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How to Make Money with YouTube Shorts
Category: Selling With YouTube
Have you ever wondered how to make money with YouTube Shorts? So have we, and we've found out it's not as straightforward as it should be. However, this doesn’t mean you can’t make money with them.
Since ‘Shorts’ is a relatively new feature, there are still some kinks in the money-making process that YouTube is working out. But due to recent developments in YouTube’s Shorts monetization plans, this may change sooner than we expect. This article will dive into how to make money with YouTube shorts and outline the recent updates to YouTube Shorts’ monetization plans.
We’ve split it up to show how you can earn money with Shorts from before 2023 and beyond 2023.
Making Money with YouTube Shorts Before 2023
The Shorts Fund was the first step YouTube took to incentivize creators to make Shorts on the platform. They made this fund because there was no official way to monetize their YouTube Shorts on their mobile or web app- curbing people’s enthusiasm to create Shorts content.
To avoid this and grow YouTube shorts into a sizeable TikTok and Instagram competitor, YouTube set up a pool of money (Shorts Fund) which they would use to attract and pay creators depending on their Shorts’ performance.
Creators could apply to this YouTube Shorts Creators Program, where they would be paid a portion of a 100 million dollar fund depending on their Shorts’ performance. The payouts ranged from USD $100 - $10,000+. However, to be eligible to receive these bonuses, YouTubers would have to apply first and meet these requirements:
Shorts Fund Payout Requirements:
Post one original YouTube Short every 180 days
Be over 13 years of age.
Follow YouTube’s Community Guidelines.
Live in an eligible country participating in this program
Although a slow start, the Creator Fund gave YouTube the insights needed to start its advertising play on this new vertical video format while also keeping early adopters happy.
1. YouTube Ad-Sense
It’s true. If you're in the YouTube Partner Program, you can make a few bucks on your YouTube Shorts. However, it won’t be a life-changing amount. To qualify for this extra revenue stream, your Shorts video must be between 15 to 60 seconds long and not be made with the Shorts camera. Then you can only gain AdSense payout when viewers watch your Shorts on advertising-enabled areas of YouTube, like your channel page, or as a result of a YouTube search query.
However, these places won’t net you a whopping sum of ad revenue due to the lack of ad formats they can serve. However, we predict this will change drastically in the coming years. Since Shorts (as of September 2022) can’t serve instream ads, they can only serve overlay ads on the sides, which many people won't interact with - unless by accident.
To put this in perspective, we’ve heard a Minecraft gaming channel made a popular YouTube Short that received 1.2 million views but has only netted about $95.00 in Shorts AdSense revenue.
2. Brand Deals and Sponsored Content
Finally, creators can bypass the unclear Adsense and creator fund payouts by partnering with brands to create sponsored Shorts content.
This could be a paid product review or a shout-out to a brand within their 60-second vertical videos. If you’ve built up a big enough following on YouTube, brands will begin to reach out to you to promote their products and services. And, depending on your Shorts’ reach, you could demand a healthier paycheck for access to your following.
Monetizing YouTube Shorts in 2023 and Beyond
YouTube has been experimenting with ways to monetize its 'Shorts'—short-form vertical video content designed to compete with TikTok. If you've been scrolling through your Shorts feed, you might have stumbled upon some ads sandwiched between the Shorts you were viewing. These ads aren't fleeting; they're here to stay, and they are a significant element in how revenue from Shorts' Adsense is generated.
Now, these ads offer creators who produce Shorts in 2023 a road to making money through this video format. But there's more to this than ads. Below we've compiled some key points about this system that are worth knowing. Let's take a look:
1. Ad Revenue Sharing on all Shorts Content
As mentioned above, Starting on February 1st 2023 YouTube announced that ad revenue sharing would be implemented for all Shorts watched on the Shorts Feed and Shorts Shelf. The payout will be based on the country your viewers are coming from and the number of views you’re getting on your Shorts videos.
Creators will receive 45% of ad revenue earned from their Shorts, creating a highly lucrative fresh revenue stream for certain Shorts-Tubers. Furthermore, there will be some restrictions before you can start making money off your Shorts. Only those in the YouTube Partner Program who are pulling 10 Million views and 1000 watch hours in the last 90 days will be eligible to make money this way.
To start earning through this new avenue, you'll need to accept YouTube's new Shorts Advertising terms and conditions agreement and be a member of the YouTube Partner Program. So, what happens to the remaining 55% of the revenue? This portion is allocated towards the cost of music licensing for use in Shorts content. This means creators can potentially earn from music incorporated into their Shorts, regardless of its copyright status, adding another layer of monetization for your content.
2. Ad Revenue from Outside the Shorts Feed
In addition, if your Shorts are viewed directly on users' channels, or through the YouTube search function, you can expect a bit of additional revenue if these views occur on the YouTube website. We forecast that this might not amount to much in comparison to the revenue from the Shorts feed, but it certainly contributes to your overall YouTube payout.
Interestingly, this method could prove to be slightly more profitable if your YouTube Short is well-optimized for visibility in the search algorithm.
3. Super Thanks, Super Chats, and Super Stickers
Furthermore, features such as Super Thanks and Super Chats are expanding to YouTube Shorts, offering you an innovative method to engage with your community and boost revenues from Shorts content. With Super Thanks and Super Chats, your viewers can express their appreciation for your work by paying for highlighted comments, unique emojis, and digital stickers.
These exclusive items are available for purchase by viewers and fans, providing a way for them to support their favorite creators. Simultaneously, these features give them a chance to stand out and gain some recognition in the bustling Shorts comments section. This interaction not only helps financially, but also fosters a stronger bond between creators and their audience.
4. YouTube Shopping
Soon, you'll also have the opportunity to sell your merchandise directly from your Shorts content. Channels that meet the eligibility criteria for YouTube Shopping can display products from their merch shops beneath their YouTube videos and on their channel pages. This feature is now set to extend to YouTube Shorts, enabling creators to sell their products directly through this format.
While the specifics are still being fine-tuned, it's expected that a product card will be visible on the lower corner of the Shorts video. Viewers can click on this card to be redirected to a page where they can purchase your product. This development further enhances the potential of YouTube Shorts as a platform not only for content creation and community building, but also for direct merchandising.
5. Channel Memberships
Channel Memberships are another avenue for creators to monetize their content on YouTube. They allow dedicated viewers to subscribe to your channel for a monthly fee, granting them access to exclusive perks such as custom badges, emojis, members-only videos, live chats, and more.
Now imagine integrating YouTube Shorts into this equation. Your Shorts, could be used to drive revenue through Channel Memberships. You could create exclusive Shorts content only for your channel members, offering them an inside look at behind-the-scenes footage, quick tips, or sneak peeks of upcoming videos. These exclusive Shorts could serve as a compelling incentive for viewers to become paid members, thereby increasing your channel's revenue.
Making Money on YouTube Without the YouTube Partner Program
What if I told you there was a way to monetize YouTube shorts and classic YouTube videos without stepping one foot into the YouTube Partner Plan? If you’re looking for ways to use YouTube to attract customers and sell B2B products & services, we can help.
Our goal is to help companies make the right YouTube content for their appropriate viewers to draw them into your services and products naturally.
We call this YouTube Lead Generation, and It's a way to use YouTube to capture highly interested prospects for your product or service. If you're interested in using YouTube as your next B2B business acquisition channel, click the link below to learn more:
