In an unexpected turn of events, TikTok announced earlier this week that the Creator Fund, the $1 billion allotment the brand had set aside to pay top creators on the app for successful content, will cease to exist come December 2023.
End of an era: TikTok Creator Fund closes
Originally launched in 2021, the fund was designed to provide those TikTok creators whose videos with at least 100K views the ability to earn revenue on their content. While this sounds like a noble effort and a great way for popular creators who had amassed a following to earn, word soon got around that the payout wasn’t quite what it originally seemed. Top creators noted getting as little as 2.5 cents per 1,000 views.
And while the Creator Fund is shuddering, TikTok says it will launch a new program (still in its beta phase at the moment) that will allow creators to earn up to 20 times more than with the previous program. (You can learn more about the rollout and the eligibility here.)
Ownership is at the core
At first glance, it may not seem like the biggest shocker that yet another app payout program has folded. However, as any creator who relies on their content and community for revenue knows, this news matters—a lot. TikTok’s fund closing is yet another example of the battle for ownership between creators and their platforms of choice.
While relying on platforms like TikTok or other social media apps can be necessary for audience growth and content reach (50% of people report first finding a creator through an algorithmic recommendation!), they can be huge blockers for revenue generation and content ownership. When Instagram was down for the better part of a day a few years ago, creators lost opportunities to communicate with their audience, post their offerings, and ultimately retain control over their businesses.
@teachable.com Worried about the TikTok Creator Fund news? Don’t panic! Digital products are here to save the day. Click the link in bio to learn more about Teachable #tiktokcreatorfund #tiktoknews #tiktokupdates #onlinebusiness #onlinebusinessowner #creatortips #creatorshelpingcreators #creatoreconomynews ♬ 1901 – Instrumental – Phoenix
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Escaping the algorithm
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