Platform “Creator Funds”
Insert Presentation Here
This is a short one.
What are “Creator Funds”
Creator Funds [Platform-Specific] are pools of money platforms set aside to directly compensate creators based on specific performance metrics (views, engagement, etc.) Each platform’s decision for compensation is different depending on what they individually find to be important, which makes it different from ad revenue sharing, which pays creators a cut of ad earnings.
TikTok started it, really. It was a way to keep “top creators” on their platforms since they promoted not only user engagement, but also creator engagement. Other platforms followed them in a way to compete for “top talent.”
Platform-Specific Breakdown
Platform | How it Works | Goals | Creator Experience |
Youtube | YouTube allocates $100 million to pay creators for viral Shorts content, with monthly payouts based on performance. | Boost Shorts to compete with TikTok and drive traffic to YouTube's core platform. | - Payouts are inconsistent, with no clear formula.
- Short-form content makes it harder for creators to build stable, recurring income. |
TikTok | TikTok allocates a set fund ($1 billion over three years) to compensate creators based on video views and engagement. | Attract and retain creators while incentivizing content that increases user retention. | - As more creators join, the per-view payout decreases.
- Creators report earning only a few dollars for millions of views, leading to dissatisfaction. |
Instagram | Instagram offers cash bonuses to creators who hit engagement and viewership targets on Reels. | Prioritize Reels to compete with TikTok and YouTube Shorts while increasing ad placements within Reels. | - Bonuses often require large engagement spikes, favoring already successful creators.
- Payments are temporary and not a long-term solution.
|
Snapchat | Daily payouts from a pool of $1 million (now scaled back) to creators with the most-viewed Spotlight videos. | Encourage creators to populate Snapchat's Spotlight with fresh, engaging content. | - Some creators earned millions early on.
- However, payouts have declined as the fund shrank. |
Pinterest | Pays creators for completing campaign-specific goals, such as creating Idea Pins tied to trending topics. | Reposition Pinterest as a creator-friendly platform to drive engagement and ad revenue. | - Limited campaigns and funding mean inconsistent earnings for creators.
- Complex, campaign-specific eligibility. |
LinkedIn | A program that provides grants ($15,000 per creator) and resources to selected participants to create professional content. | Increase content diversity and creator activity to broaden LinkedIn’s audience beyond job seekers. | A niche program with limited scalability but strong support for selected creators. |
Twitter/X | Pays creators a portion of ad revenue generated in replies to their posts and offers subscription monetization. | Incentivize conversation-heavy content to increase engagement and boost ad impressions. | - High thresholds for eligibility, such as being a verified user with significant engagement.
- Lack of clarity on revenue-sharing percentages. |
Please don’t hate me, platforms. I literally use and love every single one and I’m down to update this depending on the Creators I work with. Just relaying the word!!
Needless to say for Creators: you should diversify your income from just relying on any Creator Fund. This is supposed to be a sprinkle on top and ad rev is still something to optimize for. Do your research and work with the platform that best works with you. Stay informed and depending on the platform, keep in touch with the Head of Community or Partner that is closest to you and your vertical to keep up with how to optimize to get the most out of every platform’s Creator Fund.
As always, if you have any particular questions, feel feel to reach out to em@pre-founder.com.
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