• by Colin Kirkland , October 10, 2024

X is reinventing the way creators on the platform make money, replacing its Ad Revenue Share program -- which gave users a percentage of ad revenue based on how many verified users saw ads in replies to their posts -- with a payout system dependent on how much Premium subscribers engage with a creator’s content.

“Ads in replies will no longer impact your payout,” X posted on Wednesday, adding that now, “when your followers subscribe to X Premium and engage with your content, they support you directly.”

According to X, up to 25% of Premium subscription payments will now go directly to creators. In other words, the company's payout system is no longer based on ads, but relies on a more Patreon-like model, with users effectively paying their favorite creators by engaging with their content on X.

A creator’s compensation will also rely on which Premium tier a user occupies, as “engagement from users on higher Premium tiers are also worth more,” the company says.

The company also says it will begin analyzing user engagement, with “only genuine interactions from Premium users” qualifying for payments.

The changes align with X CEO Elon Musk's longstanding disregard for advertisers and a desire to run the platform solely on user subscriptions. Because the company has lost the majority of its ad revenue since Musk took over in late 2022, this new creator payment model moves the platform further away from its reliance on ad revenue, while tasking creators with the need to convince their supporters to sign up for a Premium tier.

X's new creator payment program will launch next month, on Nov. 8.