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X (Twitter) Changes Creator Payout Model
Morphic Research

X, formerly known as Twitter, has recently revamped its creator payout model, shifting the focus from ad revenue to engagement. This change is part of X's broader strategy to enhance user interaction and incentivize content creation on the platform.

Key Changes in the Payout Model

  1. Engagement-Based Payouts: The new model emphasizes rewarding creators based on the level of engagement their content receives. This means that creators will earn more if their posts generate higher interaction, such as likes, comments, and shares, rather than relying solely on ad revenue .

  2. Premium User Payments: X has introduced a system where a percentage of Premium user payments will be used as the financial pool for creator payouts. This is a significant shift from the previous model, which was heavily reliant on ad revenue sharing .

  3. Increased Payout Opportunities: Although X has not disclosed specific changes in payout percentages, the company suggests that there will be increased opportunities for creators to earn more through this new engagement-focused model .

Implications for Creators

  • Focus on Content Quality: Creators are now encouraged to produce high-quality content that fosters engagement. This could lead to a more vibrant and interactive community on the platform.
  • Potential for Higher Earnings: With the shift to engagement-based payouts, creators who can effectively engage their audience may see an increase in their earnings.
  • Adaptation to New Metrics: Creators will need to adapt to new metrics of success, focusing more on engagement statistics rather than just views or ad impressions.

Visual Insights

Ad Revenue Payout from X The image above shows a notification of a $4,249.60 ad revenue payout from X, indicating the transition phase where creators are still receiving ad revenue payouts while the new engagement-based model is being implemented.

Overall, X's new payout model represents a strategic shift towards fostering a more interactive and engaging platform, potentially benefiting both creators and users by encouraging more meaningful interactions.