TikTok adds features for (non-famous) creators

TikTok released new tools for creators to monetize their content — and you don’t need a massive following to benefit.

The news: TikTok launched Creator Next, a portal whose goal is to help creators monetize their content and grow their following. Creator Next gives users access to tools and features like the TikTok Creator Fund, the Creator Marketplace, LIVE and Video Gifts, as well as Tips. I’ll dive into the features below.

Not rich, nor famous: Previously, many of TikToks’ creator features were only for users with more than 100,000 followers. Now creators with only 10,000 or more can access its more lucrative opportunities.

Eligibility: To participate in Creator Next, creators must be 18 or older, have 10K+ followers, have at least 1,000 video views in the last 30 days, have at least three posts in the last 30 days. You also have to be based in the U.S., U.K., Germany, France, Italy, or Spain.

Millions to be made: Creators are key to TikTok’s growth plans. The Chinese company will pay creators $1 billion in the U.S. over the next three years, and more than double that investment globally.

Why it matters: TikTok — which is the most viable threat to YouTube, Facebook, Instagram, and Snapchat — is steadily becoming creators’ most lucrative platforms to monetize fans. Founders and creators that want to capitalize on one of the most popular distribution channels should keep an eye on TikTok and its growing array of features that appeal to young users.

Tips: Once you’ve enabled tips, a “Tips” icon will appear on your profile that viewers can select. Viewers send $5, $10, $15, or a custom tip. Creators receive the entire tip — which is processed by Stripe — but service fees may apply.

Creator Fund: Rather than a grant or ad revenue-sharing program, the Creator Fund calculates creators’ payouts on a variety of factors that fluctuate, per TikTok. The main determinants are your content’s total number of views, the authenticity of those views, the level of engagement on the content, and that the content is in line with TikTok’s rules.

Creator Marketplace: This is where many creators have made the lion’s share of their TikTok earnings — and now you need only 10,000 followers to access it. The Creator Marketplace is a platform for brand and creator collaboration. Brands and agencies can browse and search the marketplace of creators in 24 countries. Creators can apply to open campaigns or may receive direct invites from brands that like their content and following.

LIVE & Video Gifts: Both of these features allow creators to collect “Diamonds,” which are worth about $0.05 each. TikTok awards Diamonds to creators based on the popularity of their videos. One way for creators to collect Diamonds is to receive Gifts from followers on your LIVE videos or regular short-form videos.

1B and counting: TikTok hit the 1B monthly user mark in September. The ByteDance-owned company hit the 1 billion monthly user mark in only four years — roughly four years faster than the pace of Instagram.

Creators love TikTok: A recent survey found that creators prefer using TikTok over any other platform, including YouTube, Instagram, and Facebook. The Influencer Marketing Factory surveyed 600 U.S. creators to find that content creators’ favorite platform is TikTok (30%) followed by Instagram (22%) and YouTube (22%). TikTok is also narrowly where these creators make the most money: TikTok (24%), Instagram (22%), YouTube (20%).

TikTokers: TikTok’s user demographics have changed a lot in the 18 months, but it still skews young. Nearly 48 percent of users are between the ages of 10 and 29, while about 30 percent are between 30 - 49 years old. In its lawsuit against the U.S. government, TikTok shared that it has about 100 million total users in the U.S. and 50 million daily active users.

Are you a TikTok creator? What’s your experience been like? I’d love to talk to some creators that have found success on the platform — please reach out!