Facebook Stars is a new monetization feature introduced by Facebook in 2023 that allows creators to earn money from their followers. It allows fans to send direct payments to creators in the form of “Stars”, which are purchased by fans using real money. Creators can then cash out their earned Stars into real money. Here’s a detailed look at how the Facebook Stars payout system works.
What are Facebook Stars?
Facebook Stars are virtual goods that fans can purchase to show support and send rewards to their favorite creators on Facebook. 1 Star is equal to 1 cent (or currency equivalent). Fans can purchase Stars in bundles starting from 100 Stars for $1.99. The Stars appear as colorful animated icons and can be sent during Live streams or on creators’ posts as appreciation. Think of them as virtual tips or gifts that fans can send to creators.
How much do Facebook Stars cost?
Here are the Facebook Stars bundle options available for fans to purchase:
| Stars Bundle | Price (USD) |
|---|---|
| 100 Stars | $1.99 |
| 500 Stars | $9.99 |
| 1200 Stars | $19.99 |
| 5000 Stars | $74.99 |
The minimum Stars fans can purchase is 100 Stars for $1.99. The more Stars bought in a bundle, the higher the discount. Once purchased, fans can send these Stars to any creator as they wish.
How do creators earn money from Facebook Stars?
When fans purchase and send Stars to a creator, the creator earns real money. The amount earned equals the number of Stars received. For example, if a fan sends 100 Stars, the creator will earn $1 in local currency. If another fan sends 500 Stars, the creator will earn $5.
The earned money goes into the creator’s Stars balance. This is the total amount a creator has made from receiving Stars. Creators can check their lifetime Stars earnings in the Facebook Stars dashboard.
What is the Facebook Stars payout structure?
Facebook uses a tiered payout structure for cashing out on Stars earnings. The payout rate increases with the total lifetime Stars a creator has earned. Here are the tiers:
| Lifetime Stars Earned | Payout Rate |
|---|---|
| 0 – 4,999 | 100% |
| 5,000 – 9,999 | 110% |
| 10,000 – 24,999 | 115% |
| 25,000 – 49,999 | 120% |
| 50,000 – 99,999 | 130% |
| 100,000+ | 140% |
For the first 5,000 Stars earned, the payout rate is 100%. Meaning for 100 Stars received, the creator gets $1 when cashing out. Once they cross 5,000 lifetime Stars, the payout rate increases to 110%. Now for 100 Stars earned, they get $1.10 on cashing out. This keeps increasing up to a maximum of 140% as they earn more Stars.
How often can creators cash out their Stars?
Creators can cash out their Facebook Stars balance at any time, as long as:
- They have a minimum of $10 in pending Stars earnings
- Their account is in good standing and adheres to Facebook’s monetization policies
There is no limit to how often creators can cash out. Whenever their Stars balance crosses the $10 minimum threshold, they can submit a payout request. Payouts are processed within 30 days after review.
How do creators get paid?
When cashing out Stars, creators can choose to get paid through:
- Direct deposit: The money is directly deposited into their connected bank account. This is the fastest and recommended method.
- PayPal: The payout is sent to the creator’s linked PayPal account.
- Payoneer: Creators get paid into their Payoneer accounts, which allow them to receive funds globally.
To begin receiving payouts, creators have to set up their payout account method in the Facebook Stars dashboard. They can choose between the above options based on what works best for them.
Are there any fees for cashing out Stars?
There are no fees for cashing out your Stars balance. Facebook pays out 100% of your pending Stars earnings after applying the boost rates. However, depending on your payout method, there may be some associated costs:
- Bank transfer: No fees, but may take 1-5 business days to reflect in your account.
- PayPal: Standard PayPal fees apply, which is generally 2.9% plus a fixed fee per transaction.
- Payoneer: Small transaction fees may apply. Payoneer also charges currency conversion fees.
For the fastest, most convenient payouts, direct bank transfer is recommended. However, creators can choose whatever method works best based on their region, currency, and circumstances.
Are there any minimum requirements to cash out Stars?
To be eligible to cash out Stars earnings, creators need to:
- Have a Stars-enabled monetized account in good standing
- Complete identity verification and tax info
- Have at least $10 in pending Stars earnings
- Have a connected payout method – bank account, PayPal or Payoneer
These requirements ensure only genuine, authorized accounts are able to redeem Stars payments. Creators can check if their account has access to Stars in the Facebook Stars dashboard.
When do creators get their Stars payouts?
After a creator requests a payout, it takes the following time to receive the money:
- Review period: Facebook reviews the payout request within 30 days.
- Processing time: Once approved, payouts are processed in 1-5 business days.
- Bank transfers: Can take an additional 1-5 days to reflect in bank accounts.
- PayPal/Payoneer: Funds directly deposited into the connected account.
So the total time from requesting a payout to receiving the money can range from a few days to over a month, depending on the method. Bank transfers take the longest while PayPal/Payoneer are processed faster.
Can creators lose their earned Stars?
Creators cannot lose Stars that fans have sent them. However, Facebook reserves the right to disable accounts found violating its monetization policies. In such cases, an account’s pending Star balance is lost.
To avoid losing Stars earnings, creators should ensure they:
- Comply with Facebook’s Community Standards and monetization guidelines
- Maintain an authentic, active account in good standing
- Don’t violate any terms, promote illegal content, or artifice engagement
As long as creators maintain their accounts responsibly and ethically, their Stars earnings are secure. Facebook performs routine checks before approving creator payouts.
Do creators need to pay tax on their Stars income?
Yes, Facebook Stars earnings are considered taxable income in most jurisdictions. Just like with advertising revenue, creators are responsible for paying relevant income taxes on any Stars income they generate.
When setting up their payout method, creators have to submit tax information like SSN, TIN or ITIN. Facebook will issue a 1099 form if a creator earns over $600 in a calendar year from Stars.
It’s advisable for creators to diligently keep records of their Stars income and consult a tax professional to correctly file taxes and pay owed tax on their earnings.
Conclusion
Facebook Stars provides an exciting new way for creators to monetize their content. Fans can directly reward their favorite creators by sending Stars during Live videos or on posts. Creators can then cash out their Stars balance for real money via bank transfer, PayPal or Payoneer.
The system is designed to be simple, transparent and rewarding for both creators and their communities. As Facebook Stars rolls out to more countries and creators, it could become a significant revenue stream for many. But creators must ensure they comply with tax obligations and Facebook’s policies to fully benefit.
Overall, Facebook Stars is poised to transform content monetization by empowering creators to build deeper connections with their most dedicated fans. The direct payment mechanism aligns incentives and provides a sustainable source of income for creators of all sizes.