In an effort to further diversify the Weibo ecosystem or perhaps an attempt to stem the flow of user share to WeChat which has amassed over 500 million users in a few short years, Sina is introducing tipping and paid subscription functions in Weibo to provide new mechanisms for their users to monetize their content.
The tipping function, called Da-Shang in Chinese, is still in its public testing stage since August. If a reader enjoys a Weibo post, he/she has the option to tip the author by whichever amount she sees fit by clicking the tipping button. The transaction is completed using online payment system Alipay.
The concept of tipping is not new. Watching a street performer and tipping him on the way out is a common behavior practiced across many cultures. This online tipping for a virtual performance provides an additional monetization mechanism for personal media within the ‘fan economics’ framework. The current Weibo platform provides opportunities for users to make money via ad placements and product sales posts.
So far Sina is limiting the eligibility of this functionality to verified personal accounts with less than 5 million followers and fewer than an average of 3 million views a month. The move is apparently to prevent the ‘Big V’ accounts (verified accounts with huge followings) from completely taking over the market opportunity and create some protected space for medium to small accounts to establish roots.
Whether tipping will turn out to be a killer function remains to be seen. Early results revealed that, not surprisingly, well known personalities are the first ones to take advantage of the new function. One of the top 10 contenders in a 2013 male singer contest posted a download link to his new song and reportedly collected RMB 100,000 in less than three hours and completed 8,000 paid transactions on the first day. The average tip received was RMB 17.6, nine times the owner suggested price of RMB 2.
Another stock advisor account with a mere fan base of 3,400 showed off his record single tip of RMB 6,000. The tipping amounts vary substantially from 2,000, 600, 100, 50 to as low as 8, with the vast majority less than RMB 20, says the account owner.
The early results from Weibo’s paid subscription service, also test launched at the same time as Weibo tipping, are also quite interesting. One domestic stock advisor with an annual subscription price of RMB 2,400 claimed to receive over RMB 100,000. A similar account providing stock advisory service for the US stock market charging RMB 5,888 a year claimed to receive RMB 80,000 at the time of the report.
Sina’s latest move is perceived by some as an attempt to slow or reverse the massive shift of user activity from Weibo to WeChat. Whether this would convince the opinion leaders and social media personalities to keep Weibo as the social media platform of choice remains to be seen. As it is common for users to have both Weibo and WeChat accounts, it is expected that the same content would appear on both channels owned by the same person. It is questionable whether tipping would become a mainstream behavior when Weibo is not the exclusive channel where the content can be read.
For most users and enterprises, Weibo and WeChat serve different purposes with content marketing being one area where the two channels overlap. It is unlikely one would choose one platform to the exclusion of the other. The maturing of WeChat will provide both challenges and opportunities for businesses trying to reach out to their customers in an increasingly fragmented social media environment.