Since TikTok launched in 2016, users on the video-making app were only able to monetize their account through third-party sponsorships, endorsements, brand deals, or donations.
On July 23rd, the app announced that they are budgeting to pay 200 million dollars to users in the US during its first year, and more recently, that they are allocating an additional 70 million dollars to those residing in Europe.
Those looking to apply in the US must be 18 years old or older, post original content that adheres to TikTok’s community guidelines, and have a certain amount of followers (the exact amount has been unreleased).
This big announcement comes after Facebook released the roll-out of Instagram Reels, a feature on the photo-sharing platform that shares extremely similar qualities to TikTok. The new feature will allow users to edit, clip, add music, and include special effects to their videos.
Since TikTok surpassed Instagram with 2 billion downloads worldwide earlier this year, Facebook has quickly taken action. Alongside the announcement of Instagram Reels, they have been allegedly reaching out to famous creators on TikTok, offering them financial incentives to use and help launch their new video feature.
This comes as no surprise. TikTok has grown extremely quickly, and is widely beloved by teens and young adults — an audience that Facebook is eager to retain.
TikTok’s US General Manager, Vanessa Pappas, said that the TikTok team “couldn’t be more encouraged by [the creator’s] 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.”
With TikTok’s new monetization plan and Facebook’s launch of Instagram Reels, it’s still unclear which app will succeed in making their platform the most favorable among video creators. Let us know what you think!