There is a speech that says you prefer 50% of something is better than 100% of nothing. Although this doesn't apply literally, the meaning does.
Let's start defining what is Premium Snapchat:
Premium Snapchat is when a person sets up a premium Snapchat account, which is a term commonly used to mean they share content in return for cash. Premium Snapchat accounts are not officially recognised by Snapchat, so account owners have to work out the transaction method themselves.
If you don't see the obvious limitations, please continue this reading.
How does a Premium Snapchat work?
A content creator creates a private story and starts advertising by their own means.
At some point, a fan shows interest; after agreeing about the price, other subscription details and the kind of content.
After the payment is done, the content creator manually includes that fan into the private story.
Is Premium Snapchat illegal?
Premium Snapchat is a surprisingly popular way for anyone to make money with explicit photos and videos. It's not illegal to do this whole Premium Snapchat thing unless any parties involved are underage.
Where are the Challenges or Limitations of running a Premium Snapchat?
Although having a Premium Snapchat has the big advantage of only paying the fee imposed by the payment method, there are some challenges:
- The billing: Unless you are into giving lifetime subscriptions you will end doing more management tasks than content creation-related. This may impact your customer retention as time is limited and usually content creators have other occupations (day job, school, family and others).
- Trust: Maybe a big one. There are many horror stories of content creators that get the payment from naive fans and because the payment method won't allow chargeback, they just get banned. This doesn't mean all content creators are dishonest, but, commonly, the mistakes of the few are others' paid.
- Customer reaching: You can only bill people who have a common way to send a payment and receive it. Here there are some examples:
- PayPal is not a good idea; it is very easy to request chargeback and its policies are against adult content, content creators will lose any case.
- Venmo is only available in the US; unless you live in the US and you are only interested in that market, then it is the way to go.
- INTERACT eTransfer is only available in Canada; it is the same case as Venmo, both parties must have access to a Canadian bank account.
- Amazon gift cards are global; if you are okay buying only from the Amazon catalogue which is not cheap and you knowing you can't pay a bill with gift cards, this is the way to go.
Payment Method Trivia
What is the payment method that most people have? Credit card and/or debit card.
Why is hard to charge back a credit or debit card? If the charge is done properly, the user of the credit card not only must know the 16-digit number, but also de CVC number, the expiration date, and the postal code. Some carriers add some extra security, they verify that the country of the source IP of the user must match with the credit card country.
Why do Fans not like lifetime Premium Chat Subscriptions?
A lifetime subscription to a private story of a gorgeous content creator for $40 sounds very attractive, isn't it? Yes, but it is a high-risk transaction. Although a given content creator may be very honest and it is willing to honour its word about the lifetime, Snapchat policies are against adult content.
When Snapchat bans an account, unless that given content creator had a list of their paid fans, there is no way the old friend list could be retrieved; there for the access to the private snapshot story is lost.
After losing an account, Content creators just sign up for a brand new account and create another story. It is up to the good memory and the good willingness of the content creator to honour the old membership when a fan finds them, which is very likely because a content creator will advertise in the same channels where they found their former subscribers.
Because of the risk of losing access, many fans are preferring having to pay 12 monthly payments of $5 each than a single lifetime subscription of $40. Also, for a content creator, it is way better to have a 5$ constant cash flow, than a unique 40$; it keeps them motivated to create better content.