Social Media Is Social, But Its Business Model Is Not. Here's What Needs to Change

Social media, at its core, is radically different from all other forms of media. Unlike news media, entertainment media, or sports media — where content is created by centralised producers for mass consumption — social media flips the script. Here, users create content for users. It’s participatory, decentralised, and democratic in form.

But here's the contradiction: while the content model is social, the business model remains extractive and centralised. And this mismatch, I believe, is what lies at the heart of today’s growing disillusionment with mainstream social media platforms.


The Platform-User Mismatch

Social media companies still primarily make money the traditional way: by harvesting attention and selling it to advertisers. It doesn’t matter whether you're a niche creator building meaningful conversations or a rage-bait troll gaming the algorithm — if you generate engagement, you’re profitable.

But this has consequences:

  • Creators burn out or get algorithmically sidelined.
  • Trust in platforms erodes as sensationalism rises.
  • Users become commodities, not communities.

In short: the incentive structure is broken.


A Better Path: Let the Users Monetise, Let the Platform Support

What if we redesigned the business model to reflect the social nature of the medium? What if social media platforms stopped acting like digital landlords and started acting like infrastructure providers or agents?

Here's the model I propose:


1. Let Creators Monetise Subscribers

Creators — whether influencers, educators, writers, musicians, or niche community builders — should be able to attract paying subscribers directly on-platform. This model already exists in some places (YouTube memberships, Substack, Patreon), but it needs to become core, not peripheral.


2. Let Creators Monetise Advertisers

Platforms should give creators the tools to attract and manage advertisers — not just via algorithmic ad placement, but through direct sponsorships, storefronts, brand collaborations, or plug-and-play affiliate deals. Think of this as democratised adtech.


3. The Platform Takes a Cut

The platform earns a pre-agreed, transparent share from the creator’s paying subscribers and his/her advertiser/sponsorship revenue.

This makes the platform more like an agent or ecosystem enabler, not a controlling gatekeeper.


Content Stratification: A Win-Win Approach

You can balance reach and exclusivity with two tiers of content:

  • Ad-filled mass content: Available to everyone.
  • Exclusive, ad-free content: Available to paying subscribers.

This helps creators monetise both casual and dedicated audiences — just like TV has free-to-air and premium cable.


Why This Model Is Both Feasible and Inevitable

Here’s the part most social theorists miss: the tech is ready. Platforms already track:

  • Engagement rates
  • Click-throughs
  • Watch times
  • Follower demographics

All these can power micro-advertising exchanges, creator-specific analytics, and transparent revenue-sharing in real time.

Also.....

  • Smart contracts (via Blockchain/Web3) can make revenue splits automated and tamper-proof.
  • AI can help creators auto-generate ad pitches, edit video, or personalise subscriber content.
  • APIs can let external sponsors integrate directly with creator dashboards.

The only reason this model isn’t the norm is control — platforms fear losing narrative and financial power if creators become truly independent.

But here’s the paradox: those who empower their creators the most will end up winning. They’ll retain talent, attract audiences, and avoid regulation, all while being seen as ecosystem allies.


Beyond Business

This isn't just a smarter business model — it’s a civic good, because it.....

  • Undermines the platform’s monopoly on narrative control.
  • Enables trust-based, small-scale communities to thrive.
  • Makes space for diverse, non-algorithmic voices.
  • In a world where information warfare and attention manipulation are real threats, this model reduces systemic risk and builds information resilience from the ground up.


The Road Ahead and Final Thought 

Some platforms are inching in this direction:

  • Substack lets writers monetise readers directly.
  • X (Twitter) now offers ad-share and subscriptions, though inconsistently.
  • YouTube has partial tools for memberships and sponsors.
  • Patreon pioneered this for creators but remains siloed.

But no platform has gone all-in on this user-first, platform-as-agent model.

Yet.

If one does — or if a new entrant emerges with this architecture from the ground up — it could spark the next phase of the social internet. One that’s fairer, saner, and more sustainable for all.

Because if the people create the content, they should also drive the value — and keep a fair share of it.

This will not only make social media platforms more participatory, but also more democratic. This, in turn, will enhance democracy itself -- something all social media platforms claim to support. 


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