How Does YouTube Shorts Monetization Work?
YouTube Shorts monetization is the system through which creators earn money from short-form vertical videos (60 seconds or less) published on YouTube's Shorts platform. Since launching its Shorts revenue sharing program in February 2023, YouTube has paid out over $2 billion to Shorts creators globally, according to YouTube's 2025 creator economy report. This makes YouTube the first major short-form video platform to offer direct ad revenue sharing - a model that fundamentally changed how short-form content is monetized across the creator economy.
Unlike TikTok's Creator Fund or Instagram's bonuses, YouTube Shorts monetization is built on the same advertising infrastructure that powers long-form YouTube revenue, creating a more transparent and scalable income model than flat-rate creator funds.
How Does the Shorts Revenue Sharing Model Work?
YouTube Shorts monetization uses a pooled revenue model that works differently from standard YouTube ad revenue:
Step 1: Ad revenue collection. YouTube collects all advertising revenue generated from ads displayed in the Shorts feed across the entire platform during a given period.
Step 2: Music licensing allocation. A portion of the total Shorts ad revenue pool is allocated to cover music licensing costs. If a creator's Short uses licensed music, that Short's revenue contribution is split between the creator pool and the music rights holders.
Step 3: Creator pool distribution. The remaining revenue is distributed to monetizing creators based on their share of total Shorts views. If your Shorts generated 1% of all monetized Shorts views, you receive 1% of the creator pool.
Step 4: Revenue share split. From the amount allocated to each creator, YouTube takes 55% and the creator keeps 45%. This is the inverse of long-form YouTube, where creators keep 55%.
This model means that Shorts RPM fluctuates based on overall platform ad spending, total Shorts viewership, and the proportion of Shorts using licensed music.
What Are the Eligibility Requirements?
YouTube offers two tiers of monetization through the YouTube Partner Program (YPP):
Standard YPP (full monetization). Requires either 1,000 subscribers plus 4,000 watch hours in the past 12 months, or 1,000 subscribers plus 10 million Shorts views in the past 90 days. This tier unlocks Shorts ad revenue sharing and all fan funding features.
Expanded YPP (fan funding only). Requires 500 subscribers, 3 public uploads in the last 90 days, and either 3,000 watch hours or 3 million Shorts views. This unlocks Super Thanks, Super Chat, and channel memberships - but not ad revenue sharing.
Both tiers require compliance with YouTube's monetization policies, no active Community Guidelines strikes, and a linked AdSense account.
How Much Can You Earn From YouTube Shorts?
Shorts earnings vary based on several factors:
Geography. Viewers in high-CPM countries like the United States and United Kingdom generate substantially more ad revenue per view than viewers in lower-CPM regions.
Niche. Finance, business, and technology niches attract higher-paying advertisers, increasing the revenue pool. Entertainment niches attract massive views but typically lower per-view revenue.
Seasonality. Q4 (October through December) sees the highest ad spending as brands push holiday campaigns. January and February often see a significant post-holiday drop.
As a rough benchmark, most creators report Shorts RPM between $0.01 and $0.07 per thousand views. A Short with 1 million views might earn between $10 and $70 from ad revenue sharing alone.
What Other Monetization Options Exist for Shorts Creators?
Ad revenue sharing is just one income stream:
Super Thanks. Viewers can leave one-time tips on individual Shorts. Creators keep 70% of Super Thanks revenue.
Channel memberships. Shorts can drive viewers to become paying monthly members for exclusive perks, creating predictable recurring revenue.
Shopping integration. YouTube's shopping features let creators tag products in Shorts. Affiliate commissions can generate significant revenue in product-focused niches.
Brand sponsorships. For many creators, sponsored content is the largest income source, with rates based on average view counts and audience demographics.
Cross-platform promotion. Shorts serve as a top-of-funnel tool that drives viewers to long-form content, where ad revenue is 10 to 50 times higher per view. Many creators use Shorts strategically to grow their subscriber base and long-form viewership.
How Do You Maximize YouTube Shorts Revenue?
Several strategies help increase Shorts earnings:
Publish consistently. The Shorts algorithm favors active creators. Publishing 3 to 7 Shorts per week maintains algorithmic momentum and increases your total monthly view count.
Optimize for video completion rate. Shorts with high completion rates get recommended more aggressively, leading to more views and more revenue. Hook viewers in the first frame and keep content concise.
Minimize licensed music usage. Shorts without licensed music retain a larger portion of ad revenue because there is no music rights holder split.
Target high-CPM audiences. Creating content for audiences in high-CPM countries and high-value advertising niches increases your effective RPM.
Diversify income streams. Layer in Super Thanks, memberships, affiliate shopping links, and brand deals to build a resilient income structure that does not depend entirely on fluctuating ad RPMs.
YouTube Shorts monetization represents a significant shift in how short-form video creators earn money. While per-view earnings remain lower than long-form content, the combination of massive algorithmic reach and transparent revenue sharing makes Shorts a viable income stream - especially as part of a broader creator economy strategy.