TikTok is a popular short-form video app that launched in 2017 and quickly gained worldwide popularity. As of 2022, TikTok has over 1 billion monthly active users. To support creators on the platform, TikTok launched the Creator Fund in 2020 as a way to pay creators for the content they produce.
The TikTok Creator Fund was announced in July 2020 as a $200 million fund to support creators in the US over the next 3 years. According to TikTok, the goal of the fund is to “encourage those who dream of using their voices and creativity to spark inspirational careers.” The fund provides creators with cash payments based on the engagement and views their videos receive.
To be eligible for the fund originally, creators had to be 18 years or older, have at least 10,000 authentic followers, and have at least 10,000 video views in the last 30 days. TikTok said the Creator Fund would “facilitate livelihoods and enable creators to turn their passions into professions.”
Launch of Creator Fund
In July 2020, TikTok announced the launch of its Creator Fund with an initial investment of $200 million to help support ambitious content creators in the US seeking opportunities to earn livelihoods through creating TikTok videos (https://newsroom.tiktok.com/en-us/introducing-the-200-million-tiktok-creator-fund). This new fund aimed to help and encourage creators to turn their passions into careers.
Eligibility Requirements
To be eligible for the TikTok Creator Fund, creators had to meet certain requirements. As per TikTok’s Creator Fund Terms[1], creators had to:
- Have at least 10,000 followers
- Have at least 100,000 video views in the last 30 days
- Be at least 18 years old
- Have an account in good standing that complies with TikTok’s community guidelines
TikTok evaluated each creator’s eligibility based on these criteria before approving them for the fund. The requirements ensured that only established creators with a substantial audience could participate.
How Payments Worked
When the TikTok Creator Fund first launched, the payment structure was based on a set amount of money that TikTok allocated each day to distribute to creators. Payments were based on views and engagement on videos, but the specific calculation was not publicly disclosed.
TikTok did state that factors like number of views, video engagement, and overall performance were all used to determine an individual creator’s payment amount. Payments were dynamic and month-to-month based on changing performance metrics.
According to TikTok’s announcement, the Creator Fund started with a total of $200 million to distribute to creators in the first year in the US. This money was not evenly distributed – creators with higher view counts and engagement received a larger share of the daily allocated funds.
TikTok noted that the Creator Fund was part of a larger $1 billion investment in creators over 3 years. The Fund provided an initial way for creators to start earning money directly from TikTok based on their content performance before the full monetization platform launched.
Reaching the Funding Cap
The TikTok Creator Fund originally had a monthly funding cap of $200 million that was split among eligible creators based on the number of views their content received (TikTok Creator Fund: Your questions answered). This meant there was a finite amount set aside each month to distribute to creators.
In July 2021, less than a year after launching, TikTok announced that it had already reached and distributed the full $200 million monthly cap. This was likely due to the overwhelming popularity of the platform and the rapid growth in the number of creators joining and hoping to monetize their content (TikTok from Creator Fund to Creativity Program).
Once the monthly $200 million cap was hit, no further TikTok Creator Fund payments could be distributed until the next monthly cycle began. So creators who qualified for payouts after the cap was reached would not receive any compensation until the next month.
Pay Cuts and Policy Changes
In 2021, TikTok began making cuts to creator payments from the fund, reducing payments by as much as 80-90% in some cases (source). The company claimed this was due to the fund reaching its cap, but many creators felt blindsided by the drastic reductions.
TikTok also implemented policy changes around which videos qualified for payment. Initially, any video could potentially earn money from the fund. However, TikTok introduced requirements like minimum view counts for payouts, excluding shorter length videos (source). These stricter policies made it much harder for creators to earn significant income from the fund.
Many creators complained that TikTok failed to provide transparency around the sudden payment cuts. The backlash highlighted issues around the sustainability of relying solely on platform funds for income as a creator.
Creator Backlash
Many TikTok creators expressed frustration and anger at the changes made to the Creator Fund. In January 2022, high-profile creators like Spencer X and Tessa Brooks spoke out against the flawed payment models, sparking more widespread backlash (Source). Creators complained about inconsistent and opaque payment calculations, feeling they were not being properly compensated for their content. There was also outrage over the drastic reduction in pay, with top creators reporting their earnings had been cut by up to 97%. Many felt betrayed, having based their content strategies around qualifying for the lucrative Creator Fund.
The backlash highlighted issues with relying too heavily on TikTok’s algorithms to calculate payments. Creators argued the complex formulas failed to account for the quality of content or the effort required. There were calls for more transparency and human oversight of creator earnings. While TikTok maintained the changes were to make the Fund more fair and sustainable, creators insisted the new policies favored the platform over creators.
TikTok’s Response
As criticism of the Creator Fund mounted in late 2022, TikTok acknowledged creator concerns and announced some changes. In November, TikTok said it would be implementing a new program called the Creativity Program that would replace the Creator Fund (TikTok is shutting down its Creator Fund in favor of …). The company framed it as an evolution meant to provide creators with more opportunities.
TikTok also addressed complaints about insufficient payouts. In February 2023, the company announced it was injecting an additional $100 million into the Creator Fund to help increase pay rates for top creators (TikTok addresses low-pay complaints with creator fund). TikTok said this was meant to “further support and bring value to our creators,” showing they were listening to creator concerns.
However, not all creators felt the changes went far enough. The Creativity Program still has opaque terms for pay and video promotion. Some felt the additional $100 million for the Creator Fund was insufficient when spread across TikTok’s top creators globally. But TikTok maintains the changes demonstrate their commitment to creators and enabling them to earn more on the platform.
Ongoing Issues
The TikTok Creator Fund continues to face issues, even after the initial changes made in response to creator backlash. Many creators have reported the fund is still not showing up in their app or that payments have remained inconsistent (cite: “Creator Fund Not Showing up? : r/Tiktokhelp”). There are also still complaints that earnings are far below what was originally promised.
Some troubleshooting tips from TikTok have focused on checking account and content eligibility, but that hasn’t resolved the problems for many (cite: “[Fixed] TikTok Creator Fund Not Working or Loading 2024”). The ongoing issues suggest there are still underlying problems with the Creator Fund program that TikTok has yet to fully address.
While TikTok claims it is still committed to supporting creators through the fund, its future remains uncertain. Unless TikTok is able to substantially improve the stability and transparency of payments, it risks further backlash from the creators that fuel its platform.
The Future of the Fund
With the Creator Fund ending in 2024, there is much speculation around what TikTok has planned next for supporting creators financially. According to Rolling Stone, TikTok has hinted that the new program will provide more ways for creators to earn money, but details remain scarce.
Some analysts predict TikTok may move towards more performance-based payouts, rewarding creators for driving engagement and traffic (Fortune). Others believe TikTok will partner directly with brands to connect sponsors with creators. It’s also possible TikTok may explore allowing viewers to tip creators, as platforms like Twitch and YouTube have done.
While the future is uncertain, it’s clear TikTok remains committed to helping its top creators monetize. But the end of the Fund marks a major shift in how TikTok will approach creator compensation going forward.
