X tells advertisers to spend $1,000 per month or risk losing verification status

Amid its rebranding to X, Twitter is reportedly hardballing advertisers in an effort to increase its bottom line. Reports earlier this month suggested that Twitter’s revenue had dropped by a staggering 50 percent. The company's latest strategy to increase revenue, according to The Wall Street Journal, is asking brands to spend at least $1,000 per month on ads in order to maintain their verified status on the platform.

Responding to a tweet about The Wall Street Journal’s report, Musk says that the "moderately high" cost is a preventative measure to help reduce the number of scammers creating "millions of accounts" on the platform. Musk added that brands could instead choose to pay $1,000 per month for the company’s verified organization badge.

It’s clear that Twitter is looking for ways to reduce its losses, and the company’s main source of revenue is advertising. The Wall Street Journal also reports that Twitter is slashing prices on some of its advertising slots. For example, Twitter is giving all new bookings a 50 percent discount through July 31st. The company claims that the point of these discounts is to allow advertisers to "gain reach during crucial moments" such as sporting events.

While the $1,000 monthly rate is unlikely to be an issue for larger brands, the new change could hurt smaller businesses that don’t want to or don’t have the extra budget to commit.