How Does YouTube Monetization Work?

How Does YouTube Monetization Work?

YouTube, a global juggernaut with 122 million daily users, stands as the second most popular search engine. It’s more than a video platform; it’s a channel for monetization, offering unique opportunities for creators and businesses alike. 

From turning side hustles into full-time jobs to integrating physical stores into digital strategies, the possibilities are endless. With the right approach, creators can leverage YouTube for sustainable, long-term success. 

This includes tapping into advertising revenue, securing sponsorships, and generating passive income. As we step into 2024, the goal for many is to transform their YouTube presence into a profitable business venture.

What Is YouTube Monetization?

Monetization on YouTube is akin to turning your videos into a revenue-generating model. Here, businesses use the Google AdSense Network to advertise on their videos, making each one an asset that brings in income. 

Think of it like selling ad space on a website: your online content becomes a valuable commodity in the world of digital marketing, opening up new sources of revenue. This is especially true for social media videos; they’re not just content but potentially non-revenue-generating assets transformed into lucrative opportunities.

How Does YouTube Monetization Work?

YouTube monetization operates through a program called the YouTube Partner Program (YPP). Creators who join this program can earn money from their content in several ways. Primarily, revenue comes from ads displayed on their videos. YouTube places these ads, and creators earn a share of the income generated.

Another monetization method involves channel memberships, where viewers pay a monthly fee for special perks, like exclusive content or badges. Super Chats during live streams are also a revenue source, where viewers pay to highlight their messages.

To be eligible for YPP, a creator must meet specific criteria, such as having at least 1,000 subscribers and 4,000 watch hours over the past year. YouTube also requires adherence to its community guidelines and policies to maintain monetization status. This system creates a platform where creators can earn from their creativity and audience engagement.

YouTube Monetization Statistics:

  • User Base: YouTube boasts an impressive 2 Billion Users, creating a vast audience pool for content creators.
  • Engagement: Daily, users collectively watch 1 Billion Hours of videos, reflecting a high level of engagement.
  • Creators and Channels: A diverse array of content creators and channels contribute to this vibrant community.
  • Revenue Generation: YouTube is a significant source of Money for creators, driven by its massive user base.
  • Brands and Products: Many brands leverage YouTube for advertising, tapping into its extensive global reach.
  • Global Advertising Revenues: As reported by Statista, YouTube’s advertising revenues soared to $19.77 Billion in 2020, up from $15.5 Billion in 2019.
  • Yearly Growth: The platform has shown consistent growth in revenue over the years, including 2021, 2022, and projections for 2023.

YouTube Monetization Rules & Policies:

  • YouTube Partner Program (YPP): A gateway for creators to monetize their content, adhering to strict policies and guidelines.
  • Content Standards: Strict adherence to community guidelines is mandatory, prohibiting spam, impersonation, and deceptive practices.
  • Prohibited Content: YouTube strictly bans sensitive, adult, and harmful content to ensure child safety and maintain a respectful environment.
  • Regulated Goods and Misinformation: Strict policies against the promotion of regulated goods, violent content, and misinformation.
  • AdSense Integration: Content creators must align with AdSense requirements, avoiding repetitive or reused content.
  • Quality and Integrity: A focus on maintaining quality, integrity, and responsible content, avoiding anything misleading or deceptive.
  • Fan Funding Options: Options like Super Chats, Super Thanks, and channel memberships are available under specific terms of service.

YouTube Monetization Requirements:

  1. YouTube Partner Program (YPP): A cornerstone of YouTube monetization, requiring adherence to specific criteria.
  2. Milestones for Monetization: Creators must reach certain milestones, like a specific number of Subscribers and Public Watch Hours.
  3. Fan Funding Eligibility: Access to fan funding features is contingent on meeting these milestones.
  4. Public Uploads: Consistent and regular public uploads are essential for monetization.
  5. Watch Hours and Public Watch: 4,000 Hours of Public Watch Time is a key requirement for standard video channels.
  6. YouTube Shorts Views: For creators focusing on YouTube Shorts, the platform requires 3 Million Public YouTube Shorts Views.
  7. Eligibility for Video Advertisements: Meeting these criteria makes a channel eligible for hosting video advertisements.
  8. Earn Area in YouTube Studio: This section in YouTube Studio guides creators through the monetization process.
  9. Email Notifications: YouTube communicates important monetization information via email.
  10. Variety of Content: Both Short and Long-Form Videos contribute to a channel’s monetization potential.
  11. Significant View Counts: Achieving milestones like 10M Valid Views within 90 Days can accelerate a channel’s growth.
  12. Linked AdSense Account: A prerequisite for monetization is having a linked AdSense account.
  13. Specific Requirements for Shorts: For creators focusing on Shorts, the requirements are 3,000 Public Watch Hours and 500 Subscribers for Shorts.

These requirements highlight the diverse pathways YouTube offers for monetization, catering to different types of content and audience engagement.

How to Join the YouTube Partner Program?

1.) Meet the Requirements:

  • Ensure your YouTube channel complies with all YouTube channel monetization policies.
  • Your channel must be in a region where the YPP is available.
  • Adhere strictly to YouTube’s Community guidelines with no history of violations.

2.) Secure Your Google Account:

  • Have an active Google Account.
  • Enable 2-step verification for added security.

3.) Create or Link an AdSense Account:

  • If you don’t have an AdSense account, create one.
  • Link this AdSense account to your YouTube account.

4.) Access YouTube Studio:

  • Sign in to your YouTube account and access YouTube Studio.
  • Set a professional profile picture that represents your channel’s brand.

5.) Navigate to the Monetization Section:

  • In YouTube Studio, click on the left-side menu.
  • Select the Earn tab and then click Start to begin the application process.

6.) Review and Accept the YPP Terms:

  • Carefully review and accept the base terms of the YPP.
  • This step is crucial to understand your responsibilities and rights within the program.

7.) Set Up Your Monetization Preferences:

  • Choose the types of ads you want to display on your videos.
  • Ensure your content aligns with the monetization policies.

8.) Meet the Watch Time and Subscriber Criteria:

  • Achieve the required amount of watch time and number of subscribers as specified by YouTube’s requirements.
  • These metrics are available on the earn page of YouTube Studio.

9.) Submit the Application and Wait for Review:

  • After completing all previous steps, submit your application.
  • YouTube will review your channel, which can take several weeks.

10.) Address Any Issues If Application Is Denied:

  • If denied, identify the reasons, such as copyright claims or Community Guidelines violations.
  • Make necessary changes and re-apply after 30 days (or 90 days for repeat applicants).

11.) Monitor Your Channel’s Performance:

  • Once accepted, regularly check your channel for any policy changes or updates.
  • Continuously engage with your audience to maintain and grow your channel’s performance.

How to Enable Monetization on YouTube?

Once you’re part of the YouTube Partner Program (YPP), enabling monetization on your YouTube channel involves a few key steps:

  1. Access YouTube Studio: Sign into your YouTube account and navigate to YouTube Studio.
  2. Select Your Video: In the left-side menu, click on ‘Content’ to view your uploaded videos.
  3. Enable Monetization: Click on the video you wish to monetize, then find the ‘Monetization’ tab in the video editor.
  4. Choose Ad Types: Select the types of ads (like display, overlay, or video ads) you want to run on your video.
  5. Ad Suitability: Confirm your video meets YouTube’s advertiser-friendly content guidelines.
  6. Save Changes: After making your selections, remember to click ‘Save’ to apply the monetization settings.
  7. Monitor Performance: Regularly check the Analytics tab to see how your monetized videos are performing.

These steps will help you effectively monetize your videos on YouTube.

Check Now:

How to Make Money on YouTube?

1.) AdRevenue:

Have you ever wondered how those pre-roll ads that play before your favorite YouTube video translate into AdRevenue for the channel owner? Well, it’s all part of the YouTube monetization program. As a content creator, joining the Google Adsense Network is a pivotal step. This is where ads find their placement on your video, and every time a viewer watches or clicks on these ads, you get paid.

But it’s not just about letting any ad run on your channel. The type of ads – be it pre-roll ads, mid-roll ads, display, or overlay video ads – plays a crucial role. As someone who has navigated these waters, I can tell you, that ensuring your content is advertiser-friendly is key. YouTube has strict content guidelines. Your videos should steer clear of categories like drug-related, firearms, adult, hateful content, and controversial issues. Even inappropriate language can be a red flag.

What’s interesting is how Google conducts its evaluation. They consider the context in which content is presented. This scrutiny ensures both the advertiser and the creator are aligned in values and message.

2.) Channel Memberships:

Diving into Channel memberships, is a more direct way for your viewers to show their support. Through monthly payments, they gain access to exclusive benefits. This system allows members to choose from various tiers in the YouTube membership, offering them unique bonuses.

But here’s a twist: YouTube membership isn’t just handed out; it’s earned. To be eligible, there’s an age requirement and you must be a YouTube Partner Program member. This ensures a level of quality and commitment.

Once you cross these hurdles, you can offer bonus content and unique privileges to your members. This could be anything from exclusive videos to special badges. Remember, it’s not just about the monthly charge, but also respecting the community standards. If a member decides to withdraw their support, understanding the process of account cancellation and refund is vital. 

The aim is to create a community where exclusive content, badges, and custom perks feel like part of a special club. Membership monetization becomes an option, enhancing your connection with your subscriber count.

3.) Merchandise Shelf:

Let’s talk about the Merchandise Shelf. For creators with a substantial audience, selling branded items like shirts, caps, or notebooks is an excellent way to support your channel and engage with larger audiences. I’ve seen channels transform their brand into a physical form. Using designs that resonate with your viewers can be crucial.

Platforms like Printful and Printify have made it simpler to manage these ventures. They act as your online platform, handling everything from production to mail delivery. This way, your focus remains on creating content while they handle the logistics.

Branded products not only monetize your YouTube channel but also increase your visibility both online and offline. Remember, integrating merchandise into your brand isn’t just for gamers, activists, or influencers; it’s for anyone looking to expand their subscribers’ experience. This approach, when combined with AdSense, can transform your YouTube presence into a thriving business.

4.) Super Chat and Super Stickers:

Let’s explore the colorful world of Super Chat and Super Stickers, a vibrant aspect of monetization for creators engaging in live streaming. As a YouTube Partner, you get this unique opportunity to make your live chat more interactive. Viewers can pay a fee to highlight their messages, complemented by flashy badges and fun emoticons. These features not only add a spark to live sessions but also create an exclusive space for members-only benefits.

However, it’s not just about turning the chat into a fireworks display. Eligibility for this feature takes into account factors like country availability. And when used effectively, these features can elevate the quality of interaction within your chat stream, making each message stand out, especially during livestreams.

Interestingly, Super Chat can also be a tool for fundraising during a campaign. The YouTube Partner Program (YPP) oversees the SuperChat availability, ensuring a smooth integration with your content.

5.) YouTube Premium Revenue:

Moving on to YouTube Premium Revenue, it’s like uncovering a hidden treasure. For creators, it means tapping into the ad-free viewing experiences of the platform’s subscribers. This is an additional revenue stream, independent of regular advertisements. Your content plays a key role here; it’s not just the quantity but the quality that counts.

The magic lies in how YouTube Premium shares its membership money with content creators. The distribution of monthly money is based on how much Premium members engage with your videos. It’s a win-win: as a monetized creator, you get rewarded for creating exceptional content that attracts these premium users.

6.) YouTube Shorts Fund:

Finally, let’s discuss the YouTube Shorts Fund. Think of it as YouTube’s nod to the booming popularity of short videos and vertical videos on smartphones, much like Instagram Stories. Creators using the YouTube app can create content with a maximum length of 60 seconds.

This is where the fund comes into play. From 2021-2023, YouTube set aside a dedicated budget for YouTube Shorts monetization. The criteria for compensation are stringent, focusing on requirements for being eligible. The YouTube Shorts Fund rewards creators who upload a qualified short, adhering to community guidelines and copyright restrictions.

What sets this apart is its emphasis on original content. It encourages creators to be distinctive, rather than re-posting content from other video platforms or using generic movie clips. Plus, there’s an age requirement to ensure the content creators meet a certain level of maturity and responsibility.

7.) YouTube Affiliate Marketing:

Affiliate marketing on YouTube is like unlocking a treasure trove for savvy creators. It’s a world where advertising meets product links, creating an additional revenue stream for your channel. The first step? Sign up for affiliate programs offered by various brands and companies. Once in, you get custom product links tailored to your YouTube audience.

The beauty of this model lies in the commission you earn when your viewers purchase through these links. Take the Amazon Associates program, for example. You can create custom links for almost any product and include them in your video’s description section.

The types of content that can seamlessly integrate affiliate links range from review videos, and unboxing videos, to how-to videos. Remember, transparency is key, so including an affiliate disclaimer is essential. This marketing strategy works best when you choose products relevant to your niche and audience, and collaborate with affiliate networks like ClickBank or Walmart.

8.) Be a YouTube Influencer:

The journey of becoming a YouTube influencer is all about mastering influencer marketing and tapping into sponsorships. Brands today allocate a significant part of their marketing budget to collaborate with influencers, especially those who align with their target demographic.

As a creator, your power lies in your ability to offer authentic advertising of products and services. Having a large following is good, but what’s more valuable is an engaged following that resonates with your content relevance and target market.

Getting into partnerships often involves working with an influencer marketing agency, like Viral Nation or Fanbytes by Brainlabs. These agencies act as intermediaries, connecting you with brands that are looking for influencers on various platforms. The key is to strike a balance between exposure for the businesses and maintaining your channel’s integrity through paid promotion and sponsored content, while adhering to Google’s ad policies to avoid account penalties.

9.) Content Licensing:

Now, let’s dive into content licensing, an often overlooked but lucrative aspect of YouTube. If you’ve created a viral video, there’s a chance media sites might want to use your YouTube video. This is where licensed content comes into play, opening up another channel of payment for your creative efforts.

Make sure your channel has up-to-date contact information, like an email address, on the About page. This makes it easier for publications interested in your popular videos to reach out to you. There are also online marketplaces where you can list your content for content purchase.

In content licensing, the key is to understand the value of your creations and how they can be repurposed in different media contexts, making it a viable revenue option for YouTubers.

10.) Sell Online Courses:

Turning your expertise into online courses is a brilliant strategy for generating money on YouTube. Your unique skills can be a goldmine, especially if they align with the interests of your audience. The first step? Assessing the marketability of your course to your subscribers. It’s more than just an investment of time; it’s about creating something your viewers will find valuable enough to sign up for.

When deciding on your course format, options like an e-book or a series of video tutorials are popular. But, the crux of success lies in delivering high-quality content. Your focus should be on the audience’s impact and value delivery. There’s a thin line between providing value and underdelivering, which could lead to service doubt and, eventually, potential income loss.

Regular channel interaction is key to keeping your audience engaged and interested in your courses. This not only builds a rapport with your subscribers but also enhances your reputation as a knowledgeable creator.

11.) Crowdfund:

Crowdfunding is another avenue where YouTube creators can explore money generation. It’s similar to channel memberships, where your subscribers play a direct role in supporting the creation of high-quality videos. Think of it as a donation system where your viewers can contribute to your creative process.

The trick is to find your specialization and convey the benefits your funders will receive. Platforms like Kickstarter and GoFundMe are popular crowdfunding websites where you can set up a campaign.

Remember, crowdfunding is not just about asking for money; it’s about building a community that believes in your vision and wants to be a part of your creative journey. Transparency and regular updates can help maintain a strong relationship with your supporters.

12.) Driving Traffic to Your Blog Using YouTube Videos:

Using YouTube for brand promotion and customer acquisition is a smart move, especially when it comes to driving website traffic to your blog. If you have an ad-supported website or a monetized website, leveraging YouTube can significantly increase your user engagement and, consequently, your revenue.

Start by aligning your subject matter across both platforms. Consistency is key. The name, logo, and design consistency between your YouTube channel and blog create a cohesive brand image.

In every YouTube video, ensure you include a link to your blog in the video link description. This straightforward strategy can lead to a considerable increase in your blog traffic, turning viewers into readers and potentially loyal followers.

Best Practices to Make Money from YouTube Videos:

1.) Create Good Content:

In the realm of YouTube, Content is king. A creator’s primary focus should be on delivering Quality and Value to their Audience. This goes beyond just Content Marketing; it’s about understanding your Potential Customers and their Problems and tailoring your strategies accordingly. 

Whether it’s through Advertising Campaigns or organic growth, the Success of your YouTube Videos hinges on your ability to engage and Solve the needs of those who Watch. Remember, the Information you provide is the cornerstone of your channel.

2.) Improve Your Video’s Search Ranking by Doing Research:

To ensure your videos are seen, mastering YouTube SEO is crucial. It’s like playing a game with Google and Social Media – you need to know the rules. By Optimizing your content, you’re more likely to get Views. This involves meticulous Uploading and Editing processes, understanding Keywords, and how these influence Search Results. 

Even details in your Description, Title, and Tags matter. Using tools like vidIQ or TubeBuddy can enhance your SEO Research, meeting YouTube’s Algorithm Requirements.

3.) Have Keyword-Rich Descriptions:

A Description that captures attention is essential. It’s not just a Message for your viewers; it’s a critical element for Search Engines. To improve your Ranking, infuse your descriptions with relevant, Long-Tail Keywords. This strategy is straightforward but often overlooked, pivotal in drawing viewers’ Attention.

4.) Use End Screens and Cards:

Maximize Watching Time and maintain Interest in your Subject by using YouTube Cards and End Screens. These tools help keep your Audience engaged, linking them to other Content or Alerts about your channel. By providing Engaged Viewers with access to Related Content, you create a Relationship that encourages continuous viewing.

5.) Customize Your Thumbnails:

The Thumbnail is the first impression a Viewer has of your video. Ensure your Thumbnails are Appealing, Professional, and reflective of your YouTube Channel’s Title. A Compelling Thumbnail, with a unified Font, Style, and Template, strengthens your Branding and can be created using tools like Canva for Graphic Design.

6.) Transcribing Your Video Content:

Subtitles and Transcripts not only aid in Ranking on Search Engines but also make your content accessible to viewers from different Countries or those who are Visually Impaired. It’s a step beyond the traditional approach of trying to Buy Views. This method focuses on organic growth through Behavioral Analytics and Traditional Metrics.

7.) Create a Blog Post for Each Video:

Integrate Blogging with your YouTube strategy. By driving Traffic from your Blog to your YouTube Channel, you create a synergistic relationship. Embed your Videos in Blog Posts to offer a comprehensive User Experience. This not only increases Views but also caters to Prospects who prefer to Read and Watch content.

8.) Create Playlists:

Playlists help organize your Content in a meaningful Order. This isn’t just about Creation; it’s about guiding your Views through a Series that enhances the experience on your Channel. By Embedding these playlists, you encourage Subscribers to Share with Friends, creating a Unique Flow and Relevance to your set.

9.) Work With Other Creators in Your Niche:

Collaborate with other Creators to tap into their Audience and Subscribers. By partnering with a Renowned Content Creator, you open doors to new Viewers and opportunities. This collaboration should reflect shared Interests and be beneficial for both parties.

10.) Build and Facilitate a Community:

Engagement is pivotal in video-sharing platforms. By fostering a Community, you encourage Participation and Brand loyalty within your Niche. Devoted Subscribers and Comments on your Social Media platforms and YouTube channels are indicators of a strong community.

11.) Be Consistent:

Consistency is the key to retaining and growing your YouTube Views. Regular posting of High-Quality Video Content keeps your Viewers and Subscribers engaged. Understanding Platform Regulations and maintaining a consistent schedule is vital to Monetizing your YouTube Channel effectively.

Frequently Asked Questions (FAQ):

How Much Money Can You Make On YouTube With Ads?

Understanding YouTube’s money-making potential starts with its ads. Ads operate on different models like Cost per Mille (CPM), Cost per Click (CPC), and Cost per View (CPV). CPM charges advertisers per thousand impressions, while CPC involves payment per click, and CPV, per view of video ads. Your earnings depend on factors like audience demographics and advertiser budgets.

How Many Views Do You Need To Get Paid By YouTube?

To earn on YouTube, grasp its monetization policies. The gateway is the YouTube Partner Program, requiring 1,000 subscribers and 4,000 watch hours in a year time frame. Views needed for earning vary, influenced by your audience’s location. Monetization differs by country and region, reflecting the economic values of different markets.

Can I Monetize 1 Minute Video On YouTube?

Wondering about monetizing a 1-minute video on YouTube? Video length impacts revenue potential. Short videos can earn through pre-roll ads or banners, but they lack mid-roll ads, available in videos over 8 minutes. While short content can monetize, longer videos offer more ad placement opportunities, so balancing audience retention and content length is essential for optimal earnings.

Can I Monetize Videos That Include Copyrighted Music?

Monetizing videos with copyrighted music on YouTube is a tricky path. Generally, using copyrighted music without permission can lead to your video being demonetized, claimed, or even taken down. Some music owners allow their work to be used in exchange for the ad revenue generated from your video. However, it’s always safer to use royalty-free or licensed music to avoid any monetization issues.

Do I Need To Pay Any Fees To Join The YouTube Partner Program?

Joining the YouTube Partner Program is free of charge. There are no upfront or hidden fees to worry about. The main focus is on meeting the eligibility criteria: having at least 1,000 subscribers and 4,000 watch hours over the past year. Once you’re in, YouTube takes a cut of the ad revenue, but there’s no direct cost to you for joining the program.


YouTube has opened up a world where global creators can transform their passion into profit. As a creator myself, I’ve explored various monetization methods and found some to be more effective than others. From display advertising to affiliate marketing, the strategies are diverse. Platforms like CodeFuel offer a complete monetization platform, integrating content with relevant search and shopping ads, thus expanding the reach to a targeted audience. Remember, monetization on YouTube is not just about making money; it’s about building a community around your channel and offering value to your viewers.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *