YouTube 101: A Beginner’s Guide

Savvy musicians know that YouTube is a great way to locate current and potential fans around the world. If you’ve started your own YouTube channel, you’re well on your way towards developing those crucial relationships, but there’s much more to the overall picture. Are you sure you’re taking all the right steps to earn royalties from the use of your songs on YouTube?

Did you know that you can earn money not just from uploading videos of your music to your own channel, but also when others use your music in their videos? This is known as user-generated content (UGC), and it can generate royalties for you too.

Each time someone uses your song in a monetized video, whether it’s a live performance or a viral video with your track as the background music, you earn publishing royalties as the rights holder of that song. These royalties come from the video’s ad revenue.

What Type of Royalties Do I Earn From YouTube?

YouTube generates micro-sync royalties, which come from the concept of a "synchronization license." Typically, a sync license refers to music being "synchronized" with moving images in TV shows or ads. Micro-sync, however, refers to the bulk licensing of your music across a platform like YouTube, where your song could potentially be used in thousands of videos. This generates both mechanical and performance royalties for songwriters.

Performance royalties are tracked and collected by your affiliated collection society such as a PRO like ASCAP or BMI in the U.S. or a CMO such as GEMA in Germany or SACEM in France. Mechanical royalties are tracked and collected by either an MRO like The MLC or HFA in the U.S. or a CMO. 

How Songwriters Monetize Their Work on YouTube?

In order to identify and monetize content using your song data, YouTube uses a fingerprinting system called Content ID. Videos that are added to the platform are scanned against a database of submitted audio files (including song title, ISRC, writer share information, etc) by content owners. Using this system, copyright owners, such as yourself, can claim videos that are using content that matches your works. 

Two of the best ways songwriters can earn publishing royalties for their songs are through ads and Youtube’s Partner Program.

What Happens If Someone Else Uses My Song in Their YouTube Video?

Sometimes, you may come across a video that isn’t yours and is using your song. While technically this isn’t legal and that person should get permission from you or your publisher first, it does happen. If the video meets YouTube's eligibility requirements (explained below), a claim by your publisher will put an advertisement on the video, which then can be monetized on your behalf. If the video includes your song and is used in a way that complies with YouTube's policies, ad revenue may be shared between the video uploader and any music copyright holders. 

If you want the video taken down, you can either reach out to YouTube directly or, if you have a publishing administrator, they can initiate the takedown on your behalf. To ensure that a video using your song doesn’t go unnoticed (or pay out royalties to someone it shouldn’t), make sure your song and all its relevant metadata are registered with a publisher or administrator like Songtrust as soon as it's distributed. Also make sure that your publisher works directly with platforms such as YouTube or a third party to help claim uses of your song.

YouTube Ad Monetization

Advertisers pay YouTube to target viewers with their ads—something YouTube’s parent company Google is exceptionally good at—and then YouTube shares a portion of that ad revenue with the rights holders, or the original songwriters or publishers (as well as labels and distributors), who own the content of the video uploaded. 

In order for YouTube to place ads on and monetize a video, the video must be on a channel that has at least 1,000 subscribers and either 4,000 hours of watch time over the past 12 months or 10 million valid public Shorts views in the last 90 days.

YouTube’s Partner Program

Signing up for YouTube’s Partner Program is another step toward monetization. It’s important for us to reiterate that if you upload original content, such as your own songs, onto your own channel, you can earn money both from that content and from any monetized videos that other people upload that include your music (there’s that UGC we mentioned earlier!). While there’s a threshold to joining, you can apply to join the program and have your content propagated through advertisements, paid subscriptions, and merchandising opportunities. Below are YouTube’s Partner Program eligibility requirements:

• Follow all the YouTube monetization policies: The YouTube monetization policies are a collection of policies that allow you to monetize on YouTube. If you're a YouTube partner, your agreement including the YouTube partner program policies requires compliance with these monetization policies in order to potentially earn money on YouTube.

• Live in a country or region where the YouTube Partner Program is available

• Have either more than 4,000 valid public watch hours in the last 12 months or 10 million valid public Shorts views in the last 90 days

• Have more than 1,000 subscribers

• Have a linked AdSense account

Once videos are monetized, your song begins to earn royalties any time that video is viewed. Publishers may either have direct agreements with YouTube, as Songtrust does, or will use third-party companies to help with YouTube content claims. For example, YouTube’s Content Management System (CMS) allows content owners to provide their metadata and details of their ownership of different content types: videos, sound recordings, and compositions. 

Songtrust uses YouTube’s CMS to register, monitor, and protect your compositions on the platform. However, it’s also important to note that Songtrust clients do not have to be a YouTube partner in order for us to monetize their content. Generally, if you are a partner and are able to monetize your own channel, you can allowlist your channel with Songtrust so that we do not make any claims on your videos.

Doing It Alone vs. Getting Help

While you can manage your YouTube royalties on your own using YouTube’s native tools or other third-party platforms, partnering with a publishing administrator like Songtrust can make the process much easier. We have access to YouTube’s Content ID system and proprietary tools that help track your music's usage, ensure ads are placed on relevant videos, and make sure you get paid.

Important: If you’re using Songtrust to collect your YouTube royalties, please note that the royalties you receive and see on your royalty statements are a collective amount for any use of your music, not by individual videos.

Keep in mind, though, that while Songtrust helps you collect royalties from your compositions (the music and lyrics), your label or distributor is responsible for monetizing the sound recording.

If you have any questions about how to monetize your work through YouTube or any other platform, don’t hesitate to ask for guidance. We’re here to help!