Gamer Streaming Community Uses Early Payments as an Advantage
The gaming and streaming ecosystem is a big part of digital commerce. Whether it’s advertising or affiliates, monetization is an enormous part of how that ecosystem continues to thrive. Today, we’re witnessing live-streamed gaming becoming a significant form of legitimate media. Supporting this medium financially is what Seattle-based GawkBox is all about.
Becoming a financially-stable streamer online has become increasingly difficult as monetization options dwindle. GawkBox offers a solution to that issue through their unique, monetization-based streaming tool.
A Unique Business Model
Live streamers make their living from their audience, and most streamers rely on donations and support from their community. Recognizing this, GawkBox has created an innovative new way for audiences to support their favorite streamers without paying a cent.
Each streamer on GawkBox has a unique profile on the site filled with sponsored apps, advertiser surveys, and video ads called “sponsored offers”. When a viewer completes a sponsored offer from an advertiser, it results in a donation for the streamer, and the viewer gets their name live on-screen through GawkBox’s streaming toolset. This provides all viewers an option to donate and get noticed.
The Viewer gets noticed, the streamer gets paid, 100% free.
GawkBox’s community has grown to encompass content creators and streamers from around the globe, all collecting sponsored donations from their communities.
Says Andrew Allison, Co-Founder: “We’ve given unprecedented earning potential to streamers by giving them their own unique monetization tool filled with sponsored offers. Streamers gain the ability to monetize, and their audience donates for free.”
To summarize, money is traveling from the advertisers associated with GawkBox, to the streamers, based on their audience’s interaction with their GawkBox profiles.
It’s a complicated payment flow, to be sure. What makes it all work financially is Tipalti’s early payments and payables automation.
The Cash Flow Challenge
The advertising space has a well-documented issue of lag between advertisers and paying publishers and creators. A recent AdExchanger article discussed this very topic as it relates to DSPs and agencies. It’s a widespread problem that has plagued the industry. Advertisers often pay channels, networks, and others downstream in Net 30, or even Net 60 terms. At the same time, networks and vehicles like GawkBox are expected to pay publishers and creators in much shorter increments. It’s not possible to motivate your talent pool with fresh content and expect them to be willing to wait 60 days to be paid.
So, many networks have to choose: have enough cash on hand and weather the cash flow gap or risk their relationship with their creative partners by establishing long-lead payment terms.
For GawkBox, there was a better way. Knowing that Tipalti was good at mass paying creators quickly, they incorporated the company into their launch plans. What Tipalti enabled was an early payment capability that allows GawkBox to disclose set terms, but offer a shortened payment window in exchange for a small, dynamically generated discount. In this situation, Tipalti and its funding partners assume the risk and bridge the payment gap. And the results are very positive.
55 percent of their payees have opted for early payments. Other early payment programs, even the best in class, can usually hope to achieve a 5-percent adoption rate. But the frictionless approach in which Tipalti engages payees with an early payment offer, adding to the fact that Tipalti is also executing the payment, enables the GawkBox community to take part in this quickly and easily.
Adds Andrew: “Because of the level of payables automation, we’re able to take better care of our creators and streamers by providing them a very low monthly payment threshold – as little as $10 – plus the ability to access their money early if they’d like. Creators and streamers at times, can’t wait for net-60 payouts.”
Think you have what it takes to be a streamer?
GawkBox and Tipalti will both be at GDC this week. GawkBox will be hosting a 3-day happy hour at the W Hotel Bar. You can register for the event by CLICKING HERE and using the password: secretcode
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