The Imbalanced Structure Of How Influencers Make Money – Newsy

The Imbalanced Structure Of How Influencers Make Money – Newsy

By Newsy Staff
August 2, 2022

Influencers make money online in various ways, but different platforms have different payout methods, some more “fair” than others.

There are a ton of influencers on social media, and the influencer community has grown a lot in recent years.

Data from Influencer Marketing Hub found that the industry is set to grow to approximately $16.4 billion in 2022, and last year, the global number of influencer marketing-related services — or companies who help creators grow their brand — grew by 26%.

There are a lot of major players here, including social platforms, advertisers, influencers and agencies that manage content creators. As the industry is growing in value, different platforms are working in different ways to compensate influencers fairly for their content.

Influencer agencies say micro-influencers — someone that has between 10,000 and 50,000 followers — can make anywhere from $40,000 to $100,000 a year. Big time celebrity influencers like Charlie D’Amelio, Addison Rae and Bretman Rock make way more.

One way they make money is through brand deals. On platforms like Instagram, a picture of an influencer holding or wearing a product and endorsing it can bring in a decent amount of cash. Someone with 1 million followers may charge brands up to $10,000 per post, according to influencer agency Viral Nation.

Within the last two years, Instagram rolled out new monetization features where creators could make money directly through the app instead of just from brand partnerships. They introduced their affiliate program where creators can share products with their followers and earn a commission from purchases, and they made it easier for creators to sell their own merchandise. 

 Influencers can also earn money from IGTV ads, but Instagram acknowledges more can be done. By the end of 2022, they plan to invest over $1 billion in programs that give creators new ways to earn money.

The sponsored content and ad revenue is something YouTube does, too. Creators can have sponsored content within their videos: Usually they take a few seconds to explain why they love a product, and according to the Federal Trade Commission, they must explicitly say it’s sponsored content. 

They also receive money from the ads that run on their videos. This is because of the YouTube Partner Program. A YouTuber must have 1,000 subscribers and 4,000 public watch hours a year to partake.

Longtime Youtuber Hank Green has several YouTube channels, like Vlog Brothers, Crash Course and Hanks Channel just to name a few. Across all channels, he has over 25 million subscribers. In a recent video, Green gave a little background on why this program was started.

He explained that in 2007, when potential YouTube competitors started popping up and trying to get creators to move to their platforms, …….


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