Passive Income TikTok launched a $200 million fund to pay for video creators

Image for post
Image for post

As TikTok continues to grow and become mainstream celebrities with its own popularity and personality, the company is trying to retain talent with a $200 million new creator fund.

A TikTok spokesperson said that the fund aims to support ambitious creators who are “looking for opportunities to cultivate a livelihood” on the app. This marked the first time TikTok paid directly to creators for content. Before that, creators could monetize live streaming, but the new program will directly pay for those who make the video. Creators will receive regular payments in the coming year, and the fund will grow over time. The company did not confirm how many creators will receive funding is limited. TikTok also didn’t say how often it will be paid, or how much money the creator can make.

Creators who want to apply for funding must be at least 18 years old, consistently post original videos, and create content that complies with TikTok community guidelines. A baseline tracker count is also required, but TikTok didn’t specify how much. American creators can apply for funding in August. The company is seeking to expand the fund globally, but there is no word on when it will happen.

Vanessa Pappas, the general manager of TikTok, said: “Through the TikTok Creator Fund, our creators will be able to earn additional income, which reflects the time, energy and dedication they put in, and creatively connect with audiences inspired by their ideas. .” Said in a blog post.

This marks the first time TikTok paid directly to creators for content

This is not the first time TikTok has set up a fund for creators; the company launched a $50 million creative learning fund for teachers on the platform at the end of May. However, the Founders Fund marks an important moment for TikTok. Unlike YouTube, which allows creators and more than 1,000 users to accumulate more than 4,000 hours of viewing time in the past 12 months, TikTok places ads on their channels and monetizes each video. It operates more like Instagram. Creators can broadcast sponsored videos on their channels, but there is no direct and continuous money-making plan for creators.

Now TikTok hopes to pay creators regularly. This is a way for TikTok to stay competitive, because its talent will only become more popular. Back when Vine was popular, the top creators of many platforms began to spend more time on YouTube because they could make money in ways that Vine did not allow.

TikTok doesn’t want to be in the same boat. Pappas acknowledged that its creators have achieved mainstream success both inside and outside the app, and pointed out that top figures have found “brand cooperation, sponsorship and agency deals with some of Hollywood’s largest talent agencies.” Some creators, like Charlie and Dick Si de Amelio also signs deals outside of TikTok. The company knows that its creators will find success outside the platform, but TikTok also wants to keep them as long as possible.

Strategically, this also helped TikTok in several ways

Strategically speaking, this also helped TikTok in several ways. By choosing who gets the funding, TikTok can try to avoid YouTube finding itself in conflict with controversial, problematic, offensive creators that make money out of the box. The fund may also help the company continue to fight the US government, which has already proposed a possible ban on the application. TikTok spent several months trying to make itself a more American company on the Los Angeles campus, an American CEO, and plans to recruit 10,000 people in the United States. The $200 million creator fund is another way for TikTok to show its commitment to the United States.

Regardless of why TikTok is introducing this fund now, the key is that TikTok wants to directly pay developers for their contributions to this app, which has grown by an astonishing number in the past 18 months. Creators can look forward to learning more about qualification factors next month.

Written by

Digital Nomad

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store