Snapchat has modified the way in which it pays creators by means of its Highlight reward fund. Creators that use Snapchat’s TikTok clone, Highlight, will now be paid thousands and thousands per yr, a supply acquainted with the matter instructed TechCrunch. This marks the second time Snapchat has diminished the payout. In 2021, the corporate rewarded creators thousands and thousands per week, down from $1 million a day in 2020.
Whereas Snapchat is reducing the quantity, the supply famous to TechCrunch that it’s paying extra creators in additional markets. It’s additionally vital to notice that the minimal payout per Concentration is going to stay at $250. Final yr, Snapchat paid $250 million to over 12,000 creators.
Additionally they pointed to different methods Snapchat creators earn a revenue, together with the Creator Market, Sound Creator Fund, its accelerator program for black creators, Highlight Challenges and in-app gifting. In February, the app examined income sharing on adverts in Snapchat tales for Snap Stars.
Snapchat not too long ago introduced it’s awarding a complete of $100,000 throughout 12 Highlight Challenges for Halloween.
The transfer to decrease fund spending for Highlight was probably made as one other approach to enhance revenue and spend much less of its income. Earlier this yr, CEO Evan Spiegel introduced that Snapchat was testing adverts on the Highlight. In August, Snapchat downsized its workforce by 20%.
Final week, Snapchat reported its Q3 outcomes, lacking analyst expectations on income. The corporate nonetheless did comparatively effectively, incomes $1.13 billion, a rise of 6% for the quarter. Nonetheless, Snapchat’s internet loss rose to $360 million.
On a extra constructive observe, the corporate stated Highlight carried out effectively this quarter and helped improve the general whole time spent watching content material.