How Content Creators Make Money on Social Media Platforms
(Stacker) – The days of content creators being compensated with beauty products and swag may soon be over as the now multi-billion dollar content creation industry moves towards monetary compensation platforms.
To illustrate various payment models to create, Planoly looked at the business models and creator compensation packages for eight of the biggest online media platforms to see how they compare.
The digital creator economy – which includes millions of writers, streamers, beauty vloggers and more. – has exploded in recent years, leading many social media platforms to launch creator fund initiatives. In 2020, when TikTok launched its creative fund with an initial investment of $200 million, the platform said it would grow to $1 billion in the United States and globally within three years.
In the past, content creators had to fend for themselves to partner with brands to make a living online. Now platforms are paying influencers to create content and increase viewer engagement, whether that means encouraging them to use the Reels feature on Instagram or live streams on YouTube.
Creator funds help cut content creators off from the monetary pie. Some sites offer tipping or subscription options where creators can earn money, but it’s not necessarily through the platform itself. Twitter is work on a plan to pay the creators, but does not offer it yet. The ability of these relatively new funding initiatives to attract and retain quality talent remains to be seen, but it could be a start in developing a stable business model for creative partnerships.
Keep reading to learn more about how content creators get paid by major online platforms.
Facebook bonus programs
In 2021, Meta announced that it would invest $1 billion in Facebook and Instagram creator programs as an option for creators to earn money. The investment would be used for creator funds and other monetization programs.
Some of Facebook’s bonus programs include in-app ads, “Star Challenges” for game creators, and the Reels summer bonus. Each model is different, rewarding influencers for things like signing up for in-app ads in their videos, using Reels, or going live with a different account.
For years, Facebook, one of the main social platforms, didn’t do much work with influencers. The social platform. however has been singing a different tune lately. Mark Zuckerberg has announced that he won’t take any percentage of content creators’ revenue until 2023.
Instagram offers huge sums of money to creators for posting short, multi-clip videos on its Reels feature, that is, if the videos rack up a high number of views. TikTok’s short video format has become huge in the digital world, so much so that rival platform Instagram has been inspired to offer creators as much as $35.000 to post on its Reels feature.
Instagram, the social platform best known for introducing the concept of influencer, allows its creators to earn income in different ways. There is the opportunity to earn income through sponsored content, product licensed content, and setting up an Instagram store. Content creators with a minimum of 5,000 Instagram followers and just over 300 sponsored posts can bring in $100,000 in a year.
Pinterest Creator Awards
When people think of influencers, Pinterest might not be the first social platform that comes to mind. Pinterest is one of the many platforms that has also leveraged the creator compensation approach and recently launched its creator rewards. In the program, content creators are paid for their “inspiring and actionable content” and can tag the brands they have partnered with.
To be eligible for the program, participants must be located in the United States, have a Pinterest business account and, of course, create original content.
Spotlight on Snapchat
Snapchat motivated users to submit clips to Spotlight by offering a daily pool of over $1 million to users who create entertaining snaps.
In 2021, Snapchat launched Projector to incentivize creators to develop short viral videos. Through Spotlight Challenges, monetary prizes range from $1,000 to $25,000, depending on the challenge. The app has also expanded its Creator Marketplace, providing more opportunities for businesses to partner with creators. In the past, Snapchat connected its creators with advertisers through its Storytellers program, which showcased brands to the app’s top content creators.
Spotify Creators Fund
Live audio creators on Spotify can apply to be part of the platform’s fund for payments.
Content creators focused on live audio are eligible to create content and build their own community in Spotify’s live audio app through its Greenroom Creators Fund. Participants can receive payments, which are calculated weekly for their work based on their audience size and content.
The app lets creators connect with their audiences in real time through unique features like “jewels,” where listeners can double-press a button each time they hear something they like. Spotify decided to roll out the Creator Fund due to the recent popularity of real-time audio connections and to recognize the creators behind entertaining audio content.
TikTok’s à la carte package
TikTok pays its content creators monthly through the Creator Fund, an initiative that launched in the spring of 2021. TikTok says the Creators Fund is a way to show appreciation to its content creators and congratulate them for creating inspiring and entertaining videos. Through the Creator Fund, TikTok pays between 2 and 4 cents per 1,000 video views. Eligibility involves having a minimum of 10,000 actual subscribers.
Twitch Ad Incentive Program
In February 2022, Twitch rolled out its Ad Incentive Program, which could help content creators earn a more stable income. The program pays certain streamers a fixed monthly income. There are options for different payouts depending on the number of ads served per hour and the length of time the ads have been running.
The number of funds contributed will vary by creator, but according to Twitch, there is no cap on the revenue that can be earned.
YouTube Partner Program
YouTube will reach out to creators who generate the most views and engagements each month to reward them for their videos through YouTube Shorts (different from regular YouTube video ads).
It’s still possible to make a living as a content creator on YouTube, and there are various ways to monetize your subscribers on the platform. the YouTube Partner Program grants content creators greater access to YouTube resources, such as additional funds from ads and revenue sharing. An AdSense account is required to get started, and users must agree to YouTube’s monetization policies.
Affiliate marketing is a popular method that many content creators use for extra income. For example, you can advertise a product for a brand and include the affiliate link. When someone clicks on the affiliate link to purchase the product, the creator earns a small percentage of the sale. Over time, these small commissions add up and can even add up to a living wage. YouTube Shorts creators can earn between $100 and $100,000 if their videos go viral.
This story originally appeared on Planoly and was produced and distributed in partnership with Stacker Studio.