"The journey to monetization is no longer 'all or nothing.' With the 500-subscriber tier, you can start building a business before you even show your first ad."
In the past, the YouTube Partner Program (YPP) had a single, massive gate: 1,000 subscribers and 4,000 watch hours. If you had 999 subscribers, you made $0.
For 2025, that has changed. YouTube now offers two distinct "tiers" of monetization:
- Tier 1 (Fan Funding): Starts at 500 subscribers.
- Tier 2 (Ad Revenue): Starts at 1,000 subscribers.
Understanding the difference is critical because it changes your strategy. Should you push for watch time or focus on community? This guide breaks down the exact requirements for both.
Quick Summary
500 Subs = Money from Fans (Memberships, Super Chat).
1,000 Subs = Money from Ads (AdSense, Premium).
1. Tier 1: The "Fan Funding" Level (500 Subs)
This tier is designed for "Early Access." It allows smaller, highly engaged communities to start monetizing through direct support rather than passive advertising.
The Requirements
3,000 Watch Hours (last 12 months)
-- OR --
3 Million Shorts Views (last 90 days)
Features Unlocked
- Channel Memberships: Viewers pay a monthly fee (e.g., $4.99) for badges and emojis.
- Super Chat & Stickers: Fans tip you during livestreams to highlight their messages.
- Super Thanks: Fans tip you on regular videos.
- YouTube Shopping (Own Store): You can connect your own store (like Shopify) to sell your own merch. (Note: Promoting OTHER brands usually requires higher subs).
2. Tier 2: The "Ad Revenue" Level (1,000 Subs)
This is the "classic" monetization standard. Reaching this milestone allows YouTube to place ads on your videos and share the revenue with you.
The Requirements
4,000 Watch Hours (last 12 months)
-- OR --
10 Million Shorts Views (last 90 days)
Features Unlocked
- Watch Page Ads: Pre-roll, mid-roll, and display ads on long-form videos.
- Shorts Feed Ads: Revenue sharing from the ads shown between Shorts.
- YouTube Premium Revenue: You get a cut of the subscription fee when Premium members watch your content.
3. Comparison Table: What Do You Get?
| Feature | 500 Subs (Tier 1) | 1,000 Subs (Tier 2) |
|---|---|---|
| Ad Revenue (AdSense) | No | Yes |
| Super Chat / Thanks | Yes | Yes |
| Sell Own Merch | Yes | Yes |
| Affiliate Program | No | Usually requires 10k+ Subs* |
| Watch Hours Required | 3,000 | 4,000 |
4. The "Watch Hours" Trap
Be careful: Shorts views DO NOT count toward your 4,000 Watch Hours.
YouTube maintains two separate buckets. You cannot combine 2,000 hours of long-form watch time with 5 million Shorts views to qualify. You must fully cross the finish line in one category.
Getting 10 Million Shorts views in 90 days is mathematically much harder for most people than getting 4,000 watch hours in 365 days. Unless you are viral-prone, long-form content is often the safer path to monetization.
5. Frequently Asked Questions
Do I automatically get ads once I hit 1,000 subs?
No. If you are already in the 500-sub tier, you don't need to re-apply, but you generally need to manually turn on ad monetization in YouTube Studio once you cross the 1,000/4,000 threshold.
Can I lose my Partner status?
Yes. If you do not upload for 6 months or more, YouTube reserves the right to remove you from the program. Consistency protects your income.
Conclusion
The 500-subscriber tier is a massive win for smaller creators. It allows you to validate your audience's willingness to pay (via Supers or Merch) long before you rely on ads.
Focus on building a loyal community first. If you can get 500 people to care about your content, the ad revenue at 1,000 subscribers becomes a bonus, not a necessity.
Want to know how much that Ad Revenue will actually be?
Use our Revenue Calculator to see your potential →