YouTube Shorts

How To Make Money From YouTube Shorts

Vukasin Ilic 8 min read
How To Make Money From YouTube Shorts

As of 2022, YouTube has almost 2.5 billion users worldwide.

That’s a pretty good audience, right? No wonder it attracts millions of content creators that want to monetize their talents.

The introduction of YouTube Shorts in 2021 has marked a new era for the platform.

With more than 1,5 billion monthly users, this new feature is a perfect way to drive engagement and gain new followers.

But can it make you money?

The short answer is yes, Shorts is a great platform to generate additional (or even primary) revenue.

However, there’s been some confusion about how exactly it is monetized.

This article will walk you through everything you need to know about YouTube shorts as a revenue source.

What Are YouTube Shorts?

YouTube Shorts are short-form (obviously) vertical videos created on a mobile-first platform.

While YouTube Shorts is hardly a unique platform with smaller audiences than its main competitors: TikTok and Instagram Reels, it does have an additional value.

Integrated into YouTube, it is a great way to convert your viewers into subscribers and thus grow your channel.

There are only two requirements for the video to qualify for a Short:

  • It must be less than 60 seconds in length
  • It must have a vertical orientation

If you are new to short-form video content or YouTube in general, creating your first Short may seem overwhelming. But it’s actually as easy as it gets.  

All you need is a phone and some creativity.

You can create unique content, upload existing shorts from other platforms or take 60-second snippets from your long-form videos.

Whatever you choose, make sure your content is entertaining and engaging.

Pro tip: If you feel like you have zero ideas to start with Shorts, go get some inspiration! Check the channels of popular influencers in your niche and find some ideas you can tailor to your own unique style. 

Now, let us walk you through the technical side of creating YouTube Shorts.

  1. In your app find a (+) icon on the bottom of your home page and tap Create a Short.
  2. Select the type of Shorts you want.

To record a 15-second video, hold the red record button or tap it to start recording and then again to stop.

If you want to record a 60-second video, tap the number 15 above the record button to change the video length to 60 seconds.

  1. To add special effects and filters, browse the toolbar on the right of the screen.
  2. To add sound, tap the Add sound icon at the top of the screen
  3. Once you are satisfied with your Short, tap on the Next button in the top right corner of the screen.
  4. Add a title and a description for your Shorts, select any relevant tags and choose whether you want the video to be public, unlisted, or private.
  5. When you are ready, tap on the Upload Short to publish your video clip.

That is it! Now your little masterpiece is on its way to bringing you more subscribers.

How Can You Make Money Using YouTube Shorts?

Now, let’s move on to the main question: how do you monetize your YouTube Shorts?

There are three primary ways to make money on the platform:

  • YouTube Fund (leaving soon)
  • YouTube Ad Revenue (upcoming in February 2023)
  • Sponsored Content (timeless)

YouTube Shorts Fund

The YouTube Shorts Fund is a 100 million-dollar initiative, established to reward creators who make engaging quality content on the platform.

Initially launched in 2021, it continued functioning throughout 2022, allowing qualifying creators to claim their bonuses monthly.

However, the initiative expires in February 2023, leaving not that much time for new creators to use it.

Regardless, you can still get your share of the fund if you meet several requirements, outlined by the platform.

Are You Eligible For The YouTube Shorts Fund?

  • You must have uploaded at least one original Short in the last 180 days. Repurposed shots, unoriginal videos or content featuring watermarks of mention of other social media platforms will not be eligible.
  • You need to abide by official YouTube Community Guidelines, copyright rules, and monetization policies.
  • You have to live in an eligible country.
  • You have to be 13 or older in the U.S. or the age of majority in their country/region.
  • For creators 13–18 years old, a parent or guardian has to accept the terms and set up an AdSense account for the payment.

How Much Money Can You Make With The YouTube Shorts Fund?

Eligible channels can get between  $100–$10 000 each month.

That’s quite a range, we know.

The truth is, it’s difficult to estimate how much one or another creator can earn.

The total amount is based on many factors like your audience, overall monthly performance and even your location.

If you want to learn more about how much money can you make from YouTube Shorts, make sure you read our guide about it.

How To Claim Your YouTube Shorts Bonus?

If you are eligible for the Shorts bonus, you will be notified via email or your YouTube app.

To claim the bonus, you must accept the terms and set up a Google Adsense account.

However, remember that the bonus expires on the 25th of each month, so make sure to get your money before this date.

YouTube Ad Revenue

YouTube is the only platform that shares revenue with its creators.

The YouTube Partner Program (YPP) is a formal monetization program, aimed at rewarding successful channels with 55% of the advertising revenue.

At the moment, YouTube Shorts are not a part of YPP. Although they help reach the required milestones to qualify for the program (1000 subscribers, 4000 watch hours), Shorts itself cannot be monetized.

But all of that is changing on February 1, 2023. The platform is opening YPP for YouTube Shorts, allowing creators to finally make money off the ads on the Shorts feed.

Opposite to the long-form videos, creators will get 45% of the ads revenue, while YouTube will take a 55% cut.

However, part of the extra money will go to provide a huge music library creators can use for free.

Are You Eligible For Ad Revenue From YouTube Shorts?

Another good news is that YouTube has expanded the eligibility criteria for YPP to adjust them to Shorts creators.

Now you can qualify for the program if you meet either of these requirements:

  1. You have 1000 YouTube subscribers + 4000 hours of watch time in the last 12 months.
  2. You have 1000 YouTube subscribers + 10 million public YouTube Shorts views within 90 days.

*The views you need to be eligible for YPP are counted from October 2022.

How To Apply For YPP?

If your Shorts are already viral and your channel doesn’t violate any YouTube guidelines, it’s time to apply for YPP. Here are a few simple steps on how to do that:

  1. Go to your YouTube account
  2. Tap on your profile picture in the top-right corner of your screen and open YouTube Studio.
  3. Go to the monetization tab
  4. When you are sure your channel meets all the requirements, find Review Partner Program.
  5. Accept the contact and tap Done.
  6. Link your Google AdSense account
  7. That’s it! Now you can take a share of YouTube’s ad revenue.

While YouTube Shorts Fund is soon expiring and the revenue from YPP is hard to predict, getting brand sponsorships is a sure way to make money off your content.

Contrary to popular belief, you don’t need to have a million subscribers to score a brand deal.

As long as you have a loyal audience and quality content, you can get sponsors in your niche.

Pro tip: Encourage your viewers to not just like, but also comment on your videos. This will show brands that your audience is engaged and thus will pay more attention to your (sponsored) recommendations. 

How To Find Sponsors Using YouTube Shorts?

So you have loyal subscribers and entertaining content, but you still don’t know how to land your first sponsorship?

There are two primary ways to get a brand deal: reaching out directly or using a sponsorship platform. Let’s dive into each one!

Reaching Out Directly

The old-school, but proven way to get brand sponsorships is to simply invite them to collaborate.

Think about which companies and organizations will benefit from your promotion.

For instance, if you have a beauty channel, reach out to cosmetics or fitness brands, but if the main focus of your Shorts is gaming, this will not be the way to go.

Make a list of 50+ companies you might partner with and start sending them well-crafted invitations.

The main points to mention in your letter are:

  • your niche
  • your channel’s stats
  • how your promotion can help them
Pro tip: Don’t send the same generic letter to each brand. This may work when you have a huge audience and powerful stats but for a small channel personal approach is key. Focus on the company’s USP and highlight how it speaks to your audience.

Use YouTube Sponsorship Platforms

A sponsorship platform is an easier and faster way to contact brands and show off your unique channel’s features.

While there are (at least) dozens of websites that can help you find sponsors, YouTube’s own platform YouTube Brand Connect is one of the best options.

Originally known as Famebit, YouTube Brand Connect is probably the most popular sponsorship platform out there.

Not only does it help you connect with brands in your niche (eliminating the need to search for sponsors yourself), but it also offers a variety of campaign management and portfolio-building resources.

However, to sign up, you have to be a part of YPP first. You can read more about the platform and eligibility criteria on YouTube Help.

How Much To Charge?

One of the most popular questions among new content creators is how much to charge for their promotions.

Calculating the price for long-form videos is fairly easy, since there is plenty of information on average rates and numerous YouTube calculators out there.

However, because YouTube Shorts is still a relatively new platform, deciding on what to charge for those 60-second videos can be challenging.

Of course, to calculate your price per video/sponsorship, you have to take into account many factors like your niche, production value, stats and the length of promotion part of the Short.

Based on all those factors, you should calculate your CPV (or cost per view). A typical CPV can be between 1 and 10 cents.

Then, to get an estimated price per video you should multiply your CPV by the channel’s projected views.

It is still quite unclear how much average content creators should ask for a sponsorship, so a good start will be to ask other creators in your niche for some info on their rates.

However, to put things in perspective, Greg Peerce, a popular content creator and YouTube sales strategist suggests that $500 is a decent price per sponsorship or 20 million views.

How Much Money Can You Make Using YouTube Shorts?

With all the different monetization opportunities YouTube offers, it’s difficult to predict exactly how much money you can make by creating content on the platform.

But we can still give you some estimations for an average small creator (1000-10K subscribers).

  • YouTube Shorts Fund allowed an average creator to make $200-500 monthly.
  • Sponsored content can let you make around $500 per sponsorship.
  • There is no exact information on how much you would be able to earn from YPP with YouTube Shorts. However, based on the revenue from long-form videos, making $1000 for a channel that gets around half a million views is very much possible.

All things considered, YouTube Shorts is a viable solution for content creators. You can make at least $1000 monthly from those videos alone.

The key here is to diversify your revenue sources.

Is Making Money Using YouTube Shorts Worth It?

To sum up, YouTube Shorts is a platform with great monetization potential. As long as your content is unique and engaging, there is no shortage of opportunities for you to earn a living.

To recap, here are three primary ways to monetize your Shorts:

  • YouTube Fund
  • YouTube Ad Revenue
  • Sponsored Content

The formula for making good money off YouTube Shorts is simple: create great content + grow a loyal and engaged audience + use different revenue sources.

Do all that and you will maximize your chances to turn your views into money.


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