Gifts for Reels
According to the Instagram blog, they’ve stated today that all US-based Reels creators who meet the requirements will now be able to accept virtual gifts from their fans via a button on their clips, following a test period that began in November last year.
As you can see from this overview, Reel viewers will be able to buy virtual gifts in-stream using Stars, Meta’s in-app currency, at various cash prices. They will subsequently be able to donate money to their preferred creators using their virtual stickers as a tool.
How much money? As per IG: “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.”
On the basis of the current Stars purchase price, that also translates to a creator split of about 40%.
Creators won’t be able to turn their Stars gifts into cash until they achieve a cashout threshold of $100 (which can include revenues from other monetization programs).
It’s an additional revenue stream for creators, and Reels creators in particular, on the app, which has developed into a crucial battleground for short-form video platforms as they compete to figure out how to best retain top artists.
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