No More Hustleporn: Facebook is paying out $1 billion to Creators


Tweet by John Hu

https://twitter.com/JayHoovy

I’m a Content Creator building tools for Creators formerly @StanfordGSB@NorwestVP@GoldmanSachs


Facebook announced that it’s paying out $1BN to Creators.

Should TikTok🎵, Snap👻, & YouTube📺 be worried?

A quick thread on how FB shakes up the Creator Economy👇

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FB announced “Reels Summer Bonus, “ a knock-off of TikTok’s Creator Fund and Snap’s Spotlight.

Creators will get paid for views on Reels.

However, I think YouTube CPMs remain king👑

The delta in CPMs (cents on TT/IG vs dollars on YT) isn’t even close. 💰

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FB also announced a way for Creators to link their shops directly in-app.

FB’s Goal? Facilitate in-app commerce.

I’d still look to TikTok (specifically, its Chinese Douyin roots) to lead the way here.

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Creators can now also partner with IG’s marketplace of brands.

I’m most interested in the implications this has on 3rd party Affiliate services like LIKEtoKNOWit and Rakuten that are “out-of-app.”

How will they pivot their business as the platforms facilitate transactions? FB also announced its take on OnlyFans, but for IG.

Think of it as paying to be in a Close Friend Story circle.

Unless IG plans to allow for Adult content (hint: it won’t), this may go the way of Fleets. ☠️ FB entering the Creator Economy is a net positive for Creators.

But Zuck has too much legacy baggage to build a Creator-first platform.

FB/IG are on their way out for Gen Z/Millenials.

I’d continue to look to TikTok and YouTube to lead the way. If you want to stay up-to-date on the Creator Economy, follow me for my weekly learnings:

🎵 Growing my TikTok account (40k+)
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