NIXSolutions: TikTok Creator Fund to Cease Operations

The $1 billion TikTok Creator Fund, in operation since July 2020, is scheduled to cease its operations on December 16, 2023. This change will impact content creators in the US, UK, Germany, and France, as confirmed by company spokeswoman Maria Jung. However, authors from Italy and Spain will remain unaffected by this transition.


Challenges Faced by Creators

Despite the lofty budget, many creators have faced challenges with the Creator Fund, often receiving meager payouts, sometimes just a few dollars for millions of views. As a result, making a sustainable living solely from fund payments proved unfeasible. The company did not disclose whether the entire allocated fund volume was disbursed during its operation.

Introducing the Creativity Program

In February of this year, TikTok introduced the Creativity Program, a new monetization initiative that offers creators earnings based on their video’s views and other audience engagement metrics. A significant departure from the original fund is the requirement for videos to be longer than one minute, a notable shift for an app renowned for short clips.

Since the launch of the Creativity Program, TikTok has been encouraging creators to transition to the new system. According to Jung, earnings under this program can be up to 20 times higher than the original fund. The switch entails not only a change in content format but also a revision of the monetization strategy from the creators.

The Evolution of Monetization

The conclusion of the TikTok Creator Fund aligns with the company’s original plan, designed as a three-year cycle with a predefined budget. However, this transition does not mark the end of all content monetization opportunities. Creators from the US, UK, Germany, and France, who were part of the Creator Fund, now have the opportunity to join the Creativity Program.

NIXSolutions notes that earnings on TikTok have always been more unpredictable than on platforms like YouTube or Twitch. YouTube, in particular, has responded to the issue of low payouts by offering creators ad revenue from Shorts, its TikTok alternative, providing creators with alternative monetization avenues.