When can I start to monetise my Youtube channel?

Starting a YouTube channel can be an exciting way to express yourself, make connections and create an online presence. As your YouTube audience grows, it's possible to turn your pastime into a career and start making money.

To monetise your YouTube videos, it's best to join YouTube's Partner Program (YPP). To apply, you must hit 1,000 subscribers, 4,000 watch hours over 12 months and have no active Community Guidelines strikes. You also need a linked Google AdSense account in which to collect the money you make.

If you fulfil the criteria, you can begin to make money on YouTube. The most common way to do this is via paid ads, but there are other potential revenue streams to explore.

This article is a brief guide on YouTube monetisation (or YouTube monetization, depending on your side of the Atlantic 😉), including useful tips on how to increase your chances of success.

Once you start to make a profit from YouTube, it's time to register for tax. 

Capture Accounting helps influencers and YouTube creators manage their finances and tax returns.

If you need tax advice on your influencer earnings, get in touch to arrange a consultation.

What is the criteria for monetising your YouTube channel?

If you plan to monetise your YouTube content (i.e. start to earn money from it), it's wise to join YouTube's Partner Program.

To do that, you must:

• Be over 18 years of age
• Have at least 1,000 subscribers
• Have at least 4,000 hours of watch time over the last 12 months
• Live in a region where the YPP operates (depending on the region you’re in, the criteria may vary, so it’s important to check)
• Have a Google Adsense account linked to your YouTube account
• Have 2-factor authentication enabled
• Have no active Community Guidelines strikes and agree to the YPP monetisation policies

If you meet all the above criteria, then you are ready to open a valuable revenue stream!

How do you apply for YouTube monetisation?

Once you have determined that you meet the necessary criteria, the next step is to apply to become a member of the YouTube Partner Program. You can do that from YouTube Studio by clicking the "monetise" button and then "apply now".

Before signing up, it's very important to read YouTube's monetisation agreement.

YouTube typically reviews applications within one week, and you will be notified by email once you have been approved.

YouTube’s policies and eligibility requirements may change over time, so it’s important to stay up-to-date with the latest information. YouTube monetisation can be suspended if your channel is found to violate their policies or terms of service.

How do you monetise YouTube videos?

Once your application is approved and you have set up an AdSense account, it’s time to start monetising your YouTube videos.

There are several ways to do this as a YouTube partner, including:

YouTube video ads

Advertising revenue is the easiest way to make money on YouTube. Setting up YouTube ads is relatively simple. All you have to do is log into your account and click the “monetise” tab in YouTube Studio.

You can choose which ads you want to show on each video (or multiple videos) and also decide which countries you want to show them in. You will have to switch "monetisation" on as and when you upload videos from then on.

It's vital to adhere to YouTube’s Advertiser-Friendly Content Guidelines at all times. This means not using any inappropriate language or adult themes, as well as making sure your videos don’t infringe on any copyright laws.

YouTube Premium

YouTube Premium is a subscription-based service and offers another way to monetise your YouTube channel. Subscribers can watch ad-free content, download videos and access YouTube Originals, among other exclusive benefits.

Content creators need to be part of the YouTube Partner Program to be eligible for YouTube Premium revenue. Creators earn money when Premium members watch their video content in a similar way to ad revenue payments.

YouTube allocates subscription revenue payments based on factors like watch time, engagement, and the overall popularity of the content.

Creators who produce high-quality, engaging content that attracts YouTube Premium subscribers are likely to earn more from this revenue stream.

Sponsorships

Influencer marketing is worth billions. So brands are happy to spend a large portion of their digital marketing budget paying successful YouTubers to promote their products or services. Paid promotion includes things like sponsored videos, product placements, or mentions within content.

YouTubers often attract sponsors by cultivating a niche target audience relevant to the brand's target market. As influencers, they can integrate sponsored content seamlessly into their videos, enhancing authenticity and resonance with viewers.

Making money from sponsorship can take the form of flat fees, or commission-based structures, and may include free products or other perks.

Affiliate programs

An affiliate program is based on persuading your subscribers to buy certain products. First, you create content about a product or a service and add an affiliate link to it.

You earn money when someone makes a purchase via a link from your YouTube videos. Popular affiliate programs in the UK include Amazon Associates, eBay Partner Network, Shopify, Fiverr and Etsy.

Channel memberships

You could ask your members to pay for a monthly subscription in exchange for certain benefits, such as loyalty badges, live streams and exclusive videos.

To attract more channel memberships, you must focus on creating high-quality, engaging content that adds value to your target audience.

Super Chat

Super Chat is a chat stream feature that allows viewers to interact during YouTube live streams.

You can offer Super Chat status and Super Stickers to your subscribers for a fee, which enables them to make a featured comment, including animations.

How can I keep track of my YouTube earnings?

It's important to track your YouTube earnings, not only to help you manage your finances but to determine what type of content and which strategies are the most profitable. There are a few different ways to track the money you make, depending on how you earn it.

YouTube Ads

Ad revenue is easy to check by logging into your Adsense account. Here you will be able to view detailed reports about your earnings, including which videos are the most profitable and which types of ads are generating the most revenue.

You can also access insights and analytics that will help you understand your audience and what type of content they are engaging with.

Affiliate deals/sponsorships

For affiliate deals or paid sponsorships, tracking your earnings can be a bit more challenging. You could use a spreadsheet to log your earnings and track how much money you are making per video or month. Or, you can use tools like Amazon Associates to track your earnings.

Third-party platforms

If you are using a third-party platform to monetise your channel, such as YouTube Premium or Super Chat, you should be able to check your earnings directly from that platform.

Do you have to join the YouTube Partner Program to monetise your channel?

The answer is no, but it has many advantages.

The YouTube Partner program allows you access to tools and resources to grow your channel. As a YouTube Partner, you also retain the copyright and management rights to your videos and can customise your channel page as you wish.

Crucially, while YouTube search results are user-led, they prioritise partner videos, meaning that more users are likely to find your content.

Do you pay tax on YouTube earnings?

Yes, you have to pay tax on YouTube earnings once you exceed your annual tax-free allowance. So it's important to register with HMRC as soon as you monetise your channel. Once registered, you are responsible for filing an accurate tax return each year, or else you will face a fine.

Contact Capture Accounting for tax advice on monetising YouTube

When you start to make money from your YouTube channel, it's essential to keep accurate records to stay compliant with tax law. That's why working with a specialist accountant early on is valuable.

At Capture Accounting, we are specialists in influencer and YouTuber accounting. We can support you to make money through your YouTube channel and ensure you remain compliant. That means you can relax and continue to create content without stress or hassle. 

Book a free short consultation with us here.

Conclusion

Many people on YouTube create content for fun, but it is possible to make money from it as your audience grows. Before monetising your YouTube content, it’s important to make sure you understand the rules and regulations.

It is best to join the YouTube partnership program if you decide to monetise your channel, as it gives you access to more resources to help grow your subscribers. To join, you need 1,000 subscribers and 4,000 hours of watch time per year.

There are various ways to make money from your video content, including ads, affiliates and membership.

Remember that as soon as you start earning from YouTube, you will be liable for taxes once your profits exceed your annual tax-free allowance.

Frequently asked questions about Youtube monetisation

Can I monetise my YouTube videos without joining the YouTube Partner Program?

Yes, you can monetise your videos without joining the YPP but joining has advantages. While anyone can monetise videos, becoming a partner provides access to additional tools, resources, and customisation options.

Do I have to pay tax on YouTube earnings?

Yes, you are required to pay taxes on your YouTube earnings once they exceed your annual tax-free allowance. It's crucial to register with HMRC (Her Majesty's Revenue and Customs) when you start monetising your channel.

Failing to file an accurate tax return each year may result in fines. Specialist accountants, like Capture Accounting, can provide tax advice and help ensure compliance.

Can I monetise my YouTube channel if I have fewer than 1,000 subscribers?

While joining the YouTube Partner Program typically requires having at least 1,000 subscribers, you can still monetise your videos without meeting this threshold.

However, the additional features and resources provided by the Partner Program become accessible once you reach the eligibility criteria.

How can maximise earnings from YouTube Premium?

You must be a part of the YouTube Partner Program to make money through YouTube Premium. YouTube allocates subscription revenue payments based on factors like watch time, content popularity, and viewer engagement.

So, to maximise earnings from Premium you must consistently produce high-quality and engaging content that attracts Premium subscribers. Focus on growing your audience and watch time across all content to increase your share of the Premium pool.

Additionally, enable monetization on long-form videos and Shorts to qualify for both YouTube Premium and ad revenue sharing.

How do you set up a Google Adsense account?

Setting up an AdSense account is a straightforward process that allows content creators to monetise their YouTube channel and other social media channels. To begin, go to the AdSense website and click on the "Sign Up Now" button. You will be prompted to log in with your Google account or create one.

Once logged in, fill in the necessary information about your website or channel, including its URL and content language and read the terms and conditions. Google will then review your application, which may take a few days.

Can you make money from YouTube Shorts?

YouTube Shorts is a great way to upload short-form videos from your phone, similar to TikTok. YouTube Shorts creators used to make money from the YouTube Shorts fund, but that no longer exists.

But, it's still possible to monetise Shorts via ads etc., just as it is with long-form videos. While ad revenue from Shorts is not as lucrative, it's a great way for new YouTubers to grow their audience and it can be a stepping stone to bigger income opportunities.