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Are you a content creator who depends on Snapchat for income? You’re in for some bad news – the company has just announced its second payment cut for Spotlight content.

Get all the details about this pay reduction and its effects in this blog post.

Snapchat has announced that it will reduce its payments to users for the second time for the content shared on the Spotlight platform? Launched in 2020, Spotlight is a dedicated discovery feature on Snapchat. It shares user-generated content (UGC) in a TikTok-style format to engage users to actively create and share video stories with their friends.

Since becoming available, Snapchat has distributed over a billion dollars in payments to creators as part of its program. However, with this most recent update, costs are being cut by up to 50%, meaning users will only earn rewards based on their views of their content. This change comes amid increasing competition from other UGC platforms such as YouTube and TikTok.

By reducing the number of payouts to creators, Snapchat aims to provide more visibility to those creating well-crafted content while taking away rewards from low-effort posts that were spammed or made to take advantage of possible monetary rewards. This shift in Snapchat’s payment policy reveals its ambition to increase user creativity and encourage quality video production that can cater more effectively to viewers’ needs.

What is Snapchat Spotlight?

Snapchat Spotlight is a place for Snapchat users to see the most interesting posts from across the App, spotlighting the diverse perspectives and talents of our community. In addition to showcasing amazing Snaps from everyday users, Snapchat also allows creators to earn money through Spotlight while entertaining and informing their audience.

Since its launch in November 2020, Facebook has encouraged worldwide creators to share content on Snapchat Spotlight by awarding cash payments for every post reaching at least 1,000 views in its first five days. However, after analyzing data collected over several months, Facebook recently announced that it would reduce payments for Spotlight content for a second time due to “the size of the Snapchat audience relative to other platforms.”

As part of this reduction, payments will now vary depending on location, with new tiers established based on each region’s expected viewership.

Snapchat is cutting payments for Spotlight content again

The financial uncertainty created by the COVID-19 pandemic has led Snapchat to reduce payments for Spotlight for the second time. This change has been implemented to ensure that the company remains profitable and continues to promote user growth. Unfortunately, as a result, some users may see their potential earnings take a hit.

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The primary reason why Snapchat is reducing payment amounts has been related to an overall decrease in the number of users engaging with Spotlight content since early 2021. With decreased engagement, Snapchat has seen fewer people favoriting and watching Spotlight posts, reducing advertiser interest in paying sponsored money for content on this platform.

In addition, Snapchat recently started making it easier for viewers to skip ads without consequences. Unfortunately, this could also have contributed to decreased payment rates as advertisers now get less bang for their buck when spending on content with lower completion rates.

Overall, Snapchat’s decision to reduce payments is not unexpected given current market conditions, but it may still disappoint some of its most dedicated creators. As a result, users must be more creative with their content and use other methods of monetizing their work through sponsorship deals and sponsored posts on other platforms such as Instagram or Twitter.

Impact of the Reduction

The second reduction in payments is likely to affect videos that have already been posted on Spotlight and could potentially have a lasting impact on content uploaded in the future. In addition, the reduction comes as Snap Inc sets its sights on a global user base for Spotlight and looks to increase its presence in key markets across Europe, Asia Pacific, and Latin America.

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The first payment reduction took effect in October 2020, when spotlight payments were reduced from $1 million to $500,000 monthly. The second round of payment cuts will reduce the sum further by up to 20 percent. Additionally, Snapchat defines eligibility criteria requiring users to meet certain standards, such as engagement rates and average session times. Spots hot content creators will still receive higher sums than existing ones with average-performing videos; however, it is clear that those creators no longer receive the same reward they did before the paywall updates were implemented.

As one of its biggest creators announced on Facebook: “I am no longer creating snaps due to the recent Instagram updates limiting my reach & payouts from Snapchat” (2020). This indicates a shift away from Snapchat due to increasing competition and lower rewards for content creation.

These developments will also be felt most acutely by small businesses that can not afford large budgets for creating engaging content or influencer marketing campaigns. Instead, these businesses rely on organic social media platforms such as Snapchat to connect with customers at a low cost but with effective results.

Alternatives for Spotlight Content Creators

Reducing payments for popular user-generated content is one way that Snapchat attempts to control costs and remain profitable as a company. However, this challenges Spotlight content creators looking for new ways to monetize their work. Fortunately, there are several potential alternatives to consider to keep profits high.

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One of the most common methods is sponsored content or advertising, which can be done on multiple platforms instead of relying exclusively on Snapchat. Alternatively, some influencers have begun selling their products and services as an additional revenue stream or creating an “online store” on their website or App. Patreon has also proven successful for some creators since it allows fans to support them with regular monthly donations.

Finally, some companies provide more direct payment opportunities, such as Revelry Labs and LetMeLoop, which connect influencers with brands that want fresh visuals and video content produced quickly and cheaply. Captiv8 is another firm that specializes in providing access to influencer campaigns across social media platforms which can help boost income outside of Spotlight payments.

Overall, reducing payments is a difficult reality, so there are many options available if you’re willing to make the shift from sole reliance on Snapchat.

Benefits of the Reduction

The reduction in payments for Spotlight content on Snapchat is intended to benefit users and the platform in several ways. It is designed to encourage user engagement by incentivizing Creators to create more content, as the payments will now be more evenly shared. This could help make Snapchat a more attractive platform for content creators, encouraging them to join and become active App users.

It should also incentivize Creators to produce higher quality content, as well as deliver fresh ideas that are interesting and engaging to be successful. This would provide an overall improved user experience by curating higher quality content which can lead to increased user exposure, greater ad revenue, and potentially new forms of monetization.

Finally, this shift may also lead to improvements in how Spotlight works overall, as well as continued growth in the feature itself by exposing it to potential new audiences. Overall, this reduction in payments for Spotlight content is intended to bring about beneficial changes for both Snapchat users and the App itself.


In conclusion, Snapchat’s decision to reduce payments for Spotlight content for the second time is a clear sign that the platform is not doing as well as it once was. While the reduction in payments may have been necessary in order to ensure the sustainability of the platform, it will undoubtedly have an impact on content creators who were relying on Snapchat Spotlight as an income source.

Content creators will now need to look for other sources of income outside of Spotlight and explore opportunities on other platforms that may be more beneficial.


Are Snapchat reducing payments for Spotlight content?

Yes, Snapchat is reducing payments for its Spotlight content for the second time.

What type of payment will I receive?

The level of payment Snapchat users will receive after December 1st is yet to be announced. Once finalized, that information will be communicated via the users’ accounts.

Will my current earnings be affected?

Any payments earned as part of any Story before December 1st 2020 will not be affected. However, payments made after that date will reflect the reduced amount announced by Snapchat.

What other ways can I earn money through Snapchat?

In addition to Spotlight content, users can access a wide range of money-making opportunities within the App. This includes post boosts, commercial partnerships, and brand sponsorships.

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