Facebook Reels are short, entertaining videos that users can create and share on Facebook and Instagram. They are similar to TikTok videos. When Reels first launched, Facebook offered bonuses and payments to creators as an incentive to try the new feature. However, Facebook has since discontinued these payments, leaving many creators wondering why they are no longer being compensated for their Reels.
The Initial Reels Bonus Program
When Reels first launched in 2020, Facebook introduced a temporary bonus program to encourage users to try out Reels. This program, available in certain regions like the US and India, offered the following bonuses:
- A payout bonus of up to $3500 per month for creating reels that performed well.
- $800 one-time bonus for posting at least 5 Reels in the first month.
- Up to $10,000 per month for the top Reels creators.
The bonus amounts were significant, but the program was limited from the start. Facebook said the goal was to have a temporary program to bootstrap Reels and help kickstart the feature with inspiring creators and their content.
Why Facebook Discontinued Direct Payments
There were a few key reasons why Facebook stopped offering bonuses and direct payments for Reels:
1. Kickstarting Engagement
The main goal of the initial bonus program was to incentivize creators to try Reels and post engaging content that would attract users to the feature. Once Reels gained traction and usage started growing, Facebook pulled back direct payments.
2. Sustainability
Facebook likely determined that large bonuses and payments were not financially sustainable long-term. Directly paying creators is extremely costly for social platforms. Once creators and users were accustomed to Reels, Facebook transitioned to free tools to help creators monetize through ads and the Reels Play bonus program.
3. Established Habits
Facebook knows creators will continue posting Reels content even without direct compensation because it is now core to the Facebook and Instagram experience. There is no longer a need to pay creators bonuses just for posting Reels when the feature is already widely adopted.
How Creators Can Still Monetize Reels
While direct payouts ended, Facebook has introduced other ways for creators to earn money from Reels, including:
Reels Play Bonuses
The Reels Play bonus program pays eligible creators if their reels amass a certain number of views. The bonus amount depends on views and ranges from $100 to $10,000 for the most-viewed Reels in a month. This incentivizes creators to continue making engaging Reels content.
Stars
Fans can purchase Stars to tip creators during Facebook Live videos and tip creators for Reels on Instagram. Facebook takes no cut of Stars purchases.
Advertising
Creators can monetize their Reels through ad placements from Facebook. Money generated from ad views on Reels videos is shared between Facebook and the creator.
Branded Content
Popular creators can partner with brands to create sponsored Reels content as part of influencer marketing campaigns.
Affiliate Links
Creators can include affiliate links to products in their Reels description and earn commission when followers purchase through their link.
Merchandising
Creators can sell custom merchandise like t-shirts, mugs, and phone cases with their Reels brand and designs.
Other Social Platforms without Direct Payments
Facebook is not alone in discontinuing direct payments to creators. Many social platforms have shifted their creator monetization strategies away from cash bonuses:
| Platform | Initial Bonus Program | Current Monetization |
|---|---|---|
| YouTube | No longer partners with creators solely based on views/subscribers. Previously paid creators to create YouTube Originals. | YouTube Partner Program to earn ad revenue from videos based on views, Super Stickers, Channel Memberships, Merch Shelf, BrandConnect sponsorships. |
| Snapchat | Previously paid some creators $1-2 million per year to post content. Discontinued in 2020. | Spotlight Challenges provide bonus payouts for top-performing Spotlight posts. Can earn ad revenue via Commercials. |
| TikTok | Creator Fund paid creators 4 cents per 1,000 views on videos. Program ended in 2022. | TikTok Creator Marketplace connects brands and creators for sponsorships. LIVE Subscription allows fans to pay to access LIVE streams. |
These platforms are optimizing creator monetization for long-term sustainability and relying more on ad revenue sharing, affiliate marketing, fan tipping, and brand partnerships.
The Future of Reels Monetization
Here are some potential ways Facebook could evolve Reels monetization in the future:
New Bonus Programs
Facebook may bring back targeted bonus programs to incentivize certain use cases, such as bonuses for creators using new Reels features or local businesses creating Reels.
Revamping Reels Play
Facebook is testing ways to expand Reels Play to more creators by lowering the view count thresholds and adding tiers based on content categories.
Feature-Specific Monetization
Facebook is exploring monetization tied to specific Reels features, like Remixes or AR filters. For example, creators could earn a rev share when their AR effect gets used by the community.
Gifting
Facebook is developing gifting features that would allow fans to send monetary gifts to creators during Facebook Live and potentially Reels as well.
Subscription Offerings
A potential subscription model could provide fans exclusive access to a creator’s Reels or live content for a monthly fee.
Shopping Features
Turning Reels into a social commerce channel through shoppable links and product tags could open up new revenue streams.
Conclusion
Facebook shifting away from paying creators bonuses for Reels content is understandable from a business perspective. The initial bonuses served their purpose in kickstarting Reels until it became core to the Facebook and Instagram experience. While direct payouts ended, Facebook is building tools to help creators monetize their audiences and content through advertising, fan support, sponsors, and affiliates. The company is likely to continue iterating on Reels monetization features to provide sustainable revenue sources for long-term creator partnerships.