Uncovered: The Actual Amount of Income Influencers Receiving from Token-Based Gifts
The transparency of six major social media platforms – Facebook, Instagram, Reddit, Snapchat, TikTok, and YouTube – in the realm of influencer gifting has been examined in a recent report.
The report reveals that token-based influencer gifting works by allowing users or brands to purchase virtual tokens or coins with real money, which they then send as virtual gifts to creators during live streams or other interactive content moments. Creators can convert these gifts back into earnings through platform-specific payout systems.
Across Platforms
TikTok, a leading platform in this practice, uses "coins," a virtual currency bought with real money. Users send these coins as virtual gifts to creators during live streams, which show up instantly and visibly to both the creator and viewers. Creators need to meet certain eligibility criteria to receive and convert gifts into real money. Transparency is moderate because users see who sent gifts, but exact platform policies on payout rates are proprietary.
Other influencer marketing platforms, such as Influencer Hero, Heepsy, and Influencity, support automated influencer gifting integrated with e-commerce platforms like Shopify and WooCommerce. These platforms automate sending gifts/products and collecting influencer-generated content. They provide built-in payout systems to handle influencer payments, though direct token-based gifting on social media platforms differs from these commerce-integrated gifting models.
Transparency and Payout Rates
TikTok does not publicly disclose exact payout rates from virtual gifts, but creators are paid at a rate lower than the purchase cost of coins due to platform fees and conversion policies. The transaction is transparent in terms of who sent gifts during live streams and the visibility of gifts, but the precise economics are somewhat opaque to users.
Platforms like Influencer Hero provide publicly clearer payout processes and automation within their ecosystem for influencer gifting tied to product campaigns and affiliate commissions. These platform payouts are integrated with vendor payments, making financial transparency higher for brands and influencers.
Key Findings
- Social platforms take cuts as high as 50% from the gifts sent to creators.
- Many companies only pay out when a certain balance has been reached (minimum $100 for Facebook, Snapchat, and YouTube).
- Other platforms typically have pay-out rates around 50%.
- YouTube has the best pay-out rates for creators, with them receiving 70% of gifts.
- Sending gifts opens new forms of communication between influencer and follower.
- The report found significant variation in transparency across the platforms, with Snapchat being the least transparent.
- The amount creators receive from different platforms varies, dependent on currency conversions and withdrawal fees.
- YouTube was found to be the most transparent platform, with clear communication of gift prices, a single token system, and easy-to-find pay-out information.
- There is a delay between the gift being sent and a creator receiving their pay-out.
Commentary
Lucy Ingham, Editor-in-Chief and Head of Content at our platform, is available for commentary and can offer more information about the research.
The report also reveals how much creators actually receive at the end of the gifting process. It assessed transparency across pricing, use of conversions, and pay-outs. Payments are made at a set date or window the following month.
Token-based gifting is a widely recognized practice across social media platforms. Our platform has published a report detailing the workings and payouts of token-based influencer gifting across six major social media platforms.
Technology facilitates the practice of token-based influencer gifting across social-media platforms, with entertainmentital playing a significant role in the engagement between influencers and followers. For instance, TikTok's use of 'coins', a virtual currency, is a common feature in such gifting, serving as a medium for users to show support and appreciation towards creators during live streams. On the other hand, platforms like Influencer Hero provide more transparent payout processes for influencer gifting tied to product campaigns and affiliate commissions, making entertainment transactions more understandable for both brands and creators.
