How are you making money from your work?
Social media platforms are powered by creators who provide an endless stream of entertainment.
Competition between platforms to keep creators is growing as the number of creators on social media platforms grows.
While every major platform competes for attention and ad dollars, some platforms have become more popular than others. The majority of ad dollars spent are on these platforms.
The prestige place for creators and brands to collaborate and create impact still exists, but TikTok and YouTube aren't far behind.
These platforms compete with each other to give creators the most lucrative monetization options. In order to keep creators happy, incentivized and producing free content, the companies have developed a range of monetization tools.
Some of the most popular ways to make money on social platforms are the five monetization options. There will be more innovation in the world of creator monetization as platforms seek new and better ways to help creators earn a living from their content.
There are brand deals.
Brand deals are the most lucrative way for creators to make money on social media, accounting for 70% of revenue according to a recent report.
The primary platforms have their own solutions to encourage connections and collaborations between brands and eligible creators. Famebit was formerly known as BrandConnect and pairs creators and brands. The video platform pivoted the program from a more hands-on approach to a self-service model after tech layoffs.
Some creators complain of low rates or brand deals that wind up worth less than advertised in the reviews of TikTok andInstagram. According to a recent report, creators can get triple their rate if they work directly with brands.
The platforms are not staffed to be successful. The new Collab Studio program is being coordinated by agencies. They will work with brands and top creators on sponsored stories and ad creative. If the new TikTok program can scale beyond the current 400 creators, it could be a potentially lucrative solution. The Creative Challenge is a secret program according to the newsletter. According to reports, the invite-only program is generating thousands of dollars for UCG creators.
The role of agency has been taken on by TikTok to help brands who need short-form creative but don't have in-house resources. The model is accessible to a few.
There are a lot of brand deals for creators.
The funds are created by the creator.
TikTok was one of the first to introduce creator funds on social media during the Pandemic. Other platforms followed suit, such as the Creator Fund for underrepresented creators and the Reels Bonus program.
The idea behind a creator fund is that the platform pays creators for the content they create based on a variety of metrics. As more creators join the platform, the pool of people sharing revenue gets bigger and the payouts for individual creators can go down. Many creator funds have been canceled or changed into other programs due to economic pressures, creator dissatisfaction and shifting priorities.
According to a study done by Mavrck and eMarketer, about 70% of creators don't make any money from their funds.
TikTok was criticized for the low payouts of its initial Creator Fund, which promised to pay out $1 billion over three years to eligible creators. The creators made money for thousands of video views. The program has been updated with the introduction of TikTok's creativity program. High quality, original videos that are longer than one minute are required for this program. The fund is expected to be more lucrative than the original one.
There is ad revenue sharing.
Ad revenue sharing is a good way to make money on social media platforms if the creator's content is consistently attracting views.
The leader is YouTube with its partner program. YPP allows creators to make money from ads that play before, during or alongside their videos. The partner program was expanded to include shorts in 2022. Short-form video creators get 45% of their revenue from their total views.
Not to be left behind, Meta recently announced it was developing a revenue share model for Reels on Facebook, though hadn't extended those payments to the photo sharing service. "It's the closest version to YouTube's partner program we've seen from Meta," said Haberman, who was invited to a virtual demo of the ad revenue share program.
The perception that Facebook is only for old people is something Meta knows it has to fight against. According to reps for the platform, healthy signs of engagement can be seen in their daily active user data. The Reels ad revenue program will be rolled out this summer to more creators who have opted in to professional mode on Facebook. There are other eligibility requirements for the program that have not been disclosed.
Meta recently announced it was working on a revenue share model for Reels creators on the social media platform.
"It's the closest version to YouTube's partner program we've seen from Meta", said Haberman, who was invited to a virtual demo of the ad revenue share program.
The perception that Facebook is only for old people is something Meta knows it has to fight against. According to reps for the platform, their daily active user data shows healthy signs of engagement and this new opportunity could reinforce their efforts.
The Facebook Reels program, which was launched earlier this year, will open up to more creators this summer, while a select group of creators and advertisers are starting to use the program.
The difference between Meta and YouTube is that the payouts are based on performance. The number of plays will determine payouts in the beginning. The creators can make more money if their reels perform well. Meta said in a release this spring that they may begin to incorporate other signals into payouts.
There are affiliates and merchandise.
It accounts for less than 10% of their total revenue, but creators can still make money by selling their own merchandise or hawking brand products and services through affiliate links. In their videos, shorts, and live streams, eligible creators can promote products from their own stores, as well as from other brands, in their videos, shorts, and live streams.
One way to make sales on the app is through their affiliate program, which pays creators a commission based on sales made in videos or during live broadcasts. In-feed videos, LIVEs, and the product showcase tab are available for creators to showcase and sell their products. The creators ability to generate revenue through product sales on that platform may be impacted by the removal of the shopping tab from its homepage.
There are many retailers that are interested in filling that void. A TikTok look-alike feed can be found on Amazon's mobile app. The in-app shopping feed, which features photos, videos and related product recommendations, can be found on the in-app shopping feed page. Customers pay for theinfluencers' work.
Amazon customers can submit product reviews if they want to be considered for inspire.
There are tipping and subscriptions.
There are other ways for creators to make money on social media. Social platforms have tried to duplicate the tip and subscription model of platforms such as Twitch and Only Fans.
TikTok has a number of features, including tips, video gifts, and live gifting, which creators receive and redeem in-app as Diamonds. Fans will be able to purchase access to exclusive content behind a paywall with the introduction of paid Series.
There is an internal currency called Stars that can be used to give gifts to certain US creators. Fans can tip creators with Badges when they go live on the photo sharing site. The company allows exclusive content to be tied to its paid subscription feature.
Over the years, YouTube has supported many ways for creators to make money, from Super chat and Super Stickers to channel memberships and Super Thanks, which allow fans exclusive ways to interact and support creators on the platform.
These options need a loyal following in order to succeed. Three percent of revenue earned by creators is accounted for by the model's reliance on the creator acting as a fundraiser and interrupted programming to ask for tips or gifts.
There are requirements for creator eligibility.
It is important to note that revenue opportunities on social media platforms are not available to everyone.
Many of the official platform programs require that creators meet certain eligibility requirements, including being 18 years old, having a certain number of followers and/or video views, and being US-based. The programs benefit creators with established brands. It takes a lot of resources to be able to meet the eligibility requirements of the platforms.
The platform that ensures a way for all types of content creators to participate in their programs is likely to be the winner over time. Those who build sustainable businesses will have an advantage over those who don't.
- To be eligible for TikTok’s creator programs, creators must have 10,000 followers and 100,000 authentic views on their videos in the last 30 days.
- To be eligible for Instagram’s creator programs, many of the requirements are shrouded in mystery. For example, access to Badges and Subscriptions is on an invite-only basis.
- To join YouTube’s Partner Program, creators must have 1,000 subscribers and 10 million eligible public Shorts views in the last 90 days or 1,000 subscribers and 4,000 valid public watch hours on long-form videos.
