TikTok, on Wednesday (13 March), announced that the company is expanding the use of its Effect Creator Rewards monetization model and lowering its compensation threshold.
The program, which debuted in May 2023, rewards creators for the effects they create on TikTok's AR development platform, Effect House.
Additionally, it is updating its payment process so that producers will only get paid for effects used in public videos that are posted online.
The program is expanding to 33 more regions, including Argentina, Austria, Bahrain, Belgium, Belarus, Chile, Colombia, Czechia, Denmark, Ecuador, Egypt, Greece, Hungary, Israel, Kazakhstan, Kuwait, Mexico, Morocco, New Zealand, Norway, Oman, Peru, Portugal, Qatar, Romania, Saudi Arabia, South Africa, Sweden, Switzerland, Taiwan, Thailand, Turkey and Uruguay.
There are now 53 regions in which Effect Creator Rewards are available.
Before, creators had to use an effect in 200,000 qualifying videos within 90 days in order for it to start collecting rewards. Now, each effect just needs to be utilized in 100,000 qualified videos in order to start earning prizes.
A year ago, TikTok launched an initiative that required creators' effects to be featured in 500,000 videos in order for them to be eligible for prizes. The company lowered the sum to 200,000 in October. With today's modification, the eligibility criteria is much lower than the program's initial requirement.
The announcement made by TikTok a few days ago that the company's revised creator fund had increased total creator revenue by over 250% over the preceding six months before today's revelation.
The fund, which made its debut a year ago and eventually replaced TikTok's first $1 billion Creator Fund, will exit beta in the coming weeks.
With respect to the updated payout model, only effects used in qualified public videos will be eligible for rewards; this is in contrast to the prior model, which permitted incentives for both private and public videos.
Although TikTok is aware that this change may result in fewer videos being eligible for Effect Creator Rewards, the video is making the adjustment by moving from a flat pricing strategy to an RPM (revenue per mile) model in order to compensate creators.
The company told TechCrunch that the new model enables producers to get paid based on how many qualified videos used their effect throughout the first ninety days.
According to TikTok, some creators have received the maximum rewards of $14,000 for each effect and $50,000 per month since the program's inception last year.