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Monetizing UGC: Key Strategies and Mistakes To Avoid

You may have even started to collect it and post it on your social media platforms. But does that mean you are correctly monetizing it?

Rohin Aggrawal

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Introduction

Being a business leader or a social media/content manager at your company, you likely understand the value of user-generated content (UGC).

You may have even started to collect it and post it on your social media platforms. But does that mean you are correctly monetizing it?

Monetizing UGC isn’t just about gathering and using it. It’s a strategic approach that requires a deep understanding of the best ways to take advantage of it.

This ensures you reap the full benefits from your user-generated content while avoiding potential pitfalls, such as legal issues, copyright infringements, defamation, and violations of user rights.

This article explores the dos and don’ts of monetizing UGC. Our goal is to help you avoid missteps and empower your brand to use the power of high-quality user-generated content effectively. So, let’s begin.

What does Monetization of UGC mean?

When we talk about “monetizing user-generated content”, it may sound like a high-brow business term, but let’s break it down to its simplest form.

 

Think of UGC as a treasure chest of free opportunities your customers offer you. It’s all those Instagram posts, product reviews, tweets, and other content they create about your brand.

Now, the ‘monetization’ part is about unlocking that chest and finding ways to use these treasures to add value to your business. This value can take different forms depending on your business goals. Here’s how:

Sales:

You might use UGC to drive sales directly. For instance, a customer raves about your product on social media, and you share this post on your website.

This authentic testimonial can convince other visitors to buy the product.

Upselling:

UGC can help with upselling too. Let’s say you have an online clothing store. A customer shares a photo wearing a dress from your collection, paired with a handbag from their own wardrobe.

You could share this photo and recommend a similar handbag from your range, encouraging customers to add more to their cart.

Revenue:

Some businesses generate revenue by partnering with other brands. For instance, if you run a travel blog and your readers often post about their favorite travel gear, you could strike a deal with the manufacturers of this gear to earn a commission on sales generated from your platform.

Brand Awareness:

For some businesses, the primary aim might be to increase brand awareness. Sharing UGC can help you reach a wider audience, as users often share content they’re featured in with their own followers.

This brings new potential customers to your brand, growing your community.

Remember, the key here is to hoard these treasures (UGC) and strategically use them to meet your business objectives. How you monetize UGC should align with your overall business strategy and goals.

It’s not a one-size-fits-all approach but a tailored strategy that makes the most of the unique opportunities UGC offers your brand.

The right ways to monetize your user-generated content (UGC)

Capitalizing on the power of user-generated content can yield significant benefits for your business. Here are some effective strategies to ethically and successfully monetize UGC.

1# Obtain permission

Always ask users directly or establish a clear policy stating that any content shared on your platform can be used for promotional purposes.

Having explicit permission from the content creator before using their content is crucial. This not only builds trust but inspires customers by highlighting authentic content.

Pro tip: Use a UGC platform to simplify obtaining user permissions. It provides an organized system for reaching out to users, tracking responses, and storing permissions.

This ensures all UGC is legally compliant and ready for promotional use, helping build trust and inspire customers with authentic content.

2# Give credit

Tag the original creator when the content is shared. It’s often legally required, and it’s certainly a good practice.

By acknowledging the efforts of your users, you inspire them to engage more with your brand.

Pro tip: Use a UGC platform to automate the process of attributing credit. This functionality ensures that every shared content is automatically tagged or credited to the original creator.

By doing this, you comply with the law and foster an atmosphere of recognition and respect that encourages further engagement.

3# Set clear guidelines

Establish clear guidelines for the type of UGC you wish to use. These guidelines help steer the narrative and maintain your brand’s image. For instance, if you’re selling outdoor equipment, you might request photos of your products used in the wilderness.

Pro tip: Utilize UGC platforms to implement these guidelines effectively. They provide tools to filter and moderate user-generated content based on your criteria.

This ensures that only the content that aligns with your brand’s guidelines and image is used, showcasing your products in their truest form.

4# Respect privacy

Do not share UGC that may invade the individual’s privacy or disclose sensitive information. Always respect user privacy and ensure your content doesn’t reveal private or sensitive information.

Pro tip: Leverage UGC platforms to maintain user privacy. They have built-in tools to anonymize data or blur out sensitive information in user-generated content.

They can also ensure that only content that respects user privacy is selected for promotion, thus preventing any potential privacy breaches. This can lead to more positive buying decisions as users trust your commitment to protecting their privacy.

Avoid these mistakes when monetizing your user-generated content (UGC)

While UGC holds immense potential for monetization, it’s crucial to avoid certain pitfalls.

1# Neglecting to monitor UGC

It’s a pitfall to ignore the content that your users are creating. To maintain the integrity and image of your brand, establish a system that regularly monitors user-generated content.

This way, you can prevent the spread of content that may be off-brand, offensive, or harmful to your company’s reputation.

Pro tip: Use a UGC platform with built-in moderation and review tools to oversee and approve UGC before it gets linked with your brand or products.

This proactive step ensures that all the content aligns with your brand ethos and maintains a positive user experience.

2# Misrepresenting the original context

Avoid modifying UGC to misrepresent the original message or alter the creator’s intention. It’s essential to remain transparent and honest with your users.

Think of it as an art curator’s task: you wouldn’t alter a painting in an exhibit just to make it fit better with the theme. Similarly, you should preserve the ‘art’ of UGC in its original form.

Pro tip: Utilize a UGC platform to maintain this transparency. These platforms can assist in preserving the original context of the content while allowing for necessary adjustments to align with your brand image. The result? A balance between authenticity and brand synergy.

3# Over-commercializing UGC

Yes, the end goal is monetizing UGC, but authenticity is key. Over-Commercializing user-generated content can strip away its genuine, organic appeal, which is what makes it so influential.

Picture a bustling local farmers’ market that suddenly transforms into a sterile, corporate grocery store. The charm and appeal can quickly evaporate; the same can happen with UGC if over-commercialized.

Pro tip: Use a UGC platform to strike the right balance. These platforms can provide insights and analytics to help you understand your audience’s preferences and engagement patterns, thus enabling you to monetize UGC effectively without overdoing it.

The platform’s ability to incorporate UGC naturally and organically into your brand story can ensure it doesn’t lose its appeal and authenticity.

4# Ignoring Negative UGC

Not all UGC will paint your brand positively, and it’s a mistake to ignore or attempt to hide negative UGC. Instead, address it in an open, respectful manner.

This can boost your brand’s trustworthiness in the eyes of your users.

Pro tip: Use a UGC platform to address and manage negative feedback. Utilizing built-in response management tools, you can tackle negative UGC head-on, turning potential setbacks into growth and brand improvement opportunities.

Monetizing user generated content is a matter of respect and strategy

User-generated content (UGC) can be likened to a borrowed asset from your customers. Just as we endeavor to be respectful and considerate when we’re guests in someone’s home, we should apply the same principles when utilizing other people’s content

When we respect someone’s property, they are more inclined to invite us back. Similarly, when we correctly and ethically use a customer’s UGC, they are likely to continue sharing more, which further benefits our brand.

By staying ethical and using a professional UGC platform, you can effectively monetize UGC to boost sales, increase profits, and enhance your brand’s reputation, all while maintaining respect for the content’s creators.

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5) Do Interactive Live Streams For Product Launches

Interactive live streams on platforms like TikTok can be a dynamic way to launch new products. Imagine a small craft brewery hosting a live stream to introduce a new seasonal beer.

They could offer virtual tastings, answer questions in real-time, and even provide a virtual tour of the brewing process. This direct engagement with the community creates excitement and allows customers to feel involved in the launch.

A representation of how product launch live on TikTok appears [Source]

Benefit of this strategy

Live streams create a sense of event and immediacy, allowing customers to interact directly with the business and get immediate answers to their questions. It can build anticipation and create a buzz around the new product.

Challenge of this strategy

Managing a live stream requires preparation and can be technically challenging. Ensuring a smooth experience without technical glitches is crucial for maintaining viewer engagement.

Tips to ace this strategy

Do a test run with a smaller audience: Before the big launch, consider hosting a test live stream with a select group of loyal customers or friends. This can help you identify and fix any technical issues.

Collaborate with an influencer or host: If you’re nervous about hosting the live stream yourself, consider bringing in a local influencer or professional host who can guide the conversation and keep the energy up.

6) Utilize TikTok’s Duet and Stitch Features to Join in on Viral Trends and Expand Your Reach

TikTok’s duet and stitch features allow you to create content by responding to or adding onto existing videos. A small boutique clothing store, for example, could use the duet feature to showcase how they style a popular fashion item that’s trending.

By joining in on viral trends, you can tap into existing audiences and expand your reach.

A representation of TikTok’s stitch and duet videos on [Source]

Benefit of this strategy

This strategy allows you to engage with popular content and trends without having to start from scratch. It can increase your visibility and introduce your brand to new audiences.

Challenge of this strategy

Choosing the right content to duet or stitch with requires a keen understanding of your brand and audience. Aligning with a trend that doesn’t resonate with your business can feel forced or off-brand.

Tips to ace this strategy

Monitor trends that align with your brand: Keep an eye on what’s trending and identify opportunities that fit naturally with your business. For the boutique clothing store, this might mean focusing on fashion challenges or styling trends.

Engage with your community: Ask your followers what trends they’re interested in or if they have any requests for a duet or stitch. This can make the content more engaging and tailored to your audience.

7) Utilizing TikTok’s AR Filters For Branding

Utilizing TikTok’s AR (Augmented Reality) filters for branding can add a fun and interactive element to your marketing. Let’s say you run a pet supply store; you could create a custom AR filter that lets users virtually try on different pet costumes or accessories.

This not only entertains users but also allows them to visualize your products in a unique way.

A representation of how AR brand filters appear on TikTok [Source]

Benefit of this strategy

Custom AR filters can enhance brand recognition and provide an interactive experience that sets your business apart from competitors.

Challenge of this strategy

Designing an effective and engaging AR filter requires creativity and technical know-how. It must align with your brand and appeal to your target audience without being overly complex.

Tips to ace this strategy

Work with an AR designer who understands your brand: If you’re not sure how to create an AR filter yourself, collaborating with a designer who specializes in AR can help translate your brand into an engaging virtual experience.

Promote the filter through various channels: Once the filter is created, encourage your followers to try it out and share their experiences. You could even host a contest where the best use of the filter wins a prize.

8) Use Nostalgic Audio Clips or Songs to Trigger an Emotional Response in your Target Demographic

Music plays a vital role on TikTok, and using nostalgic audio clips or songs can be a powerful way to connect with your audience. For example, a vintage thrift store might use classic tunes from the ’70s or ’80s in their videos to evoke memories and emotions that align with their products.

This musical connection can create a deeper resonance with viewers who identify with that era.

A representation of this strategy in place [Source]

Benefit of this strategy

Nostalgic music can trigger positive emotions and memories, making your content more relatable and engaging for your target demographic.

Challenge of this strategy

Choosing the right music that genuinely resonates with your audience without feeling forced or clichéd can be a delicate balance.

Tips to ace this strategy

Research your audience’s preferences: Understanding the age, interests, and cultural background of your target audience can help you select music that truly resonates. For the vintage thrift store, this might mean focusing on iconic songs that were popular when their target customers were growing up.

Experiment with different audio options: Don’t be afraid to try different songs or clips to see what resonates best with your audience. Monitor engagement and feedback to find the perfect nostalgic tune for your brand.

9) Try Storytelling Through Series Content

Storytelling through series content involves creating a sequence of videos that together tell a cohesive story related to your business. For example, a local farm-to-table restaurant might create a series that follows the journey of a particular dish from the farm to the plate.

Each video could highlight a different stage, such as sourcing ingredients, preparation, cooking, and serving.

A representation of how storytelling series content work on TikTok [Source]

Benefit of this strategy

This approach can create a narrative that draws viewers in and keeps them engaged over multiple videos. It provides depth to your brand and helps customers connect with your values and processes.

Challenge of this strategy

Crafting a compelling story that flows across several videos requires careful planning and execution. The content must be engaging enough to keep viewers coming back for each installment.

Tips to ace this strategy

Outline the story before you start filming: Plan the entire series in advance to ensure a coherent and engaging narrative. For the farm-to-table restaurant, this might mean mapping out each stage of the dish’s journey and identifying key moments to highlight, such as sorting vegetables based on their ripeness.

Encourage viewers to follow the series: Use calls to action, such as asking viewers to follow your account or tune in for the next video, to keep them engaged throughout the series. You might also consider releasing the videos on a regular schedule to build anticipation.

10) Integration With eCommerce Through TikTok Shopping Tab

TikTok’s Shopping Tab allows businesses to link products directly within their videos, creating a seamless shopping experience.

If you run a small online clothing store, for example, you could create videos showcasing different outfits and then link the items directly within the TikTok app. Viewers can click on the products and purchase them without ever leaving TikTok.

Have a look at TikTok’s shopping tab [Source]

Benefit of this strategy

This integration simplifies the buying process, making it easier for viewers to purchase products they see in your videos. It can increase conversion rates by reducing the steps needed to make a purchase.

Challenge of this strategy

Setting up and managing the Shopping Tab requires some technical understanding, and it’s essential to ensure that the linked products align perfectly with the content in the videos.

Tips to ace this strategy:

Ensure your product listings are up to date: Regularly check that the linked products are in stock and that the information is accurate. For the online clothing store, this might mean updating the links if sizes or colors sell out.

Use clear and engaging visuals: Since viewers can purchase directly from the video, make sure your visuals are high quality and accurately represent the products. Consider using close-ups or different angles to show details.

11) Emphasize Sustainability or Social Responsibility

Emphasizing sustainability or social responsibility in your content can resonate deeply with customers who share those values.

For instance, a small eco-friendly cleaning products company might create videos showcasing how their products are made, the natural ingredients they use, and the ways they give back to environmental causes. This content not only promotes the products but also aligns with a broader mission.

To learn more about this strategy, watch this video here

Benefit of this strategy

This approach can build trust and loyalty among customers who appreciate and identify with your commitment to social causes. It sets your business apart as one that cares about more than just profits.

Challenge of this strategy

The messaging must be authentic and consistent with your business’s actual practices. Any perceived discrepancy between what’s promoted and what’s practiced can lead to mistrust.

Tips to ace this strategy

Show, don’t just tell: Instead of merely stating your commitment to sustainability, show it through behind-the-scenes content, interviews with team members, or visuals of your sustainable practices in action.

Engage with related causes and communities: Collaborate with or support local organizations that align with your values. For the eco-friendly cleaning products company, this might include partnering with a local environmental group for a cleanup event and documenting the collaboration on TikTok.

12) Use TikTok’s Creative Effects to Add Interactive Elements and Enhance your Brand’s Content

TikTok’s creative effects offer a range of interactive elements that can make your content stand out in the scrolling feed.

TikTok’s effecthouse beta lets you add some coolest video effects [Source]

If you run a small fitness studio, for example, you might use effects to add dynamic visuals to a workout video, such as animated arrows to guide movements or a countdown timer for intervals.

These effects can grab attention and add a professional touch to your content.

Benefit of this strategy

Creative effects can make your videos more engaging and visually appealing, helping to capture viewers’ attention as they scroll through their feed. It adds an extra layer of polish and creativity to your brand’s content.

Challenge of this strategy

Finding the right balance between enhancing content and overloading it with effects can be tricky. Too many effects might distract from the message or feel inauthentic.

Tips to ace this strategy

Experiment with different effects to find what works: Start with subtle enhancements and gradually add more as you see what resonates with your audience. For the fitness studio, this might mean trying different visual cues for different types of workouts. Ot scribble effect for zumba or aerobics workout videos.

Consider your brand’s aesthetic: Choose effects that align with your brand’s style and values. If your brand is fun and energetic, bolder effects might work well; if it’s more serene and mindful, subtler enhancements might be more appropriate.

This Absolute Resource Can Double down your TikTok marketing efforts

As you voyage on your TikTok marketing journey, consider exploring a UGC platform to further enhance your strategies. A UGC platform can:

Facilitate community engagement:

Idukki’s UGC platform allows you to curate and showcase user-generated content, fostering a sense of community around your brand.

By featuring customer testimonials, photos, or videos on a dedicated community page, you can create a space where customers feel valued and heard.

Features like comment sections and community voting can encourage interaction and engagement, building a loyal community.

Streamline content management:

Managing and organizing user submissions can be a complex task. Idukki’s UGC platform offers tools like content moderation, tagging, and categorization, allowing you to easily filter and organize submissions.

This ensures that only relevant and brand-aligned content is showcased, and you can quickly find and utilize the content that best fits your marketing campaigns.

Boost brand visibility:

Encouraging and sharing user-generated content through a UGC platform can create a viral effect, spreading awareness of your brand and products.

By hosting contests or challenges and featuring the winners on your website or social media through Idukki, you can incentivize more users to create and share content related to your brand.

This not only amplifies your reach but also adds authenticity to your marketing efforts.

Remember, the key to TikTok success lies in understanding your audience, being authentic, utilizing the right tools, and staying abreast of trends. Happy TikToking!

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