Honestly, we're totally fine with the arms race that is going on right now where different companies are pouring money into creator funds. Keep it coming, by all means.
As Facebook said on the announcement on their website, "This investment will include new bonus programs that pay eligible creators for hitting certain milestones when they use our creative and monetization tools. We’ll also provide seed funding for creators to produce their content. Our goal is to help as many creators as possible find sustainable, long-term success on our apps."
What Does This Look Like in Practice?
Firstly, as far as timeline is concerned, the billion dollars is meant to be spent before the end of 2022, so in the next 18 months.
There's a heavy focus on "bonus opportunities," and these are available already we're told, though currently invitation only at this moment. New options for making money will be announced soon, and the pool of creators who can tap into this will also be expanded.
Apparently there will be a dedicated place for bonuses in both apps shortly. For Instagram, this summer, and for Facebook this autumn.
On Facebook:
- An "In-Stream bonus" will be rolled out over the next four months for video creators who are using in-stream ads currently.
- They're expanding their payouts to gaming creators, who will receive bonuses for hitting milestones associated with Facebook's "Stars Challenges."
- Apparently if creators reach certain tipping milestones during livestreams, there will also be bonuses.
On Instagram:
- Creators will be paid out when they enable ads on their IGTV videos
- As with Facebook, there will be payouts for reaching tipping milestones during livestreams.
- Popular videos on Reels will trigger bonuses
Both Snapchat and TikTok created significant funds to payout their creators recently, but none of them have focused on this bonus style system - a move which has confused some, but many feel it could pay off if it catches fire.
This is also the biggest creator fund established thus far, and a move that some see as desperation from Facebook in their move to combat the popularity of TikTok, and others see as a power move for Facebook to remind others that they've got deep pockets.
Facebook also announced that they won't take a cut from creators making money for the first couple of years of their creator revenue programs.
We can see clearly here that Facebook sees their stable of creators as a big source of revenue for them moving forwards, but let's see if the revenue is reciprocated and creators can really make some bank here.
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