Facebook is one of the largest and most popular social media platforms in the world, with over 2.9 billion monthly active users as of the third quarter of 2022. Given its massive user base, Facebook offers many opportunities for content creators, influencers, and businesses to monetize their presence on the platform.
How Does Facebook Monetization Work?
There are several ways creators can monetize their Facebook content and earn money from their audience:
- Facebook Ad Revenue Share: Creators can earn a cut of the ad revenue from ads displayed alongside their content in the Facebook Audience Network.
- Facebook Stars: Fans can purchase and send virtual Stars to support their favorite creators during Facebook Live videos.
- Brand Partnerships and Sponsorships: Creators can partner with brands to create sponsored content and campaigns.
- Affiliate Marketing: Creators can promote and sell other company’s products through affiliate links and earn commission.
- Facebook Subscriptions: Fans can pay a monthly fee to unlock exclusive content from creators they want to support.
- Facebook Shop: Creators can set up an online shop to sell products directly to their followers.
The amount of money a creator can make depends on factors like number of followers, engagement rate, content quality, niche, and demand for certain types of branded content.
Facebook Ad Revenue Share
One of the main ways creators monetize their Facebook content is through the Facebook Audience Network, which allows them to earn a cut of the ad revenue from ads displayed alongside their content.
Facebook pays creators 55% of the revenue generated from ads running alongside or within their videos. For in-stream ads on Facebook Live videos, the revenue share is 55% in the first year a creator is using monetization tools, and increases to 70% after the first 12 months.
The exact amount a creator earns per view or per thousand views (CPM) varies based on factors like content type, audience demographic, seasonality, demand, ad inventory, etc. On average, top media publishers on Facebook earn $3 to $5 per 1000 video views (CPM), while influencers and individuals may earn $1 to $3 CPM.
Here are some approximate averages for Facebook video ad CPMs:
| Content Type | Average CPM |
|---|---|
| News and media publishers | $3 – $5 |
| Viral videos | $2.50 – $4 |
| Influencer and creator content | $1 – $3 |
| Individual/personal videos | $0.10 – $1 |
Based on these averages, a creator with 1 million video views could expect to earn between $1,000 to $5,000 in ad revenue share. However, top creators and publishers often exceed these averages.
Facebook Stars
Facebook allows creators to earn money during live streams through a feature called Stars. Fans can purchase Stars in bundles and use them to support creators by sending them during a live video.
One Star is worth $0.01 USD, and the minimum purchase amount is 100 Stars for $1. Fans can send Stars in various amounts during live streams as a way to tip creators and show support.
Facebook pays out the full amount of Stars sent to creators after deducting a service fee. This means creators will earn $0.01 for every Star received, minus a 5% fee taken by Facebook.
For example, if a fan purchases 500 Stars for $5 and sends them all to a creator, the payout would be:
- 500 Stars x $0.01 per Star = $5
- Facebook takes a 5% fee of $0.25
- Creator payout is $4.75
The number of Stars a creator can earn will depend on the enthusiasm and generosity of their fans during live streams. Top creators can earn thousands of dollars per week through Stars alone.
Brand Partnerships and Sponsorships
Partnering with brands is a lucrative way for influencers and creators on Facebook to monetize their content and following. There are several types of branded content partnerships available:
- Sponsored Posts – Creators can earn money by posting about a brand or product on their profile feed. Sponsored post prices typically range from $100 to $500+ depending on follower count.
- Takeovers – Brands can “take over” a creator’s Facebook Stories for a day. Takeover prices range from $1,000 to $5,000+ per day for top influencers.
- Affiliate Links – Creators earn commission when their followers purchase products through their affiliate links.
- Giveaways – Brands provide free products that creators give away to their audience.
The amount influencers can charge for brand sponsorships depends on their niche, audience demographic, content quality and follower count. Here are some example Facebook sponsorship packages and fees:
| Follower Count | Content Type | Price |
|---|---|---|
| 10,000 followers | Single sponsored post | $100 – $250 |
| 50,000 followers | Story takeover | $500 – $1,000 |
| 100,000+ followers | Brand ambassador partnership | $5,000+ per month |
Micro and nano influencers can earn hundreds per sponsored post, while influencers with hundreds of thousands of followers can charge thousands. Brand deals can become a significant source of income for top creators on Facebook.
Affiliate Marketing
Affiliate marketing allows creators on Facebook to earn commission promoting other brands and products. It works by creators sharing affiliate links to products and getting a percentage of any sales generated.
The commission earned varies depending on the brand but is commonly between 5-20% per sale. For digital products like ebooks, courses and software, commissions are around 30% to 50%.
Here are some examples of potential affiliate earnings on Facebook:
- Promoting a $100 product with 10% commission – Earn $10 per sale
- Promoting a $500 course with 50% commission – Earn $250 per sale
- Promoting a SaaS product with 30% recurring commission – Earn $30 per monthly subscription payment
With a large, targeted audience on Facebook, top affiliates can drive hundreds or thousands of sales per month by promoting relevant products. This enables full-time earnings from affiliate marketing alone.
Facebook Subscriptions
Facebook launched a Subscriptions feature in 2020 to allow creators to offer exclusive, paid content to their most engaged followers. Fans can pay either a monthly or one-time fee to access subscriber-only content.
Creators can choose their own subscription pricing, with options ranging from $1 to $100 per month. Facebook takes up to 30% of the subscription revenue depending on operating costs.
Here are some example subscription tiers and earnings for creators:
| Subscription Tier | Price per Subscriber | Monthly Earnings with 100 Subscribers |
|---|---|---|
| Silver | $5 per month | $350 per month |
| Gold | $10 per month | $700 per month |
| Platinum | $20 per month | $1,400 per month |
Facebook subscriptions provide a predictable, recurring revenue stream for top creators to monetize their most engaged fans. Earnings scale alongside the number of subscribers.
Facebook Shop
Facebook Shops allow creators and brands to easily set up an online store directly on Facebook and Instagram. Creators can sell physical products, digital downloads, event tickets, and more.
For every purchase made through Facebook Shop, creators keep 100% of the purchase price minus a selling fee taken by Facebook:
- 5% for Facebook
- 2.9% + $0.30 for payment processing
For a $20 product sold, the earnings breakdown would be:
- $20 purchase price
- – $1 taken by Facebook (5% fee)
- – $0.68 taken for payment processing (2.9% + $0.30)
- = $17.32 payout to creator
Assuming consistent sales, creators can build a profitable ecommerce business on Facebook without incurring costs for a separate online store. This provides another way for creators to diversify their income streams.
Tips for Maximizing Facebook Monetization Earnings
Here are some tips creators can follow to increase their monetization earnings on Facebook:
- Consistently create engaging, high-quality video and photo content to drive more reach.
- Go live frequently to boost engagement and enable Stars monetization.
- Improve audience targeting to unlock higher CPM ad rates.
- Collaborate with relevant brands in your niche for sponsorships.
- Promote affiliate products aligned with your audience’s interests.
- Offer exclusive content or perks through Subscriptions.
- Leverage Shop to sell merchandise, online courses or services.
- Analyze earnings and experiment with different monetization features.
Conclusion
Facebook provides a diverse array of monetization opportunities for creators to earn income from their audience. While individual earnings depend on audience size and engagement, most creators can expect to earn anywhere from a few hundred to a few thousand dollars per month from Facebook monetization.
Top influencers and publishers with millions of engaged followers can earn tens of thousands per month through ad revenue alone. Monetization features like Stars, Subscriptions, Shop and brand sponsorships open up additional earning potential.
By consistently creating quality content, developing their monetization strategy, and diversifying their income streams, creators can build a sustainable business on Facebook.