Originally, social networks were mainly intended for ordinary users. Everyone shared their content, their moments of life. Gradually, platforms have oriented their business model towards an advertising dynamic by attracting brands. Today, these average users are no longer the main content creators, but rather viewers. Moreover, according to Elon Musk, only 10% of users are contributors on Twitter. The whole challenge of platforms then lies in seducing this privileged target.
Designer marketplaces, originally developed to facilitate brands in choosing creators relevant to their partnerships, have gradually transformed into an ecosystem that increasingly empowers creators.
Lately, we are witnessing a real race for Creator Funds within social media platforms: who will best “pamper” their creators?
We have in fact been able to observe the birth of various programs with increased competition, in particular between YouTube and TikTok, leaders in the Creator Economy, followed by Meta.
Competition is then increased and the challenge is to retain creators but also to attract new ones.. Tools have been deployed accordingly, allowing creators to be paid for their content.
We also think of Elon Musk who very recently significantly reduced barriers to entry in order to: to relaunch its creator subscription program (formerly “Super Follows”). This action opens the doors to millions of new creators.
Below is a summary table of the different ways a creator can monetise for each platform:
Initially, platforms' revenues were based almost entirely on advertising. Monetization programs are gradually diversifying the business model by offering a new way of earning income.
As can be seen in this table above, we note that platforms are now inviting creators to connect in a more intimate and exclusive way with their community, through more closed channels. They also offer them more elaborate creative tools.
Tools to strengthen relationships with their audiences...
Instagram offers creators, through its subscription program, functionalities allowing more exclusive content for their communities. In particular, the possibility of publishing real, publications or stories exclusively for their subscribers or to launch a direct for paid subscribers. The platform also provides dedicated distribution channels for a more “intimate” relationship with its audience.
This paid concept will thus be able to support content creators specialized in specific areas (fitness, training, cooking classes, etc...). Les Reales make it possible to obtain video content with formative potential. For example, a yoga teacher who posts aesthetically-oriented public content may publish private (paid) content with online courses.
The subscription program initiated by X (Twitter) can be perceived as a media subscription and support for micro-creators. With the monetization of their content, creators, paid by subscribers for sharing them, will have the possibility of bringing more advanced publications (more characters, longer videos...). This is one of the uses that can be observed through this subscription: creators will be able to highlight their analysis or research work, on more or less niche topics. This should be seen in the same way as media based on a freemium business model. To read the full article, the user must pay.
... and the promise of attractive remuneration
Even the most passionate creators, sensitive to the evolution of the creative tools of platforms that allow them to enhance their content, are nonetheless interested in the economic benefits they can derive from it.
So, Instagram offers creators to be paid via a subscription system varying between $0.99 and $9.99 per month.
X, on the other hand, offers a more flexible subscription system., leaving it up to the creator to decide on the amount to be proposed. At the same time, Elon Musk has initiated a compensation program based on audiences and the performance of publications. The conditions for calculating the amounts donated are still unclear, but it is likely that beyond the pure performance of the posts, the fact of having many subscribers to the Blue program (the paid program) weighs heavily in the balance (Mashable).
And the brands in all of this?
If we focus on the concepts of preferred channels and high value-added content, This means that influencer marketing and brand/creator partnerships will have much more impact. An audience that pays for designer content, even if it is smaller, will have greater confidence in the brand that it promotes.
The company therefore obtains a more qualified audience and will be able to set up specific activations based on exclusivity.
Brands will then benefit from this privileged proximity via the influencer and convey their messages to a more attentive audience.
To go further: comparison table of Instagram and Twitter subscription programs:
The article is written by Juliette Galès & Julie Dechelle.
