Instagram is testing a “Gifts” monetization feature for creators
The new creator monetization tool could replace Meta's $1 Billion creator fund that's set to end this year.
Instagram is internally testing a new tool for creators to make money called “Gifts.”
What it looks like. The new feature was first shared on Twitter by developer Alessandro Paluzzi.
Tipping. Not new on social platforms. Instagram is not the first platform to try tipping. In fact, Facebook, Instagram, and TikTok already have tipping tools in place for creators to further monetize their platforms.
- Facebook Stars. Live stream viewers can buy stars and send them to creators as they’re streaming. For every star received, Facebook pays only $0.01 USD.
- Instagram Badges are a feature that allows users to show support to creators during a live video. Viewers can purchase in $0.99, $1.99 and $4.99 increments. Badges come in different price tiers between $1 and $5 and Meta will not take a cut of the revenue creators earn from Badges until 2024
- TikTok tips. Users can send TikTok creators a monetary tip on their profile. The creator will receive 100% of the tip amount (Stripe, our payment provider, fees may apply). TikTok doesn’t take any fees from tips
Creator tool graveyard. Last month Instagram shut down its affiliate program after a year of testing. The program allowed influencers to earn a commission for products they helped sell through tagged posts or live videos.
Facebook is also ending its $1 billion pledge to creators they committed to through 2022. In a statement, Facebook CEO Mark Zuckerberg said, “Investing in creators isn’t new for us, but I’m excited to expand this work over time.”
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Read more. You can read the full article from Business Insider here.
Why we care. Additional ways for creators to earn revenue is good news for both the creator, as well as the brands they're advertising. Creators may feel more incentivized to promote brands on their live feeds if they know they'll be earning additional revenue outside their initial agreement.