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How much does Snapchat pay influencers?

In 2021, they said they were paid around $15,000 for every 150,000 views. Now, however, they said they earn around $15 per 150,000 views, according to documentation viewed by Insider. (Snapchat pays a minimum of $250 for any Spotlight video that qualifies for rewards.)

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The once $1-million-a-day program is now doling out millions throughout the year, a spokesperson said. The change comes amid a rough 10 months for Snap, whose stock has dropped 79% this year. The tech company is now offering creators millions of dollars per year, down from millions per week in June 2021 and $1 million per day in November 2020, a company spokesperson told Insider. They added that while the overall pot is smaller, the company is paying more creators in more markets than it has in the past. The fund began with a splash, but the troubled company — which has seen its stock fall 79% since the beginning of this year — has been offering smaller payouts to creators over time. Nathan Kessel, who has nearly 9 million followers on TikTok, was averaging between $20,000 to $50,000 a month on Spotlight last year until the payouts halted in November 2021, according to documentation viewed by Insider. "Life was good," Kessel said, adding that he moved several times and purchased a car during that time. "I was getting paid for any video that had about 150,000 views or more." By August 2021, Kessel said he had earned six figures from Spotlight. He was prioritizing Snap over other platforms and filming all of his content directly in the app. Kessel was so dedicated to the platform that he even got a tattoo of the Snapchat logo on his leg. In November 2021, reality hit when Kessel temporarily stopped receiving payouts from Snap, suggesting his videos had not met the minimum $250 threshold for payment. The money began flowing again in mid-2022, but the checks were significantly lower, he said, and inconsistent. "As a creator, it is absolutely terrifying to go from making this kind of money to then absolutely nothing," Kessel said. "It will last for some time, and then all of a sudden it's gone — without any kind of notice." A second Snap creator, who spoke to Insider on the condition of anonymity to preserve their relationship with Snap, said their creator payouts from Spotlight had drastically decreased this year compared to last.

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Overnight Spotlight millionaires seem to be a thing of the past

When Spotlight first kicked off in late 2020, Snapchat announced it would pay $1 million a day (in total) to its top performers, which turned several creators into overnight millionaires. The company said its big payouts would last "at least through the end of the year." Some creators raced to earn as much as they could before the Spotlight pot of gold disappeared. "This won't last forever," TikTok star Cam Casey told Insider in January 2021. "We are just taking advantage of it while here and just trying to do the most with it." About six months after Spotlight's launch, the company lowered the amount it was putting in its fund to millions of dollars per week, citing its desire to "have more flexibility to reward more creators in more markets." Even with the reduction, the company told Variety that in 2021 it paid out more than $250 million to more than 12,000 creators via its Spotlight program. Snapchat doesn't say exactly how it decides which creators get paid from the Spotlight fund. In its submission and revenue terms, it says it may consider a video's total number of unique views, its relative performance compared to other Spotlight videos, and the geographic location of the creator and their viewers. In late 2021, the company expanded its Spotlight program to include Challenges, a format designed to encourage creators to add a specific lens, sound, or hashtag to a Spotlight video. Total prize money for Challenges is smaller, typically falling between $1,000 and $25,000 per challenge, though the company has paid out as much as $100,000 at times. Snapchat also offers other funding programs for creators outside of Spotlight. Its Sounds Creator Fund pays out monthly grants of up to $100,000 to music artists, and its Black Creator Accelerator offers "25 aspiring Black creators" a $10,000 per month stipend.

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In addition, the company is trialing a mid-roll ad revenue feature for some creators who post Stories. And in 2017, it released Lens Studio, a free application for building AR experiences, which some creators have used to earn money by developing lenses for the platform.

Is ad-revenue sharing in Spotlight's future?

The company laid off about 20% of its full-time workforce in August, and cut spend for products like Snap Originals, Minis, Games, and Pixy. Its goal was to make cuts to areas of its business that don't contribute directly to community growth, revenue, and augmented reality, Snap CEO Evan Spiegel wrote in a memo to staff at the time. Spotlight has been a bright spot for the distressed company. In its Q3 earnings presentation earlier this month, the company reported that total time spent watching Spotlight content grew 55% year-over-year. "Spotlight, of course, is growing very rapidly year-over-year, and we're excited about that," Spiegel said during the earnings call. Spotlight's reduction in fund payouts also points to a larger trend among platforms that are shifting away from creator funds toward more long-term, sustainable monetization options. Recently, both YouTube and TikTok announced plans to roll out ad-revenue sharing models for short-video content. As for Spotlight, Snap has begun testing mid-roll ads for the feature, but declined to say whether it plans to split that ad revenue with its creators.

businessinsider.com - Snapchat has reduced the amount of money it's paying to creators from ...