First-generation funds (TikTok's 2020 Creator Fund, Snapchat Spotlight's early payouts) shared a flaw: a fixed pool divided across exploding view counts meant pennies per thousand views, and payouts shrank as the platform grew. Creator complaints about "$4 for a million views" defined the era.
The second generation pays per qualified engagement instead: TikTok's Creator Rewards Program pays meaningfully more for original videos over one minute based on views, watch time, and search value; YouTube extended ad revenue sharing to Shorts. Eligibility gates are standard — follower minimums, view thresholds, age, and region. The structural lesson for creators is unchanged: platform programs are supplemental income, while brand deals, affiliate, and owned products carry most creator businesses.
