Flip, a social commerce app, has taken a significant step to differentiate itself from competitors like TikTok Shop by introducing a $100 million creator fund. This innovative program offers equity to participating creators, providing a unique opportunity for Flip to stand out in a highly competitive market.

The creator fund, which quietly rolled out earlier this week, will provide grants ranging from $6,000 to $100,000 to creators based on their level of engagement. Notably, Flip aims to distribute up to $1 million per day for the first 30 days of the program. This move is likely to incentivize more users to actively participate on the platform, especially amid the current uncertainty surrounding TikTok's future in the U.S.

To be eligible for the creator fund, a Flip creator must have over 4,000 followers and at least 10 videos posted in the last 30 days, each garnering around 3,000 views. Alternatively, creators with at least 20,000 followers on other platforms like Instagram, TikTok, and YouTube can also apply. Flip reviews applications and awards grants within 48 to 72 hours, the company notes.

The equity grants offer a potential long-term benefit to creators, as they could see significant returns depending on Flip's success in the near future. However, it's essential to note that these returns aren't guaranteed and vary based on market conditions. Payments will occur in five years or sooner in the event of a company sale, with cash payouts in either case.

Flip President Eddie Vivas shared with TechCrunch that the company doesn't currently see an acquisition as an interesting outcome, with the goal of taking the company public one day. Within 72 hours of launching the program, nearly 10,000 influencers have applied, with approximately 22% of the applications coming from large influencers. A live leaderboard of all the grants is available on the creator fund page, with the highest grant awarded so far being $67,000 to Tyler K (@cheftyler).

Flip's growth has been significant, with the app garnering 580,000 new downloads in January alone, according to estimates from app store intelligence provider Appfigures. On Monday, Flip made it to the No. 10 spot in the Overall Top Charts in Apple's U.S. App Store. The company is currently gaining about 250,000 new users daily, with people spending an average of 35 minutes in the app every day.

To maintain traction and stay competitive, Vivas said that Flip plans to introduce additional social features in the coming months. These include polls, group chats, and "elegant ways to repost," he said. The company is focused on becoming a more full-featured, dynamic social commerce platform building on the base it has today, which is now clearly working.

Flip, which launched in 2021, has raised $236 million to date and is valued at $1.1 billion. As the social commerce landscape continues to evolve, Flip's innovative creator fund and growing user base position it as a strong competitor in the market.