"The YouTube Shorts Fund is dead. If you are still looking for your 'bonus' check, you're living in the past. In 2025, Shorts are part of the big leagues—Ad Revenue Sharing—but the rules of the game have completely changed."
For years, creators treated YouTube Shorts like a lottery ticket. You posted a video, hoped it went viral, and prayed for a slice of the "Shorts Fund." That system was opaque, unpredictable, and frankly, unsustainable.
Today, the monetization model for Shorts has matured into a standardized, algorithmic system known as Ad Revenue Sharing. But unlike Long Form videos, where you simply split ad money 55/45, Shorts uses a complex "Creator Pool" model involving music licensing costs and view distribution.
In this deep dive, we will explain exactly how the math works, why your Shorts RPM is likely lower than you expect, and how to actually make a living from vertical video in 2025.
The 2025 Reality Check
Here is the summary of the current landscape:
- Shorts Fund: Discontinued. Replaced by YPP.
- Revenue Share: You get 45% of allocated revenue (YouTube keeps 55%).
- Avg. RPM: $0.01 - $0.06 per 1,000 views.
- Global Reach: High views, low value per view.
1. The "Creator Pool" Model Explained
Why is Shorts monetization so complicated? It's because of the music. On Long Form videos, you generally can't use copyrighted music without losing revenue. On Shorts, you can use pop music (Drake, Taylor Swift, etc.), and YouTube handles the licensing for you.
To make this work, YouTube invented the Creator Pool. Here is the 4-step process that happens every month:
- Collection: YouTube adds up all ad revenue generated from ads shown between Shorts in a specific country.
- Subtraction (Music): If you used copyrighted music, a portion of the revenue is subtracted to pay for music licensing.
- Allocation: The remaining money goes into the "Creator Pool" and is distributed based on your share of total views in that country.
- The Split: You keep 45% of your allocated share.
2. RPM Realities: Why $1 Million Views = $60
This is the part that breaks hearts. Creators used to getting $5 RPM on Long Form videos are shocked when they see their Shorts analytics.
In 2025, the average RPM for Shorts hovers between $0.01 and $0.06.
Why so low?
- Ad Density: Ads only appear every few swipes. In a 10-minute Long Form video, a user might see 2-3 ads. In 10 minutes of scrolling Shorts, they might see 1 ad.
- Intent: Shorts viewers are in "Dopamine Mode," flipping rapidly. Advertisers pay less for this type of fleeting attention compared to a focused tutorial viewer.
Do not rely on Shorts for income. Rely on Shorts for Traffic. Use the "Related Video" link feature on your Shorts to funnel those viral viewers to a Long Form video. That is where the real money ($5+ RPM) is waiting.
3. How to Qualify for Shorts Monetization (2025 Requirements)
To start earning that 45% share, you need to be accepted into the YouTube Partner Program (YPP). The requirements for Shorts-focused channels are specific:
The Threshold
You must have 1,000 Subscribers AND meet one of the following:
- 10 Million valid Shorts views in the last 90 days.
- OR 4,000 public watch hours on Long Form videos in the last 12 months.
Note: Watch hours from Shorts do not count toward the 4,000-hour requirement. This is a common misconception. If you are a pure Shorts creator, you must hit that 10 Million view target.
4. Shorts vs. Long Form: The Ultimate Comparison
Should you pivot to Shorts? Or stick to traditional videos? Let's look at the data from our Revenue Calculator.
| Feature | Shorts | Long Form |
|---|---|---|
| Revenue Share | 45% (Pooled) | 55% (Direct) |
| Average RPM | $0.03 | $4.00+ |
| Views for $1,000 | ~33 Million | ~250,000 |
| Subscriber Growth | Explosive | Steady |
5. Conclusion: Is It Worth It?
If you are looking to make quick money, Shorts are a trap. The RPM is simply too low to sustain a full-time income unless you are generating hundreds of millions of views per month.
However, if you view Shorts as a Marketing Tool, they are invaluable. They are the most efficient way to grow a subscriber base in 2025. The winning strategy is to use Shorts to build the audience, and Long Form content to monetize them.
Don't believe us? Run the numbers for yourself using our estimator below.