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Snapchat reduces payouts for Spotlight creators


Snapchat has changed the way it pays creators through its Spotlight reward fund. Creators that use Snapchat’s TikTok clone, Spotlight, will now be paid millions per year, a source familiar with the matter told TechCrunch. Business Insider was the first to report the change.

This marks the second time Snapchat has reduced the payout. In 2021, the company rewarded creators millions per week, down from $1 million a day in 2020.

While Snapchat is lowering the amount, the source noted to TechCrunch that it’s paying more creators in more markets. It’s also important to note that the minimum payout per Spotlight will remain at $250. Last year, Snapchat paid $250 million to over 12,000 creators.

They also pointed to other ways Snapchat creators earn a profit, including the Creator Marketplace, Sound Creator Fund, its accelerator program for black creators, Spotlight Challenges and in-app gifting. In February, the app tested revenue sharing on ads in Snapchat stories for Snap Stars.

Snapchat recently announced it’s awarding a total of $100,000 across 12 Spotlight Challenges for Halloween.

The move to lower fund spending for Spotlight was likely made as another way to boost profit and spend less of its revenue. Earlier this year, CEO Evan Spiegel announced that Snapchat was testing ads on the Spotlight. In August, Snapchat downsized its workforce by 20%.

Last week, Snapchat reported its Q3 results, missing analyst expectations on revenue. The company still did relatively well, earning $1.13 billion, an increase of 6% for the quarter. However, Snapchat’s net loss rose to $360 million.

On a more positive note, the company said Spotlight performed well this quarter and helped increase the overall total time spent watching content.

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