TikTok is scrapping its $1 billion creator fund monetization program in favor of a revamped model in which the social media giant pays out up to 20 times more than traditional creator funds.
TikTok's Creator Fund, announced in 2020, had a $1 billion pool that would be paid out to participants over three years as content creators monetized their video content on the social media app. Creator Fund had come under fire from content creators for its low payouts, with many users turning to deals with brands to generate income.
New program promise Users have the potential to earn 20 times what they were able to earn previously.
“The Creativity Program was developed based on the learnings and feedback we received from the previous Creator Fund,” a TikTok spokesperson said.
“As we continue to develop new ways to reward creators and enrich the TikTok experience, we value feedback and first-hand insights from our community to inform our decisions.”
The new program follows in the footsteps of YouTube. Long-form content is prioritized and only videos with a running time of 1 minute or longer are eligible for compensation. Another important requirement isSince TikTok's trends and its algorithm often revolve around trending viral song snippets, creators can only monetize their videos with royalty-free music, which is a pain point for many users.
TikTok content monetization requires users to be 18 years or older, have at least 10,000 followers, and have at least 100,000 views within 30 days to be eligible for the creative program.
Content creators receive RPM (Revenue Per Mille), which TikTok says is calculated based on a variety of factors, including engagement, authenticity, where the video is viewed, and adherence to community guidelines. RPM is the amount paid for every 1,000 “qualified” views. Users must watch for a certain amount of time for RPMs to count. For example, if a user's RPM is $0.50 and he gets 100,000 views, he will earn $50 for the video.
TikTok says The Creativity Program is designed to help you create long-form, high-quality videos and unlock real-world opportunities. You could potentially earn up to 20 times more than the Creator Fund was previously offering.”
Alongside its push for long-form content, TikTok is also leaning into livestreams, likely inspired by the growing trend of live shopping streams across Asia. Currently, TikTok Lives allows fans to send virtual gifts to creators in the form of AR filters, which creators can then exchange for TikTok Diamonds, which can be exchanged for real money.
Starting December 16, creators in the US, UK, France and Germany will be transitioned to TikTok's creativity program, with Australia set to follow soon after.
