TikTok claims that its updated creator fund has resulted in a more than 250% increase in overall creator earnings

Today, TikTok revealed that its overhauled creator fund has significantly boosted total creator earnings by more than 250% in the past six months. The company is preparing to officially launch the fund, which initially replaced TikTok’s original $1 billion Creator Fund. Additionally, TikTok shared plans to rename its LIVE Subscription monetization tool to simply “Subscription” and extend it to non-LIVE creators.

Initially called the Creativity Program, the revamped fund will now be known as the “Creator Rewards Program” as it exits its beta phase. Unlike the previous Creator Fund, this updated program rewards creators for producing longer content, incentivizing videos longer than one minute. TikTok noted a significant increase in user engagement with longer videos, with viewers spending half of their time on the platform watching them.

The decision to revamp the fund stemmed from creator complaints about low payouts in TikTok’s previous model, with some creators earning only minimal amounts despite garnering millions of views. TikTok estimated that creators could earn over 20 times more with the revamped fund.

While TikTok aims to compete with YouTube by introducing longer videos, it doesn’t match YouTube’s level of revenue sharing. YouTube has paid out $30 billion to creators over three years through its advertising revenue sharing model. TikTok’s new creator fund aims to address creator concerns and encourage them to share their longer videos on TikTok rather than solely on YouTube.

Regarding the Subscription feature, TikTok is extending it to non-LIVE creators, offering them a new way to engage with their audience through exclusive content and perks. Initially, access will be by invitation only, with eligible creators gaining the ability to sign up in the coming weeks.

By broadening the tool’s scope, TikTok enables creators to offer perks to subscribers for both their videos and live streams, not just for live content. Subscribers will gain a badge next to their names when commenting on videos and during live streams. TikTok promises additional perks as the feature is fully implemented.

TikTok also announced enhancements to its Creator Portal, now renamed the Creator Academy, which will offer creators updated resources, courses, articles, and insights. The upgraded hub is currently undergoing testing and will be available in seven languages initially, with more to follow.