Tati (GlamLifeGuru) had mentioned Luvocracy a few videos back. Since I trust her taste, but not her transparency with regards to alternative revenue streams off of YouTube, I wrote it off.
But as things spread on YouTube, because really you only need one Beauty Guru per social circle to like something before the whole group touts its excellence, soon Tati’s Beauty Guru friends like MissGlamorazzi and FleurDeForce featured this site in their monthly favorites videos for September as well.
Luvocracy is like a combination of Pinterest and Subbable. Pinterest lets users curate things they like. Subbable lets YouTubers showcase products that they like and makes them available for purchase through the site, giving YouTubers a commission from each sale. Luvocracy has a Pinterest like interface, but is open to everyone. Anyone can earn commission (2%) from a product recommendation.
This doubles to 4% if the person is someone you invited to join Luvocracy. The percentage is halved if someone re-recommends a product from you and a purchase is made through someone else. This halving goes on with ever level of removal from the original poster.
With a little bit of reading influencers with large bases can sign up for a version of Luvocracy where they can earn up to 10% commission off of sales.
Where this starts to seem brilliant on the part of Beauty Gurus is that they can make money for each other. Since Gurus in a social circle tend to try products their friends recommend anyway, they might as well just all sign up and purchase through that site from each other. This keeps the cycle of commissions flowing.
I signed up at got a $10.00 credit towards my first purchase from the site, not including shipping, fees, or taxes.
I am curious to see how long it takes for this recommendation to jump across Beauty Guru social circles. Will this proliferate throughout the whole vertical of Beauty on YouTube? It seems like it could because these women are tastemakers to begin with, and this site makes it easier for viewers to buy products in videos, past or present.
I will thoroughly explore the site and see what their is to see, but there seems to be some brilliance in this model of social consumerism.