Strategies to Avoid High Platform Fees | Guide for Influencers

Influencer marketing in LATAM continues to grow. According to Statista, influencer marketing spending in the region is expected to reach $370 million USD in 2024, reflecting brands' growing confidence in the power of influencers to connect authentically and effectively with local audiences.

A McKinsey report estimates that the live shopping market in the region will grow by 20% in 2024, as this format allows influencers to interact in real-time with their audience, showcasing products and generating immediate sales.

Additionally, content creation is expected to increase across multiple platforms this year, with influencers no longer limited to a single platform; they are active on Instagram, YouTube, TikTok, and more. A HubSpot report reveals that campaigns using multiple platforms are 45% more likely to be successful.

However, one of the biggest challenges influencers face is the high fees that platforms charge. These fees can significantly reduce their income and make it difficult to sustain their career as content creators. For example, popular platforms like YouTube, TikTok, Instagram, Twitch, Kick, Facebook, and OnlyFans retain a considerable percentage of influencers' earnings.

It's crucial for content creators to understand how these fees work and to seek effective strategies to minimize them. In this article, we’ll share practical strategies to avoid high platform fees, keep your finances up to date, and maximize your earnings through a company in the United States.

Most Used Platforms by Influencers in LATAM and Their Fees

YouTube:

‍YouTube is one of the most popular platforms for content creators in Latin America. The platform retains approximately 45% of ad revenue. This means that if a video generates $100 USD in ad revenue, the creator will only receive $55 USD.

TikTok:

‍TikTok has quickly gained popularity, especially among young people. The platform retains around 50% of the revenue generated by creators through its monetization program and virtual gifts. This can represent a significant reduction in influencers' net income.

Instagram:

‍Instagram, owned by Facebook, offers several ways to monetize, including paid collaborations and sponsored content. The fee can vary, but generally, Instagram retains around 30% of the revenue from sponsored content.

Twitch:

‍Twitch is a preferred platform for gamers and streamers. The platform retains 50% of follower subscriptions, in addition to a commission on ad revenue.

Kick:

‍Kick is an emerging platform that has started attracting many content creators. Fees can vary, but generally, Kick retains around 20-30% of the revenue generated by creators.

OnlyFans:

‍OnlyFans is a popular platform for exclusive content. It retains 20% of the revenue generated by content creators, which can be a significant amount depending on the volume of subscribers.

Facebook:

‍Facebook allows creators to monetize their content through ads and sponsored content. Facebook’s commission is approximately 30% of the revenue generated from video ads.

Recommendations for Keeping Your Accounting Up to Date

1. Keep a Detailed Record of Your Income and Expenses: Accounting is essential for any content creator who wants to maximize their income and minimize their taxes. A detailed record of all income and expenses will give you a clear picture of your financial situation and make tax preparation easier.
2. Hire an Accountant: A professional accountant can offer expert advice and ensure that you comply with all tax regulations. Additionally, they can help you identify tax deductions that can reduce your tax burden. At Prodezk, we offer free consulting services for influencers or content creators who want to pay less taxes.
3. Tax Planning: Planning your taxes in advance can help you avoid unpleasant surprises at the end of the fiscal year. This includes making estimated tax payments and taking advantage of any tax benefits available to content creators.

Benefits of Earning Money Through a U.S. Company

1. Tax Reduction: Creating a company in the United States can offer significant tax benefits. Depending on the state where you incorporate your company, you can take advantage of lower tax rates and specific tax deductions.
2. Asset Protection: A company in the United States offers greater protection for your personal assets in case of lawsuits or commercial debts. This is especially important for content creators who may be exposed to legal risks.
3. Access to a Larger Market: Having a company in the United States allows you to access a larger market and establish business relationships with U.S. brands and sponsors. This can increase your income opportunities and professional growth.
4. Increased Credibility: A company registered in the United States can enhance your credibility and professionalism in the eyes of brands and followers. This can facilitate negotiating more favorable contracts and long-term collaborations.

Frequently Asked Questions

1. What are the best platforms to monetize content in Latin America? The most popular platforms include YouTube, TikTok, Instagram, Twitch, Kick, Facebook, and OnlyFans. Each has its own advantages and disadvantages in terms of audience and fees.
2. How can I reduce platform fees? You can explore alternatives such as direct sponsorships, selling your own products, membership services on your website, or creating a company in the United States so that different platforms don't withhold money.
3. Is it difficult to create a company in the United States if I am a foreigner? No, it is a relatively simple process. There are specialized services that can guide and help you with the incorporation and legal compliance process.

Facing high platform fees can be a challenge for influencers in Latin America, but with the right strategies, it is possible to maximize your income and reduce your costs. Keep your accounting up to date, explore direct monetization options, and consider creating a company in the United States to take advantage of tax benefits and increase your credibility.

At Prodezk, we offer personalized service every step of the way, ensuring a hassle-free experience and successful registration for your company in the U.S.