How to Earn Money from YouTube Shorts : Check YouTube Monetization Rule

Last Updated on December 15, 2025 by Muskan Sinha

Are you still struggling to start your YouTube channel because you fear you don’t have enough time to commit to it? Well, say goodbye to your worries as now, you hardly need 15-60 seconds to make a stable income from YouTube. Wondering how? Thanks to YouTube for introducing YouTube Shorts – a new and shorter format for making videos. But then the question remains – does YouTube pay for Shorts? Well, yes, of course it does. Long gone are the days when long form videos were the only way to earn money on YouTube. Now, with little time and effort, you can earn from YouTube Shorts as well. 

People these days have a shorter attention span and YouTube analyzed that too. The world of entertainment and knowledge is just one scroll away, so why would anyone commit to longer videos when even the shorter ones do the job well? YouTube Shorts have proven highly profitable for creators and YouTubers in general. Just by making a 15 – 30 second video, they get paid a good amount based on total views. 

What is YouTube Shorts Monetization?

YouTube Shorts monetization, in simple terms, means earning money by uploading short form videos. Earlier, YouTube used to pay only for long videos based on the subscriber count, views and ads that played on such videos. But now things have changed. YouTube Shorts are vertical format videos that must be between 15 and 60 seconds long. 

These are displayed in the shorts section next to the home button on YouTube. YouTube Shorts came along to compete with Instagram Reels and TikTok videos for faster reach and audience engagement. Like you used to get paid for longer videos, you can also get paid for the shorter ones, after following the YouTube Shorts monetization rule and policy. 

How does YouTube Shorts Monetization Work?

YouTube monetization policy for Shorts is a little different and complex than for long format videos. The monetization process is based on a revenue sharing system in which creators are paid through Shorts ads shown between videos in the viewer’s feed. With this revenue ad sharing, the total amount is distributed to music partners and then creators for their individual performances. Let’s understand this a little better:

1. Ads Sales

Since ads are the main source of revenue for creators, YouTube sells ad space to companies so that they can display their ads between videos on the Shorts feed. 

2. Revenue Pooling 

Creators only get a share of the revenue generated as revenue is pooled and distributed between companies and creators. YouTube first pools the total revenue collected from Shorts ads and then distribute a percentage of it among creators. 

3. Initial Fund Allocation 

Now the initial fund allocation process begins in which YouTube distributes the revenue to creators’ pool and the remaining for music licensing costs. If a creator has not used any music, then most of the revenue gets transferred to the creator pool, helping them increase their earnings. But if the creator used music to create Shorts video, then the revenue is split between creators and music partners. So you see, the YouTube monetization rule is different for Shorts than it is for long videos. 

4. Music Fund Allocation 

Based on the number of tracks the creator has used, the revenue is distributed accordingly. If a creator has used one track, then half revenue is given to music partner and half to the creator. If the creator has used two music tracks, then 2/3 is given for licensing and the remaining 1/3 goes to the creator.For example, if total revenue generated from Shorts ads is $100,00 and 20% used for music tracks, then $90,000 is for the creator pool and rest $10,000 is used for licencing costs.  

5. Creator Fund Allocation

From the creator pool, then a percentage of earnings is then allocated to each creator based on the total number of views they have managed to get on their videos. For example, if a creator managed to get 5% views on their Shorts, they will be allocated 5% of earnings from the creator pool. 

6. Fund Payment 

The creator gets paid 45% of the revenue allocated to them and the remaining 55% is retained by the platform itself. 

However, creators who have not yet accepted the monetization module are not included in the creator pool. The views generated by their videos can be retained by YouTube or used to cover licensing costs. Also, Shorts uploaded using tracks from music partners is also not included in the creator pool. 

YouTube Shorts Monetization Rule and Eligibility 

To be eligible for the YouTube monetization process for Shorts, some rules need to be taken care of:

• YouTube Partner Program – Being part of the YouTube Partner Program is the first step on the ladder towards any kind of monetization on YouTube. To join the partner program, you need at least 1000 subscribers, 4000 public watch hours in the last 12 months or hit 10 million views on Shorts in 90 days. 
• Fan Funding Access – With this feature, creators can sell products on their YouTube channel. This also unlocks several features like paid membership, SuperChat, Super Thanks and Super Thanks, which add to their earnings. For this feature, you should have at least 500 subscribers, 3 public posts in 90 days, 3 million public views on shorts and 3000 watch hours on long videos. 
• Ad Revenue Access – Even for ad revenue sharing, creators should have at least 1000 subscribers and 10 million views within 90 days. 

Steps on How to Start Monetizing YouTube Shorts 

If you meet the above criteria and are not getting paid, the main reason could be that you have not enabled YouTube monetization. For this, you can follow the steps below:

1. On your YouTube channel, go to the YouTube Studios and sign in. 
2. Then, on the left menu, click on the ‘Earn’ option and choose ‘Apply’ 
3. Click on ‘Start’ to accept the basis and terms of the program. 
4. You can even set up an AdSense account or link an existing one. 
5. Start making shorts and earn revenue based on the criteria and allocation of funds mentioned above. 

Additional Ways to Earn Money on YouTube Shorts 

Do you know that there are other ways to earn money on YouTube Shorts besides just creating content? Yes, there are multiple earning opportunities other than just sticking to the regular one to be able to earn from YouTube Shorts:

1. Affiliate Marketing 

YouTube is an excellent platform for affiliate marketing, promoting a brand’s products and earning commissions. Well, typically people use longer form videos because they work better for creating review videos, hauls, comparison videos, etc. However, for an audience who wants to make a quick decision for purchasing a product, Shorts are a great way to leverage affiliate marketing. 

There is no criteria for you to begin affiliate marketing on Shorts. Even with few subscribers, you can use Shorts as a marketing tool. You can simply join an affiliate program and place the affiliate link in the video caption or in a pinned comment. The chances are that Shorts will reach a wider audience based on the algorithms and hashtags used, which can increase your chances of making sales. 

2. Brand Deals and Sponsorships 

If you are a new creator, then fulfilling the YPP criteria can be a lengthy process and in this competitive era, there has to be a faster way to earn money. Well, as you may be aware that brands stay active on social media and watch content that’s trending. If you manage to create one viral video, you can end up having many brand deals and sponsorships. 

In this, brands pay you to promote their products, using your audience or content to their advantage. Based on what your niche is and the kind of content you make, you can collaborate with brands and feature their products in your content. 

3. Influencer Collaboration 

Everybody loves surprises and so does your audience when they see you collaborate with their favourite creators. It is also trending when two popular stars meet and mix their individual ideas to bring something new to the table. You can collaborate with other creators on paid or sponsored content and boost your views. Whatever revenue you get from the videos you can split it with the creator. 

You can do cross promotion and tap into each other’s audience base to increase your own views. In this way, you can also create a long term relationship with other creators and strengthen your credibility. New collaborations bring in new perspectives, equipment and new ideas to make the Shorts engaging. 

4. YouTube Shopping Program 

You can also use YouTube Shopping feature in your videos to earn money by helping people purchase products directly from your video. For example, if you are reviewing a newly launched food item, then in your video you can add the link to the product and help people purchase it directly from your channel. 

YouTube Shopping is an excellent way for creators to earn money without spending hours creating a video. Along with the number of views, with this feature you can increase your earnings. 

5. Channel Membership 

With channel membership, you can reward your subscribers with some exclusive content and charge a fee for this. Think of this like an OTT subscription where each month the customer has to renew the plan to access moives/series. 

You can also include some extra perks for your audience like live chat, channel badges, custom emojis, stickers, and much more. Channel membership is an excellent way for you to build a loyal community and be able to monetize Shorts as well. 

6. Sell Your Own Merchandise and Products

Who said you can only use Shorts to create engaging content, not for marketing? YouTube is also among the most popular social media platforms and can definitely be used to advertise your merchandise. 

If you are a small business owner, create engaging Shorts and promote your products to attract customers. This will help you earn not only from sales but also from the number of views you get on your Shorts. With trending audios and hashtags, consider your promotion a superhit. 

Tips on Maximizing Earnings on YouTube Shorts 

• Post Regularly – Since Shorts require little effort or time, it will be easier for you to shoot and post them daily. This helps you stay ahead in the game and increase views and watch hours. 
• Use Trending Audios and Hashtags – Want to catch the algorithm game? Then using trending audios and correct hashtags is a must. 
• Try Different Styles – Nobody likes the basics, so make your Shorts fun by exploring and experimenting new content styles – hauls, mokobang, reviews, game challenges, etc. 
• Diversify income streams – You can combine different methods to increase your earnings like affiliate links, fan funding, membership plans, etc all at once. 

FAQs

Muskan Sinha

Muskan Sinha is a creative and passionate content writer, skilled at delivering high quality , engaging and SEO friendly content across diverse niches. With a zeal for storytelling and great critical thinking, she delivers clear, informative and impactful content that boosts audience engagement.