Actress Kim Kardashian West may have made her name by participating in reality TV shows, but her fortune came mostly from the photo and video sharing site, Instagram.
While Kim has a huge number of followers who visit her page on the social networking platform owned by “Facebook”, the electronic application itself does not get a large share of the profits that the beautiful star reaps, according to Bloomberg.
And the American magazine “Forbes” believes that Kim has joined the billionaire club in the world. Although the information was cited by the magazine as an official confirmation of Kim’s financial condition, it was ultimately the result of a series of estimates, such as the magazine’s previous estimates of her sister Kylie Jenner (23 years), which had previously classified her as a billionaire.
Regardless, there is no dispute that Kim, 40, is an extremely wealthy woman. Kim accumulated all that wealth by investing her fame in a media brand that helped her sell her products, not just by posting sponsored posts on Instagram. She also showcased products for “KKW Beauty” cosmetics, the brand she founded in 2017, as well as products for the “Skims” brand, the women’s underwear line that she launched a year later.
The Kardashian family used the online platform to collect money that the popular media industry could have earned through them. Back in the 1990s, when intrusive photographers (Paparazzi) were at their height, a photograph of a celebrity, while practicing his daily routine, could have cost 15,000 dollars, in exchange for selling it to popular newspapers and magazines such as “US Weekly” and People, the BBC said.
On their part, newspapers and magazines sold advertising space alongside those pictures, thus achieving huge profits, while the “Kardashian” family was able through social media to dispense with the role of “mediator” between them and the public, as “Instagram” allows them to publish pictures. That they control and are allowed to sell their own advertising space to brands.
Here, Nick Speller, Director of Strategic Affairs at the “Influencer” agency in London, commented: “It is a strange mixture, combined in one thing, that combines the media channel and the media content creator.” The result is that Kim Karychian can make $ 1 million for every publication sponsored by her, while paparazzi photographers are currently only getting between $ 5 and $ 10 for every photo that captures the daily lives of celebrities.
The Kardashian family’s use of the “Instagram” site is of great value to the online platform, as Kim attracts a great deal of participation from her 213 million followers, whom Instagram is able to display ads to them, noting that Instagram gets little. From the direct value of the material Kim publishes, as Facebook does not get a percentage of the value of any sponsored post, nor from the products that are sold as a result of those posts.
This is one of the reasons that led Facebook in 2019 to launch the “Instagram Checkout” feature, which allows merchants to sell their products directly through the site. The feature allows users to click on the trademark associated with the post and purchase it directly through the application, which allows “Facebook” to get 5 percent of any purchase made through the application.
However, the service temporarily stopped collecting these fees in the early period of the outbreak of the Coronavirus pandemic. It was a smart move to drive the adoption of Instagram Checkout at the very moment that more retail operations were switched online. More importantly, the feature allows Facebook to better understand how users buy products, and it is valuable information that allows its advertising business to better compete with the increasing ad offerings of Amazon.com.
Although KKW sells its products through Instagram Checkout, the SKIMS brand does not. In 2018, the company “KKW” achieved sales of $ 100 million. However, it was the sale of a stake in the SKIMS brand that raised Kim Kardashian West’s net worth to more than $ 1 billion.