X announced that they are making a significant change to the creator monetization program. Now, they are switching from ad revenue share to a percentage of Premium user payments as the financial pool for its participating creators payouts.
They announced this through their X account.
Here is how they explained this change.
“Creators! We’re excited to unveil our biggest update to Creator Revenue Sharing yet. Payouts are increasing and you’ll now be paid based on engagement with your content from Premium users – not ads in replies. Ads in replies will no longer impact your payout. Instead, you’ll be paid based on engagement with your content from Premium users. So, when your followers subscribe to X Premium and engage with your content, they support you directly. And, because X Premium is growing, your payout is too. The more Premium subscriptions overall, the more revenue you earn.”
Earlier it was based on the creator payouts on the amounts of ads displayed in the post replies. Of which only ads shown to premium subscribers were eligible anyway.
Now, the company is shifting to share a percentage of revenue from Premium user subscription payments instead.
While explaining the new process, the company says that up to 25% of premium subscription payments will not go directly to creators. It means that users will effectively be paying their favorite creators by engaging with them.
X is saying that they will analyze the user engagement, with “only genuine interactions from premium users” qualifying for payments.
“Engagement from users on higher Premium tiers are also worth more. We also consider the characteristics of your audience, including who they are and who follows them.”
It essentially means that X will reward creators for generating genuine engagement. In addition, they will also penalize those seeking to assist others via comments to juice their payouts.
Well, it makes sense as now that X has been losing advertisers in recent times. It should also help them ensure that creators’ payouts don’t continue to decline.
Now, it will mean that the creator will have to encourage their audience to sign up for Premium to support you. And then they will encourage their audience to sign up for payouts.
