X introduces new payment model to drive premium user engagement and creator revenue

X is reshaping its creator payment model, focusing on Premium user engagement. This shift aims to enhance earnings and interaction among creators on the platform.

X announces a new payment model for Premium users which aims to focus on engagement to boost creator earnings.

X has initiated a significant change in its payment model for creators on the platform. Since the previous year, X shared advertising revenue with creators based on the number of verified users who viewed ads in replies to their posts. However, the company announced a new strategy that bases creator payments on “engagement with your content from Premium users.”

X's New Payment Model for Creators

This new model encourages creators to interact with content from other Premium subscribers. In practice, this means that the more users who subscribe to X Premium and engage with one another's content, the greater the potential earnings for all involved. Observers speculate that this shift will likely increase the presence of Premium users in replies, as they already enjoy enhanced visibility. The level of visibility correlates with the specific tier of X Premium they subscribe to.

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.

Here's what's changing:

— X (@X) October 9, 2024

Despite the introduction of this model, questions remain about its effectiveness in boosting earnings for creators. While X promotes the idea that signing up for X Premium can help creators generate a sustainable income, many subscribers have voiced dissatisfaction over current payment structures, citing low payout rates.

X has clarified its terms for revenue sharing, stating that users found to be artificially inflating views on their posts will be removed from the program. However, it remains to be seen whether this policy will deter users from attempting to manipulate the system. X's guidelines emphasise that “only genuine interactions from Premium users will be counted toward your earnings.”

Changes to Revenue Sharing

Starting November 8, the revenue derived from “verified ads impressions” in replies will no longer impact revenue sharing. The company indicated that “up to” 25 percent of Premium subscription fees would be allocated “directly to creators.”

Brazil Lifts Ban on X

In other developments, Brazil's Supreme Court has lifted a ban on the social media platform X, formerly known as Twitter. Justice Alexandre de Moraes announced the decision to authorise the “immediate return” of X's operations in Brazil after the company settled significant fines and took action against accounts accused of spreading misinformation.

According to court documents, X has paid fines totaling 28 million reais (approximately $5.1 million) and agreed to appoint a local representative as mandated by Brazilian law. This action comes in response to the platform's earlier refusal to block profiles identified by the government as spreading false information related to the 2022 Brazilian presidential election.

The court instructed Anatel, Brazil's telecommunications regulatory body, to ensure that service resumes for over 20 million users within 24 hours.