Creators will soon be able to set up digital storefronts on Instagram. Facebook CEO Mark Zuckerberg made the announcement on Tuesday along with a slew of other monetization features. The company is trying to lure and keep influencers on its social media platforms amid stiff competition from the likes of TikTok and Twitter, which recently introduced a “tip jar.”
“If you have an idea that you want to share with the world, you should be able to create it and get it out there easily and simply across Facebook and Instagram and then earn money for your work,” CEO Mark Zuckerberg said. His keynote kicked off “creator week,” a three-day virtual event Facebook and its subsidiary Instagram are hosting for influencers, “designed to help them build their careers and personal brand, support their wellbeing, and connect them with their peers,” according to a company statement.
The digital storefront feature lets creators sell their own products, as well as link their accounts to Facebook’s existing merchandise partners (Bravado/UMG, Fanjoy, Represent and Spring). Facebook has said it will begin taking a cut of creator compensation in 2023, though Zuckerberg noted that its share will be “less than the 30% that Apple and others take.” Meanwhile, Twitter says it will not take any cuts for any tips that users receive on their platform. On Android, tips can also be sent within Spaces, which is Twitter’s live-audio chat feature.
According to a Twitter blogpost, since users “drive the conversation on Twitter”, the company wants to make it easier for them to “support each other beyond Follows, Retweets, and Likes,” and that’s why they are introducing Tip Jar. “This is a first step in our work to create new ways for people to receive and show support on Twitter – with money,”