How To Monetize Youtube Shorts: A Step-By-Step Guide

Short-form video content is in. We probably all already knew that. Ever since TikTok took over, our attention spans have been getting shorter and shorter. More than ever, people are looking to consume quick, easily digestible content.

Long-form video just isn't what it used to be. That's not to say it's not worthwhile, but there has definitely been a shift towards the 15-second-long clips.

While TikTok may have been the instigator, other platforms such as YouTube and Instagram have followed suit with their own versions of short-form videos.

Vertical short-form videos are immensely popular–and lucrative–for both creators and brands. Not only can they be used for entertainment purposes, but they're a great way to sell your merchandise and products too.

In this article, we're going to walk you through the benefits of using YouTube Shorts, how to monetize Shorts, and how to sell your products with YouTube Shorts.

Let's jump right in!

Article contents

• Getting started
• What is YouTube Shorts Monetization?
• How to turn on monetization on YouTube Shorts
• Monetizing with ads
• Selling merchandise and products via Shorts
• Tips for maximizing merchandise sales
• Final thoughts

Getting started

Over the last 3 years, YouTube has reportedly paid over $70 billion to creators, artists, and media companies using its YouTube Partner Program. That's a big ol' number right there.

This just shows how short-form content has become a major money source for so many online creators and business owners alike. YouTube Shorts allows you to reach a huge number of viewers all across the globe and achieve viral status with minimal effort.

YouTube Shorts monetization gives you the opportunity to earn money from your short-form videos.

If you want to start earning some moolah from your videos, you'll first need to meet some of YouTube's requirements.

What is YouTube Shorts monetization?

It’s part of the YouTube Partner Program (YPP). If you want to start earning money with YouTube Shorts, you'll need to join the program.

Creators can earn money from ads, YouTube Premium revenues, and other revenue streams. Once you've joined, you'll have access to all of YouTube's money-making features, like the ability to place ads on videos or monetize your audience directly through fan-funding.

YouTube Partner Program requirements for monetization

Within the YPP, there are two different levels of monetization. Each level has different thresholds and revenue opportunities. You only need to choose one of these to be eligible for monetization.

1. Fan-funding. Have 1,000 subscribers plus 10 million views on your YouTube Shorts in the last 90 days.

2. Fan-funding and ad revenue. Have 1,000 subscribers and 4,000 public watch hours for your long-form videos in the last 12 months

Fan funding gives creators the option to sell products on YouTube, which can be very profitable. It also unlocks other possible revenue stream features like paid channel memberships, Super Thanks, Super Chats, and Super Stickers.

If you do livestreams or premieres, Super Chats and Super Stickers allow viewers to contribute money during the stream.

The Super Thanks feature lets fans show appreciation for your Shorts by purchasing a highlighted comment.

Meanwhile, fan funding and ad revenue allows you to earn ad revenue, and revenue from YouTube Premium subscribers.

You'll need to make sure you're following all of YouTube's rules and community guidelines if you want your content to be eligible for monetization.

These include things like making sure you're not stealing other peoples' content, such as uploading an exact clip of someone else's work (major no-no), getting copyrighted for music usage, and using unedited clips such as something from a TV show.

Once you've applied, YouTube will review your channel and make a decision. This process usually takes about a month or so.

How to turn on monetization on YouTube Shorts

YouTube Studio is a platform where creators can manage their YouTube channel and monetization. To set up monetization for your account, you'll need to accept the Shorts Monetization Module.

To do this, go to YouTube Studio and click on “Earn”, then “Apply for monetization” and follow the steps. Accept the terms and conditions. BOOM! That's it.

The YouTube Studio shows you an overview of your account and has useful features like the ability to track your earnings, views, and engagement. You can also manage your AdSense account and YouTube Premium revenues.

Monetizing YouTube Shorts with ads

YouTube has adopted an ad revenue sharing model for Shorts. It was introduced to give all creators in the YPP the chance to benefit from ads.

The revenue that's generated from ads shown between Shorts videos is pooled. Some of this money covers things like licensing fees if you're using a music track on your video, and the rest is distributed to creators, in what is known as the Revenue Pool, or “Creator Pool.”

After YouTube takes its cut (45%), the remaining is allocated to creators based on their share of the total views among the monetized Shorts content within their country.

The revenue potential from YouTube Shorts can vary widely depending on your content’s popularity and audience’s engagement. Since it's shared across all creators, those with viral or consistently high-performing Shorts are likely to earn more.

Selling merchandise and products

One of the most profitable ways to make money through YouTube Shorts is by selling your products and merchandise.

CPG products are the way to go. If you're asking yourself 'What is CPG?', let us explain.

Consumer Packaged Goods (CPGs) are typically low-cost items that we use on a daily basis. They're products that need replaced often - think of things like food, coffee, makeup, and household cleaning supplies.

YouTube Shorts creators and brands can make a lot of money by selling CPG products and merchandise via their channels.

Maybe you're only at the beginner stages of your business and wondering how to create a beauty brand, or perhaps you already have a company and are looking for new ways to boost brand awareness.

Whether you want to promote your private label supplements brand or sell your merchandise, YouTube Shorts monetization is the way forward.

Our top tips for maximizing merchandise sales on YouTube

1. Drive traffic to your store. Include a link to your store or product in the description of your Shorts. Use engaging content to spark interest and direct viewers to make a purchase. Mention in your Shorts that viewers can find the product on your main channel's merch shelf, or link to your ecommerce site from your YouTube bio.
2. Product demos. Create Shorts showing your CPG or merchandise in use. For example, if you’re selling cosmetics, show the item being used in your routine, or if you’re selling coffee show your morning coffee routine.
3. Unboxing/first impressions. People love unboxing videos. Capturing the unboxing experience and jumping on trends — such as ASMR unboxings — can be a great way to lure in potential customers.
4. Get trending. Staying up to date with trending challenges or sounds on YouTube Shorts and incorporating them into your content will boost views and make your products more discoverable.
5. User-Generated Content (UGC). Encourage customers to create Shorts using your product. By re-sharing their content, you encourage others to also post about your products, boosting brand awareness. This helps build your community but also ensures authentic endorsements.
6. Create a series. This could be anything from a weekly 'Top Tips' series using your product, or a challenge series where users share different ways they use your product. Whatever you choose, stay consistent with your posting to keep your audience actively engaged.
7. YouTube’s shopping features. If eligible, ensure your products are listed in the shopping feature so viewers can shop directly from your Shorts. Utilize YouTube's merch shelf to sell directly through your channel. Integrate your products into your Shorts and link to them via the merch shelf. It's a super convenient way to get your viewers to shop!

Optimizing your content

Okay, now you have almost all of our tricks of the trade for selling CPGs and merch on YouTube Shorts. Here are our final pieces of advice for optimizing your content and increasing engagement and earnings.

Thumbnails and titles

Thumbnails and titles can make or break a video’s success. Ensure it's clear, captivating, and related to the video topic. Use appropriate tags and titles that will help viewers easily find your content. Have engaging descriptions and previews to encourage viewers to watch and interact with your videos.

Monitoring analytics

YouTube Analytics provides insights into views, engagement, and earnings. Use this data to improve your content and analyze what's performing well across your channel.

Stay consistent

Most importantly, remember that consistency is the key to building a loyal audience. High-quality, engaging content is essential for success.

Final thoughts

Monetizing YouTube Shorts can provide a significant source of income if done correctly.

With audiences turning to short-form content as opposed to traditional long-form videos, YouTube Shorts presents itself as a powerful tool to drive sales for your CPG products and merchandise and to promote brand awareness.

The key is to create engaging, authentic content that resonates with your target audience and encourages them to take action.

YouTube Shorts can be shared across other social media platforms, making it easier for your content to reach a wider audience.

By following our step-by-step guide to monetize YouTube Shorts, you'll be well on your way to turning your short-form content into a profitable venture in no time!