YouTube has created a new way for creators to monetize their video content. The “Fan Funding” crowdfunding feature will act as a virtual tip jar, with YouTube taking 5 percent of any donations given.
According to Variety, the feature is currently available in the U.S., Australia, Japan and Mexico. A post on Google (YouTube’s parent company)’s support site reads, “Fan Funding is a new way to make voluntary payments to support the YouTube creators you love.”
The feature is currently enabled for desktop and Android and requires a Google Wallet account. “The vast majority of your voluntary payment goes to the creator,” the company adds. “YouTube takes a small fee to cover the cost of processing the transaction.”
Check out a demo here.
Variety points out that YouTube’s 5-percent fee is lower than the cumulative rates charged by other platforms like Kickstarter and Indiegogo.