TikTok Is Closing Its $2 Billion Creator Fund After Three Years

TikTok is formally closing its $2 billion Creator Fund, which it announced approximately six months ago.

The three-year-old Creator Fund will be retired by TikTok, according to reports from a number of publications. However, as of this writing, the ByteDance-owned app had not announced the news via a formal release or social media post.

Regardless, the same sources indicate that the Creator Fund will expire on Saturday, December 16. This fund was first introduced in July 2020 and was described as a way for fans of TikTok to “realize additional earnings” in exchange for their “care and dedication” on the site.

The Creator Fund began with a very modest $200 million and increased to the $2 billion range that was first mentioned. TikTok creators who fulfilled the qualifications were able to apply for a piece of the fund. Naturally, the extremely contentious TikTok sought to draw in new creators (and retain those already on board) by contributing the necessary funds. At the time of the fund’s launch, the platform was undoubtedly in danger of being banned in the United States.

However, it didn’t take long for a number of factors—including TikTok’s large user base and views—to reduce the fund’s average per-view payout to an absurdly low amount. When YouTube Shorts introduced a new revenue-sharing scheme in February of this year, reports state that the Creator Fund only gave out two cents for every thousand views.

TikTok introduced the “Creativity Program,” which is the substitute for the Creator Fund, in a few markets in February as well. Then, in May, the beta—which is still in beta testing—was extended, and the whole set of qualifying conditions was made public.

Even if further information regarding the cancellation of the Creator Fund and the increased importance of the Creativity Program is probably forthcoming, it’s important to remember that Instagram Subscriptions is currently said to have more than a million active users.

Along with a “new invite-only holiday bonus on Instagram,” Meta announced the milestone, which is one of several examples of the diverse range of cash sources available to creators nowadays. The latter, as its description implies, will pay qualified people in the United States, Japan, and South Korea for using Instagram to “share their creativity,” which is understood to include both images and clips.

The Twitter/X revenue-sharing program, which debuted last summer, and an expanding array of services that offer ultra-dedicated supporters access to unique content and/or one-on-one interactions are also options for creators.

TikTok Is Closing Its $2 Billion Creator Fund After Three Years

TikTok is formally closing its $2 billion Creator Fund, which it announced approximately six months ago.

TikTok introduced the “Creativity Program,” which is the substitute for the Creator Fund, in a few markets in February as well. Then, in May, the beta—which is still in beta testing—was extended, and the whole set of qualifying conditions was made public.

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