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Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
Earlier this month, Business Insider reported that a group of around 75 TikTok creators formed a private Discord server to discuss the potential of forming a union. Led by Forrest Valkai, a science TikToker with 1.4 million followers, the group’s main gripe included their lack of stability.
“We’re professional creators,” Valkai told Insider. “How hard would you work for a company that doesn't pay you and where you can be fired and dropped for no reason?”
TikTok creators know they’re not the company’s staff. In its terms, the company appears to classify some of its creators as independent contractors, since it pays them directly.
Content on the app is monetized through several arrangements. One of those ways is through the Creator Next program: the ground floor hub through which the rest of transaction avenues occur. To be eligible, creators must have over 1,000 viewing hours of their content over the last 30 days.
Once in the door of Creator Next, you can be paid directly from fan transactions (tips, video gifts, live gifting), brand endorsement deals (via the Creator Marketplace) or directly through the Creator Fund. Of all the monetization models available to creators on the platform, only the Creator’s Fund refers to its participants as independent contractors of TikTok on their legal Terms page. As such, the Creator Fund is perhaps the only avenue by which creators can form a union and lobby Tiktok for employment status.
To join the Creator Fund, TikTokers need to be an adult based in the U.S. with an active account; have at least 100,000 views within 30 days of applying and at least 10,000 followers. But that doesn’t guarantee you membership, and applications can receive unclear rejections.
Launched in July 2020, the fund is a $200 million reserve available to creators. TikTok said in March 2021 the fund was expanding, noting on their website they “expect this fund will grow to over $1 billion in the US in the next 3 years, and more than double that globally.”
How the Creator Fund operates – who it lets in, why and how much they will be paid (TikTok says it's between two and four cents per every 1,000 views) – is also an algorithm-shrouded mystery. TikTok wouldn't tell dot.LA how many people are in the Creator Fund currently.
Officially, TikTok says “a number of factors influence how funds are calculated,” including “video views, video engagement” as well as adherence to guidelines and terms of service. But a finer look at the verbiage on the Creator Fund Terms claims: “TikTok will pay Creator a sum…based on Creator’s total legitimate, unique video views for eligible User Content that complies with these Creator Fund Terms.”
That’s still no answer for how much is going to creators, but at least we know the criteria: views, not “engagement.”
But even if TikTok creators are being paid out directly, their status as potential independent contractors could bar them from unionizing.
“The whole concept of independent contractor status is really a hot button in labor law right now. It is a disfavored classification, under state and federal law, because there's a lot of suspicion that it's being used to hide employee status,” Thomas Lenz, a lecturer at USC’s Gould School of Law and former attorney for the National Labor Relations Board (NLRB), told dot.LA.
It would also be difficult to prove that every creator is negatively affected by TikTok’s payment policies in the same way, which Lenz explained, is one key way unions gain ground in changing protocols.
While public support for unions is at an all-time high since 1965 and workers in entertainment and retail are making progress towards collective bargaining, it’s going to be much harder for a social media union to take shape. In large part because unless creators are a part of the Creator Fund, they’re not technically independent contractors.
“It’s such a loose relationship, and it’s so much at the discretion of the creator [to choose to leave],” Lenz said. “They're definitely in a gray space.”
Lenz added that if the TikTok creators get to the point where they do file a petition with the NLRB, “TikTok could very well refuse to agree to an election demand hearing, and start presenting evidence on the people that it does not consider to be employees,” which could cut down a union election before it begins.
Typically, the National Labor Relations Act only protects employees, but there could be one loophole for TikTok creators to sneak through, said attorney Alykhan Sunderji, a former head of legal for Amazon.
“These organizations [could] cause enough of a ruckus and get enough people on one side that the company says, look, we know you're not formally a union, but we'll talk to you and we'll listen to you and we'll try and be cooperative and create guidelines that will follow,” Sunderji said.
He likened the issue to the Screen Actors Guild and noted that when that union formed in the early 1930s it was successful because numerous big stars eventually came on board, forcing studios to the bargaining table.
“I think that it will be very challenging, if not impossible to do that with TikTok creators, it is just too dispersed of a group,” Sunderji said of a possible union.
Knowing this, TikTok creators are looking to SAG as a possible blueprint. “What we're attempting to do is aim for union [but] see if we can find a loophole into that and try to make it more like a SAG-AFTRA, where you can move between companies and still keep your protections,” said one creator who goes by the handle JeGaysus and wished to remain anonymous for fear of being targeted..
In June, SAG agreed to represent influencers, but didn’t return dot.LA’s request for comment.
But, according to Sunderji, the decentralized nature of social media could backfire for pro-union creators, since “it is just too dispersed of a group.”
JeGaysus told dot.LA that since September 19, the private server of pro-union TikTokers has doubled its membership, from 75 people to 150. But for now, that’s the extent of the group’s progress: No demands have been brought to TikTok yet.
Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
When avatar startup Genies raised $150 million in April, the company released an unusual message to the public: “Farewell.”
The Marina del Rey-based unicorn, which makes cartoon-like avatars for celebrities and aims to “build an avatar for every single person on Earth,” didn’t go under. Rather, Genies announced it would stay quiet for a while to focus on building avatar-creation products.
Genies representatives told dot.LA that the firm is now seeking more creators to try its creation tools for 3D avatars, digital fashion items and virtual experiences. On Thursday, the startup launched a three-week program called DIY Collective, which will mentor and financially support up-and-coming creatives.
Similar programs are common in the startup world and in the creator economy. For example, social media companies can use accelerator programs not only to support rising stars but to lure those creators—and their audiences—to the company’s platforms. Genies believes avatars will be a crucial part of the internet’s future and is similarly using its program to encourage creators to launch brands using Genies’ platform.
“I think us being able to work hands on with this next era—this next generation of designers and entrepreneurs—not only gets us a chance to understand how people want to use our platform and tools, but also allows us to nurture those types of creators that are going to exist and continue to build within our ecosystem,” said Allison Sturges, Genies’ head of strategic partnerships.
DIY Collective’s initial cohort will include roughly 15 people, Sturges said. They will spend three weeks at the Genies headquarters, participating in workshops and hearing from CEOs, fashion designers, tattoo artists and speakers from other industries, she added. Genies will provide creatives with funding to build brands and audiences, though Sturges declined to share how much. By the end of the program, participants will be able to sell digital goods through the company’s NFT marketplace, The Warehouse. There, people can buy, sell and trade avatar creations, such as wearable items.
Genies will accept applications for the debut program until Aug. 1. It will kick off on Aug. 8, and previous experience in digital fashion and 3D art development is not required.
Sturges said that the program will teach people “about the tools and capabilities that they will have” through Genies’ platform, as well as “how to think about building their own avatar ecosystem brands and even their own audience.” Image courtesy of Genies
Founded in 2017, Genies established itself by making avatars for celebrities from Rihanna to Russell Westbrook, who have used the online lookalikes for social media and sponsorship opportunities. The 150-person company, which has raised at least $250 million to date, has secured partnerships with Universal Music Group and Warner Music Group to make avatars for each music label’s entire roster of artists. Former Disney boss Bob Iger joined the company’s board in March.
The company wants to extend avatars to everyone else. Avatars—digital figures that represent an individual—may be the way people interact with each other in the 3D virtual worlds of the metaverse, the much-hyped iteration of the internet where users may one day work, shop and socialize. A company spokesperson previously told dot.LA that Genies has been beta testing avatar creator tools with invite-only users and gives creators “full ownership and commercialization rights” over their creations collecting a 5% transaction fee each time an avatar NFT is sold.
“It's an opportunity for people to build their most expressive and authentic self within this digital era,” Sturges said of avatars.
The company’s call for creators could be a sign that Genies is close to rolling out the Warehouse and its tools publicly. Asked what these avatar tools might look like, the startup went somewhat quiet again.
Allison Sturges said, “I think that's probably something that I'll hold off on sharing. We will be rolling some of this out soon.”
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
LA Tech Week—a weeklong showcase of the region’s growing startup ecosystem—is coming this August.
The seven-day series of events, from Aug. 15 through Aug. 21, is a chance for the Los Angeles startup community to network, share insights and pitch themselves to investors. It comes a year after hundreds of people gathered for a similar event that allowed the L.A. tech community—often in the shadow of Silicon Valley—to flex its muscles.
From fireside chats with prominent founders to a panel on aerospace, here are some highlights from the roughly 30 events happening during LA Tech Week, including one hosted by dot.LA.
DoorDash’s Founding Story: Stanley Tang, a cofounder and chief product officer of delivery giant DoorDash, speaks with Pear VC's founding managing partner, Pejman Nozad. They'll discuss how to grow a tech company from seed stage all the way to an initial public offering. Aug. 19 at 10 a.m. to 12 p.m. in Santa Monica.
The Founders Guide to LA: A presentation from dot.LA cofounder and executive chairman Spencer Rascoff, who co-founded Zillow and served as the real estate marketplace firm’s CEO. Aug. 16 from 6 p.m. to 9 p.m. in Brentwood.
Time To Build: Los Angeles: Venture capital firm Andreessen Horowitz (a16z) hosts a discussion on how L.A. can maintain its momentum as one of the fastest-growing tech hubs in the U.S. Featured speakers include a16z general partners Connie Chan and Andrew Chen, as well as Grant Lafontaine, the cofounder and CEO of shopping marketplace Whatnot. Aug. 19 from 2 p.m. to 8 p.m. in Santa Monica.
How to Build Successful Startups in Difficult Industries: Leaders from Southern California’s healthcare and aerospace startups gather for panels and networking opportunities. Hosted by TechStars, the event includes speakers from the U.S. Space Force, NASA Jet Propulsion Lab, Applied VR and University of California Irvine. Aug. 15 from 1 p.m. to 5 p.m. in Culver City.
LA Tech Week Demo Day: Early stage startups from the L.A. area pitch a panel of judges including a16z’s Andrew Chen and Nikita Bier, who co-founded the Facebook-acquired social media app tbh. Inside a room of 100 tech leaders in a Beverly Hills mansion, the pitch contest is run by demo day events platform Stonks and live-in accelerator Launch House. Aug. 17 from 12:30 p.m. to 3 p.m. in Beverly Hills.
Registration information and a full list of LA Tech Week events can be found here.
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Yasmin is the host of the "Behind Her Empire" podcast, focused on highlighting self-made women leaders and entrepreneurs and how they tackle their career, money, family and life.
Each episode covers their unique hero's journey and what it really takes to build an empire with key lessons learned along the way. The goal of the series is to empower you to see what's possible & inspire you to create financial freedom in your own life.
Growing up in the suburbs of Detroit, Rooshy Roy said, as the only Indian girl in school, she spent a lot of time feeling like an outsider and like she wasn’t meeting others’ expectations of “how an Indian girl should behave.”
Flash forward 20 years, and the differences Roy was once ashamed of are now the inspiration for her skincare company.
On this episode of Behind Her Empire, Aavrani skincare products co-founder and CEO Rooshy Roy explains how she built a successful business model from ancient Indian beauty rituals.
In college in Indiana, Roy settled on finance as a career choice because the program was competitive and she wanted the external validation of proving to everyone she could do it. She started her career in banking in New York and treated success like a “game” to win.
“I was calling them every day, I was reaching out to new people all the time just to get an interview, it was a whole thing” she said. “It became a game for me.”
Her hard work paid off. She got into finance, then immediately realized it wasn’t for her.
“In most of those rooms, I was the only woman or the only person of color or both,” she said. “And I kind of realized I was playing the wrong game.”
Roy then had to rethink her life goals and career path. She knew she didn’t want to do finance but wasn’t sure what she wanted. She decided to go into business school to figure it out. The second day on campus, she met her co-founder and it was “off to the races,” she said.
“Looking at my resume or my LinkedIn, you might think I was a straight-A student or had my shit together at any point in time before my twenties,” she laughed. “But I didn't. And I hope that by sharing that people realize that there's no timeline, everybody's on their own path.”
Aavrani was born from a conversation between Roy and her co-founder, Justin Silver, about a Japanese-inspired skincare brand called Tata. She realized that what she loved about the brand was that it combined elements of ancient Japanese medicinal and beauty rituals — something that could be done with Indian cultural practices as well.
“[Justin] would ask… ‘Every time you'd make a turmeric mask for example, you'd make it at home one by one with the ingredients?’ And I'm like, ‘Well, yeah.’ And he's like, ‘Why can't you just buy it at the store?’” she said. “And within two weeks of that conversation, we transferred all of our business school tuition into a joint savings account, and took out business school loans that I'm still paying off, but we just never looked back.”
Aavrani branding didn’t come easy. For a long time, Roy saud she had tried so hard to cater to what everyone expected an Indian skincare brand to be that she felt like she didn’t connect to her own brand. Instead, she said, she should have let it be what it was. Once she found her niche, it was just a matter of putting in the work to spread awareness on social media about their products.
“In the beginning, I posted every single day, three times a day for six months before we launched our product,” Roy said.
They launched and sold their first 1,000 products through social media in 2018.
Roy said she’s still found the most success in partnering with micro-influencers who genuinely love the product.
“If I see somebody who is peddling their product all the time, it's not going to resonate with me as much,” she explained. “But if I see somebody doing their makeup, and Aavrani is in the background — they don't even have to say anything about it, it makes such a statement.”
One of Roy’s biggest business struggles was conquering her own self-doubt.
“When you think you're not good enough, it affects the approach to your work, and then your work will not be good enough,” she said.
Her success in launching a business came from learning to re-frame her thinking, and give herself obtainable goals rather than extreme, unrealistic ones. Once she started doing that, she started winning.
“I've reframed it to [thinking that] starting the business has been the catalyst for my personal journey, and it's really the thing that I now look at as an output of my personal journey,” she said.
dot.la Social and Engagement Editor Andria Moore contributed to this post.
This podcast is produced by Behind Her Empire. The views and opinions expressed in the show are those of the speakers and do not necessarily reflect those of dot.LA or its newsroom.
Hear more of the Behind Her Empire podcast. Subscribe on Stitcher, Apple Podcasts, Spotify, iHeart Radioor wherever you get your podcasts.
Yasmin is the host of the "Behind Her Empire" podcast, focused on highlighting self-made women leaders and entrepreneurs and how they tackle their career, money, family and life.
Each episode covers their unique hero's journey and what it really takes to build an empire with key lessons learned along the way. The goal of the series is to empower you to see what's possible & inspire you to create financial freedom in your own life.
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