This App Pays People When Their ‘Liked’ Items Sell on Social Media



The e-comm platform is free for retailers—for now

Social media influencers now have another way to make a little extra dough—and retailers have another digital stage to present their merch on. A new app, KULT iD, pays out to social media users who “like” items that their friends end up buying. 

Like most e-comm social media apps, this one works only if people actually sign up for it and download it. Here’s how it works: Retailers partner with the app (sign-up for vendors is free right now but won’t be soon, says KULT Labs chief operating officer, Michael DeRaffaele). Shoppers like an item on the app, and if a friend in their network purchases the item, they get a cut.

The percentage payout varies by vendor, but a typical agreement is a 20 percent payout on the purchase price, and that percentage gets split between KULT Labs and the user. So for example, if a user posts a gorgeous necklace that retails for $300, and their tag generates a sale, the vendor pays the $60 in commission and the user gets $30. 

It’s the first consumer-facing affiliate program I’ve heard of, and in the Instagram age—where individuals can be as (or more) influential than brands—it makes perfect sense. 

KULT iD is also attractive for brands, since the app neatly inserts them into those blurred lines between social chatter and e-commerce. But for it to be worthwhile for both marketers and users, the app has to catch on with consumers and eventually net a robust community of social devotees who consistently buy on mobile devices. 

“We are harnessing the best aspects of social media with the growing demand of online shopping,” says DeRaffaele. “The users share the message—the users are the billboard. What this means for the brands is increased customer loyalty, lower cost of customer acquisition, and more customers.”   

KULT iD is currently available for iPhone users only, but the Android version is set to launch in February 2016. You can set up your own shingle on the app, risk-free, at store.kultid.com. 

(Courtesy KULT iD)

JCK Magazine Editor