Facebook to Explore Revenue Sharing

June 2, 2016

5:05 pm

Instagram will look into a revenue sharing model, Facebook says. The move will make creators money and help them earn a living.Facebook, the world’s most massive social network, is looking into a revenue sharing model. It’s about time.

Instagram, whose ads are responsible for a full 15 percent of Facebook’s total ad sales, will be exploring new models, as Facebook’s vice president for global marketing solutions, Carolyn Everson, revealed in an interview yesterday:

“We want to be a major distribution platform and we are trying to find different ways to help content producers monetize that content. We are exploring revenue sharing models.”

This model refers to any type of plan to let users on a platform make money off of it. The biggest example is YouTube’s ad-based revenue sharing, which gives around 45 percent of the money it makes off ads to users who’ve signed up to display the ads. Users can make up to $8,000 off of a million views, meaning that they can build up to a decent living off of regularly uploaded videos even if they only reach a fraction of that amount.

Giving users an opportunity to earn revenue for their work is crucial not only for the community, but for the platform itself. Vine never developed this model, and they’ve taken a dive recently as major stars diversify in attempts to leave the network.

Instagram’s still a popular platform even without revenue sharing options, boasting 400 million active users. But if they actually add a way to profit directly from their ads, they’ll likely retain audiences. They’ll probably grow an even stronger community, too, as YouTube has.

It’s still unclear how Instagram will monetize its content, through ads seem the likely choice. Top creators already rely on “influencer” revenue paid directly to them by sponsors hoping to sell products through association, but this model is looking less and less stable.

Monetization is tricky for creators in 2016. Adding a new revenue model to one of the highest profile platforms around can only be a good thing.

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Adam is a writer with an interest in a variety of mediums, from podcasts to comic books to video essays to novels to blogging — too many, basically. He’s based out of Seattle, and remains a staunch defender of his state’s slogan: “sayWA.” In his spare time, he recommends articles about science fiction on Twitter, @AdamRRowe

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