Meta Tested a New Influencer Payout System. Here’s What It Means for Creators

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Meta is experimenting with a performance-based payout model for its Facebook Reels. Learn what that means for short-video creators. 

Look out TikTok, Meta’s new payout system for short videos may just give you a run for your money — and it may give influencers a way to run with their money, too. While the system is still in beta, it could finally solve a compensation issue that has long frustrated short-video creators: how to get paid for top short-video content that, to put it bluntly, is making TikTok, YouTube, and Meta filthy rich.

What is Meta’s new payout system?

In short, Meta wants creators to get compensated for the performance of their Facebook Reels — the short videos designed to compete with TikTok’s mesmerizing cascade of clips.

Currently, eligible influencers — that is, those who have been invited by Meta — can only earn money on Facebook Reels by overlaying short videos with non-intrusive banners or sticker ads. In exchange for displaying the ad on their Reels, Meta shares some of the advertising revenue, around 55% of it, according to TechCrunch.

The new payout system, however, would reward influencers based on how many people view their Reels, not necessarily displaying ads. And if that sounds familiar, that’s because this isn’t the first time Meta has tried to monetize a Reel’s performance — though perhaps this payout system will last longer than the last.

In December 2021, Meta introduced its first bounty-system for views on short videos: the “Reels Bonus” program, which was discontinued on March 9 of this year. The Bonus program awarded influencers for engaging content that drew a certain number of viewers within a deadline, like getting a million views over 30 days. Later, the program also included “challenges,” which paid influencers for hitting short-term goals within the month, like getting 100 views on 5 Reels.

The new payout system is similar to the Reel Bonus program, but with this difference: instead of dangling a carrot, Meta appears to be monetizing views directly. While Meta has not given details on how this system would work, it told Fortune that its aim is to help influencers “focus on creating engaging content” and leave the advertising optimization up to Meta’s team.

What does this mean for creators?

Even though Meta’s new payout system has not been firmly introduced, it’s a good sign that it — and other social media platforms — will start rewarding creators solely for the content they’re producing. This means influencers can finally get rewarded for producing high-quality Reels, no matter how much advertising revenue Meta makes on them.

It also means that those who lost income when Meta’s Reels Bonus program ended might be able to strengthen their personal finances in the future, if Meta goes through with introducing the new payout system.

Finally, it shows that Meta is continuing to prioritize short videos to remain competitive with its rivals, TikTok and YouTube, who are also trying to draw short-video creators to its platforms. While these platforms haven’t historically paid as much for short videos as longer ones, their high demand could finally make them a profitable enterprise for influencers.

Like the Reels Bonus Program, this new payout system will likely be invite-only. However, if it succeeds in drawing high-quality content to its platform, there’s no telling how widely available Meta might make it.

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