Datastudy

Comprehensive Guide to YouTube Monetization (2026)

Jan. 16, 2026

Lars Datastudy
Lars Cornelissen • Follow
Data Science Engineer, Owner

10 min

YouTube has evolved from a hobby‑platform into a sophisticated ecosystem supporting full‑time careers

1. Joining the YouTube Partner Program (YPP)

Monetization on YouTube is unlocked through the YouTube Partner Program. Joining requires a channel to abide by YouTube’s policies, including the Community Guidelines, AdSense policies and copyright rules. In 2025–26 YouTube moved to a two‑tier system:

  • Early-access (Fan-Funding & Shopping tier)
    • Eligibility requirements:
      • At least 500 subscribers
      • At least 3 public videos uploaded in the past 90 days
      • Either 3,000 valid watch hours in the last 12 months or 3 million public Shorts views in the last 90 days
    • What it unlocks:
      • Fan-funding features: Channel Memberships, Super Chat, Super Stickers, Super Thanks
      • Merchandise and shopping integrations
      • Does not unlock ad revenue sharing for Shorts or long-form videos
    • Sources:
      • Shopify (2026)
  • Full monetization tier (Advertising Revenue)
    • Eligibility requirements:
      • At least 1,000 subscribers
      • At least 3 public videos uploaded in the past 90 days
      • Either 4,000 valid watch hours in the last 12 months or 10 million eligible public Shorts views in the last 90 day
    • What it unlocks:
      • Ad revenue sharing for long-form videos
      • Ad revenue sharing for Shorts
      • All fan-funding features and merchandise integrations
    • Sources:
      • Shopify (2026)
      • SubSub (2026)

Other key points about YPP eligibility:

  • No artificial inflation of watch hours. Rewatching your own videos or using bots does not count and may cause rejection.
  • Channels must follow YouTube’s monetization policies, including avoidance of copyrighted material and content suitable for advertisers.
  • To apply, creators go to YouTube Studio → Earn (Monetization), review and accept the YPP terms, connect an AdSense account and wait for YouTube’s review.

2. Ad Revenue for Shorts

2.1 How Shorts ads are pooled and shared

YouTube introduced ads between Shorts in early 2023. Because viewers swipe quickly, it is impractical to attribute a single ad to a specific Short. Instead, YouTube aggregates ad revenue into a monthly “creator pool” for all monetized Shorts. Here’s how it works:

  1. Total revenue collection: All ads served in the Shorts feed during the month are pooled.
  2. Music costs deducted: If a Short uses licensed music, YouTube removes the estimated music licensing costs before sharing revenue.
  3. Creator share: The pool is distributed based on each monetizing Short’s share of eligible views. For example, a Short with 1 million views out of 400 million monetized views would earn 0.25 % of the pool.
  4. Revenue split: YouTube pays 45 % of the allocated pool to creators; the platform retains 55 % to cover hosting and other costs.

Because payments come from a pool, the RPM (revenue per thousand views) for Shorts is very low. Shopify’s analysis reports typical Shorts RPM between $0.01 and $0.06 per thousand views, reflecting the tiny ad slots.

2.2 Eligibility and setup

  • Only channels in the full monetization tier (≥ 1 000 subscribers and ≥ 10 million Shorts views or 4 000 watch hours) earn revenue from Shorts ads.
  • To enable Shorts ad revenue, creators accept the Shorts Monetization Module in the Earn tab of YouTube Studio.

2.3 Alternative ways to monetize Shorts

Even small channels can earn from Shorts through fan‑funding and commerce features once they meet the 500‑subscriber tier. Key options include:

  • Channel memberships: Viewers pay a recurring fee for badges, custom emojis or exclusive content. Available once a channel joins the early‑access tier. YouTube keeps about 30 % of membership revenue, passing ~70 % to creators (after local taxes/fees).
  • Super Thanks: Viewers can purchase a one‑time “tip” on standard videos or Shorts. YouTube takes a 30 % cut of the purchase. This feature is accessible to monetized channels in supported countries.
  • Super Chat & Super Stickers: During livestreams or Premieres, viewers buy highlighted messages (Super Chat) or animated stickers (Super Stickers). Creators receive about 70 % of the revenue; YouTube retains the rest. Features only work on live or premiere streams and require the channel owner to be at least 18 years old.
  • Gifts (Jewels/Rubies): A newer program (U.S. only, 2025) where vertical live‑stream viewers purchase digital gifts (Jewels). Creators convert these gifts to Rubies worth $0.01 each. Eligible channels must accept the Virtual Items Module and be in the U.S.
  • Merch and affiliate links: Creators can link to external e‑commerce stores or integrate print‑on‑demand partners (Shopify, Spring etc.) once in YPP. Merchandise is sold via a Merch Shelf under the video and requires meeting the 1 000‑subscriber tier.

3. Ad Revenue for Long‑Form Videos

Longer videos (≥ 60 seconds) display skippable pre‑roll, mid‑roll and post‑roll ads. YouTube splits ad revenue with creators as follows:

  • Revenue split: Creators receive 55 % of ad revenue; YouTube keeps 45 %. The split applies to in‑stream ads displayed on long‑form videos, excluding the music licensing deductions used in Shorts.
  • CPM vs. RPM: Advertisers pay a cost per thousand impressions (CPM); however, not all views show ads (e.g., users with ad blockers). The RPM (revenue per thousand views) is therefore lower than CPM and varies by niche, viewer location and video length.
  • Typical earnings: Post‑Bridge’s 2025 analysis notes that most creators earn $2–$10 per 1 000 monetized views (RPM) from long‑form videos. Niche topics such as finance or software can command higher CPM. Videos over 8 minutes can include mid‑roll ads, allowing multiple ad breaks and higher earnings.
  • Watch hours requirement: Channels must accumulate 4 000 watch hours in the past 12 months to qualify for this revenue tier.

4. Fan‑Funding Features

In addition to ads, YouTube offers several interactive features that allow viewers to directly support creators:

4.1 Super Chat and Super Stickers

  • How they work: During live streams or Premieres, viewers can pay to highlight their message (Super Chat) or send animated stickers (Super Stickers). Messages appear pinned for a period determined by the purchase amount.
  • Eligibility: The channel must be monetized, located in a supported region and the creator must be at least 18.
  • Revenue split: Creators receive approximately 70 % of revenue after local taxes and fees; YouTube retains 30 %.
  • Limitations: These features are disabled on age‑restricted or unlisted videos and not available for viewers in certain countries.

4.2 Super Thanks

  • How it works: Viewers can send one‑time tips on eligible videos (including Shorts). Super Thanks display an animated “thank you” and the amount on the viewer’s comment. Creators can reply to show appreciation.
  • Revenue split: YouTube takes 30 % of the tip, while creators receive the rest.
  • Eligibility: Channels must be monetized and in a supported location.

4.3 Gifts (Jewels & Rubies)

  • How it works: Vertical live‑stream viewers can buy digital gifts called Jewels. These convert to Rubies, each worth $0.01 to the creator.
  • Eligibility: Only available in the United States (as of 2025) and requires joining the Virtual Items Module.

4.4 Channel Memberships

  • How they work: Viewers subscribe for a monthly fee (creators can set multiple tiers). Members receive perks such as badges, custom emojis, exclusive videos, live streams or community posts.
  • Eligibility & share: Channels can enable memberships in the early‑access tier (≥ 500 subscribers). Creators keep about 70 % of membership revenue after taxes and fees. The feature is unavailable on “made for kids” content and in some regions.

5. Merch Shelf & Shopping Features

YouTube allows eligible creators to sell physical products directly under their videos. Key details:

  • Eligibility: The channel must be in the full monetization tier (≥ 1 000 subscribers) and not targeted at children. Merch shelf placement appears below the video or in the channel store.
  • Partners: YouTube integrates with print‑on‑demand platforms such as Spring, Spreadshop and Shopify. Creators design products (T‑shirts, mugs, etc.), which are fulfilled by the partner. YouTube takes a small service fee, while the partner pays the creator after production and platform costs.
  • Alternative links: Even if not eligible for the shelf, creators can include affiliate links or pinned comments directing viewers to external stores or Patreon. This can be done without YPP, but it does not benefit from YouTube’s in‑platform promotions.

6. Sponsorships, Brand Deals & Affiliate Marketing

Advertising and fan‑funding are not the only ways to make money on YouTube. Many creators earn more from brand partnerships, sponsorships and affiliate marketing than from YouTube ads.

6.1 Sponsorships & Brand Deals

  • What they are: A company pays a creator to integrate a product mention or review into a video. Sponsors value audience loyalty and niche alignment rather than channel size alone. Rates vary widely: micro‑influencers might earn a few hundred dollars per integration, while larger creators can command five or six‑figure deals.
  • Best practices: Keep integrations transparent (using disclosure statements) and ensure the product fits the channel’s content. Channels focused on specific topics (e.g., gaming, tech, finance) often have higher negotiating power due to targeted audiences.

6.2 Affiliate Marketing

  • How it works: Creators join an affiliate program (Amazon Associates, software platforms, etc.) and earn a commission when viewers purchase through their link. This works particularly well for product reviews or gear lists and can be included in video descriptions or pinned comments.
  • Tips: Use affiliate links for gear you genuinely recommend; provide time‑stamped lists in descriptions and avoid spamming viewers. Combining affiliate marketing with informational content (e.g., tutorials, reviews) yields higher conversion.

6.3 Off‑Platform Products & Services

Creators can diversify income by selling online courses, e‑books, coaching sessions or digital products. Feisworld’s monetization guide suggests launching print‑on‑demand merchandise, digital downloads and membership‑based communities outside YouTube. While these require additional marketing, they give the creator full control over pricing and customer relationships.

7. Putting It All Together

YouTube monetization is not one‑size‑fits‑all. For most creators, ads from long‑form videos provide a steady but modest baseline (typically $2–$10 RPM), while Shorts offer fractional returns (pennies per thousand views) due to the revenue‑pool model. However, YouTube’s two‑tiered Partner Program now lets smaller channels (≥ 500 subscribers) unlock fan‑funding and merch tools. Building a sustainable income requires combining these features with diversified revenue streams such as channel memberships, Super Chat/Thanks, merch, affiliate links and off‑platform sponsorships.

By understanding how each monetization mechanism works—from watch‑hour requirements to revenue splits and eligibility constraints—you can design a strategy tailored to your channel’s content and audience. Focus on delivering value to viewers, adhere to YouTube’s policies, and diversify your income to mitigate algorithm changes and seasonal ad fluctuations.