TikTok is set to close its $1 billion creator fund on December 16, shifting towards alternative channels like the Creativity Program and TikTok Pulse for creator compensation. This move signifies a year-long transformation in how social media platforms handle payouts, particularly as creator funds faced criticism for unclear rules and meager payouts.

The evolution started with YouTube’s revenue-sharing program for YouTube Shorts, where eligible creators could keep 45% of their ad revenues. The success of this model influenced other platforms, including TikTok, to reevaluate their approach. TikTok has introduced various creator payout options in 2023, emphasizing initiatives like the Creativity Program, which promises creators payouts up to 20 times higher than the previous fund.

This shift extends beyond TikTok, with platforms like Snap’s Snap Stars program offering higher payouts and even Twitter’s attempt at revenue sharing, though with some challenges. For creators choosing platforms, considerations of payout size, transparency, and audience size come to the forefront. While TikTok’s cultural relevance and increased payouts are attractive, stability and security remain top priorities for creators in navigating the evolving landscape of the creator economy.

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