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TikTok Shuts Down Creator Fund, Introduces Creativity Program Monetisation

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By Published On: November 9, 20230 Comments

TikTok is shutting down its $1 billion creator fund monetisation program in favour of a refreshed model that the social media giant says will pay out up to 20 times more than the old creator fund.

TikTok’s creator fund, announced in 2020, had a pool of $1 billion USD for participants to be paid out over three years as content creators monetised their video content on the social media app. The Creator Fund was criticised by content creators for its low payouts, with many users turning to brand deals for their income. 

The new program promises the potential to earn 20 times what users could previously earn.

“The Creativity Program was developed based on the learnings and feedback we’ve gained from the previous Creator Fund,” a spokesperson for TikTok said.

“As we continue developing new ways to reward creators and enrich the TikTok experience, we value the feedback and direct insights from our community to help inform our decisions.”

The new program follows in YouTube’s footsteps. It favours long form content, with only videos with a run time of one minute or longer eligible for compensation. Another key requirement is that creators can only monetise videos with royalty free music, a pain point for many users as TikTok trends and its algorithm often revolves around trending viral song snippets. 

TikTok’s content monetisation requires users be at least 18, have at least 10,000 followers, and at least 100,000 views within 30 days to be eligible for the Creativity Program.

A content creator receives an RPM – Revenue Per Mille, which TikTok says is calculated based on a variety of factors, including engagement, authenticity, the region where videos are viewed and adherence to community guidelines. The RPM is an amount paid for every 1,000 “qualified” views – people have to watch for a certain amount of time for it to count. For example if a user’s RPM was $0.50, and they got 100,000 views, they would make $50 for the video.

TikTok says the Creativity Program is “designed for you to create longer, high-quality videos and unlock real-world opportunities. This program offers higher cash incentives with earnings based on qualified views, giving you the potential to earn 20 times the amount previously offered by the Creator Fund.”

Alongside the push for long form content, TikTok is leaning into livestreams, likely inspired by the growing trend of live shopping streams throughout Asia.  Currently, TikTok Lives enable fans to send creators virtual gifts in the form of AR filters which creators can redeem for TikTok diamonds, which they can then convert to real money.   

Starting on December 16, creators in the United States, the United Kingdom, France and Germany will be shifted over to TikTok’s Creativity Program with Australia expected to follow soon after. 

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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