After testing the option back in November, Instagram has recently announced that all eligible Reels creators in the US will now be able to accept virtual gifts from their fans via a new button that’ll show up on their clips. Instagram upping their “virtual gifting” game? Well, that’s interesting, considering that such a monetary format has been exemplified by completely different platforms (i.e. Twitch).
From IG to You
Instagram’s official overview shows that Reels viewers can purchase virtual gifts in-stream, at different price points, via “stars,” which is Meta’s newest in-app currency. Users can then use their virtual stickers as a donation tool to, well, donate and support their favorite creators. Just how much money are we talking about here?
“Viewers will purchase stars and use them to send you gifts on Instagram. Instagram will then provide you with a revenue share from your reels that received gifts on a monthly basis equal to $.01 USD for every star received from fans.”
One cent per Star. Okay, not the most stellar amount, but at least it’s something, right? This would also equate to an around 40% split to creators, based on current Stars prices, of course.
Creators will have to reach a cash threshold of $100, which can include earnings from other monetization programs, at which point they can convert their Stars gifts into cash. It may not be much, but it’s another way for creators, particularly Reels creators, to make money in the app, which has become a key battleground for short-form video platforms, as each tries to find the best methods to retain their top talents.
YouTube launched its Shorts monetization framework last September, which will see a percentage of all ad dollars generated by Shorts clips split between eligible creators. Meanwhile, TikTok continues to refine its options to get more of its stars paid. This could eventually be a key sticking point, especially as creators expand their followings, looking for the best opportunities to monetize their popularity, while they can.
The Wrap
Instagram’s donation feature seems like a lesser consideration in this respect, especially given the competition, but then again, it is something that will provide creators with another avenue to directly make money from their content. Never mind how much a Star is, if you remember the sheer scale and reach of Instagram, thousands of cents is still a relatively significant amount when summed up.
Instagram says that creators in the US can check their Professional Dashboard to check if they have access to Instagram gifts. If they are, then they can onboard to already start earning. Reels gifts will be coming to more regions soon.
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