As TikTok’s popularity grows, some of the platform’s online celebrities themselves are becoming mainstream celebrities as the company tries to retain talent through a new $200 million creator fund,media The Verge reported. A TikTok spokesman told The Verge that the fund was designed to support ambitious creators who were “seeking opportunities to make a living” in the app. This marks the first major effort by TikTok to pay for content directly to creators.
Until then, creators can make money from live streaming, but the new plan will pay directly to the person who made the video. Creators will receive regular payments over the next year, and the fund will grow over time. The company did not confirm whether there were limits to how many creators would receive funding. TikTok also didn’t say how often it would be paid, nor did he say how much money the creators would make.
Creators who wish to apply for funding must be at least 18 years old, continually publish original videos, and create content that complies with the TikTok Community Guidelines. A benchmark number of fans is still needed, but TikTok doesn’t say how many fans are needed. Creators in the United States can apply for funding in August. The company is seeking to expand the fund globally, but did not say when it would.
“Through the TikTok Creators Fund, our creators will be able to realize the additional benefits, reflecting the time, care and dedication they put into creatively connecting with audiences inspired by their ideas,” Vanessa Pappas, general manager of TikTok, said in a blog post.
This isn’t the first time TikTok has set up a fund for creators, with the company launching a $50 million creative learning fund for teachers on the platform at the end of May. However, the Creators Fund is an important moment for TikTok. Unlike YouTube, Which allows creators with more than 1,000 subscribers and has accumulated more than 4,000 hours of viewing over the past 12 months, runs ads on their channels and monetizes each video, while TikTok operates more like Instagram. Creators can run sponsored videos on their own channels, but there is no direct, ongoing monetization program for creators.
Now, TikTok wants to pay creators on a regular basis. This is a way for TikTok to stay competitive because its talent will only grow in popularity. Long before Vine became popular, many of the platform’s top creators began spending more time on YouTube because they could monetize their content in ways that Vine didn’t allow.
TikTok doesn’t want to be in the same situation. Pappas acknowledges that its creators have found mainstream success both inside and outside the app, noting that top-tier celebrities have found “brand ingenuity, sponsorship and representation agreements with some of Hollywood’s biggest talent agencies.” Some creators, such as Charli and Dixie D’Amelio, have also signed agreements outside tikTok. The company knows its creators will find a chance to succeed outside the platform, but TikTok wants to keep them here as long as possible.
Strategically, this also helps TikTok stand out in several ways. By choosing the person who accepts the money, TikTok can try to avoid the controversial and problematic profit-making that you have had on YouTube. The fund could also help the company in its ongoing fight with the U.S. government, which has proposed a possible ban on the app. TikTok has spent months trying to become a more American company, has a campus in Los Angeles, has an American CEO and plans to hire 10,000 people in the U.S. The $200 million Creators Fund is another way for TikTok to demonstrate its commitment to it.
Whatever tikTok is now bringing in funds, the point is that TikTok wants to pay its creators directly for their contribution to the app, which has grown impressively over the past 18 months. Creators can expect to learn more about the eligibility factor next month.