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TikTok’s $1 billion creator fund is shutting down

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TikTok’s $1 billion creator fund will come to an finish on December sixteenth, 2023, the corporate informed customers right this moment.

Creators within the US, UK, Germany, and France will not be capable of monetize their content material via the unique fund, TikTok spokesperson Maria Jung says. TikTokers in Italy and Spain aren’t affected by the change.

The creator fund was initially launched in 2020, with the corporate promising to pay out $1 billion over the course of three years to folks making the app’s viral content material. Alongside the best way, influencers and different content material creators have famous the low payouts — generally just a few dollars for millions of views — making it impossible to earn a living via the creator fund alone. TikTok didn’t reply to questions on whether or not it had paid out all the $1 billion.

Now, creator payouts are based mostly on views and different engagement metrics

In February of this 12 months, the platform introduced a new monetization method that it mentioned would end in greater payouts for fashionable creators: the Creativity Program. Not like the unique fund, the Creativity Program requires creators to make movies longer than one minute — a marked distinction for an app that first blew up via brief clips. And as an alternative of publicizing a pool of cash from which funds come out, TikTok mentioned earnings could be based mostly on views and different engagement metrics. For the reason that launch of the brand new system, TikTok has been inviting eligible creators to change over to the Creativity Program; Jung says creators can earn 20 instances the quantity they had been making below the unique fund.

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That TikTok’s authentic fund is on its manner out isn’t shocking — this system was restricted to a three-year dedication with a set quantity to offer out. Creators within the US, UK, Germany, and France who’re a part of the fund will be capable of roll over to the Creativity Program.

Incomes cash on TikTok has all the time been extra unpredictable than different platforms like YouTube or Twitch. YouTube particularly has seized on the difficulty of low payouts by providing ad revenue sharing on Shorts, its TikTok competitor.

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