Rising video app, TikTok has revealed they will be creating a $200 million fund that will be used to retain its top users and attract new ones, signaling another milestone for the growing company.
In a statement Thursday, the video app said the new program aims to “help support ambitious creators who are seeking opportunities to foster a livelihood through their innovative content.”
The fund will start distributing the cash later this year, according to TikTok. The scheme is said to be one of the few ways users can make money on the app. Previously, users could monetize their accounts only via livestreams or through brand partnerships.
Eligible users must be 18 or older, live in the United States and “consistently” post original videos that comply with TikTok guidelines. Applications to enter the program begin next month, even as TikTok currently faces multiple battles, including a possible ban in the United States because of its Chinese ownership over claims that it’s a security risk. The company announced this week it plans to create 10,000 US jobs over the next three years, a substantial increase from the roughly 1,400 employees it currently has in the country.
TikTok is under pressure to step up its game, as rival apps with similar functions, are currently being updated on Instagram, owned by Facebook (FB).
Instagram is launching a TikTok-like function called Reels, which will let people record and edit 15-second videos set to music and audio, and upload them to their stories and Instagram’s Explore feature. YouTube, which lets users monetize their channels, also recently announced its own $100 million fund to “amplify” content from Black users.
The TikTok Creator Fund, according to the app’s statement, is to encourage those who dream of using their voices and creativity to spark inspirational careers.
The US fund will start with $200 million to help support ambitious creators who are seeking opportunities to foster a livelihood through their innovative content. The fund will be distributed over the coming year and is expected to grow over that time.
Part of the statement reads:
The addition of the TikTok Creator Fund builds upon our ongoing commitment to support our creators through monetary opportunities including:
Our $50M Creative Learning Fund, which introduces emerging teachers to the platform – and has benefitted over 1,000 US creators who’ve been affected by the global pandemic; TikTok LIVE streams, which bring earnings to hundreds of thousands of US creators over the age of 18 who host live programs for their audience; The TikTok Creator Marketplace, which helps brands discover and partner with innovative creators to collaborate on paid campaigns that drive awareness and attract new customers; Through the TikTok Creator Fund, our creators will be able to realize additional earnings that help reward the care and dedication they put into creatively connecting with an audience that’s inspired by their ideas. To be eligible, users must be 18 years or older, meet a baseline for followers, and consistently post original content in line with our Community Guidelines. The TikTok Creator Fund will open to applications from US creators beginning in August.
In a relatively short time, TikTok has grown to become a source of income and opportunity for creators and their families – and we couldn’t be more encouraged by their success. As our community continues to flourish, we’re committed to fostering even more ways for our creators to earn livelihoods by inspiring joy and creativity.