TikTok to shut down its $1 billion creator fund program. The original $1 billion fund in question will now be discontinued for creators in the US, UK, Germany, and France starting on the 16th of December.
TikTok to Shut Down Its Creator Fund
The $1 billion creator fund of TikTok will come to an end on December 16th, 2023, the company revealed to users today.
Creators that are in the US, UK, Germany, and France will no longer be able to monetize their content via the original fund, Maria Jung TikTok’s spokesperson reveals. TikTokers that are in Italy and Spain on the other hand are not affected by the change.
The creator fund as you should know was originally introduced back in 2020, with the social media firm promising to pay out $1 billion over the course of three years to people that are making the viral content of the app. And along the way, both influencers and other content creators have noted the low payouts — sometimes just a couple of dollars for millions of views thus making it quite impossible to earn a living via the creator fund alone. TikTok did not respond to questions in regards to whether it had paid out all of the $1 billion.
TikTok’s New Monetization Program
The platform back in February of this very year, reportedly introduced a new monetization method that it stated would result in higher payouts for popular creators which is known as the Creativity Program. And unlike the original fund, the Creativity Program in question requires creators to make videos that are longer than one minute which is also a marked difference for an app that first blew up via short clips.
And instead of publicizing a pool of money from which payments reportedly come out, the platform and company said that earnings would be based on views as well as other engagement metrics. Ever since the launch of the new system in question, the social media platform has been inviting creators who are eligible to make the switch over to the Creativity Program. Jung revealed that creators can earn 20 times the amount that they were making under the original fund.
Why TikTok’s Original Fund Program Going Out Shouldn’t Be Surprising
That the original fund of TikTok is on its way out isn’t all surprising. The program in question was limited to a three-year commitment with a set amount to give out. Creators in the US, UK, Germany, as well as France who are part of the fund, will now be able to roll over to the Creativity Program.
Making Money on TikTok
Earning and making money on the social media platform TikTok has always been more unpredictable than other platforms such as YouTube or Twitch. YouTube especially has seized on the problem of low payouts simply by offering ad revenue sharing on Shorts, which is its competitor to TikTok.
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