In a recent update to the Snapchat app, the company announced that they would no longer be paying content creators for articles and videos under their Spotlight section. The Spotlight section is where you go if you want to read non-sponsored articles and videos from influencers on the platform.
The consequences of this action are rather severe since it cuts off an independent revenue stream for content creators who need these payments in order to continue building their careers on Snapchat.
The news came during a recent meeting between Snap Inc. and a coalition of content creators who were asking for a better way to monetize their content. Content creators like Amanda Cerny have been using Snapchat as one of the primary ways to build their brands for years now, but haven’t had many ways to make money off of it. In the past, Snapchat has paid content creators for sponsored posts in their stories, but it seems that this is not enough to sustain a real business on the platform.
The overall stance from Snap Inc. was one of complete apathy, however Snapchat still has not issued a statement on the issue. The company did say that they are looking into new ways to get content creators more earnings, but in the interim their small-time influencers will suffer as a result of this decision.
Paying influencers doesn’t seem to be the main problem with Snapchat currently, but instead it seems the inability to properly monetize their business overall is the real issue. Since Snap Inc. has been losing money hand over fist, they are doing whatever they can to cut spending and this includes cutting payments to content creators.
Look for other social platforms to swoop in as Snapchat struggles, making this a prime time for influencers and smaller content creators to build their brands on other platforms.
