Elon Musk Imposes Steep Charges on Companies Using Twitter: Report
Elon Musk, the CEO of Tesla and SpaceX, has announced that companies using Twitter will now have to pay $1,000 for ads over the previous 30 days or risk losing their verified status. The news was first reported by The Wall Street Journal, which also revealed that firms could avail a 50% discount on the fee until the end of this month. Musk has been making significant changes to the social media platform as he tries to save it from its financial troubles.
Musk’s decision to charge companies for ads comes as Twitter continues to struggle financially. According to Yahoo Finance, Musk has been paying heavy interest payments on $13 billion in acquisition-related debt. He has also publicly admitted that Twitter has been losing 50% of its ad revenue. Despite removing most of the company’s employees, it still remains in the red. As a result, Musk has shifted his priorities and is now focusing on enticing advertisers to the platform.
The report from The Wall Street Journal states that companies will have to pay at least $1,000 over the previous 30 days to maintain their verified status, which is represented by a gold checkmark. This is in addition to the $1,000 they already pay for the checkmark. However, there is some relief for certain advertisers. Business Insider reports that the platform’s top 500 biggest ad clients and 10,000 most followed corporate accounts will be exempt from the $1,000 monthly charge, at least until the end of this month. An email from Twitter states that these discounts are aimed at helping advertisers gain more reach during crucial moments on the platform.
Musk has justified the hefty monthly fee by stating that it will make it more expensive for scammers to create numerous accounts on Twitter. Despite Twitter’s financial troubles, Musk remains optimistic about its future. He believes the app will eventually become the most valuable brand on Earth.
In addition to the new ad charges, Musk has also made other changes to Twitter. The most notable change is the company’s new name, which is now simply referred to as X. However, it remains to be seen how this rebranding will affect the platform’s popularity and recognition among advertisers. Musk has also introduced a monetization model on X, allowing users to earn money from ads. Some users have already reported earning substantial amounts through this system.
As Elon Musk continues to implement changes in an effort to save Twitter, it is clear that the platform’s future remains uncertain. CEO Linda Yaccarino faces numerous challenges, including boosting employee morale following layoffs and increasing user engagement and revenue to compete with other social media platforms.