TikTok is ahead of the game with 689 million monthly active users and more than $110 million in user spending. The refreshing platform employs an algorithm that rewards content above all and gives Gen Z a place to express themselves while enabling brands to inspire their audience in authentic ways. TikTok are focussing on cultivating trust and strong relationships with the creator community, which will ultimately determine the future of the platform. TikTok recognises the value of creators and is helping them ensure sustainable, long-term success as content creators by offering financial incentives.
Unlike YouTube and previously Facebook, who paid a percentage of ad revenue to qualifying users, TikTok doesn’t split ad revenue with creators. Instead, it started a Creator Fund to pay users with at least 100k followers for their videos. In July 2020, TikTok announced a $200 million Creator Fund to help support creators in making TikTok a sustainable revenue stream. The Creator Fund was designed to build upon the existing monetary opportunities, including their $50 million Creative Learning Fund, Live Streams and Creator Marketplace. Following the incredible response and uptake, within a week TikTok announced that they expected the fund to increase to over $1 billion in the US over the next three years, and more than double that globally.
From March 2021, TikTok announced that in order to be eligible to participate, creators would need to meet certain requirements and post original content in line with its Community Guidelines. Creators need to be over 18, have a minimum of 10k authentic followers and at least 100k organic video views within the last 30 days, to be eligible. Once creators meet the above requirements, they can apply via the creator tool on the app. Fund payments aren’t only calculated by views, but combine a number of factors, including views and engagement. TikTok Creator Fund earners have a dashboard with estimated funds and can withdraw these 30 days after the month ends. However, influencers who use TikTok’s recently launched Creator Fund have reported that TikTok pays only two to four cents per 1k views.