You Won’t Believe How Much YouTube Creators Can Earn With This New Feature

YouTube has unveiled its latest monetization tool called "Gifts powered by Jewels," a virtual gifting system designed specifically for vertical livestreams. This feature allows fans to purchase "Jewels," an in-app currency, which they can then exchange for virtual animated gifts sent to creators during live broadcasts.

The Jewels system closely mirrors popular tipping and gifting features found on rival platforms like TikTok and Twitch. Viewers buy Jewels in bundles ranging from $0.99 to $49.99. These Jewels are then spent to send virtual gifts, which appear as vibrant animations directly on-screen, enhancing viewer-creator interactions.

For creators, these gifts translate directly into revenue through "Rubies," another in-app currency. Each Ruby earned by creators equals one cent, with YouTube guaranteeing this fixed payout per Ruby. Thus, 100 Rubies amount to $1. Importantly, YouTube’s share is flexible since the price of Jewels to viewers can vary during promotional events, potentially incentivizing more viewer participation without impacting creator earnings.

Initially available only to creators in the U.S. who are part of the YouTube Partner Program, Jewels is limited to vertical livestreams on the mobile app. Creators must agree to YouTube’s Virtual Items Module terms to activate this feature. To promote the adoption of Jewels, YouTube has introduced limited-time incentives, including a 50% bonus in Rubies earned from gifts for eligible creators through early 2025.

From the viewer’s perspective, Jewels enhance engagement by making livestream interactions more dynamic and visually exciting. The real-time animated gifts encourage spontaneous interactions, strengthening the bond between creators and fans. This feature taps into the growing trend of interactive livestreaming, offering viewers recognition and community participation.

YouTube’s introduction of Jewels comes as a direct response to similar successful monetization models on platforms like TikTok, which has seen substantial revenue generation through live gifting. Twitch also employs a comparable "Bits" system, demonstrating the popularity and profitability of these virtual currencies.

Strategically, Jewels align with YouTube's broader ambition to bolster creator retention and revenue by expanding monetization options. The feature provides another layer of income alongside ad revenue, memberships, and Super Chats, effectively solidifying YouTube’s position as a comprehensive monetization platform for content creators.

Looking forward, the company has hinted at the potential expansion of Jewels to other formats and international markets depending on user reception. By adopting and refining the proven virtual gifting model, YouTube aims to capture more of the creator economy, offering viewers innovative ways to support their favorite streamers.