{"id":1371,"date":"2026-08-01T14:53:39","date_gmt":"2026-08-01T13:53:39","guid":{"rendered":"https:\/\/vitormsalmeida.pt\/?p=1371"},"modified":"2026-08-01T14:53:39","modified_gmt":"2026-08-01T13:53:39","slug":"the-business-of-social-networks","status":"publish","type":"post","link":"https:\/\/vitormsalmeida.pt\/index.php\/2026\/08\/01\/the-business-of-social-networks\/","title":{"rendered":"The business of social networks."},"content":{"rendered":"\n

I don’t pay much attention to social media; I’m on it, but I don’t waste time on it. Personally, I prefer direct contact, so it’s reduced to just another way for people to find me and for me to find them.
This type of attitude is common among people who, like me, use computers and their networks (Bitnet and ARPANET, and later their merger: the internet) who, in professional terms, want personal connections.

The social media and content creator business (Creator Economy) in 2026 is one of the fastest-growing sectors in the digital world. It revolves around attention (which platforms capture) and the conversion of that attention into money (by creators and brands).

How social media makes money <\/mark>
Platforms (Instagram, TikTok, YouTube, etc.) profit mainly from:
– Advertising (ads in the feed, Reels, Shorts, and live streams).
– Commissions on sales (TikTok Shop, Instagram Shopping, and affiliates).
– Subscriptions and premium tools (Onfyfans, Fansly).
– Data and engagement that feed the algorithm and attract more advertisers.

They share a portion of the revenue with creators (YouTube keeps ~45% of the ads and the creator gets 55%; other platforms have gift models, bonuses, and Creator Funds).

How content creators monetize <\/mark>
Most no longer rely solely on “ads.” The main sources of income in 2026 are:
> Sponsored content (ads): Posts, Reels, live streams, and Stories paid for by brands. Still the largest share (~40-60% of many people’s revenue)
> Affiliate and social commerce: Purchase link (Shopee, Mercado Livre, TikTok Shop). Explosive growth
> Own products: Courses, ebooks, merchandise, services, consulting. Higher margin and independence
> Subscriptions and community: YouTube Clubs, Instagram Subscriptions, Patreon, Onlyfans. Recurring and stable income
> Platform revenue: Ads (YouTube), Gifts\/Badges, bonuses. YouTube still pays better per view
> Other: Speaking engagements, UGC, content licensing, live shopping. Diversification is key

There are an estimated 106 million active creators and a multi-billion dollar market.
The most efficient funnel tends to be: TikTok (discovery) \u2192 Instagram (qualification and relationship building) \u2192 WhatsApp\/Snapchat (conversion).
Affiliate programs (Shopee, Mercado Libre, etc.) are growing strongly, with social commerce projected to double by 2030.

Market Numbers and Reality (2026)<\/mark>
– Global Creator Economy market: between US$250\u2013310 billion (some broader estimates reach US$500\u2013600 billion), projected to reach US$500 billion by 2027.
– Almost half of creators earn less than US$10,000\/year (low median).
– There is a growing \u201cmiddle class\u201d of creators (US$10,000\u2013100,000\/year range).
– The top 1\u201310% concentrate the majority of brand revenue.
– YouTube continues to be the highest paying per view (especially long-form content and premium niches). TikTok shines in rapid reach and commerce. Instagram is strong in personal branding and partnerships.

Strong Trends in 2026<\/mark>
– Professionalization: Creators become real businesses (CNPJ, team, planning, multiple revenue streams). Relying solely on sponsored content is becoming risky.
– AI + human authenticity: AI helps with production and editing, but the differentiator is the real connection and original content.
– Social commerce and live shopping: Selling directly on the platform is growing significantly.
– Community > reach: Relationship and engagement are worth more than the number of followers.
– Diversification and ownership: Building your own products, email list, WhatsApp, and IP to avoid 100% dependence on the algorithm.
– Boosting and performance: Brands are increasingly boosting creators’ content with paid media.

Practical summary <\/mark>
The business works like this:
> Platforms capture mass attention \u2192 Creators transform that attention into trust and community \u2192 Brands pay to access that trust \u2192 Creators diversify to have stable and scalable income.
> Those who treat content as a business (strategy, clear niche, diversification, and consistency) can make a living from it and even build multi-million dollar companies. Those who only post hoping to go viral tend to stay at the bottom of the pyramid.

Conclusion<\/mark>:
Not being part of this market, I see it as an expanded “contact list” tool; however, in many cases, its use is excessive, mainly driven by the “engagement” of the marketing involved in social networks.
But as always, it’s always like this when a technology is exploited and its massive distribution is used.<\/p>\n","protected":false},"excerpt":{"rendered":"

I don’t pay much attention to social media; I’m on it, but I don’t waste time on it. Personally, I prefer direct contact, so it’s reduced to just another way for people to find me and for me to find them. This type of attitude is common among people who, like me, use computers and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-1371","post","type-post","status-publish","format-standard","hentry","category-my-thoughts"],"_links":{"self":[{"href":"https:\/\/vitormsalmeida.pt\/index.php\/wp-json\/wp\/v2\/posts\/1371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vitormsalmeida.pt\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vitormsalmeida.pt\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vitormsalmeida.pt\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/vitormsalmeida.pt\/index.php\/wp-json\/wp\/v2\/comments?post=1371"}],"version-history":[{"count":1,"href":"https:\/\/vitormsalmeida.pt\/index.php\/wp-json\/wp\/v2\/posts\/1371\/revisions"}],"predecessor-version":[{"id":1372,"href":"https:\/\/vitormsalmeida.pt\/index.php\/wp-json\/wp\/v2\/posts\/1371\/revisions\/1372"}],"wp:attachment":[{"href":"https:\/\/vitormsalmeida.pt\/index.php\/wp-json\/wp\/v2\/media?parent=1371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vitormsalmeida.pt\/index.php\/wp-json\/wp\/v2\/categories?post=1371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vitormsalmeida.pt\/index.php\/wp-json\/wp\/v2\/tags?post=1371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}