Failures In The Support Systems In Place Are Causing Frustration Among Users
As marketing becomes increasingly digital, some businesses are failing to support those who produce content. Although social media platforms are offering profit to their users, sometimes the systems which allow this fail. By the time the steps necessary to overcome these errors are taken, it could already be too late.
No one is more aware of this than TikTok; despite their best interests in introducing it, the Creator Fund has already come under scrutiny. The Creator Fund was set at $200 million in order to support the platform’s top creators, but the number of creators who can be supported from this fund has not been limited, leading to some problems.
As more content creators are added less money can be distributed, decreasing the potential payout per user. Although programmes are being developed in order to help bring more marketing onto the platform, there seems to be little in terms of developing support directly from TikTok.
[Creds: NBC News]
Here it’s clear TikTok has fallen on their own sword; although the short-format content has been increasingly popular, this removed the availability of options the competition offers. Take YouTube for example; their users can earn a share of the revenue from ads placed on their videos. TikTok can’t do that as of now; although users are able to tip their favourite creators, this doesn’t guarantee a sustainable revenue stream.
TikTok needs to seriously consider how to support their creators further in order to avoid collapse. Their predecessors illustrate this; Vine famously faced the same issue in supporting their creators. Although the top users had tried to negotiate monetisation deals with them, they were not brought to fruition leading them to seek support elsewhere.
If TikTok are able to provide more consistent monetisation methods they could mitigate a total collapse of their platform. But, should nothing change, TikTok could find themselves in a position with no creators, and therefore, no revenue stream.
TikTok needs to consider the way they support creators. Although their parent company may have taken in $34.3 billion in 2020 alone, failing to distribute this further among the users may lead to dissatisfaction. With competitors eager to match TikTok’s success, a more friendly platform may emerge to support them instead, leaving TikTok in the dust.
Finally, for our previous #SocialShort, click here.