How to Make Money with YouTube Shorts in 2024: All You Need to Know

Short videos are hot right now, and there are plenty of opportunities for creators to make money. For example, TikTok has a creator rewards program and Instagram allows creators to make money through subscriptions. And YouTube Shorts has a similar opportunity where you can make money from short videos through the YouTube Partner Program.

We previously shared how to make money on YouTube, but making money on Shorts is a little different. If you want to know how to make money with Shorts, then this article will go into detail about this model and the conditions you need to fulfill.

Shorts Ad revenue sharing: how does it work?

YouTube Shorts creators are part of the YouTube Partner Program (YPP), but unlike typical long-form videos, YouTube Shorts have a different approach to revenue sharing.

Simply put, based on the number of views of all Shorts videos, a portion of the ad revenue is put into a pool called the "Creator Pool," which is then distributed to the creators.

Why does YouTube use creator pools? This is because short films use a different ad format than YouTube's longer videos, so they require a special revenue sharing method.

Distributing ad revenue based on this model means that all Shorts creators participating in the YouTube Partner Program can benefit from ads, not just those with ads next to their videos. This model is designed to support creators on the platform in making money.

This model also means that when creators make money from their content, the use of music doesn't have an impact on their income.

The creator pool works as follows:

In Shorts Feed, ad revenue between videos is added to a pool that rewards creators and pays royalties for the use of music. This is done to streamline the process for creators to acquire music licenses.

If you upload a video that doesn't use music, then all revenue associated with the number of views of that video goes into the creator pool.

If you upload a video that includes music, the revenue will be split between the creator pool and the copyright notice, regardless of how many songs are used in the video.

Next, the amount in the creator pool will be distributed to the creators based on their percentage of total views.

To illustrate more clearly how creator pools work, let's say you use a piece of music in a short video and you want to earn $500 from that video. Then the revenue would be split 50/50 according to the split model, which means you would get $250 and the music publisher would get $250. Regardless of whether you used music or not, you will get 45% according to the ad revenue sharing model

Who can earn advertising revenue from YouTube Shorts?

To earn ad revenue with YouTube Shorts, in addition to residing in a region that supports the YouTube Partner Program, having two-step verification turned on, and having a valid AdSense account, the following specific eligibility requirements need to be met:

You need to have at least 1,000 subscribers to your YouTube channel and 10 million views of your public Shorts videos in the last 90 days; or

Your long-form video channel needs to have at least 1,000 subscribers and you need to have 4,000 hours of video viewing in the last 12 months.

After meeting the above criteria, you are eligible to earn ad revenue on YouTube Shorts.

To make money on YouTube, you need to follow a series of YouTube guidelines and rules.

First of all, according to YouTube's originality policy, you can't simply upload other creators' content and profit from it. This means you can't directly upload clips from TV shows, movies, or other existing media. However, you can reinterpret other people's content by using Shorts' Remix tool. Also, your content must be original.

Second, you must adhere to YouTube's community guidelines, terms of service, copyright regulations, and Google AdSense program policies. This means that your content must be suitable for advertisers and cannot contain objectionable or illegal content.

Also, your account must not have been penalized by the YouTube Community Guidelines.

Finally, after the review, you will also need to accept the Shorts Profitability Module in order to earn ad revenue in Shorts.

How to Make Money in YouTube Shorts: Options Explained

How to enable YouTube Shorts for Profit?

The Shorts Profitability Module is a series of terms that allow you to earn income through ads in the Shorts Feed and YouTube Premium.

To start benefiting from revenue sharing, you need to accept these terms, even if you have been accepted into the partner program. Before you're ready to start earning money, you'll need to perform the following steps:

• Log in to YouTube Studios.
• In the left menu, select "Earn".
• Click Get Started for each optional module to view and accept its terms. To enable Shorts Profits exclusively, accept the Basic Terms and Shorts Profits module.

By accepting the Shorts Profitability Module, you can start sharing in the ad revenue share and begin your YouTube money-making journey.

However, please note that despite your best efforts, you may not be able to achieve the desired results. This does not mean that you cannot profit in other ways.

How much money do YouTube creators make with YouTube Shorts?

YouTube says that more than 25% of creators in the YouTube Partner Program make money through YouTube Shorts. However, the exact amount earned varies based on the number of views, the viewer's geographic location, and the creator's RPM (revenue per thousand).

Typically, creators can earn between $0.03 and $0.07 per 1,000 views of their Shorts videos.

For example, if a creator's YouTube Short video receives 1 million views, they may earn between $30 and $70. However, some creators report that they only earn $0.01 per 1,000 views, while others can earn up to $0.10 per 1,000 views.

To better understand this, let's consider a hypothetical scenario:

• Let's say a creator uploads a short video in the U.S. that gets 1 million views in a month.
• During the month, the total number of monetized views of Shorts videos in the U.S. was 400 million, and YouTube earned $200,000 from ads in the Shorts feed.
• The creator's 1 million views accounted for 0.25% of the total Shorts video revenue-generating views for the month.
• Based on the distribution of music usage in Shorts, YouTube allocated $116,400 to the Creators Fund.
• The creator's share of the fund was $291 ($116,400 times 0.0025), and YouTube paid them 45% of that amount, or $130.95.

This is an example of a creator payment in the YouTube Shorts fund. In this case, the creator's RPM is $0.13 ($130.95/1,000 views). It's important to note that this RPM is significantly lower than the typical revenue per 1,000 displays for YouTube long-form videos, which typically range from $1 to $20 or more, depending on the niche and audience engagement.

While the potential revenue from YouTube Shorts may seem low, Shorts have the advantage of being easier to spot and can rack up views quickly.

As a result, over time, creators who consistently produce engaging Shorts content have the potential to earn significant income from the YouTube Shorts Fund.

Other ways YouTube Shorts bring in revenue

If you don't think you're eligible for YouTube Shorts' revenue sharing program yet, or if you don't think your content will bring in revenue, there are other ways to make money on YouTube.

According to YouTube, more than 80% of those creators who met the Shorts eligibility threshold and joined the YouTube Partner Program are now also earning revenue through other YPP (YouTube Partner Program) revenue-generating features on YouTube. These features include long-form ads, fan sponsorships, YouTube Premium, brand partnerships, shopping and more.

This shows how Shorts opens the door for creators to make money in other ways on the YouTube platform, allowing them to share in the benefits as well. Here are some other ideas for making money on YouTube:

Adjust your creative content and then arrange it in the buffer

It can be a huge task to publish content on another short-form video platform, but if you're looking to monetize your content, then it's worth trying YouTube Shorts. If you're already creating long-form video content on YouTube, then using Shorts can be a great addition, as multiple video formats (including vertical video) can boost your content's ranking in the YouTube algorithm.

To increase your account revenue more easily, consider creating short-form video content and repurposing it on the short-form video platforms you're already active on. This will help you maintain a consistent presence on your social media channels.