Instagram has announced that eligible Reel creators in the US can now accept virtual gifts from their fans. The feature will allow viewers to purchase virtual gifts, in the form of Meta’s in-app currency called “Stars”, which they can then use to donate money to their favorite creators.
According to Instagram, creators will receive a revenue share equal to $.01 USD for every star received from fans, which equates to around a 40% split based on the current Stars purchase price. To convert their Stars gifts into cash, creators must reach a cashout threshold of $100, which can include earnings from other monetization programs.
The virtual gifts feature is just one of the many ways for creators to make money on Instagram. It is part of a larger trend of short-form video platforms trying to figure out the best way to keep their top creators around. Competitors such as YouTube and TikTok have also launched their own monetization frameworks to help creators earn money from their content.
While the virtual gifts feature may not be the most lucrative option for creators, it does provide another means for users to earn money directly from their content on the app. Instagram says that eligible creators in the US can check their Professional Dashboard to see if they have access to the gifts feature and can start earning today. The feature will also be rolled out to more regions in the near future.
In conclusion, the virtual gifts feature is a step in the right direction for creators looking to monetize their content on Instagram. While it may not be the most significant source of income, it is still something that can help creators earn money from their work.
