Explainer: Social Media Monetization

 
EXPLAINER

What Is Social Media Monetization?

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Published: 24 April 2025
More and more people are making money from their social media activity.
That’s probably not a surprise, but you may be wondering how it all happens.
In this explainer series, we’ll walk you through the many ways social media users monetize, the components of monetization governance, and the risks associated with social media monetization.
Let’s start with a breakdown of the different kinds of monetization options available to social media users.

On-Platform Monetization

Social media platforms are offering more and more ways for users to monetize directly on their platform.

♦️ Revenue Redistribution Programs

By signing up to participate in revenue redistribution programs, content publishers (that’s creators, influencers, publications and media outlets, or really anyone that meets monetization eligibility criteria) can earn money for their contribution to platforms’ advertising revenue. Payout calculations are usually based on views and engagement.

♦️ Bonus Programs

Platforms occasionally introduce bonus programs to encourage certain creator behavior. Participation in these programs is usually limited to certain types of creators.

♦️ Audience Support Tools

Platforms offer tools like tips and subscriptions to allow eligible users to generate revenue directly from their own social media audiences.

♦️ Creator Marketplaces

Users can also sign up to participate in platform-facilitated creator marketplaces. These match creators or influencers with third parties who are interested in targeting that particular user's audience via branded content partnerships.
Through on-platform monetization services, users can monetize their social media activity without having to invest in additional infrastructure. But it’s not free. Platforms charge a fee, which can vary from a small percentage to as much as 50% of the transacted amount, depending on the monetization service.
When users take part in on-platform social media monetization services, they are subject to the platform’s monetization terms and policies.

Off-Platform Monetization

Social media users have also traditionally made money from their social media activity through off-platform monetization strategies.

♦️ Platform redirects

That’s when users leverage social media content to draw audiences to off-platform assets. These can be online shops and websites which are monetized through ads or paywalls.

♦️ Influencer Marketing

This is when a user (typically an influencer) is commissioned by a third party to develop and distribute social media content that promotes the third party's brand, product or message.

♦️ Audience Monetization

Users can monetize channels and accounts — and the audiences they’ve cultivated for them — by renting access to them or selling them outright.