TikTok, the popular short-form video-sharing platform, is known for its community of content creators. To support these creators and incentivise their contributions, TikTok’s Creator Fund was introduced in 2020. However, recent developments have signalled a shift in this approach, with the company planning to discontinue the fund in select countries including the US, UK, Germany and France. It also stated that it wants to pave the way for a new program, the Creativity Program. Let us understand how this move will impact the TikTok’s creators who rely on the platform for their income.
The Creator Fund
The TikTok Creator Fund was introduced in 2020 as a means to compensate content creators for their viral content on the platform. With a total commitment of $1 billion over a period of three years, the fund aimed to financially reward eligible creators based on specific metrics. These metrics included video views, video engagement, and adherence to community guidelines and terms of service. Eligible creators were granted monetary rewards for their contributions to the platform, which was expected to help them earn a living through TikTok.
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Rollback of the Creator Fund
TikTok has recently announced that it will discontinue the Creator Fund in select countries, including the United States, the United Kingdom, Germany, and France, starting on December 16, 2023. This decision follows backlash from creators who expressed dissatisfaction with the fund’s payouts. Many creators reported earning minimal amounts, often just a few dollars, despite amassing millions of views. Furthermore, there were concerns about the transparency of the fund, with creators questioning whether the full $1 billion had been distributed.
Impact on Creators
Even with several issues in place, yet the rollback of the Creator Fund could have several notable implications for content creators on TikTok.
Financial Stability
Many creators relied on the Creator Fund as a source of income. Its discontinuation may disrupt their financial stability, especially if they were earning a significant portion of their income from TikTok. This change forces creators to seek alternative revenue sources.
Uncertainty
The shutdown of the Creator Fund and the rollout of the Creativity Program introduces a new monetisation system, which may create uncertainty among creators regarding how they will adapt to this change. Creators will need to understand and navigate the new program’s requirements and metrics and adjust accordingly.
Potential Earnings
While TikTok claims that the Creativity Program will offer higher payouts, creators may need time to adjust to the new criteria which might impact their potential earnings. Earnings now would be based on views and engagement metrics, which might require changes in content creation strategies.
The Creativity Program
To replace the Creator Fund, TikTok is introducing the Creativity Program. This new program is designed to offer creators the opportunity to earn up to 20 times more than what they were making under the original fund.
To enrol in the Creativity Program, creators must meet specific eligibility criteria, which include being at least 18 years old, having a U.S.-based account, and having a minimum of 10,000 followers with at least 100,000 video views in the last 30 days. Unlike the Creator Fund, the Creativity Program requires creators to make longer videos, a departure from TikTok’s initial focus on short clips. Earnings in this program are based on views and engagement metrics, rather than a fixed fund.
The discontinuation of TikTok’s Creator Fund and the introduction of the Creativity Program could be an indication of the platform’s commitment to adapting and evolving its monetisation strategies. While the Creator Fund faced criticism for its low payouts and transparency issues, the new program aims to provide creators with higher earnings and a more transparent system. The impact on content creators remains to be seen, but the transition to the Creativity Program represents a significant shift in the TikTok ecosystem, one that is sure to be closely watched by both creators and TikTok enthusiasts.
