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Home BUSINESS

X Updates Revenue Policy to Reward Engagement Based on Premium Users

by Sham
October 9, 2024
in BUSINESS, FINANCE, TECHNOLOGY
Reading Time: 3 mins read
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• X will pay creators based on engagement from Premium users instead of ad revenue sharing based on verified users seeing ads
• Premium users will likely show up more in replies as creators try to get their engagement for higher payouts
• Up to 25% of Premium subscriptions will go directly to creators, but concerns remain about whether payouts will actually increase

X is making a big change to how creators can earn money on the platform. The company announced today that it is shifting its revenue sharing model to pay creators based on engagement from Premium subscribers, rather than impressions from ads.

JUST IN: @X updates creator revenue sharing so payouts are based on engagement from premium users pic.twitter.com/yVbBn9Lihy

— BlockNews.com (@blocknewsdotcom) October 9, 2024

Current Revenue Sharing Model

Since last year, X has shared ad revenue with creators based on how many verified users see ads in replies to their posts.

New Revenue Sharing Model

Under the new approach, the more Premium subscribers engage with a creator’s content, the more money that creator will make. X says creators will earn money based on “engagement with your content from Premium users.”

In theory, this means the more people who subscribe to X Premium and engage with content from other Premium users, the more everyone earns.

Priority in Replies

Premium users already get priority when replying to tweets. The level of priority depends on the Premium tier.

It’s likely this will increase engagement between Premium accounts as they try to boost earnings.

Concerns Around Payouts

It’s unclear if the new model will actually lead to higher payouts for creators.

X promises Premium can help creators “earn a living on X.” However, under the current terms, some subscribers have complained of low earnings.

Preventing Inflated Engagement

X says it will remove accounts trying to artificially inflate engagement. The company states that “only genuine interactions from Premium users will be counted toward your earnings.”

Time will tell if this prevents users from gaming the new system.

Revenue Share Changes

Ad revenue from impressions will no longer affect earnings starting November 8th.

X says up to 25% of Premium subscriptions will go directly to creators.

This new approach marks a major change in how X pays creators. The coming months will reveal if the model translates to higher revenues.

Tags: Premium subscribersrevenuesX
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