TikTok users in the US who invite their creator friends to join the app can now get up to $300 in discounts or a $100 Amazon gift card for every new creator they refer. Users are rewarded after an eligible creator (YouTubers with 10K subscribers and Instagrammers with 100K followers) accepts and joins TikTok’s 1 Min+ Growth Program using the invitation code. Lia Haberman posted a screenshot of the message she received on Threads.
Andrew Hutchinson of Social Media today wrote that the incentive, “seems a little desperate, and a little like TikTok is running out of ideas for growth, given that it’s resorting to cash rewards and discounts to get more users across.”
Personally, I don't think that the move screams desperation. I'm a big proponent of offering referral commissions to grow memberships. However I question whether this particular promotion will be effective. Does TikTok think that YouTubers with 10k subscribers and Instagrammers with 100k followers haven't heard of TikTok before? And that the push they've been looking for is a sign-up link from a fellow creator?
At this point, if a larger video creator hasn't joined TikTok yet it's an intentional or calculated choice. Perhaps they make too much money on YouTube to want to spread their view count across TikTok, or they lack the capacity to spread themselves too thin across multiple networks.
My recommendation to TikTok is to focus on making your creator program as attractive as YouTube's, which generally pays creators more. That'll attract the creators you're looking for — no referral incentive required.
Hutchinson also shared that TikTok’s growth has plateaued, and is even declining in some regions. The app sky-rocketed to popularity in 2021, hitting one billion users, but the company has not provided an official update on its active user count since then.
In other TikTok News… The company rolled out group chats that support up to 32 participants, aiming to enhance user interaction by allowing friends and family to connect more easily on the platform and eliminate the need for third-party messaging apps like WhatsApp to share and discuss videos.