places, or learn some new details about a place they are considering traveling to. 

Now that we’ve selected a niche, we need to start creating videos that people actually want to watch. We have to create content that people on YouTube want to consume. So how do we do this?

Well, first we need an idea in the form of a video title. Do a quick YouTube search or two and start getting a feel for what types of videos are popular in the travel niche. A quick test reveals that there are a lot of lists related to top destinations, such as “Top 10 Places To Visit In Europe.”

This not only gives you a single video idea, but you can now make variations to include Top 10 Places to Visit in North America, Asia, The Middle East, and so on. Right away, you have 10-15 videos that you can go ahead and create. 

2. Assemble A Content Team

Next, you’ll need to put a team together to help you create content on a consistent basis. Generally, you’ll want to post at least 5 YouTube Shorts a week to gain some initial traction on the platform, which means you’ll need to put in a significant amount of effort, or hire freelancers to help with certain aspects of the process. 

For the most part, you’ll want to come up with the video titles yourself, then give your team some directions on what their role is from there. Sticking with the Top 10 Places to Visit in Europe idea, you’ll potentially need a script writer depending on the depth of your video, a voice over artist, and a video editor. 

Alternatively, you can use a video marketing tool software which makes the video creation process super easy. Many of these tools allow you to select from a variety of video templates, then add in your title text for each jump cut. From there, you can select your favorite video clips from the library of video content included with each tool, which provides an engaging and seamless feel to your final videos. 

Plus, some of these tools are complete with a text to speech feature offering a few different voice options, or you can record your own voiceover inside the software and seamlessly add it to your video. For those of you serious about YouTube Shorts Automation, using one of these tools, or even a video editing app, is a great way to get started at a reasonable cost. 

Once you start getting some traction with your YouTube Shorts business and hopefully make some money along the way, you can put a more specialized team together and really ramp up your production and eventually your income!

Further Reading: Which is the Best Video Editing App? Choose from These 15

3. Grow Your Channel

Of course, the success of your channel will depend on your ability to grow your reach and gain more views over time. Here are a few tips for growing your channel with YouTube Shorts. 

A) Determine the Length

YouTube Shorts are 60 seconds maximum, but that doesn’t mean you necessarily need to make all 60 second videos. You want your content to be as engaging and interesting as possible, so cut to the chase and make sure your content isn’t dragging on.

B) Make Valuable Shorts

Again, watch time is important, but even more important is the percentage of your video each viewer watches. For instance, if the average viewer watches 90% of your video, YouTube is going to continue to push that content out to a larger audience because it is a video people are interested in watching. 

Further Reading: YouTube Shorts Looping: How to Do It and Why It Increases Video Views

C) Create Custom Thumbnails

Don’t overlook a thumbnail. We’ve talked about YouTube pushing its Shorts initiative, which means it is displaying them in numerous ways. You don’t want to miss out on more views because you didn’t take the time to create an eye-catching thumbnail. 

D) Make Relevant Titles

The title of your video is important. YouTube is owned by Google, the largest search engine in the world. Number 2? YouTube. They know what people are searching for and want to provide the best content in an effort to match the search intent. 

Further Reading: Video Marketing SEO: 11 Ways to Optimize Your Video for Search

E) Be Consistent

This is a big one. Don’t get discouraged when you’re just getting started. Getting started is the hardest part, and it can be tough when it feels like no one is watching your content. Enjoy the process and know that you are one viral video away from success. Once you start getting traction, all your old videos will start to get more views and the machine will continue building on itself. Don’t ever give up!

Further Reading: 11 Tips on How to Grow Your YouTube Channel in 2025

Final Thoughts on YouTube Shorts Monetization

For content creators, it’s time to reconsider your preferred platform, especially if you’re making shorter videos. Anytime YouTube puts its weight behind a certain business goal or new initiative, we need to pay attention.

As YouTube continues to push out its Shorts platform, it creates a massive opportunity for both experienced and brand new creators alike. In fact, one of the most talked about aspects of YouTube Shorts right now is that first time creators have the ability to go viral and grow more rapidly on the platform than ever before.

This, along with the new changes related to how YouTubers make money on the platform makes YouTube Shorts one of the best opportunities for online businesses in early 2023 and beyond!

So if you’re thinking about starting your YouTube channel, we hope you found this article helpful and encourage you to put yourself out there and get comfortable being uncomfortable. A YouTube business is one that takes some time to gain traction, but once you get there it is an extremely rewarding profession. 

So remember to never give up and we wish you nothing but success!

Author Bio

Michael founded Pursuit of Passive Income with the goal of helping its readers achieve financial freedom and create a life they love. He is living proof that every failure is just one step closer to success, having started and shuttered many failed businesses. Michael now makes a full time income from Pursuit of Passive Income and strives to help others create passive income streams of their own.

Hero Photo Source: YouTube

Actionable advice for your digital / content / influencer / social media marketing.
Join 13,000+ smart professionals who subscribe to my regular updates.
Share with your network!
Community Author
Community Author
Articles: 174

2 Comments

Comments are closed.

+
Table Of Contents