Youtube Shorts Monetization: How to Earn Money With YouTube Shorts

Are you an aspiring YouTuber looking to make money on the platform? If so, you might be wondering about YouTube Shorts and its monetization potential. Our article explores everything about the rules, requirements, and strategies for YouTube Shorts monetization. Let’s discover how you can turn your short videos into profit!

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Are YouTube Shorts Monetized?

Yes! As of February 1, 2023, YouTube opened the doors for most creators to monetize YouTube Shorts. So, if your YouTube channel meets the platform’s monetization eligibility criteria, you can monetize your YouTube Shorts and start earning money on YouTube.

One of the most essential points you need to know when it comes to monetizing YouTube Shorts is that YouTube has recently introduced a brand-new advertising revenue-sharing model. This model is a combination of YouTube Ads for Shorts and Super Thanks, replacing the YouTube Shorts Monetization Fund.

If you are a newbie content creator who is trying to figure out how to become a YouTuber, we know how all these terms may sound a little confusing to you. But bear with us because we will talk about how this revenue-sharing model works with real numbers further in this article!

What are Youtube's Short Monetization Rules?

First things first, if you have had your share of YouTube content creation for a little while, you probably know that YouTube wants to make sure everyone plays fair. So, if you want to learn how to make money on YouTube by monetizing YouTube Shorts, you need to comply with the platform's overall channel monetization policies. 


These policies cover areas such as the following:

  • YouTube Community Guidelines
  • YouTube’s Terms of Service 
  • Copyright Guidelines (for the use of music, this means that you need to get YouTube’s your music from YouTube’s licensed music library or download YouTube music by subscribing to a reliable royalty-free music platform like Snapmuse to avoid copyright issues)
  • Google AdSense program policies
  • Reused and repetitious content guidelines 


But that's not all! YouTube also made important updates to the YouTube Partner Program (YPP) terms, which affect creators who want to monetize their channels or are already part of the program. So, if you want to monetize your YouTube channel and Shorts, you need to comply with the new terms below by July 10, 2023:

  • Watch Page Monetization Module: This module ensures that you continue earning money from ads run across your long-form, live-streamed, and YouTube Premium content.
  • Shorts Monetization Module: The star of the show! With this module, you can start earning money specifically from YouTube Shorts through the ads played between Shorts from different creators in the Shorts feed. The revenue from the Ads for YouTube Shorts is collected in something called the Creator Pool and then distributed to individual creators based on certain metrics.
  • Commerce Product Module: Don't worry about the fancy name; it is actually a lot simpler than it sounds! You may be familiar with the old name, Commerce Product Addendum. This module covers monetization for extra fan funding features like Super Chat, Super Stickers, Super Thanks (which is available for YT Shorts), and Channel Memberships.


Remember, if you haven't signed the base agreement for the YouTube Partner Program before July 10, 2023, you risk being removed from the program. If that happens, you will need to go through the application process again and potentially meet the requirements once more. 


Don’t know how you can sign these modules? Worry not! Whenever a module is updated, YouTube makes sure to communicate them with the creators through the Creator Dashboard or by sending module updates via email.

Youtube Shorts Monetization: How to Earn Money With YouTube Shorts

YouTube Shorts Monetization Requirements in 2023

The best part about the YouTube Partner Program updates is that YouTube has made it easier for smaller channels to grow and thrive on the platform. Now, let's dive in and uncover the specifics of YouTube Shorts monetization! 


Here are the YouTube Shorts monetization requirements you need to meet:

  • A minimum of 500 subscribers (From 1000 to 500)
  • 3 public videos in the past three months
  • Minimum 3000 watch hours in the past year or 3 million Shorts views in the last 90 days

Once these YouTube Shorts monetization rules are met, you can begin monetizing your YouTube Shorts and start earning revenue! Keep in mind that the 3000 watch-hour threshold doesn’t include YouTube Shorts views, so you will need to gather those views through long-form videos and learn how you can live stream on YouTube in 2023

Another great way how you can achieve that 3000 threshold is by implementing YouTube Cards into your long-form videos to incentivize your audience to go and watch another video from your channel that is related to the one they are currently playing. If you want to learn more about how you can use YouTube Cards effectively, make sure to check out our Youtube Cards Guide.

When Will YouTube Shorts Be Monetized?

After successfully meeting all the necessary YT Shorts rules and requirements and submitting your application to the YouTube Partners Program, it's time for the exciting waiting game! 

You may find yourself eagerly wondering: When will my YouTube Shorts be monetized? While YouTube doesn't provide an exact date, it typically takes about 2-4 weeks before you can start monetizing your Shorts.

How Does YT Shorts Monetization Work?

Here’s a breakdown of how YouTube's Shorts revenue-sharing works in 2023:

1. Ads for YouTube Shorts

YT Shorts monetization operates through the revenue that is collected by the ads that are displayed in-between Shorts posted by different creators on the Shorts feed. However, one crucial point you should keep in mind is that this revenue is shared among creators and music license holders. 

2. Creator Pool

The Shorts Feed ad revenue is divided among creators based on the number of views and music used in their Shorts. If a creator doesn’t use any music in a Shorts video, all the revenue from that Shorts video’s views goes into the Creator Pool. 


If a Shorts video has music in it, depending on the number of tracks used in the video, the revenue from the Shorts video’s views is divided among the Creator Pool and music partners. For example, if a creator uses four tracks in their shorts, 75% of the revenue is used to cover music licenses, and the remaining 25% is added to the Creator Pool.

Keep in mind that the amount you get from your YouTube Shorts are calculated based on various metrics after the revenue is added to the Creator Pool. Therefore, not using any music in your Shorts doesn’t mean that you get to keep all the revenue from your Shorts video.

Youtube Shorts Monetization: How to Earn Money With YouTube Shorts

3. Creator Allocation

The next step in the YouTube Shorts revenue sharing model is distributing the total revenue in the Creator Pool among the creators who are monetizing their Shorts. The distribution is based on the percentage of total views their Shorts receive compared to other monetizing creators' Shorts in each country. 


For example, if your Shorts cover 8% of all eligible Shorts views shared by creators in your country who are monetizing their Shorts videos, you will receive 8% of the revenue in the Creator Pool.

4. Creator Payment

At the last step of the YouTube Shorts monetization system, creators are allowed to keep 45% of the revenue allocated to them from the Creator Pool.

Can I Monetize YouTube Shorts with 1,000 Subscribers?

Yes - and after the new YPP updates, you won’t even need 1,000 subscribers to be eligible for monetization on YouTube. If you unlocked the 500 subscriber milestone and the required watch hours or Shorts views, then you are good to go!

How to Monetize Third-Party Content in Shorts?

When you are creating a YouTube Shorts video, keep in mind that if you don’t hold the rights to the third-party content you are using in your video, using your original content is essential to avoid copyright claims. However, if you wish to monetize Shorts featuring third-party content, you need to obtain proper licenses and permissions from the rightful copyright holders. 


If you are looking for high-quality music and sound effects for your YouTube videos, Shorts, live streams, and branded content, Snapmuse is your address! All the music and SFX in our extensive collection are royalty-free, which means that our subscribers can use our tracks and SFX to elevate their personal and commercial projects without the fear of copyright claims. 

Whether you are looking for suspenseful gaming music or immersive vlog music for YouTube videos, Shorts, and live streams, the Snapmuse catalog is here for you to explore the perfect soundtrack that resonates with your creative vision.

How to Turn on YouTube Shorts Monetization

To enable monetization for your YouTube Shorts, follow these steps:


  1. Open YouTube Studio and click the "Monetization" tab.
  2. Make sure that your channel meets the monetization eligibility requirements. If you are not eligible yet, you can click the “Notify me when I’m eligible” button so that YouTube can let you know once your channel is ready for monetization.
  3. Click on the "Enable Monetization" button and follow the instructions.
  4. Once enabled, ads will start appearing on your Shorts, allowing you to earn revenue.

YouTube Shorts Monetization: How to Profit From Shorts Videos?

Meeting the watch hour and Shorts views thresholds for monetizing YouTube content is challenging for most content creators starting anew. However, keep in mind that the revenue distributing system for YouTube Shorts requires you to have higher Shorts views if you want to increase your profit after you start monetizing Shorts as well.

Luckily, our YouTube shorts tips and tricks are here to help you along the way! Here’s how you can increase your YouTube Shorts profit after starting to monetize Shorts:

  • Keywords: Implement keywords that are related to the topic you cover in your content to your video title and descriptions. This will help you widen your reach by enhancing your discoverability. Don’t hesitate to try out a YouTube title generator tool to get some inspiration.
  • Fan Funding Features: Crossing out all the steps on the YouTube Shorts monetization requirements list also grants you access to the Fan Funding Features on YouTube, such as Super Thanks, Super Chats, Super Stickers, and Channel Memberships. Your dedicated followers or superfans can make you a donation via Super Thanks on Shorts. That is why you need to engage with your audience and offer value (whether it be inspirational, educational, humoral, or relatable) in your content to incentivize your followers to support you.
  • Trends: Stay on top of your YouTube Shorts game with the latest video trends, editing formats, and trending music to keep your content engaging.
  • Pin Comments: Keep in mind that monetization is not the only way to make a profit from your YouTube shorts! If you want to promote your brand via Shorts, try to pin a CTA comment to your Shorts and provide a link to your product or website instead of only using the video description area for that purpose. Trust us, people usually tend to check out the comments section way more than they pay attention to video descriptions. 

How Much Money Will You Earn From YT Shorts?

The amount of money you can earn from YouTube Shorts is affected by various metrics, as we mentioned before. YouTube's algorithm considers multiple metrics to calculate revenue, and eventually, it all comes down to the number of views your Shorts get. A great tip for how you can make sure to focus on building your audience, creating engaging content, and optimizing your Shorts for monetization is to learn all the ins and outs of YouTube video analytics.


Once you get to know your target audience, what type of editing style works for them, and the times they are active the most, you can create and schedule your YouTube Shorts accordingly to increase your engagement rate and get a bigger portion of the Shorts views percentages in your area. 

Further, learning how you can optimize your YouTube Shorts to resonate and connect with your audience will better your chances of receiving donations through Shorts Super Thanks. As your viewership and engagement grow over time, so will your YouTube Shorts earnings.

Another great way of increasing your YouTube Shorts views is implementing attention-grabbing sound effects in your Shorts to captivate your audience and prevent your video from being swiped away. From cinematic sound effects and city sounds to transition sound effects, Snapmuse’s catalog offers an extensive collection of high-quality royalty-free music and SFX you can explore to take your content to the next level!

How Much Do YouTube Shorts Ads Pay?

The payment for YouTube Shorts ads can vary depending on factors such as viewer engagement, ad formats, and advertiser demand. YouTube employs a complex algorithm to calculate revenue, but typically, creators earn a share of the ad revenue generated by their Shorts.

Why Can't I Monetize My YouTube Shorts?

If you are facing difficulties monetizing your YouTube Shorts, the underlying reason might be one of the following:

  • Your channel has not met the YT Shorts threshold subscribers, watch hours, and Shorts views requirements.
  • You might be unaware of a violation of YouTube's copyright policies or community guidelines on your part.
  • You may have incomplete or incorrect monetization settings in your YouTube Studio.
  • A portion of your YouTube Shorts views might be considered ineligible by YouTube. 
  • Your content might not meet the Google AdSense policy guidelines.
  • You might be residing in a country that is not covered by the YouTube Partners Program. 

If you have addressed these factors and are still unable to monetize your Shorts, it might be a good idea to reach out to YouTube's support team.


Furthermore, if you are wondering what counts as an ineligible YouTube Shorts view, you can take the following list as your reference point: 


  • Unoriginal content 
  • Reposting the content from other creators, movies, or TV series without adding value, contribution, or commentations
  • Using view bots or scroll bots to increase YouTube Shorts views 
  • Posting content that falls short of meeting Google Ads guidelines  

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