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New Social Network Tsu — Which Pays Users Who Post — Raises $7 Million

Which Pays Users Who Post — Raises $7 Million —  New social network Tsu believes it can get you excited about seeing advertisements.  (Seriously!)  —  That's because Tsu, which launched on Tuesday with a $7 million investment led by Sancus Capital …

Re/code Kurt Wagner

Context & Ripple Effects

Tsu arrives mid-2014 amid a cluster of startups testing whether people will join networks that pay them directly: Datacoup launched earlier this year offering $8 a month for feeding it your Facebook, Twitter, and credit-card data, and in March Trusper raised $6.17M for its tips-based social app. Tsu's variant routes ad money back to the poster instead of keeping the full spread.

That puts it against an incumbent playbook set by Twitter, whose Promoted Trends monetization kept ad dollars inside the platform while content came free from users — the exact split Tsu's revenue-sharing model is built to disrupt.

First-order effects

  • Users posting on Tsu now receive a direct cut of the advertising their content attracts, making Sancus Capital's $7 million round the funding behind a network whose pitch to users is compensation rather than reach alone.
  • Tsu must convince both sides of its market at once: advertisers that paid placements still perform when users are being paid to post, and users that small per-post payouts beat the zero they earn elsewhere.

Second-order effects

  • Established networks face a pricing question on their own creator base: if paid-to-post alternatives gain traction, platforms that keep 100% of user-generated ad revenue have a visible counterfactual to defend against.
  • Advertisers gain a second bidding arena where inventory comes bundled with user engagement incentives, pressuring rates at networks that sell reach without sharing revenue.

Third-order effects

  • If paying users proves necessary to attract sustained content, social media shifts structurally from a free-labor model toward explicit revenue-sharing, forcing every platform to answer how much of user-generated value it can keep.
  • The open risk is whether per-user payouts scale below acquisition cost once the novelty premium fades — the same question hanging over Datacoup's flat monthly fee and Trusper's tip economy.

The trend: Social platforms are moving from monetizing user content centrally toward sharing ad revenue directly with the people who create it, with 2014's paid-data experiments as early tests of whether users follow the money.