Summary
In a significant shift, TikTok is discontinuing its original Creator Fund and focusing on its newer Creativity Program. The move comes as a response to feedback from creators, who have long criticized the Creator Fund for low payouts. The new Creativity Program is expected to offer a more rewarding experience for creators with higher average gross revenue for qualified video views.
Social media giant TikTok has announced that it is shuttering its original $1 billion Creator Fund and shifting its focus to the newer Creativity Program. This change, set to take effect on December 16, will impact creators in the United States, United Kingdom, France, and Germany. Current enrollees in the Creator Fund are given the option to switch to the Creativity Program.
“Innovation is change that unlocks new value.” – Jamie Notter
The Criticism Over Creator Fund
The Creator Fund, launched back in 2020, has faced significant criticism from creators who were dissatisfied with low payouts. Some creators even claimed they received a few dollars for videos that garnered millions of views. This discontent among creators has undeniably influenced TikTok’s decision to phase out the Creator Fund.
The Introduction of the Creativity Program
In response to the feedback, TikTok introduced the Creativity Program in February. The platform claimed this program would result in higher payouts for popular creators. The rewards formula under the Creativity Program has been designed to offer a higher average gross revenue for qualified video views. Unlike the Creator Fund, which did not have a specific requirement on video length, the Creativity Program rewards creators who make videos longer than one minute.
Eligibility and Potential Earnings under the Creativity Program
To qualify for the Creativity Program, creators must meet specific criteria. They should be at least 18 years old, have a minimum of 10,000 followers, and have garnered at least 100,000 views in the past 30 days. Eligible creators who post high-quality, original content longer than one minute have the potential to earn up to 20 times the amount previously offered by the Creator Fund, according to TikTok.
The Vision Behind the Shift
TikTok spokesperson Maria Jung explained the rationale behind the transition in an email to TechCrunch. “Our ultimate goal is to create the best experience possible on TikTok and provide a robust ecosystem of monetization offerings to creators,” Jung said. She added that the development of the Creativity Program was based on the learnings and feedback from the Creator Fund, and the company will continue to adapt and enhance its features to enrich the TikTok experience.
TikTok’s Suite of Monetization Tools
In addition to the Creativity Program, TikTok also offers a suite of monetization tools. These include LIVE subscriptions and TikTok Pulse, tips and gifts monetization features, and a Series feature that allows eligible creators to post content behind a paywall.
