The couple Nguyen Lan Anh (born in 1992) and La Quoc Quyen (born in 1995), owners of the TikTok channel Quyen Leo Daily with 4.2 million followers, once surprised many KOLs and KOCs (people with influence on the internet) with a livestream selling products that lasted more than 13 hours, reaching sales of 75 billion VND. Two months later, the couple continued to shock when they earned more than 100 billion VND with a livestream lasting 17 hours.
Illusion of making money fast
Not only Quyen Leo Daily, many KOLs' sales channels have recently continuously announced sales from billions to tens of billions of VND after just one livestream session. On April 4, TikToker Pham Thoai with 4.7 million followers reached sales of 50 billion VND - the highest level ever for this KOL. On the same day, TikTok channel Ha Linh Official with 4 million followers reached sales of more than 30 billion VND. Many other sales channels such as Long Chun, Vien Vibi... also continuously recorded high sales.
Overwhelmed by the sales figures self-announced by these sales channels, many people dream of quitting their current jobs and switching to building a personal platform to sell online with the desire to get rich quickly. In particular, this job is attractive because it does not require capital investment, just need to organize livestream sessions in the form of affiliate marketing on e-commerce platforms to enjoy 20% -30% of sales.
Mr. Luu Cong Tinh (Thu Duc City, Ho Chi Minh City) thinks that KOLs can make money quite easily nowadays because they don't need to have millions of followers, they just need to follow the affiliate model to be able to "sit around" and still earn 25-30 million VND/month. "The job of creating trending videos or livestreaming on e-commerce platforms, then attaching product links is quite simple and can earn quite a bit of money" - Mr. Tinh commented and said he planned to quit his office job to switch to this job.
Meanwhile, Ms. NQQ, a KOL who specializes in livestreaming to sell fashion products on e-commerce platforms, said that livestreaming has entered a saturation phase for more than a year now due to the increasing number of KOLs and KOCs. At this time, the demand for creativity is getting higher and higher to be able to compete, sometimes KOLs have to "act up" to create a difference to attract customers to close orders.
"Income from livestream and affiliate is unstable, depending on many factors such as product characteristics, price, promotional vouchers... In case KOLs accidentally attach fake or counterfeit goods to videos and are "exposed", they will have to quit their jobs. There are KOLs who have had to stop this job or have to do additional business outside" - Ms. NQQ said.
Livestreaming sales is not a simple job, easy to make money, and can even face risks if you do not have a firm grasp of tax regulations.
Don't look at the surface
Mr. Do Quang Huy, Director of Ecotop - operating in the field of e-commerce, said that some people do not understand affiliate activities, so they only look at the surface revenue without fully assessing the actual profits and revenue sources. Normally, selling via livestream records a cancellation rate of up to 30% - 40%, plus the cost of paying the support team or the technology company behind, advertising costs, taxes..., the actual amount received is not much.
Moreover, the sales pressure of Mega Livestream sessions (simultaneous broadcast of programs on multiple platforms) is huge. Even after the end of the livestream session, if the cancellation rate is too high or users give bad feedback, it will be very difficult for KOLs to cooperate with brands in the future. Meanwhile, to have such billion-dollar live sales sessions, KOLs and support teams have to prepare a lot of steps, taking a lot of time, from negotiating commission rates, prices, researching products to working with e-commerce platforms to get discount codes... "The important thing is that which KOL is chosen to be the face of the brand also depends partly on luck" - Mr. Huy pointed out.
According to Ecotop's Director, the person who livestreams must have quite special skills such as knowing how to push "closing emotions", not simply turning on the computer and livestreaming. "You can build yourself into a KOL to earn extra income, you should not recklessly jump into this job" - Mr. Huy recommended.
Mr. Nguyen Tung Giang, founder of G Investment Group - operating in the retail sector, said that the cancellation rate after a livestream session can even be up to 50% - 60%. Besides, not all KOLs can negotiate an income rate of 15% - 20% of total revenue, many only receive 5% - 10% - not including advertising costs, personnel...
Citing the Mega Livestream session on April 27, "agricultural tycoon" Vien Vibi brought in nearly 6 billion VND for the brand in just 8 hours, an expert in the field of e-commerce analyzed: This success is not only thanks to the capacity, choosing the right product for the KOL's strengths, professional and dedicated working style, but also has great support from the technology company. The team behind will support from installation to operating the live session, so the KOL has more time to focus on learning about the product and creating videos, but of course, the revenue will also be shared.
Be careful with tax obligations
MSc. Tran Minh Hiep - Head of the Intensive Training Program on Tax, Finance, and Accounting Consulting at the Tax Law Entrepreneurship Academy - noted that KOLs and KOCs must carefully study the legal factors related to transactions, tax obligations, and accounting when livestreaming to sell products. First, it is necessary to identify 3 forms of receiving sales commissions on e-commerce platforms (affiliates), including: labor contracts (livestreaming to sell products for brands and receiving salaries and wages); contracts in the form of providing services on the basis of representing business households and enterprises signing contracts to provide livestream services and goods brokerage; business cooperation in the form of sales cooperation, sharing revenue and profits.
If choosing the form of labor contract, e-commerce platforms will temporarily deduct personal income tax at a rate of 10%. At the time of annual tax settlement, individuals are responsible for settling taxes on all income derived from salaries, wages, and remuneration with a progressive tax rate of up to 35%. "If the nature of the transaction and the arising tax obligations are not clarified, the amount of tax payable may be greater than the actual profit," warned lawyer Hiep.
Source: https://nld.com.vn/om-mong-lam-kol-kiem-tien-ti-19624051120215294.htm
Comment (0)