Page 81 - IMDR Journal 2025

Research Article
RECOMMENDATIONS & BEST PRACTICES safeguards are in place to protect these users, such as
transparency around sponsored content and robust age
The rise of user-generated content platforms has presented
verification.Concerns have also been raised about the lack of
content creators with new avenues for monetization, with
microtransactions emerging as a popular revenue stream. As transparency in content monetization, with many creators
content creators navigate this evolving landscape, it is failing to disclose sponsored or affiliate marketing
crucial to establish guidelines that balance the needs of free relationships to their audience. (Mathur et al., 2018) This
users with the sustainable growth of their content practice can mislead users, particularly younger audiences,
businesses.Firstly, content creators should seek to create a and undermine trust in the creator ecosystem.Platforms
diverse revenue model that maintains a strong free tier while should therefore implement clear policies and enforcement
strategically incorporating paid content and features. The mechanisms to ensure creators comply with relevant
"freemium" approach, where basic content and services are disclosure guidelines, such as those outlined by the Federal
provided for free while premium offerings are monetized, Trade Commission. (Mathur et al., 2018). Ultimately, the
has proven successful for many e-business ventures. ethical monetization of user-generated content must balance
(Günzel-Jensen & Holm, 2015) By establishing a robust free the interests of creators, platforms, and users. Platforms
user base, content creators can build a loyal following and should work to empower creators while also protecting the
rights and wellbeing of their audience (Goanță et al.,
leverage their audience to drive conversions to paid tiers.
2022).As the creator economy continues to evolve, ongoing
(Kırçova et al., 2020).However, the balance between free
and paid content is delicate. For content creators, it’s research and dialogue will be crucial to identifying best
essential to make sure that the free version of their offerings practices and ensuring a fair and transparent system of
is engaging and valuable enough to attract and retain a wide monetization. (Luca, 2015)
audience — but at the same time, it should still motivate
users to upgrade to paid features. Striking this balance is
critical. If the free version feels too limited, it may fail to CONCLUSION
build a loyal user base. On the other hand, if the free tier The rise of microtransactions in user-generated content
offers too much, people may see little reason to pay for (UGC) has significantly transformed the digital landscape,
premium features. As highlighted by Kırçova et al. (2020), offering new revenue streams for content creators and
getting this balance right is key to successfully converting platforms while raising important ethical and regulatory
free users into paying customers.In today’s fast-changing concerns. Microtransactions have become a leading
digital world, user-generated content (UGC) has completely business model across many digital platforms, transforming
reshaped how brands and consumers connect. One of the how content is created, shared, and monetized. This study
most notable shifts in this space is the growing use of emphasizes the vital role that trust and perceived value play
microtransactions — a popular strategy that allows brands to in shaping consumer behavior. Users are far more willing to
tap into the creativity and engagement of their audiences. spend on microtransactions when they trust the platform and
Microtransactions, which typically involve buying virtual feel that the digital items or features they're purchasing
goods or in-game items, have become an effective way for genuinely add value.While microtransactions can help
brands to boost user engagement and generate revenue. By boost user engagement and build a stronger sense of
giving users the ability to personalize and enhance their community, they also bring concerns. There’s an ongoing
experiences, microtransactions can deepen brand loyalty debate about the risk of creating a "pay-to-win"
and encourage more active participation in content environment, where those who can afford premium features
creation.As people continue to crave personalized, gain an unfair advantage, potentially excluding certain user
immersive experiences, it’s becoming increasingly groups and affecting both content quality and overall user
important for brands to find smart ways to leverage experience.As microtransactions continue to spread across
microtransactions in the UGC environment. The emotional digital spaces, they’ve sparked major ethical and regulatory
economy created by microtransactions — as seen with the discussions — especially around fairness, transparency, and
success of games like League of Legends — shows how the potential exploitation of vulnerable users. While some
these models can build a sense of reciprocity and emotional regulatory efforts have started to address these concerns,
connection between consumers and the content they engage more needs to be done to ensure platforms follow fair
with. (Jarrett, 2021).Moreover, the emergence of "celebrity practices and users are protected.This paper also points to a
avatars" has further underscored the appeal of possible shift in platform policies toward fairer, more
microtransactions, with consumers increasingly willing to inclusive revenue-sharing models, along with stricter rules
invest in virtual items and features to enhance their online to manage the impact of microtransactions on both content
personas and gaming experiences. The rise of user- quality and user satisfaction. Future research should dive
generated content has transformed the media landscape, deeper into designing more balanced revenue approaches
giving individuals a platform to create and share content. and exploring alternatives like crowdfunding or
However, as this creator economy has grown, so too have subscriptions to better support a wider, more diverse group
concerns around the ethical monetization of this of content creators.Moreover, ongoing collaboration
content.One key consideration is the potential for between platforms, content creators, and regulators will be
exploitation of vulnerable populations, such as children, crucial to navigating the challenges and opportunities in this
who may be involved in content creation either as rapidly evolving digital landscape. By finding the right
influencers or audiences. Platforms must ensure appropriate balance between monetization and maintaining a positive

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