TikTok Shuts Down $1 Billion Creator Fund for Monetization

TikTok has announced the discontinuation of its $1 billion creator fund on December 16th, 2023. This move means that TikTok creators in the US, UK, Germany, and France will no longer have the opportunity to earn money through the original fund, as stated by TikTok spokesperson Maria Jung. On the other hand, content creators in Italy and Spain will remain unaffected by this change.

In 2020, TikTok launched the creator fund, pledging to distribute $1 billion over a three-year period to individuals generating viral content on the platform. However, influencers and content creators have consistently expressed concerns about the meager payouts, often amounting to just a few dollars despite amassing millions of views. This situation has made it virtually impossible to rely solely on the creator fund for substantial earnings. TikTok has not issued an official response to these concerns.

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In February of the current year, TikTok introduced the Creativity Program as an alternative method for creators to earn money on the platform. The company promised higher payouts through this new approach, but it required creators to produce content longer than one minute, which differs from the shorter, viral content the app is known for. Unlike the original fund, the new program monetizes content based on views and other forms of engagement, similar to the model used by YouTube.

Since the introduction of the Creativity Program, TikTok has been actively inviting new content creators to join the platform. According to Jung, creators have been able to earn 20 times more through this program compared to the original fund.

The conclusion of TikTok’s original fund was anticipated, as the program had a predefined three-year duration with a fixed allocation. Creators currently participating in the fund from the US, UK, Germany, and France will have the option to transition to the Creativity Program.