Instagram Is Offering Creators Up To $20,000 To Bring New Users To The Mark Zuckerberg-Led Platform — Here's The Nitty-Gritty

Meta Platforms, Inc.'s (NASDAQ:META) Instagram is reportedly testing a new referral program that pays creators for driving traffic and sign-ups, with payouts as high as $20,000.

What Happened: Instagram has launched an invite-only referral program, called "Referrals," aimed at U.S.-based creators, reported Business Insider on Monday.

The limited-time test rewards eligible creators for getting people to visit Instagram or sign up for a new account through links shared off the platform, such as on TikTok, YouTube, a subsidiary of Alphabet Inc.'s (NASDAQ:GOOGL) (NASDAQ:GOOGL) Google, Substack, Discord or personal websites.

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There are two payment tiers:

• Some creators can earn $100 for every new eligible user who signs up via their referral link.
• Others can earn $100 for every 1,000 eligible visits to the app generated through their shared links.

Payouts are capped at $20,000, and the six-week pilot will run from May through June, the report said. Meta has partnered with a third-party provider, Glimmer, to facilitate payments.

Meta did not immediately respond to Benzinga's request for comments.

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Why It’s Important: This isn't Meta's first creator payout strategy. Earlier this year, it offered bonuses between $2,500 and $50,000 to lure TikTok creators to post exclusive content on Instagram.

ByteDance-owned TikTok also introduced a referral program last year that offered users shopping discounts and other financial perks for getting their friends to join the app, the report added (via The Information).

The initiative also comes as Meta faces scrutiny in a high-profile antitrust case brought by the Federal Trade Commission.

Price Action: Meta's stock dipped slightly by 0.0030% in after-hours trading, closing at $640.41, based on Benzinga Pro data.

According to Benzinga Edge Stock Rankings, META displayed a strong price trend across short, medium, and long-term periods. It held a solid momentum ranking in the 87th percentile, while its value ranking was moderately placed in the 76th percentile. Additional metric details can be found here.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.