TikTok has exploded in popularity over the past few years, becoming one of the most used social media platforms globally. As of January 2024, TikTok has over 1 billion monthly active users worldwide, with over 13 million monthly active users in Canada alone (https://www.omnicoreagency.com/tiktok-statistics/).
With such a massive audience, many content creators are wondering how they can monetize their TikTok accounts and start earning money from the platform. TikTok offers creators several ways to make money from their content, including TikTok’s Creator Fund, LIVE gifts, sponsorships, affiliate marketing, merchandise sales, and more.
TikTok Creator Fund
The TikTok Creator Fund is a program that pays Canadian TikTok creators for views on their content. To be eligible, creators must be 18 or older, have at least 10,000 authentic followers, and have accrued at least 10,000 video views in the last 30 days. The fund pays out monthly based on views, starting at $0.02 per view initially. In 2021, TikTok added $134 million to the global TikTok Creator Fund.
To join the fund, eligible creators can apply through the TikTok app. Applicants must agree to TikTok’s Creator Fund Terms and show a consistent posting schedule. Once accepted, creators can check their estimated earnings in the app. Payouts are made monthly to a TikTok wallet balance, which can be cashed out via direct deposit.
The TikTok Creator Fund provides an avenue for popular Canadian TikTok creators to monetize their content on the platform. However, it is very competitive, and creators will likely need to supplement their earnings with other monetization methods.
TikTok LIVE
TikTok LIVE is a popular feature that allows creators to livestream on the platform. During a livestream, viewers can purchase virtual “gifts” to send to the creator, which converts into real money for them. Here’s how it works:
To go live, tap the “+” button on the app and select “Go LIVE.” You can stream publicly or just to your followers. During the stream, viewers can tap on the “gift” icon to purchase coins and send virtual gifts like emojis, flowers, or animation effects.
The amount viewers pay for gifts ranges from 5 cents to $50. TikTok takes a cut but the rest goes to the creator. Once a creator earns over $100 from gifts, they can withdraw their earnings.
TikTok LIVE has massive earnings potential for creators with a large following. For example, popular TikTokers like Charli D’Amelio and Addison Rae have earned $50,000 or more in a single livestream! With strategic promotion and consistent streaming, Canadian creators can also build a loyal viewer base and earn steady income from virtual gifts.
Sponsorships
Sponsorships from brands are a common way for Canadian creators to monetize their TikTok channels. Brands will often reach out to creators directly if they are interested in promoting their products or services. According to the TikTok site, creators can also use the platform’s sponsorship feature to connect with brands that align with their content.
The main ways creators land sponsorships are:
- Having a large following and high engagement
- Creating content in niches that brands want to target
- Promoting brands naturally in their content
- Reaching out to brands proactively
Sponsored content can include TikTok videos focused on specific products, brand mentions, unboxings, reviews, brand takeovers, and promotions. Rates will vary greatly based on the creator’s audience, engagement, and brand category. Micro-influencers can earn several hundred dollars per sponsored post, while top creators earn thousands.
Affiliate Marketing
One way Canadians can earn money on TikTok is through affiliate marketing. This involves using special links in your TikTok profile or videos that will earn you a commission when viewers click on them and make a purchase. The TikTok Affiliate Program specifically allows creators to earn commissions by promoting brands and products through their content (https://shop.tiktok.com/business/en/affiliate).
To get started, you need to apply and be approved to join TikTok’s affiliate program. Once accepted, you can access special affiliate links to add to your profile or videos. When viewers click your affiliate link and complete a qualifying purchase on the brand’s website, you will earn a commission. The commission rate depends on the individual brand partnership. This gives creators a way to monetize their audience and content by essentially referring sales.
Affiliate links allow TikTok creators to earn passive income through content they are already creating. It does not require a large follower count to participate. However, you will need to disclose affiliate relationships clearly to comply with FTC endorsement guidelines. Overall, affiliate marketing presents a relatively simple method for Canadians to monetize their TikTok accounts and make money from their content and influence.
Merchandise
Selling merchandise like clothing, accessories, and other products featuring TikTok creators’ logos or branding is another way for Canadian TikTokers to earn money. Creators can set up an online store on platforms like Shopify and promote their merchandise through their TikTok videos and profiles.
Setting up a Shopify store optimized for TikTok only takes a few steps. Creators can connect their TikTok account to their Shopify store, enabling features like shoppable video ads and in-feed shoppable pins to showcase products directly on TikTok (Shopify). The TikTok shopping tab allows creators to upload and organize products that followers can browse and purchase.
Successful merchandise campaigns on TikTok require creators to showcase their products creatively in videos, offer exclusive or limited-edition items, and use catchy branding. As TikTok creators build their audience and brand identity, merch becomes a natural extension that allows fans to literally wear their support. While launching merchandise has an initial investment, over time it can become a passive source of income for popular Canadian TikTokers.
As one example, Canadian TikTok creator @kopke613 sells hoodies and other apparel featuring his channel’s logo and inside jokes from his comedy videos. He promotes his merchandise by wearing it in TikToks and directing viewers to his online shop in his profile.
Influencer Marketing Agencies
TikTok creators who want to maximize their brand partnership opportunities should consider joining an influencer marketing agency. These agencies connect brands with influencers for sponsored content deals and campaigns. Some of the top influencer marketing agencies with a focus on TikTok in Canada include Social Media 55, func.media, and LTL Creative.
The advantage of being represented by an influencer agency is they have existing brand relationships and can facilitate sponsorship deals you may not be able to get on your own. The agency handles the negotiation process and campaign management, while the influencer simply needs to focus on creating high-quality branded content. The agency typically takes around a 15-30% commission on any deals they broker on your behalf. If you can get signed to a top TikTok influencer agency in Canada, it can significantly increase your earning potential through more frequent and lucrative brand partnership deals.
Paid Advertising
One way Canadians can monetize TikTok is through paid advertising on the platform. TikTok launched its self-serve advertising platform in Canada in early 2020, allowing businesses and creators to easily set up and run ad campaigns.
TikTok ads can help creators and brands reach new audiences, generate leads, drive traffic, and boost sales. Advertisers can choose from a variety of ad formats like TopView, Brand Takeover, In-Feed Video, and Hashtag Challenge. They can target users by demographics, interests, behaviors, and more.
To run TikTok ads in Canada, you need a TikTok Ads account which you can set up for free. Then you can create ad campaigns with flexible budget and scheduling options. TikTok charges for ads on a cost per impression (CPM) basis. Payment options include credit card, PayPal, wire transfer and for agencies, invoicing.
TikTok ads can be a revenue stream for Canadian creators and businesses. As the platform continues growing, paid advertising represents a major opportunity.
Challenges
While there are many opportunities for Canadians to make money on TikTok, there are also some significant challenges to overcome.
One major hurdle is the difficulty in building a large TikTok following and audience. With over 1 billion monthly active users, competition is fierce. Succeeding on TikTok requires regularly creating engaging and high-quality content as well as utilizing optimal posting times and strategic hashtags. Many aspiring Canadian TikTok creators struggle to gain traction.
In addition to audience building difficulties, Canadians face stiff competition when trying to monetize on TikTok. Top creators with millions of followers capture the lion’s share of brand sponsorship deals and maximize earnings from TikTok’s Creator Fund. Smaller creators can have a hard time getting noticed and securing money-making opportunities.
There is also the risk of account bans on TikTok which can instantly cut off a creator’s income stream. Violating TikTok’s community guidelines through inappropriate content or other policy breaches can get accounts permanently banned without warning. This presents an ever-present risk for ambitions Canadian creators.
While monetizing on TikTok presents real opportunities, Canadians hoping to turn TikTok fame into income face considerable challenges on the platform. Persistence and consistently creating engaging content that avoids bans is required for financial success.
Conclusion
Canadians absolutely have the potential to make money from TikTok, although it requires creativity, commitment, and knowing where to focus your efforts. The TikTok Creator Fund provides a baseline income for views, while TikTok LIVE enables gifting from fans during livestreams. Sponsorships with brands can be lucrative if you have a large, engaged following. Affiliate links allow you to earn commissions promoting relevant products. Creating and selling merchandise capitalizes on your brand identity. Influencer marketing agencies connect brands with creators for sponsored content and ambassador deals. Paid ads also generate income as TikTok’s advertising platform grows.
However, competition is fierce and earning substantial income likely requires going viral repeatedly to gain millions of engaged followers. Patience and persistence are key. While the TikTok gold rush may eventually fade, for now, the platform provides significant monetization potential for standout Canadian creators. The key is consistently creating compelling content optimized for TikTok’s algorithm to build a large, loyal audience. With the right strategy and execution, TikTok fame and fortune in Canada is achievable.
