TikTok, the popular short-form video app, has revealed that it will shut down its Creator Fund on December 16th in the United States, UK, France, and Germany. The creator fund, which was introduced in 2020 and valued at $2 billion. It was a method for eligible creators to produce income for their viral videos on the platform. However, many creators have criticized the fund for being “unreasonable,” “nontransparent,” and “low-paying.”
What was the Creator Fund?
TikTok established the Creator Fund to support its content creators and provide an income for them. The fund assured to pay $1 billion over three years to creators who met particular requirements, such as having at least 10,000 fans and 100,000 views in the last 30 days and sticking to the community guidelines. The quantity of money each creator received was based on their contribution to the platform’s overall success.
The fund was viewed as a way for TikTok to compete with other social media platforms that use monetization choices for creators, such as YouTube, Instagram, and Snapchat. TikTok stated the fund was part of its “Part of our efforts and ongoing commitment to provide requires us to evolve products and apply resources elsewhere to best support creators and explore new offerings.”
Why are creators disappointed with the fund?
Since the launch of the Creator Fund, numerous creators have expressed dissatisfaction with the program. Some of the typical problems are:
The fund pays incredibly little compared to the views and engagement that creators produce. Some creators reported making “a few cents” for their videos that received many views. Hank Green, a well-known YouTube star and TikTok creator, said he made about 2.5 cents per 1,000 views.
The fund is not transparent about determining the payments and what elements affect them. Creators have yet to understand how much they will make or why their incomes vary. Some creators likewise thought that the fund decreased their views and reach as a method to save money.
The fund is not constant with its eligibility requirements and payment schedule. Some creators specified they were declined from the fund without explanation or had their payments delayed or kept. Some also stated they were disqualified from the fund for breaking the community guidelines without warning or appeal.
What is TikTok’s Action?
TikTok still needs to provide a transparent explanation for why it is ending the Creator Fund. A representative for TikTok said, “The organization is committed to creating the best experience possible on TikTok and providing a robust ecosystem of monetization offerings to creators.” The spokesperson also said that the business values the feedback and insights from its community to assist in making decisions.
TikTok is not leaving its creators with no cash-making options. The company presented a brand-new program called the “Creativity Program,” which requires creators to make videos that are longer than a minute to make money.
In addition, TikTok offers other ways for developers to generate income on the app, such as:
- Live-streaming: Creators can get virtual presents from their fans during live broadcasts, which can be transformed into real money.
- Brand collaborations: Creators can work with brand names to develop sponsored content or promote products and services on their videos.
- Merchandise: Creators can sell their products or collaborate with other platforms like Shopify or Teespring to establish and market their products.
What does this mean for the future of TikTok?
The choice to shut down the Creator Fund might have some consequences for the future of TikTok and its relationship with its creators. Some possible results are:
- More long-form content: As TikTok shifts its focus from short-form to long-form videos, it might alter the nature and quality of the content on the app. Longer videos authorize more engagement, imagination, and storytelling, but they may also require more time, effort, and resources from creators. Longer videos may affect the user experience and attention span of audiences used to taking pleasure in remarkable and short clips.
- More competitors: TikTok handles more rivals from other social network platforms that offer much better cash-making opportunities for creators, such as YouTube Shorts, Instagram Reels, and Snapchat Spotlight. It might lose some of its top creators and influencers to their competitors. TikTok may similarly be required to handle new platforms that accommodate specific niches or audiences, such as Triller, Dubsmash, and Lomotif.
- More regulation: As TikTok grows in popularity and impact, it may similarly face more scrutiny and regulation from governments and authorities worldwide. TikTok has handled numerous difficulties, such as being restricted in India, being examined by the UK and the EU for details of individual privacy issues, and being threatened by the United States for nationwide security issues. TikTok might have to comply with more policies and guidelines to run in numerous markets and protect its users and creators.
Conclusion
TikTok is shutting down its $1 billion Creator Fund, a program that desired to pay its content creators for their viral videos. TikTok has yet to explain why it is ending the fund. However, it has released a new program called the Creativity Program beta, which pays developers for making longer videos.
