Xiaohongshu, China's popular lifestyle-sharing platform, has become fertile ground for content marketing, with nearly 450 MCN (Multi-Channel Network) agencies operating on the platform. However, this rapid growth has brought challenges including low-quality content and fake engagement metrics. In response, Xiaohongshu has introduced an "MCN Health Score" system to regulate agency operations and maintain platform integrity.
1. Xiaohongshu MCN Commercial Certification: The Gateway to Monetization
Before understanding the Health Score system, agencies must first grasp the MCN Commercial Certification process. This verification serves as Xiaohongshu's "professional account" designation for agencies, enabling commercial activities like content collaborations through the platform's marketing system.
To qualify for certification, agencies must meet four requirements:
- Already registered as an MCN on Xiaohongshu
- Be a mainland China-registered company (excluding sole proprietorships)
- Maintain authentic content sharing and community interactions
- Deposit ¥20,000 (approximately $2,800) in security funds
2. The Health Score: Measuring Agency Compliance
Certified agencies receive an initial Health Score of 100 points, which functions like a credit rating for platform compliance. Violations result in point deductions that directly affect commercial privileges.
Major violation categories include:
- Inauthentic product recommendations
- Fabricated engagement metrics
- Contract disputes with brands
- Unfair competitive practices
- Platform reputation damage
- Violations of creator agreements
3. Penalty Structure: Progressive Restrictions
The platform implements tiered penalties based on Health Score thresholds:
- 80+ points: Warning with no functional restrictions
- Below 70: Public violation disclosure and increased security deposit
- Below 60: Loss of marketing platform access
- Below 50: Reduced visibility for affiliated creators
- Below 40: Frozen revenue and creator contract termination rights
- Below 30: Complete loss of monetization capabilities
- Below 20: Platform removal
4. Strategic Implications for MCN Agencies
The new system presents both challenges and opportunities for content agencies:
- Prioritize compliance: Strict adherence to platform guidelines is now essential for business continuity.
- Invest in quality: Authentic, high-value content receives platform preference.
- Strengthen creator relations: Transparent contracts and fair compensation prevent point deductions.
- Engage with platform programs: Participation in official initiatives improves standing.
- Maintain open communication: Proactive dialogue with platform representatives helps navigate policy changes.
Platform representatives emphasize that the system aims to protect legitimate operators from unfair competition by agencies using artificial metrics and deceptive practices. The health score mechanism provides graduated consequences rather than immediate penalties, allowing time for corrective action.
5. Implementation Timeline and Practical Considerations
The platform has established transition periods:
- 30-day grace period for existing violations
- 30-day window for certification before revenue withdrawal restrictions
- 90-day deadline before commercial feature limitations
Security deposits remain refundable upon business termination, provided no outstanding violations exist. Point recovery occurs gradually (10 points monthly) after violations cease.
6. Creator Protection Measures
The system includes safeguards for content creators:
- Advance notifications when agencies approach critical score thresholds
- Grace periods for contract termination
- Alternative payment channels when agencies withhold earnings
- Legal support for contract disputes
This dual focus on agency regulation and creator protection reflects Xiaohongshu's effort to balance platform governance with ecosystem health. The system's success will depend on consistent enforcement and transparent communication with all stakeholders.