TikTok is a popular short-form video app that allows users to create, share, and discover 15 to 60 second videos. The app has over 1 billion monthly active users worldwide.
In 2020, TikTok launched the Creator Fund program as a way to provide financial support to creators on the platform. The fund allows popular TikTok creators to earn money for the videos they post.
What is the TikTok Creator Fund?
The TikTok Creator Fund is a program launched by TikTok in 2020 to financially reward creators for their popular content on the platform. Through the fund, TikTok intends to pay creators directly for the videos they post based on the engagement and views those videos receive. The goal is to support the creative community on TikTok by ensuring creators feel valued for their work and have an incentive to keep posting (Source).
Essentially, the more views and engagement (likes, comments, shares) a creator’s videos generate, the more money they can earn from the fund. TikTok sets aside a certain amount of money each year to distribute to qualifying creators. The amount each creator earns will depend on their location, content views, and adherence to content guidelines (Source).
How Much Does the Fund Pay Out?
The TikTok Creator Fund pays between $0.02 and $0.04 per thousand video views, though the exact rate varies based on factors like location and engagement on videos (Business Insider). When the fund first launched in 2020, the rate was $0.02 per thousand views. In 2021, TikTok increased the rate to between $0.03 and $0.04 per thousand views as more creators joined the platform.
The fund is distributed based on the number of views a creator’s content receives in a month. TikTok calculates the monthly views and sends creators a payment each month. The minimum payment threshold is 100,000 views per month, so creators must have at least that many views to receive payment.
The total amount available in the Creator Fund varies, but was $300 million in 2021. As the fund and creator base grows over time, the total amount available to distribute typically increases as well.
How Payments Are Calculated
The TikTok Creator Fund calculates payments based on a combination of factors, with views and engagement being two of the main criteria. According to TikTok’s Creator Portal, the company evaluates factors like “the number of views a video receives and how authentic those views are.” Things like shares, comments, likes, and other engagement metrics on each video are analyzed to determine how engaging and popular a video is.
While TikTok doesn’t disclose the exact formula used, creators report that high view counts and strong engagement lead to higher payout rates from the Creator Fund. TikTok aims to reward videos that resonate with and entertain the TikTok community. More views and comments signal a popular video that the algorithm will continue to promote. According to some estimates, rates can range from 2-4 cents per 1000 video views if you meet eligibility and quality criteria.
Who Is Eligible for the Fund?
To be eligible for the TikTok Creator Fund, creators must meet certain requirements related to their TikTok account:
Creators must be at least 18 years old and have a minimum of 10,000 followers on TikTok (TikTok Creator Fund). The creator’s account must also have accrued at least 100,000 video views in the last 30 days.
TikTok evaluates each creator’s eligibility based on their account’s fit with platform guidelines and terms of service. Accounts must be in “good standing” without any community violations or content removal issues (TikTok Creator Fund Terms).
The creator’s content should be original and aligned with TikTok’s creative guidelines. Accounts focused on posting stolen or compiled content will not qualify for the fund.
Creators must apply to join the fund and be accepted. TikTok will notify creators whether they have been approved and can begin receiving payouts from the fund.
How to Apply for the Fund
Applying for the TikTok Creator Fund is straightforward if you meet the eligibility requirements. According to TikTok Creator Fund: How It Works and How to Join, here are the steps to apply:
- Open the TikTok app and go to your profile page.
- Tap on the three-line menu icon in the top right corner.
- Select “Creator Tools” from the menu.
- Choose the “TikTok Creator Fund” option.
- Click the “Join” button and agree to the terms.
- Provide your payment information like PayPal or bank details.
Once your application is approved, you’ll start receiving monthly payouts based on your videos’ engagement and viewership. You can check your earnings and stats in the Creator Fund dashboard. Remember to continue posting high-quality videos regularly to keep earning through the fund.
Payment Methods
Creators in the TikTok Creator Fund are paid through either PayPal or Zelle direct deposit in the United States. Payments are sent to the creator’s PayPal email address or bank account linked to Zelle. The minimum payment threshold for both payment methods is $50.
According to TikTok’s Creator Fund terms, “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 will not receive payment until their earnings from the fund reach at least $50.
Some creators have complained that the $50 minimum is too high, as it can take a long time for smaller creators to reach that threshold. However, TikTok likely set the minimum to reduce transaction fees and administrative costs associated with paying creators.
Once a creator’s earnings surpass $50, TikTok initiates a payment on the 15th of the following month. For example, if a creator earns $75 in January, TikTok will issue the payment around February 15th. Payments are typically received within 5-7 business days after initiation.
Complaints About the Fund
There have been some criticisms and controversies surrounding TikTok’s Creator Fund. Many creators have complained that the payments they receive from the fund are too low and not proportional to the views their videos receive (Source). For example, creator Preston Liles said he earned about 3 cents per 1,000 views, much lower than rates on other platforms. Some allege this is a tactic by TikTok to get creators hooked on its platform by initially overpaying, then reducing payments over time.
There have also been complaints that TikTok’s formula for calculating payments is opaque and inconsistent (Source). TikTok has not publicly revealed exactly how factors like audience geography, video engagement, and platform goals are weighted in its algorithm. This makes it difficult for creators to understand their expected earnings.
Additionally, some creators feel TikTok has placed arbitrary caps on earnings, limiting what top creators can earn regardless of their viewership (Source). These creators argue they should be compensated fairly based on the huge audience and engagement they drive to the platform.
Tips for Maximizing Earnings
Here are some best practices for creators to maximize their earnings from the TikTok Creator Fund:
- Post consistently – The algorithm rewards creators who post regularly with increased views and engagement. Aim to post at least 1 high-quality video per day.
- Engage with your audience – Respond to comments, do live streams, and post Stories. Increased engagement signals to the algorithm that viewers like your content.
- Optimize your videos – Use attractive thumbnails, attention-grabbing text overlays, popular songs, and trending hashtags. These elements help get more views.
- Track performance – Analyze which types of videos get the most engagement and views. Then create more content in those categories.
- Go vertical – Vertical videos perform better on TikTok. Shoot all your videos in 9:16 vertical format.
- Use popular trends – Jump on viral trends and challenges early. But give them your own creative twist.
- Collaborate with others – Duets and stitch videos with top creators in your niche to gain exposure.
- Use captions – Add captions to enhance viewing, especially for videos watched without sound.
- Ask for follows, likes, and shares – Subtly suggest people follow you and interact with your content.
By implementing these tips, creators can build a loyal audience and maximize their earnings from the TikTok Creator Fund.
Conclusion
The TikTok Creator Fund provides a way for top creators to earn money directly from TikTok for their high-quality videos. While the precise pay rates are somewhat opaque, TikTok does share that payments are calculated based on factors like the number of video views and user engagement. Though some creators have complained about lower than expected payments, the Creator Fund marks an important step in TikTok empowering its community of creators.
Going forward, analysts expect TikTok to continue expanding the fund as advertising revenue grows on the platform. TikTok may also introduce more transparency around how payments are calculated to address creator concerns. The Creator Fund is still in the early stages, but has the potential to become a significant source of income for TikTok’s most popular personalities.
For creators looking to maximize earnings, the key will be consistently producing engaging content that builds a large and active following over time. While individual video view counts play a role, a creator’s overall body of work and audience size will likely determine longer-term income potential on TikTok.