Marcus "Esports" Howard

X’s New Monetization Model: Less Money for Creators and More Clickbait & Engagement Farming. Here’s a closer look at the changes and their implications: X will no longer share advertising revenue with creators, instead incentivizing engagement by focusing on interactions from Premium subscribers. 1. X Will No Longer Share Advertising Revenue with Creators: This hasn’t been mentioned enough in the articles I’ve read on the subject. By shifting from ad-based to subscription-based monetization, X will now retain all advertising revenue, keeping creators entirely out of the ad revenue loop. 2. Creators Will Earn Based on Engagement, Not Ad Views: By paying creators based solely on Premium user interactions—likes, replies, and reposts—X is moving away from ad-driven monetization. But how does this lead to better content? For creators, the push for engagement could incentivize more clickbait, not necessarily higher-quality content. 3. Only X Premium Subscribers Contribute to Creator Earnings: This model limits monetization to interactions from Premium subscribers, who pay $8 per month. While this encourages Premium user engagement, it also restricts earning potential, as free users are entirely excluded from this equation. 4. Creator Payouts Are Capped at 25% of Premium Subscription Revenue: X has set a limit of up to 25% of Premium subscription revenue for creators—a figure significantly lower than ad splits offered on other platforms. This is in addition to the already smaller payout pool of subscription revenue compared to advertising revenue. 5. Declining Advertiser Interest is Driving the Change: Since Musk took over, advertisers are leaving the platform. Following a 40% decline in ad revenue due to controversial content—and Elon Musk publicly telling advertisers “F*** You”—X is struggling to generate revenue for itself and its creators. 6. Concerns Over Engagement Farming and Content Quality: By tying payouts to engagement, X may inadvertently promote sensationalist or low-quality content. Engagement farming could thrive under this model, and I’m already seeing a large number of Premium accounts being set up to game the system. What are your thoughts on this shift? Will it lead to more meaningful engagement, or is it a recipe for more clickbait and lower earnings? Share your insights below. #SocialMedia #Creators #X

14

16 Comments

DULCEDO Management bought Node App for $13M. This marks Dulcedo’s 5th acquisition since 2016. Let's break it down... ---SELLER: Node--- • AI-powered influencer marketing platform • Mission = bridge gap between small businesses and micro-influencers • Founded 2019 by Armin Faraji, Mackenzie Dérival ✌🏾 • Initially focused on restaurants, expanded to ecom brands • Focuses on Instagram, TikTok campaigns • 2021 raised $1M seed round from Techstars, Alchemist, strategic angels ---TECH OVERVIEW: Node App--- • In 2022 selected for Google for Startups Accelerator program • Pioneered a machine-learning technology to revolutionize agency workflows by improving influencer discovery and data reporting • “Creators can participate in brand campaigns in 3 clicks via Node, as opposed to pitching/negotiating with brands” • “Brands can create a campaign and begin interacting with influencers within 5-10 min of landing on Node's website” ---PERFORMANCE HIGHLIGHTS: Node App--- • Over 2,000 clients across North America • Generated “tens of millions of social media impressions” • Clients incl Kraft, Samsonite, Jarritos, St-Regis, Marriott • Has activated 5,000+ content creators in campaigns • Creators include A-list models, elite athletes, actors, social influencers • During pandemic scaled from 30 to 800 brands five months ---BUYER: Dulcedo Group--- • Global talent mgmt and digital marketing agency • 4 divisions – Models, Sports, Gaming, Influencer • Offices in Montreal and Toronto • Founded 2008 by CEO Karim Leduc • 3 co-owners incl founder • 70+ team members ---M&A HISTORY: Dulcedo Group--- • 2022 acquired C4G, a startup esports marketing agency • 2016 acquired 4249, an influencer relations agency • 2023 acquired Influence + All Management • 2023 acquired Sundae Creative Agency • 2024 acquired Node ---DEAL DETAILS--- • $13M purchase price • No other details were disclosed ---DEAL VALUE PROP--- • Give Node added funding, resources for growth • Access to Dulcedo's 300M network following  • Access to Dulcedo’s diverse creator roster to support IM campaigns across various industries • Accelerate development of AI-enabled tools to enhance the IM campaign lifecycle ---POST DEAL OPS--- • Dulcedo CEO will serve as interim Node CEO • Node co-founder Armin Faraji moves to COO • Node co-founder Mackenzie Dérival remains as CPO ---WHAT ELSE I FIND INTERESTING--- I'll write more about the deal in my Friday newsletter. I'll estimate Node's revenue and EBITDA, and discuss valuation multiples and likely deal structure. Signup link in comments below 👇 -- I'm the founder of RockWater Industries. We do M&A and strategy advisory for media, agencies, and creator economy. My DMs are open.

13

1 Comment

In one click you can get the license for even 500 Copyrighted Movies/Sports/Music brands directly to your FAST/SVOD/Mobile app/AVOD/CTV/Payment & Billing Systems. Many companies have Raised Funds or made Exit based on our content. #entrepreneurship #Innovation #Management #HumanResources #DigitalMarketing #Technology #Creativity #Future #Futurism #Entrepreneurship

2

On Sunday, July 28th @ 12 noon (MST) we will be discussing serious wealth building with ICP crypto! Tune in! Build Your Crypto Fortune by Staking ICP https://lnkd.in/gpTME76d via @YouTube #ICP2024 #cryptocommunity #generationalwealth #cryptocurrency

4

In one click you can get the license for even 500 Copyrighted Movies/Sports/Music brands directly to your FAST/SVOD/Mobile app/AVOD/CTV/Payment & Billing Systems. Many companies have Raised Funds or made Exit based on our content. #raisingcapital #developmentfunding #commercialrealestate #syndications #brokerdealers #equityinvesting #tradepaltform #venturecapital #growthcapital #familyoffice #mergeracquitision #mining #preciousmetals #financialadvisor #lineofcredit #realestatefinance #hotelinvestor #oilandgas #greenenergy #carboncredit #consultant #privatedebt #limitedpartner #equityinvestor #privatejet #yachts #hospitality #opportunity #success #privacy #development #investing #hnwi #assetmanagement #capitalmarkets #moneymanagement #patriarchy #bankingandfinance #structuredfinance #privateplacement #offmarket #mergersandacquisitions #generalpartner #corporate #institutionalinvestor #assetsfinance

1