Thread by @gregarious

Social Tipping is growing in visibility as more social platforms are offering it as a method for creators to monetize.

The ecosystem is more complicated than it may seem and there are lots of implications. Sharing some thoughts 🧵.

Inspired by @chrismessina & @axios

1/ Axios recently reported on the convergence of creator monetization features, showing Social Tipping as the most prevalent capability.

axios.com/tech-creator-c…

2/ Social Tipping has emerged as a means of enabling direct fan payments, in an ad hoc manner, to creators whose content they enjoy and value. An "Access" method.

https://twitter.com/gregarious/status/1387063693549084672

3/ Social Tipping has a number of key benefits for creators:

- Native integration
- Variable amounts ease fan payments
- Real-time indicator of value

4/ Social Tipping also has its shortcomings for creators:

- Not available to all creators
- Non-recurring revenue
- Low-profit, high-fee vehicle

5/ “Creators have been fueling engagement on social media platforms for years, but only now that the creator economy is maturing are they actually able to make money directly from their fans.”

axios.com/tippng-creator…

6/ Social Tipping has a number of potential use cases creators should consider:

- Appreciation
- Insights
- Interactions
- Purchases
- Campaigns
- Community

6A/ Social Tips as Appreciation

Fans who can’t commit to a subscription may be great regular tippers solely as a means of appreciation for the creator and their content

6B/ Social Tips for Insights

Content can inspire new thoughts and ideas for our audiences, making any moment ripe for a token of appreciation or exchange of value

6C/ Social Tips for Interactions

Creators may offer the opportunity to drive the live experience using tips as bids for specific actions to be taken

6D/ Social Tips as Purchases

Tips can be used as a lightweight way to unlock specific resources or assets during published or live experience. Direct commerce would still be better.

6E/ Social Tips as Campaigns

Tips may be used by creators to unlock something of external or future value. For example, creators may do a review on a product based on raising the purchase price via tips.

6F/ Social Tips for Community

Never underestimate the power of belonging. Fellow fans tipping can and does often lead to additional tipping from the community. Hype Train, anyone?

7/ How does Social Tipping compare across platforms? A summary of the fees:

- TikTok Gifts (50%)
- Twitch Bits (40%)
- Facebook Stars (40%)
- Youtube Applause (30%)
- Instagram Badges (30%)
- OnlyFans (20%)
- Spotify (0%)
- Twitter Tips (0%)
- Clubhouse (0%)

0% = pass-through

8/ Some notes on platform implementations:

- Fee is based on what the fan pays
- 0% fees are actually pass-throughs to 3rd parties
- Usage indicates if used in live streams or otherwise

9/ @chrismessina posed some interesting questions regarding the impact of tipping on creator and fan behavior worth considering. Some early answers...

9A/ "Will the enabling system amplify the tip recipient's content in my feed? (Is it a Super Like?)"

For live experiences (50% of tipping uses) there already is premium placement and styling applied to tips. Twitch streamers also often incorporate tips into their stream UI.

9B/ "Will I slowly change my behavior to perform in such a way to earn more tips?"

It seems inevitable. Some creators have already designed overlays and other visuals to encourage them. Tips make for a good prioritization mechanism in busy environments.

9C/ "What kinds of social behaviors, at scale, will emerge as users perform for tips?"

Tipping culture is a well-worn method of value exchange. That said, they are unpredictable and lumpy making it hard to build a foundation on.

10/ Social Tipping is a lead generator for Social Subscriptions. Creators would be wise to invest in this conversion funnel from tips to subscriptions as they grow their businesses.

11/ This thread isn’t complete, as it leaves out all the startups and other tools enabling Social Tipping.

It would be great to know what else is missing!

Thanks to @sarafischer, her article was the thought-starter for a broader discussion on this topic!

Edit: I misreported on Youtube Applause eligibility requirements. it is currently in Beta. We're not sure what the actual limits will be, but may match those for Super Chat / Stickers.