The TikTok Creator Fund is a financial resource for creators. It is not an advertising revenue-sharing platform like YouTube’s AdSense or an arts grant. Instead, it is a way for TikTok users to share revenue with successful creators and influencers on the network.
TikTok announced the Creator Fund in April 2021, with a $200 million initial commitment.
The Vision of TikTok Creator Fund
TikTok claimed that it established the fund to support those who dream of leveraging their voices and creativity to create inspirational careers. However, the TikTok Creator Fund hit the ground doubly and was an immediate success. The fund is so popular that the corporation plans to boost its size to $1 billion within three years.
TikTok has kept its payout scheme under wraps, but the overall concept is that users who satisfy their criteria will be reimbursed for successful films. TikTok’s rewards are determined by metrics such as views, video interaction, and region-oriented engagement.
How Much Money Can You Make From the TikTok Creator Fund?
When TikTok users first learned about this massive fund, their eyes lit up with dollar signs. However, even with millions at stake, high-performing TikTok users should not expect a life-changing payoff anytime soon.
The TikTok Creator Fund has no hard and fast guidelines about how much it compensates its contributors. However, many creators have spoken about their experiences with the Creator Fund.
According to popular belief, TikTok pays between 2 and 4 cents per 1,000 views. However, after a million views, some quick math implies you should expect $20 to $40. At first view, that appears to be a bad situation. Still, keep in mind that the fund should encourage creators to keep creating. If you master TikTok, you could be racking up millions of views regularly.
You can withdraw your Creator Fund payout using an online financial provider like Paypal or Zelle once you have earned at least $10 from the fund.
How to Be a Part of the TikTok Creator Fund?
The TikTok Creator Fund is open to users in the United States, the United Kingdom, Germany, Spain, France, and Italy. Unfortunately, Canadians and Australians do not make it to the list for the time being, but the fund is expected to launch in their nations later in 2022.
There are a few extra prerequisites to joining the Creator Fund besides being in the right place.
- You must be a Pro account holder.
- You must have a minimum of 10,000 TikTok followers.
- In the last 30 days, you must have received at least 100,000 views.
You must also be 18 or older and adhere to the TikTok Community Guidelines and Terms of Service. You should also create original content if you want to gain money from your effort.
If you match those criteria, you are eligible to apply for the Creator Fund. Then, why wait? Go ahead!
Benefits and Disadvantages of the TikTok Creator Fund: Does It Live Up to its Hype?
The TikTok Creator Fund has sparked much discussion as any new social media feature. So let’s look at its advantages and disadvantages:
Benefits of the TikTok Creator Fund
Source of Income: Getting paid for your effort is always a bonus. Thus, TikTok rewards are a clear plus. Money is an excellent motivator to keep uploading, even if the sums are modest.
No Bar for Money: Another fantastic feature of the Creator Fund is that there is no cap on how much money one person may earn. So, if you master the platform and break into the multi-million view zone, you might potentially start making some serious money.
Networking: The Creator Fund is also a fantastic method to build community and recognize users who have demonstrated a commitment to the site. It is also a terrific means for TikTok to keep their high-performing customers loyal to the app rather than shifting to their competitors such as YouTube or Instagram.
Disadvantages of the TikTok Creator Fund
The following are the cons of the TikTok creator fund:
Conspiracy Theories: Since signing up for the Creator Fund, some users have alleged that their views have been reduced because TikTok is tampering with them. This notion has been debunked by TikTok, which claims that involvement in the fund has no impact on the algorithm. Others believe the reduced view numbers are due to the increased number of Fund recipients flooding the feed.
Lack of Transparency: While TikTok is good at general statistics, they are incredibly secretive about how they compute rewards. The 2-4 cents rule, like almost everything else from the fund, is based on hearsay from users. Furthermore, the user agreement stipulates that reporting metrics and other private fund information should be personal.
It Can Become Cumbersome: Aside from gossip, the Creator Fund’s main possible drawback is that to get money from the program, you will need to generate a lot of material and have to do well. Consequently, TikTok may feel more like a job than a pleasant hobby for some creators.
How to Join the TikTok Creator Fund?
It is really simple to apply for the Creator Fund if you meet the qualifications outlined earlier in this article. Simply follow these easy steps:
Have a Pro Account
You can skip this step if you already have a Pro account with TikTok. To go to your profile, open the app and tap “Me.” Then, hit the three lines on the top right and select “Manage Account.” Next, switch to Pro Account under “Account Control.” Then, you can pick between a Creator and a Business account under the Pro category.
Go to Settings and Privacy
Select TikTok Creator Fund from the Creator tools menu.
Go Through the Terms and Conditions
Before agreeing to anything, you should probably read the TikTok Creator Fund Agreement thoroughly. In addition, it would be best if you also verified that you are over 18.
If TikTok decides to accept your application, they will notify you. Don’t worry if you’re rejected; you have 30 days to apply again.
Criticism Against TikTok Creator Fund
Hank Green, who has over 6 million TikTok followers, posted a YouTube video expressing his displeasure with the TikTok creator fund. He explains his experience in TikTok’s creator fund in the 24-minute video, estimating that he presently receives approximately 2.5 cents per 1,000 views on the platform, which is a fraction of his income on YouTube and roughly half of what he made on TikTok earlier.
As Green describes it, the issue is that TikTok pays a percentage of a static pool of money to an increasing number of artists unrelated to TikTok’s revenue or popularity. As a result, even as TikTok grows in popularity, the money in the creator’s bank account does not.
Then, Mr. Beast, Jimmy Donaldson, a TikTok streamer, revealed his profits. According to the snapshot, he made under $15,000 via the program in January, with daily profits ranging from $18 to $32. According to The Information, despite his claim of having more than a billion TikTok views, it works less than $10,000 per year. That figure is shockingly low when considering Donaldson, YouTube’s highest-paid celebrity, earning $54 million in 2021.
Victory Rhyder, a TikTok influencer, stated that she only got $2.89 per day from the fund for five days in August 2020. During that time, this amounted to about $0.04 for every 1,000 video views.
When we say TikTok is disrupting the creator economy, we mean that creators use the platform to create and leverage their audiences. However, TikTok does not appear to be putting its money where its mouth is in terms of supporting creators.
How can TikTok Improve?
TikTok might take a page from YouTube’s book and intersperse more advertisements to earn more cash and fund higher creator compensation. Still, that would be highly inconvenient, and it is hard to believe TikTok is in severe financial trouble. Again, in 2021, ByteDance made $58 billion. The Creator Fund at TikTok is worth $200 million. That amounts to 0.3 percent of TikTok’s parent company’s revenue spent on the Creator Fund over many fiscal years.
Is the TikTok Creator Fund a good investment? It all comes down to personal preference. Knowing what we know now, you will not be able to purchase a bungalow with the money you generate from the scheme. Still to its defense, it is a low-risk approach to create additional passive revenue from your video. So, it does no harm to test it out if you fit the qualifications. In addition, if you do not like it, you can always stop.