Bounty, an online service that helps TikTok creators monetize brand reviews and recommendations, announced today that it has closed an initial $4.7 million round led by early-stage consumer tech company M13.
The new service, currently in beta, is designed for everyday TikTok users – not just professional creators – who want to earn money reviewing brands’ products.
To register, customers enter their phone number on the Bounty website and a list of instructions are sent. Bounty users must first purchase an eligible product from one of the partner brands. After the order is processed and delivered, the customer will receive a special link via text message to accept “Bounty” so that they can get paid when they post their video review on TikTok. The creator uploads the content with the branding and a #bonus in the caption. Bounty will detect the post and tell the customer that it is being tracked. Videos must also be appropriately marked as “sponsored” in accordance with Federal Trade Commission guidelines. Bonus notes.
Reviewers can earn up to $10 for every 1,000 views their TikTok content receives and get 100% of their earnings. They get paid for organic views created in the first 48 hours. The company explains that the viewing price gradually decreases as the number of views increases to ensure a fair return for the creator and the brand. Therefore, the better the video performs during the first two days, the higher the salary of the creator.
Anyone 18 years of age or older with a TikTok account can use Bounty.
On-board funding will be used for brands from the company’s queue of more than 750 brands. At present, Bounty works with 30 brands, including Jones Road Beauty, BlendJet, Olipop and Doe Lashes.
During beta testing, Bounty worked with around 14,000 creators. The company reported that its top creators made around $3,000 per month, but did not share details about how many videos they post or what the average user could earn.
However, Addie Neri, a TikTok user (@addingtoneri) with a modest following of 19.4000, told Fast Company that she was able to make upwards of $560 with a single Bounty video. As of May 2022, she has earned over $3,000 in total from posting Jones Road Beauty products with the help of Bounty.
Aside from earning money from views, the creator also gets paid when the brand reuses their video in other ways. Brands can display content generated through the Bounty website and can then license it to run as a TikTok Spark ad – an ad format that allows advertisers to put ad spend on user-generated content to boost it to a larger audience. They can also use the video in their other paid marketing efforts.
This is possible because the creators grant Bounty a license to their content as part of their agreement, allowing Bounty to license the content to the brand on their behalf. The creator also retains the license to the content.
Bounty brands pay a monthly fee, which varies based on platform usage, but starts at $99 per month.
Investors Sugar Capital and Interlace Ventures, as well as founders and CEOs from Rothy’s, Fabletics and Stack Commerce, among others, participated in the new round, bringing the total to $6.7 million. The funding will also help support staffing plans for Bounty’s engineering, design and marketing departments. Early appointments from Google, Sezzle, and Dharma.
The Miami-based company was founded in 2021 by Abe Wolke. He hopes the product will democratize the influencer economy by “giving customers who pay money the ability to be rewarded if the brand uses their content and helps the brand grow,” he says.
The old way of doing this was to pay the agency to send free products to influencers in the hope of getting a post. However, this is less effective because it looks like an advertisement. When a real customer posts content, it looks more authentic. Of course, customers who get paid for their positive reviews of a product aren’t necessarily more honest than a builder who got the item for free. The company told content creators that negative reviews do not qualify for payment.
“Celebrities and big-name creatives are not our focus,” explains Woolki. “We are focused on unleashing the long tail of creative marketing, servicing micro and nano creators – everyday customers and creators who don’t have an agent or large audience, or else their favorite brands might not notice. However, any real customer can participate.”
The startup is capitalizing on the growing interest of brands in working with young creators. As Insider Intelligence recently reported, spending by “nano” influencers (influencers with 1,000 to 5,000 followers) will increase by 220.5% in 2022, while spending by “mega” influencers (content creators with 1 million followers +) will grow by 8.0 % Just. In a separate report, the company indicated that TikTok ad revenue is expected to triple to $12 billion this year.
Bounty launched into beta in March of this year and claims that “the growth has been phenomenal,” according to chief engineering officer Aaron Decker. “Two weeks ago, we only had 800 signups per week. Before that, it was only 500 per week.
The company says 1,000 creators sign up now per week.
The startup is preparing to launch its service to a wider public in the coming weeks. For now, Bounty will only work with TikTok users, but plans to expand to Instagram Reels in the next 12 months. YouTube Short and other video platforms will be considered out of the way.