How is Elon musk able to pay people on Twitter
It’s called “Ads revenue sharing”, but that’s not all.
Let me explain how Elon got here….. Take your time. The knowledge here can be applied to your business or personal life so read or bookmark for later.
When Elon took over, the twitter ads revenue took a nosedive as advertisers started pulling out, and companies had issues with certain terms, plus he failed in his bragging to fix bot accounts asap.
To fix this, Elon made two terrible mistakes.
By assuming because people tweet “This app shouldn’t be free” every time, that all of us will be willing to pay a monthly subscription. The goal of this was the bump of MRR ( Monthly Recurring Revenue). It sounded easy to think. Twitter had 250M+ daily active users but only 0.2% ended up paid for twitter blue. I’m guessing he expected around 10% to pay. That was a flop.
That already verified celebrity will have no issues with paying a small fee to keep their verification. The early stigma around paying for a verification; which totally devalues the whole idea initially made a lot of celebrities decide not to pay. To fix this, Elon started dashing then for free. He did a lot of beta testing on this sha. Well done to him.
One last mistake he didn’t see coming was also assuming all companies will gladly pay for the gold checkmark of about $1k/ month. That flopped also.
Now from the beginning, twitter ads haven’t had the best returns as the platform allows users to even ignore or cancel seeing ads. So impression for advertisers kept dropping. To fix this, I believe Elon started dropping ads in comment section to increase impressions and double up on advertiser’s money. That was when the idea hit him, people have been funnelling their contents from twitter to other platforms like YouTube, twitch etc. People post their contents overthere but use their twitter account to send their followers to go and watch it on YouTube.
YouTube and twitch + others already share ads revenue with content creators, so what’s stopping twitter from doing it????
Instead of just using my twitter to directly traffic to YouTube so people can watch your videos and you make money from YouTube, how about you just post that video here and I’ll also pay you more than what YouTube is paying you????
Advertisers wins = more impressions.
Creators wins = more revenue.
Twitter wins = more advertising budgets and new advertisers.
In business, this is an art called flexibility. Will it backfire? Maybe, is it working right now? Maybe. Time will tell and so will our Stripe account.
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