Diving into the mechanics of earning money as a content creator can be overwhelming. Particularly when making sure you have everything lined up to receive income when the time comes. When it comes to a YouTube payout, the setup process is a little complex. However, the month-to-month process of cashing out is generally straightforward and stress-free. So let’s take a look at everything you need to do up front to get paid.
Who Is Eligible For YouTube Payouts?
There are numerous creative ways to monetize your YouTube presence. But doing so directly through YouTube requires joining the YouTube Partner Program (YPP). Each type of monetization via YPP has different requirements. However, at minimum you’ll need at least 1,000 subscribers. You also need either 4,000 watch hours in the past year or 10 million Shorts views within 90 days.
You can check your eligibility by signing into the Creator Studio. Then tap on the “Earn” tab, represented by a dollar sign. If you’ve met the requirements, you can apply and YouTube will get back to you.
How To Set Up AdSense For YouTube?
The next requirement for getting a YouTube payout is having an AdSense account. If you already have one, you’ll be able to link it to your YouTube channel. If not, we can walk you through getting that set up.
Step #1: Signing up
YouTube wants creators setting up an AdSense account for the first time to do so through the Creator Studio. Click on the same “Earn” tab we used above to check YPP eligibility after you’ve been approved for the program. Now there should be an option to sign up for Google AdSense.
This is where you’ll have the option to sign in through an existing AdSense account if you already have one. It is important to note that you can only have one AdSense account. You won’t be setting up a new one just for YouTube. You also must be at least 18 years old.
If you’re new to AdSense, fill out the application provided. Google will let you know if and when your account has been approved.
Step #2: Submitting tax information
Once your AdSense account is approved, you’ll be required to submit tax information—this applies to all creators, not just ones based in the United States.
In your AdSense account, you’ll navigate to Payment > Payments info > Manage settings. Then, under “Payments profile,” you’ll have the option to edit your U.S. tax info.
Step #3: Verifying your personal info
You won’t be able to verify your identity until you hit an earnings threshold. In the U.S. the threshold is $10. Once that happens, AdSense will let you know what they need and how long you have to submit it.
For individuals verifying your identity, you’ll be required to submit a current government ID.
Address verification involves Google sending a Personal Identity Number to your address on file, along with instructions regarding where to enter that number online to verify your address.
Step #4: Selecting a payment method
When you hit the $10 earnings threshold you’ll be able to select a payment method for AdSense. In the United States, payments are made via direct deposit to your bank account. In certain other locations, additional options such as check and wire transfer may be available.
You can set this up through AdSense by going to Payments > Payments info and choosing “Add payment method.” You’ll want to make sure that it is also noted as your primary method of payment.
Check out our ultimate guide to live streaming on YouTube
Other Things To Know About How To Earn Money On YouTube with AdSense And YouTube Payout
Although you can only have one AdSense account, you can use that account for multiple YouTube channels, which will hopefully help streamline the payment process.
However, each YouTube channel can only have a single AdSense account linked to it. In other words, if you share a channel with a collaborator, you can’t link two individual AdSense accounts and have the money split automatically between you. You would either have to choose one and divvy up the money after the fact, or set up a business account if you have a legally formed business together.
How Do YouTube payout methods work?
Once you’ve joined the YouTube Partner Program, set up your AdSense account, and started earning money through YouTube, you’re probably itching to get to the good part—being paid.
YouTube payments are issued automatically, once a month, provided you have reached the minimum payment threshold during that pay period.
How it works is that payments are issued between the 21st and 26th of the month for earnings accrued in the prior month. So you’ll be sent everything you earned (provided it meets the threshold) in AdSense between March 1-31 and sometime between April 21-26. Google advises payments can take up to seven business days to process, so you may not receive the money in your account until a little later.
However, the finalized amount you’ve earned will be calculated and reflected in your balance no later than the 12th of the following month, so in the above example, you would at least know what to expect to be paid by April 12.
If your earnings don’t meet the threshold for a payment to be issued, they will roll over to the following month.
Check out our step-by-step guide to growing your YouTube channel’s subscribers and views
What Is The Threshold For Payment On YouTube?
The minimum amount of earnings required for payment varies per country. In the U.S., it’s $100. For those outside of the U.S., you can check out the threshold for your country here.
If your YouTube earnings don’t meet the $100 minimum threshold for a given month, they will roll over to the next month. Your earnings will continue to accumulate until you reach the threshold, at which point YouTube will issue the payment in the following pay cycle. It’s a good idea to keep track of your earnings in the AdSense dashboard to know when you’ll be paid.
What is the Payment Cycle?
AdSense payments are processed on a monthly basis, but you won’t get paid immediately after reaching the threshold. Payments are typically released between the 21st and 26th of each month, and it can take a few days for the money to arrive in your bank account depending on the payment method you’ve selected (bank transfer, check, or wire transfer).
What are the Earnings Sources?
Your YouTube ad revenue comes from several different types of ads:
- Display ads: These appear to the right of your video or below the video player on mobile devices.
- Overlay ads: Semi-transparent ads displayed at the bottom of your video.
- Skippable video ads: Viewers can skip these after five seconds.
- Non-skippable ads: These are short ads that viewers must watch before they can view your content.
- Bumper ads: Non-skippable ads up to six seconds long. The more engaged your audience is and the longer they watch your videos, the better chances you have for generating revenue through these ads.
How is Revenue Shared Between You and YouTube?
AdSense revenue is shared between you and YouTube. YouTube takes a 45% cut of the ad revenue, and creators receive the remaining 55%. This means that even if a video generates a substantial amount of ad revenue, you only receive slightly more than half of the earnings.
Is there a Geographic Impact on Earnings?
Where your viewers are located plays a significant role in how much money you can make. Viewers from countries like the United States, Canada, and the UK typically have higher CPM rates due to stronger advertising markets. If most of your audience is from countries with lower ad rates, you might notice that your earnings are lower despite having a similar number of views.
What About Ad Blockers?
A growing number of internet users install ad blockers, which prevent ads from being displayed on your videos. This can impact your earnings, especially if a large portion of your audience uses ad-blocking software. Unfortunately, there’s no direct way to bypass ad blockers, but focusing on other revenue streams like sponsorships or channel memberships can help compensate for this loss.
Is All Content Eligible for Monetization?
Not all content is eligible for monetization. YouTube has strict guidelines on what type of content can run ads, and any violation can lead to demonetization. Videos that include copyrighted material (without proper permissions), excessive profanity, or controversial topics may receive limited or no ads. Additionally, YouTube uses a system that automatically flags content that it deems unsuitable for advertisers. This is why it’s important to review YouTube’s monetization policies and ensure your content aligns with their guidelines. If your content is demonitized, you can file a demonitization appeal.
Where Can I See My YouTube Earnings?
Currently, creators can view their YouTube earnings by signing into AdSense, selecting “Payments” from the menu, and navigating to “Payments info.” There, you will find the information for your YouTube payments, as well as any other accounts you may have set up with AdSense.
In November 2023, YouTube announced that they are testing out the ability for creators to view all their payment information in YouTube Studio rather than having to go directly to AdSense. According to their post, this will include easily tracking the progress you’ve made until you meet the threshold for another payout, the ability to view payouts you’ve received over the past 12 months, and confirmation when your most recent payout has been sent.
The program will initially be available to creators who only use AdSense for a single YouTube channel, and who are paid in U.S. currency, although that is expected to change in the future.
Does YouTube Withhold Taxes?
All creators are required to submit tax information, but U.S.-based creators generally will not have taxes withheld by YouTube. However, for non-U.S. creators, if your channel has viewers in the U.S. unless you are eligible to claim tax treaty benefits, Google may withhold taxes on that portion of your income.
This includes revenue earned from ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships. To learn more about monetizing your YouTube account—through the YouTube Partner Program or other, less direct ways—check out our guide to best practices for revenue generation on YouTube.
YouTube Monetization Tips on How YouTube Revenue Is Calculated
There’s a common misconception that YouTube pays creators solely based on the number of views their videos receive. In reality, revenue comes from ad interactions rather than just views.
The Connection Between Views and Ad Engagement: When ads are shown on your video, you earn a share of the revenue if viewers engage by watching or clicking on them. While higher video views generally lead to more ad views, it’s the engagement with the ads, not just the video itself, that generates revenue. This is why boosting your video’s view count can indirectly increase ad engagement, though views alone don’t generate earnings.
How Ad Types Impact YouTube Earnings: The amount of revenue you earn depends on how viewers interact with the various types of ads placed on your videos. YouTube offers different ad formats, such as skippable and non-skippable ads, banner ads, and overlay ads, each with its own payment structure. Some ads operate on a cost per mille (CPM) basis, where you get paid for every 1,000 ad impressions. Others use cost per click (CPC), which only pays out if a viewer clicks on the ad.
Some ad types, like pre-roll or mid-roll ads, require viewers to watch a specific portion of the ad before it counts as a “view,” while others, like overlay ads, only pay when someone clicks on them. Although you can choose the types of ads you allow on your content, YouTube determines which specific ads will appear, based on your video’s content and audience targeting. Testing different ad types can help you discover which ones perform best for your content.
