TikTok faces an additional challenge as it continues to grapple with its meteoric growth: making sure its top stars are compensated for their contributions to the app.
Monetization of short-form video presents unique challenges, as users cannot directly monetize via in-stream advertisements, as they can with longer content. Therefore, a significant risk for TikTok is that its top creators will ultimately realize that they can earn much more money by posting to YouTube or Instagram instead, where there are more opportunities for direct revenue.
According to Fortune, none of the seven TikTok influencers who were interviewed, and who all had followings of at least 100,000, expressed confusion about their enrolment in the program, and none claimed to have made more than USD 5.
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