TikTok recently announced that its $1 billion creator fund will come to an end on December 16th, 2023. This fund allowed creators in the US, UK, Germany, and France to monetize their content on the platform. However, TikTokers in Italy and Spain will not be affected by this change. The creator fund was originally launched in 2020 with the promise of paying out $1 billion over the course of three years to creators who made viral content on TikTok.
Despite the initial promise, influencers and content creators have expressed dissatisfaction with the low payouts from the creator fund. Some have reported earning just a few dollars for millions of views, making it nearly impossible to earn a living solely from the fund. It remains unclear whether TikTok has paid out the full $1 billion budgeted for the creator fund. The company declined to comment on this matter.
To address these concerns and provide higher payouts for popular creators, TikTok introduced a new monetization method called the Creativity Program in February of this year. Unlike the original fund, the Creativity Program requires creators to make videos longer than one minute, which is a significant departure from the app’s initial focus on short clips. Additionally, instead of publicizing a set pool of money, TikTok stated that earnings under the Creativity Program would be based on views and other engagement metrics.
Since the launch of the new monetization system, TikTok has been inviting eligible creators to switch over to the Creativity Program. According to TikTok spokesperson Maria Jung, creators can potentially earn up to 20 times the amount they were making under the original fund. This shift towards a performance-based model reflects TikTok’s commitment to rewarding creators based on their content’s engagement levels.
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It is worth noting that the decision to phase out the original creator fund was expected, as the program had a three-year commitment with a predetermined amount to distribute. However, creators who are currently part of the fund in the US, UK, Germany, and France will have the option to transition to the Creativity Program.
Earning money on TikTok has always been more unpredictable compared to other platforms like YouTube or Twitch. In response to the issue of low payouts, YouTube has introduced ad revenue sharing on Shorts, its TikTok competitor. This move allows creators to benefit from monetization opportunities and potentially earn higher revenues.
In conclusion, TikTok’s decision to end the $1 billion creator fund on December 16th, 2023, marks a shift towards a performance-based monetization model through the Creativity Program. While the original fund faced criticism for its low payouts, the new system offers the potential for creators to earn significantly more based on their content’s engagement levels. As TikTok continues to evolve as a platform, the company aims to provide more opportunities for creators to monetize their content and build sustainable careers.
