YouTube Shorts Monetization: Everything You Need to Know in 2025

Over the past few years, short-form videos have exploded in popularity. Platforms like TikTok and Instagram Reels dominated the space for a while, but YouTube was not far behind. With the launch of YouTube Shorts, the platform gave creators a new way to express creativity in bite-sized videos of 60 seconds or less. What started as an experimental format quickly became a core feature of YouTube. And now, the most exciting part: YouTube Shorts can finally be monetized. This article explains how Shorts monetization works, who is eligible, and how creators can maximize their earnings.

How YouTube Shorts Monetization Works?

YouTube Shorts monetization officially rolled out in 2023 with new updates, and it continues to evolve. Previously, creators earned from the Shorts Fund a limited-time bonus program but now, YouTube offers a structured monetization model similar to long-form videos. This means creators can earn consistent ad revenue from their Shorts through a revenue-sharing system. The ads are not shown directly on Shorts videos but rather between videos as users scroll through the Shorts feed. YouTube collects the ad revenue from these placements, pools it, and then distributes it among eligible creators based on views and engagement.

Eligibility Criteria for YouTube Shorts Monetization

To be eligible for Shorts monetization, creators need to be part of the YouTube Partner Program (YPP). There are two main ways to join YPP:

• Reach 1,000 subscribers and 4,000 valid public watch hours in the past 12 months from long-form videos
  or
• Reach 1,000 subscribers and 10 million public Shorts views in the last 90 days.

Once a creator meets either of these milestones, they can apply for YPP via the YouTube Studio dashboard.

Activating the Shorts Monetization Module

Joining the Partner Program is just the first step. To start earning specifically from Shorts ads, creators must accept the “Shorts Monetization Module” inside YouTube Studio. This module enables revenue sharing for Shorts, and monetization only starts from the day this module is accepted. So, if you had a viral Short before accepting the module, that video views won’t generate ad revenue retroactively. It’s crucial to activate this as soon as you’re eligible.

How Revenue Is Calculated for YouTube Shorts Monetization?

Once monetization is active, YouTube calculates revenue differently than for long-form content. YouTube gathers all revenue earned from ads shown between Shorts during a given month. A portion of this is used to cover the cost of music licensing (if copyrighted music is used). The remaining amount is pooled and distributed to creators based on their share of total views in the Shorts Feed.

Creators who use original audio in their Shorts instead of copyrighted music get a larger share of the revenue since there are no music royalties to be deducted.

Revenue Sharing Model

YouTube retains a portion of the total revenue. For Shorts, creators typically receive 45% of the ad revenue after YouTube takes its cut and any music-related deductions are made. This is slightly lower than the 55% offered for long-form videos, but it’s still a great way to earn from short-form content.

Additionally, creators also earn a portion of YouTube Premium revenue if subscribers watch their Shorts. This provides an extra source of income alongside ad earnings.

Additional Income Sources: Fan Funding

Beyond ad revenue, Shorts creators who are in the Partner Program can also earn through fan-funding features such as:

• Super Thanks
• Super Chat
• Super Stickers
• Channel Memberships

These features allow fans to support creators directly and can significantly increase total earnings. To access them, creators must accept the Commerce Product Module in YouTube Studio.

Content Guidelines and Eligibility Rules

For content to remain monetizable, it must follow YouTube monetization and community guidelines. Here are a few key rules:

• Shorts must be original not reused or copied from other platforms.
• Avoid uploading compilations or mass-produced content.
• Don’t use AI-generated or automated content without meaningful human editing.
• Ensure videos are advertiser-friendly, avoiding inappropriate language, violence, or misleading content.

Creators who violate these policies risk demonetization or even removal from the Partner Program.

Best Practices to Maximize Your Earnings

To make the most out of Shorts monetization, focus on creating engaging, high-retention videos. The longer a viewer watches, the more valuable your content becomes to advertisers.

Here are some practical tips:

• Use strong hooks in the first few seconds to keep viewers watching.
• Post consistently to stay relevant in the Shorts Feed.
• Create original audio or use royalty-free music to maximize ad revenue.
• Repurpose key moments from long-form videos into Shorts.
• Optimize your titles, tags, and thumbnails to boost discoverability.

The more people engage with your Shorts, the more likely YouTube is to recommend them leading to more views and increased income.

YouTube Shorts monetization has unlocked new earning potential for creators around the world. Whether you’re a new creator or an experienced YouTuber, this format offers exciting ways to grow your channel and build income. By meeting the eligibility criteria, enabling the monetization modules, following content guidelines, and consistently posting quality videos, you can make the most of this opportunity. As YouTube constantly improves its monetization tools and Shorts algorithm, you have the perfect opportunity to build your Shorts strategy and get paid for your creativity.