Six Ways New Social Companies Will Monetize | Andreessen Horowitz

Payments and built-in monetization models – Just as ads have become the predominant monetization model for social platforms, we believe member subscriptions are promising for communities. Because people are more likely to consume a product when they pay for it, subscriptions can incentivize engagement.

After a decade of inaction, web2 platforms have finally woken up to the need to help their creators make money. This was instigated by TikTok’s $2B Creator Fund, but has resulted in dozens of similar funds and new features across Snap, Instagram, YouTube, Pinterest, and even LinkedIn.
Meanwhile, web3 platforms are pioneering a new form of monetizat... See more

In the past few years, startups like Substack, Patreon, and Shopify have created alternative ways for creators to build businesses online through direct transactions, rather than advertising. This shift exposed a simple fact: in an ad-driven world, creators were generally under-monetizing their audiences.