TikTok introduces a new way for creators to monetize their content on its platform. The company announced today that it is launching a new “Effect Creator Rewards” fund that will reward creators for the effects they create through the app’s AR development platform, Effect House.
The $6 million fund will offer creators payments based on users’ engagement with their securities. At launch, for each effect used in 500,000 unique videos within 90 days of publication, a creator will collect $700 USD. For every 100,000 videos published after that within the same 90 days, creators will receive an additional $140. TikTok has not commented on its plans for the fund once the $6 million runs out.
A TikTok spokesperson told AapkaDost that the new fund is available in the United States, France, Germany, Italy, Spain and the United Kingdom.
“When we launched the Effect House beta – complete with development tools, guides and learning resources – our goal was to equip designers, developers and creators with everything they needed to build dynamic Community Effects for the global TikTok community” , the company wrote in a blog post. “Our investment in Effect Creator Rewards furthers that commitment, expands opportunities for effect creators, and helps support and reward their passion and creativity.”
Today’s announcement comes two weeks after TikTok opened its revamped creator fund, dubbed the “Creativity Program Beta,” to all eligible creators in the United States, France, and Brazil. The new program is designed to generate higher revenue and unlock more real-world opportunities for creators. To be eligible for the program, creators must be at least 18 years old and have at least 10,000 followers and at least 100,000 views in the last 30 days.
TikTok says the reward formula for the Creativity Program Beta is formulated to provide higher average gross revenue for qualified video views. The company’s Creator Fund launched in 2020 with a $1 billion commitment over three years, but drew criticism from creators complaining about low payouts. The new Creativity Program Beta is TikTok’s answer to these complaints.
Once enrolled in the new program, creators cannot return to the Creator Fund. TikTok has not said whether the Creativity Program will replace the Creator Fund altogether, but TikTok will likely scrap the Creator Fund once the Creativity Program launches more widely.
Effect Creator Rewards and the Creativity Program are the latest additions to TikTok’s suite of monetization tools, including LIVE Subscriptions and TikTok Pulse. The company also has tips and gifts monetization features. A few months ago, TikTok also introduced a new feature called “Series” that allows eligible creators to post content behind a paywall.