What is TikTok Creator Fund?
The TikTok Creator Fund is a program launched by TikTok in 2020 that allows popular creators to earn money from their videos on the platform. TikTok sets aside a monetary fund that is distributed to creators based on the engagement and views on their content (TikTok Creator Fund).
The Creator Fund allows eligible creators to earn a cent per video view, starting at only 100K views per month. The amount each creator earns depends on the number of views, engagement, and overall performance of their videos. This provides creators with a way to monetize their content directly on TikTok and get rewarded for producing popular videos that resonate with their audience.
The TikTok Creator Fund is seen as an incentive for creators to continue posting high-quality content on a regular basis. By compensating creators, TikTok aims to cultivate an environment where creators can turn their passions into livelihoods through the platform.
Eligibility Requirements
To be eligible to apply for TikTok’s Creator Fund, creators must meet certain minimum requirements:
Minimum follower count – Creators must have at least 10,000 followers on their TikTok account to qualify for the Creator Fund (TikTok Creator Fund Terms). This ensures creators have an established audience base.
Minimum video views in last 30 days – Creators must have at least 100,000 video views in the last 30 days on their TikTok account to be eligible (TikTok Newsroom). This shows creators have consistent engagement and viewership.
Good standing with no violations – To join the Creator Fund, creators must be in good standing without any Community Guidelines violations or bans (TikTok Creator Fund Terms). This maintains the integrity and safety of the Creator Fund program.
How to Apply
Applying for the TikTok Creator Fund is simple if you meet the eligibility requirements. Follow these steps to submit your application:
- Open the TikTok app and go to your profile page.
- Tap on the three-dot menu icon in the top right corner.
- Select “Creator Tools” from the menu.
- Under “Monetization” tap on “TikTok Creator Fund”.
- Review the program details and tap “Apply” if you meet the requirements.
- Fill out the application form completely and accurately.
- Make sure to include your payment information for payouts.
- Agree to the terms of service.
- Submit your application.
Here are some tips for creating a strong application to the Creator Fund:
- Showcase your best content that is creative, entertaining, and aligns with TikTok’s values.
- Highlight your ability to produce original, high-quality videos consistently.
- Demonstrate you have an engaged, growing audience that interacts with your content.
- Emphasize your commitment to comply with content policies and community guidelines.
- Be authentic and passionate about connecting with your audience through content creation.
Payment Structure
The amount creators get paid from the TikTok Creator Fund is calculated based on their video views and engagement. TikTok does not disclose the exact formula, but factors like likes, comments, shares and more all contribute to the payout amount.
According to TikTok’s terms, the minimum amount creators can withdraw is $50 USD. As stated on their website, “All transfers to Creator’s Payment Account must be equal to or exceed $50.00 USD, unless otherwise expressly approved by TikTok in its sole discretion.”
This means creators need to accumulate at least $50 in earnings before they can withdraw their money. The funds accumulate monthly based on that month’s views and engagement. Creators can request a payout 30 days after the month ends when the funds were accrued. So if you earned $40 in January, you’d have to wait until March to withdraw those funds along with any additional earnings from February.
TikTok does not disclose the exact CPM (cost per thousand views) they pay. But based on creator reports, the average CPM ranges from $2-4. So creators earn approximately $2-4 for every 1,000 views their videos receive through the Creator Fund.
Payment Methods
TikTok offers two main ways for creators to receive payouts from the Creator Fund:
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PayPal – Creators can have their earnings transferred to a PayPal account. This is the most common payment method used by TikTok creators.
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Zelle – For creators based in the US, earnings can also be sent via Zelle. This allows direct bank transfers.
According to TikTok’s Creator Fund Terms https://www.tiktok.com/legal/tiktok-creator-fund-terms, all transfers must be equal to or exceed $50 USD, unless otherwise approved by TikTok.
These payment methods allow creators to conveniently receive their earnings from the Creator Fund. PayPal is the most widely-used option globally, while Zelle provides the ability for direct bank deposits in the US.
Taxes
Earnings from the TikTok Creator Fund are considered taxable income by the IRS. This means creators are responsible for paying taxes on the money they receive through the program. According to Pipi, creators must pay self-employment tax of approximately 15.3% on their net earnings from the Creator Fund.
Since the Creator Fund payments are considered self-employment income, creators may need to file Schedule C along with their regular 1040 tax return. This schedule allows you to report income and expenses related to your business, which in this case is earning money on TikTok. According to TurboTax, you must file Schedule C if your net earnings from self-employment are $400 or more.
TikTok does not send any tax forms to creators. It is up to each individual to accurately report their Creator Fund earnings and pay the appropriate taxes. Keeping detailed records is important. Consult a tax professional to ensure you are filing correctly and minimizing your tax burden.
Pros and Cons
There are several potential benefits and downsides to consider when joining the TikTok Creator Fund.
Some of the key pros include:
- You can earn money directly from TikTok without having to run ads or find brand sponsorships (according to Hootsuite).
- TikTok handles all the payments and taxes for you.
- Joining the fund provides some monetary stability as you build your TikTok following and brand.
Some potential cons to keep in mind:
- The pay rate is relatively low, usually ranging from 2-4 cents per 1,000 video views (according to Klear).
- Payments can be inconsistent month-to-month depending on viewership numbers.
- Creators likely won’t earn as much as they could through branded partnerships or other monetization methods.
- You’ll need to post very consistently and go viral often to earn significant income.
Overall, the Creator Fund provides a relatively easy way for creators to start earning some revenue from TikTok. However, the payments tend to be on the lower end compared to other monetization models. Creators should weigh the pros and cons before committing to the exclusive contract.
Maximizing Earnings
To maximize your earnings on TikTok, it’s important to understand what type of content performs best and implement best practices for earning more money. According to research from LinkedIn, videos that are entertaining, helpful, or educational tend to get the most engagement. You’ll want to post content daily, and leverage trends, challenges, hashtags, and viral sounds in your niche to increase discoverability. Sources recommend creating videos under 60 seconds since shorter content tends to be shared more on TikTok. It’s also advised to engage your audience by responding to comments, going live regularly, collaborating with other creators, and promoting your content across other platforms.
To boost income specifically from the TikTok Creator Fund, aim for at least 100,000 authentic video views in the last 30 days. The more views your content generates, the higher your potential payout. But keep quality in mind over quantity, and don’t use bots or other shady tactics. Building an authentic, engaged following is key for earning long-term Creator Fund revenue. Consider going live multiple times per week, which can increase viewership. You can also partner with brands through TikTok’s branded content, cross-promote with creators in your niche, and leverage TikTok analytics to assess top-performing videos and optimize your content strategy.
Creator Fund vs. Other Monetization
The TikTok Creator Fund provides a relatively stable source of income compared to other monetization options like influencer sponsorships, gifts, etc. However, there are some key differences to consider:
Sponsorships and gifts from brands can offer larger one-time payouts, especially for creators with a big following. But these opportunities can be inconsistent and sporadic. The Creator Fund provides more predictable monthly earnings based on viewership and content.
With sponsorships, creators often have to meet specific content guidelines from the brand. The Creator Fund allows creators to post whatever content they want. However, creators do have to follow the platform’s community guidelines.
Gifts and donations are dependent on the generosity of individual viewers. Earnings can fluctuate widely month-to-month. The Creator Fund offers a more stable income stream.
Other monetization options like merchandise sales involve more work outside of content creation. The Creator Fund is passive income once a creator is accepted.
In some cases, sponsorships or other opportunities may be more lucrative, especially for top creators. The Creator Fund earnings are relatively small for creators with smaller audiences. Combining multiple income streams is often the best strategy.
Overall, the Creator Fund provides a foundation of steady earnings. But creators may want to supplement with sponsorships, gifts, and other options for maximum monetization.
Frequently Asked Questions
Here are answers to some common questions about the TikTok Creator Fund:
What are the eligibility requirements to join the Creator Fund?
To be eligible for the TikTok Creator Fund, you must:
- Have at least 10,000 authentic followers
- Be 18 years or older
- Have at least 10,000 video views in the last 30 days
- Post original content in line with our Community Guidelines
- Have a public account and be in good standing
Your account must also be based in an eligible country or region, such as the US, UK, France, Germany, Spain, or Italy. See the full list of eligible locations on TikTok’s Creator Portal.
How do I apply for the TikTok Creator Fund?
If you meet the eligibility requirements, you can apply through the TikTok app by:
- Going to your Profile tab
- Tapping the 3-line menu icon in the top right corner
- Selecting “Creator Fund”
- Agreeing to the TikTok Creator Fund Terms
TikTok will review your application and let you know once you’ve been accepted. Source
How much can I earn from the Creator Fund?
How much you earn depends on the number of views your videos get. According to TikTok, the current fund is over $200 million and is still growing. In 2021, the average monthly payout per creator was around $800. Source
When do I get paid?
Creator Fund payments are distributed on a monthly basis around the 15th of each month via direct deposit or PayPal. You must earn a minimum of $50 USD to receive payment. Source
Do I have to pay taxes on Creator Fund earnings?
Yes, Creator Fund earnings are taxable income. You are responsible for paying any taxes owed in your country. TikTok may issue a 1099 form for U.S. creators. Be sure to keep records of your income and expenses. Source
