Elon Musk Admits X Underpays Creators Compared to YouTube

Elon Musk has made headlines once again this time for admitting that X, formerly known as Twitter, underpays its content creators compared to YouTube. The admission came during an exchange on the platform with Nikita Bier, X’s Head of Product, marking Musk’s first public acknowledgment that X’s creator monetization programme has significant flaws.

Musk’s Honest Admission

In response to a post by Nikita Bier discussing upcoming creator features, Musk replied, “No, the issue is that we are underpaying and not allocating payment accurately enough. YouTube does a much better job.”
This statement, coming directly from the Tesla CEO and owner of X, has triggered a major conversation around how creator earnings are being handled on the platform since his 44 billion dollar acquisition.

The Promise vs The Reality

When Musk first introduced the creator monetization programme, it was positioned as a revolutionary way for verified users to earn money through ad engagement on their posts. But creators quickly began flagging several issues, including delayed payments, inconsistent earnings, and unclear metrics that left even high-engagement creators underpaid.

Users have also accused X’s algorithm of rewarding the wrong type of content, often sensationalist or low-quality posts while genuine creators struggle to see fair payouts despite millions of impressions.

Community Reaction and Backlash

Musk’s candid admission opened the floodgates for frustrated creators. Many took to X to highlight how the system disproportionately favors large accounts and often monetizes reposted or plagiarized content.
“Creator payouts have incentivized ragebait and misinformation,” wrote user Rod Breslau, echoing growing concerns about how X’s algorithm is shaping content trends.

Others compared X’s payout model to YouTube’s time-tested revenue-sharing approach, which offers more transparency and rewards creators based on viewership quality and engagement. Investigative journalist Anna Matson pointed out that X often pays accounts that “steal original work,” demanding a fairer system that credits smaller creators when their content is reshared.

What Comes Next for X

While Musk’s transparency has been praised by some, it also raises expectations for change. The billionaire entrepreneur’s acknowledgment may signal upcoming reforms aimed at restructuring how creator payments are calculated and distributed. Insiders suggest that X could take cues from YouTube’s performance-based revenue model to ensure fairer distribution and restore creator trust.

Until then, creators on X, many of whom depend on payouts for their income continue to face uncertainty. Musk’s challenge now lies in turning honesty into action, ensuring that X evolves from an ad-driven experiment into a sustainable creator ecosystem that rewards quality and originality.

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