TikTok Phases Out Creator Fund Amid Criticism From Influencers

TikTok announced on Monday that it will discontinue its Creator Fund, a program through which the platform pledged to pay creators $1 billion. The decision, effective in December, is part of TikTok’s commitment to enhancing the overall user experience and fostering a robust monetization ecosystem for creators.

The discontinuation of the Creator Fund will impact creators in the United States, United Kingdom, France, and Germany. Under the now-phased-out fund, TikTok creators earned money based on the number of views their videos garnered. Discontent had been expressed by multiple content creators who deemed the app’s compensation inadequate, even for viral videos.

In 2020, prominent creators Hank Green and MrBeast criticized the fund, asserting it provided minimal compensation—just pennies per 1,000 views on TikTok. Victoria Paris, a 24-year-old full-time influencer, disclosed that she earned slightly over $40,000 from TikTok’s Creator Fund in 2021.

Paris, relying primarily on brand deals for income, noted a shift when TikTok introduced the Creativity Program. This program pays creators more for videos exceeding one minute in duration, enabling Paris to earn approximately $10,000 monthly from TikTok views.

Shawn Owens, a 27-year-old creator with 70,000 followers, criticized the Creator Fund, stating it did not benefit micro-influencers like himself. Despite numerous viral moments, Owens claimed to have made insignificant money from the fund, though he did not provide any specific figures.

Expressing indifference toward the fund’s discontinuation, Owens opined that it seemed designed for established and well-known creators. TikTok informed creators enrolled in the Creator Fund that they have the option to transition to the Creativity Program for monetizing their content.

The move signifies TikTok’s evolving approach to incentivize creators while addressing concerns regarding compensation and program accessibility. TikTok’s decision to discontinue its Creator Fund, a program repeatedly criticized for its perceived inadequate compensation, marks a strategic shift toward enhancing the platform’s overall user experience.

The introduction of the Creativity Program, offering increased compensation for longer videos, reflects the platform’s responsiveness to creator concerns and its evolving strategy to reward better and incentivize a diverse range of content producers.

This move addresses past criticisms and underscores TikTok’s dedication to refining its monetization offerings, ensuring a fair and sustainable environment for creators to thrive.

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