Dreaming of becoming a KOL and earning billions.

Nguyen Lan Anh (born 1992) and La Quoc Quyen (born 1995), owners of the TikTok channel Quyen Leo Daily with 4.2 million followers, once astonished many KOLs and KOCs (internet influencers) with a livestream sales session lasting over 13 hours, achieving sales of 75 billion VND. Two months later, the couple continued to shock everyone by raking in over 100 billion VND with a 17-hour livestream.

The illusion of making money quickly.

It's not just Quyen Leo Daily; many KOLs' sales channels have recently been continuously announcing sales figures ranging from billions to tens of billions of VND after just one livestream session. On April 4th, TikToker Pham Thoai, with 4.7 million followers, achieved sales of 50 billion VND – the highest ever for this KOL. On the same day, the TikTok channel Ha Linh Official, with 4 million followers, achieved sales of over 30 billion VND. Many other sales channels such as Long Chun, Vien Vibi, etc., have also continuously recorded high sales figures.

Overwhelmed by the sales figures self-reported by these sales channels, many people dream of quitting their current jobs and building their own personal online sales platforms in the hope of getting rich quickly. This work is especially attractive because it requires no capital investment; simply organizing livestream sessions as affiliate marketing on e-commerce platforms allows them to earn 20%-30% of sales.

Mr. Luu Cong Tinh (Thu Duc City, Ho Chi Minh City) believes that KOLs (Key Opinion Leaders) can make money quite easily these days because they don't need millions of followers; they can simply earn 25-30 million VND per month by doing nothing, just by working through affiliate marketing. "Creating trending videos or livestreaming on e-commerce platforms, then linking to products, is quite simple and can generate a lot of money," Mr. Tinh commented, adding that he plans to quit his office job to pursue this career.

Meanwhile, NQQ, a KOL specializing in livestreaming fashion products on e-commerce platforms, said that livestreaming has entered a saturation phase for over a year now due to the increasing number of KOLs and KOCs. At this point, the demand for creativity is increasingly high in order to compete, and sometimes KOLs have to "act up" to create differentiation and attract customers to close deals.

"Income from livestreaming and affiliate marketing is unstable and depends on many factors such as the nature of the product, price, promotional vouchers, etc. If a KOL accidentally includes counterfeit or fake products in a video and gets exposed, they may have to quit the profession. Some KOLs have had to stop this work or start additional businesses outside of it," said Ms. NQQ.

Livestream selling is not a simple job or an easy way to make money; in fact, it can even be risky if you don't fully understand tax regulations.

Don't judge a book by its cover.

Mr. Do Quang Huy, Director of Ecotop - an e-commerce company, believes that some people lack understanding of affiliate marketing and only see the surface revenue without fully assessing the actual profit and income. Typically, livestream sales record a cancellation rate of 30%-40%, and when combined with costs for support teams or the technology companies behind the business, advertising expenses, taxes, etc., the actual amount received is not significant.

Furthermore, the sales pressure from Mega Livestream sessions (simultaneously broadcasting programs on multiple platforms) is immense. Even after a livestream session ends, if the cancellation rate is too high or user feedback is negative, it becomes very difficult for KOLs to collaborate with brands in subsequent sessions. Meanwhile, to achieve such high-volume sales through live streams, KOLs and their support teams must prepare extensively, spending a lot of time on everything from negotiating commission rates and prices, researching products, to working with e-commerce platforms to obtain discount codes… “Importantly, which KOL is chosen as the brand ambassador also depends partly on luck,” Mr. Huy pointed out.

According to the Director of Ecotop, those who livestream must possess quite special skills, such as knowing how to evoke "emotions to close deals," not simply turning on a computer and broadcasting live. "You can build yourself into a KOL to earn extra income, but you shouldn't risk jumping straight into this job," Mr. Huy advised.

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 reach 50%-60%. In addition, not all KOLs can negotiate a 15%-20% commission on total revenue; many only receive 5%-10% - before deducting advertising and personnel costs.

Citing the Mega Livestream on April 27th, where "agricultural product mogul" Vien Vibi brought in nearly 6 billion VND for a brand in just 8 hours, an e-commerce expert analyzed: This success is due not only to the KOL's capabilities, the selection of products that match their strengths, and their professional and dedicated work style, but also to the significant support of the technology company. The team behind the scenes provides support from setup to operation of the live stream, allowing the KOL more time to focus on researching products and creating videos, but of course, they also share in the revenue.

Be mindful of your tax obligations.

Mr. Tran Minh Hiep, M.Sc. - Head of the Advanced Training Program on Tax, Finance, and Accounting Consulting at the Tax Law Business Academy - advises KOLs and KOCs (Key Opinion Leaders) to thoroughly understand the legal aspects of transactions and tax and accounting obligations when livestreaming sales. First, it's necessary to identify three forms of sales commission on e-commerce platforms (affiliate sales): employment contracts (livestreaming sales for brands and receiving salary/wage); service contracts where a business representative signs a contract to provide livestreaming services or broker goods; and business cooperation in the form of sales partnerships, sharing revenue and profits.

If an employment contract is chosen, 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 fees with a progressive tax rate that can reach up to 35%. "If the nature of the transaction and the resulting tax obligations are not clarified, the amount of tax payable could even exceed the actual profit," lawyer Hiep warned.

Source: https://nld.com.vn/om-mong-lam-kol-kiem-tien-ti-19624051120215294.htm