TikTok, the global social media juggernaut, has become a fertile ground for creators to build an audience and potentially earn a living. In recent years, the platform has introduced a series of tools designed to financially reward its users. These include the Creator Fund, Creativity Program, and TikTok Pulse, all of which are performance-based payment programs. However, the question remains: can TikTok users actually turn a profit?
While some creators rely on brand collaborations, TikTok’s livestream gifting, subscription features, and its new e-commerce affiliate program within TikTok Shop for income, many are turning to the platform’s various payment programs. However, these programs are not without their controversies. Both the Creator Fund, which pays influencers from an undisclosed pool of money, and Pulse, which ties creator payments to ad revenue, have reportedly resulted in relatively small paydays for users. Despite this, TikTok’s Creativity Program, launched in beta in February 2023, has proven to be a more lucrative venture for creators.
TikTok’s Multiple Tools for Creator Monetization: A Deep Dive
TikTok, the globally popular video-based social media platform, has rolled out a suite of tools to enable creators to earn money from their content. These include the Creator Fund, Creativity Program, and TikTok Pulse. However, the question remains: Can TikTok creators really make substantial income through these programs?
Creator Monetization on Social Media Platforms
Influencers who achieve stardom on TikTok often look for ways to monetize their success. Brand collaborations, TikTok’s livestream gifting or subscription features, and its new e-commerce affiliate program within TikTok Shop are some of the options. However, for those whose content doesn’t align with these methods, they may branch out to other platforms like YouTube, or explore other business lines.
In terms of direct monetization, creators can earn a portion of the revenue based on video performance and views generated – an approach also applied by YouTube and Facebook. TikTok has introduced several payment programs in recent years tied to creator video performance, namely its Creator Fund, Pulse ad-revenue sharing program, and Creativity Program beta.
The Creator Fund and Pulse Program
The Creator Fund and the Pulse Program, both of which pay creators based on different metrics, have so far resulted in relatively modest payouts for users. Influencer Vi Luong, who has around 1 million followers on TikTok, reported earning $150 to $300 per month from the Creator Fund, depending on her posting frequency and content performance. However, as most creators cannot sustain on a few hundred dollars a month, the Creator Fund often serves more as a supplementary income source.
Similarly, TikTok’s ad-revenue sharing program, Pulse, has also been a relatively small piece of the pie in terms of influencer earnings. Eight creators who disclosed their earnings from the program in 2022 reported earning from a few pennies to $17 per 1,000 views.
Creativity Program: A More Lucrative Option
In contrast to the previous two programs, the company’s Creativity Program, launched in beta in February 2023, has proven to be more lucrative. TikToker couple Devin and Hunter Cordle reported earning a five-figure income from the program in a single month, suggesting the significant potential of the program.
TikTok’s Monetization Programs: A Closer Look
TikTok’s Creator Fund was launched in 2020 with a pledge to pay users a total of $1 billion over three years. The payout is determined based on factors like video view counts, engagement, and viewing location. However, public disclosures from creators suggest they earn just a few cents for every 1,000 views their videos generate.
The Creativity Program, on the other hand, promises "higher average gross revenue" for videos longer than one minute. Initial earnings from this program have been much higher, encouraging creators to produce longer content.
TikTok Pulse, launched in May 2022, allows brands to buy ads alongside "the top 4%" of content in different categories, with half the revenue going to the creator. However, monetized views often fall far below total video-view counts, leading to underwhelming initial payments.
Conclusion: TikTok Monetization in Perspective
While TikTok’s monetization initiatives are a step forward, they still lag behind the payouts from platforms like YouTube and Snapchat. Many creators report low earnings despite generating high view counts. The platform’s monetization features need to be regulated and expanded to better support creators. TikTok’s Creativity Program, however, represents a promising development, offering higher payouts and encouraging the production of longer videos. As TikTok continues to evolve, it will be interesting to see how these programs and future monetization initiatives shape the earning potential of its creators.