YouTube Shorts: Monetization: Unveiling the Revenue Model

In the dynamic world of vertical short-form videos, TikTok may have taken the lead, but YouTube and Instagram have carved out their own niches in the short-form video landscape.

According to HubSpot’s 2023 Video Marketing Report, short-form videos boast unparalleled engagement and ROI, making them a goldmine for both brands and content creators.

This article unveils the inner workings of YouTube Shorts monetization, shedding light on how creators can capitalize on this flourishing trend.

Deciphering YouTube Shorts Revenue Sharing

YouTube showers rewards upon Shorts creators through a revenue-sharing mechanism fueled by ads displayed amidst videos in the Shorts feed.

The platform consolidates all Shorts ad revenue and then diverts a portion to music publishers and another to the creators themselves. Creators earn based on their individual videos’ performance. Here’s a comprehensive breakdown of this process:

1. Ad Sales: YouTube sells ad space to companies, showcasing ads between short videos.

2. Revenue Pooling: YouTube amalgamates all revenue stemming from short feed ads.

3. Initial Fund Allocation: YouTube designates a fraction of the Shorts revenue to the creator pool and another portion to cover music licensing expenses. If a creator’s video contains no music, all eligible video view revenue contributes to the creator pool.

4. Music Fund Allocation: Videos featuring one music track allocate half of the associated Shorts funds to music usage and the remainder to the creator pool. For videos with two tracks, two-thirds fuel music usage, with the rest benefiting the creator pool.

5. Creator Fund Allocation: YouTube distributes creator pool funds in proportion to the percentage of views the creator’s short content garners during a specific timeframe.

6. Fund Payment: Creators pocket 45% of their attributed revenue, while YouTube retains the remaining 55% from the creator pool.

Notably, monetization is not extended to videos violating intellectual property or YouTube’s advertiser-friendly content guidelines.

Eligibility for YouTube Shorts Ad Revenue

Monetizing YouTube Shorts necessitates enrollment in theYouTube Partner Program, which is achievable by meeting specific thresholds:

1. Have 500 subscribers, three public posts in the last 90 days, and three million valid public Shorts views in the past 90 days.
2. Possess 500 subscribers, three public posts in the last 90 days, and accumulate 3,000 valid public watch hours on long-form videos in the past year (excluding Shorts, livestreams, ad campaigns, private videos, unlisted videos, or deleted videos).

Additional prerequisites include adhering to YouTube’s monetization policies, residing in a supported country, having no active community guidelines strikes, enabling advanced features and two-step verification, and possessing an AdSense account.

Opting for YouTube Shorts Monetization

Upon acceptance into the YouTube Partner Program, creators must activate the Shorts Monetization Module to initiate fund accumulation.

1. Log in to YouTube Studio.
2. Click “Earn” on the left menu.
3. Accept the Shorts Monetization Module.
4. If pending, also accept the Base Terms module.

Earning Potential from Shorts

YouTube introduced the Shorts ad revenue model in early 2023, streamlining music licensing and boosting creators’ earning potential. Consider this example of potential earnings:

1. A US-based short video amasses one million views in a month.
2. Total monetized Shorts views from all US creators sum up to 400 million, generating $200,000 in ad revenue.
3. Among monetized Shorts, 30% contain no music, 30% have one music track, and 40% feature two music tracks.

1. YouTube divides revenue based on views per Short, attributing varying percentages to the creator pool and music licensing fund.
2. Your views constitute 0.25% of total monetized Shorts views, yielding a $291 share from the creator fund.
3. YouTube disburses 45% of your share, totaling $130.24, leaving 55% retained by the platform.

Comparatively, YouTube creators assess revenue through RPM (revenue per mille), indicating earnings per 1,000 views. In this example, your RPM is 13, while long-form videos typically average $1 to $2 RPM.

Alternate Monetization Paths for YouTube Shorts

Beyond the YouTube Partner Program, various monetization avenues exist for Shorts creators:

1. Subscription Memberships: Enable channel memberships, allowing monthly payments for exclusive perks.

2. Livestream Monetization: Monetize livestreams with super chat and super stickers.

3. Merchandise Sales: Sell branded merchandise or launch product lines.

4. Brand Partnerships: Negotiate sponsorship deals for product reviews or endorsements.

5. Affiliate Programs: Earn through clicks on hosted links.

In the ever-evolving landscape of short-form video content, YouTube Shorts monetization opens doors to diversified revenue streams, propelling creators towards lucrative success.

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