TikTok has exploded in popularity among Canadian creators in recent years. According to Made in Canada, there are now over 3.2 million active monthly TikTok users in Canada, with over 70% of users being under 40 years old. Hype Auditor reports that some of the top Canadian TikTok creators include @kallmekris, @celinaspookyboo, @nutshellanimations and @yoleendadong, each with millions of followers. TikTok’s easy-to-use tools for creating and sharing short-form videos have made it accessible for everyday Canadians to find fame and fortune on the platform.
TikTok Creator Fund
The TikTok Creator Fund is a program launched by TikTok in 2020 to pay creators for the videos they post on the platform. It is currently available in various countries, including Canada as of July 2021 (TikTok). The Creator Fund aims to provide monetary support for creators and encourage them to continue creating high-quality content on TikTok.
To be eligible for the fund, creators must meet certain criteria like having a minimum number of followers and video views over a 30-day period. Canadian creators can earn money when their videos are viewed in Canada. According to TikTok, the Creator Fund will initially start with $50 million CAD distributed over the first year (TikTok). Payments are calculated based on factors like video views and engagement.
The Creator Fund provides an additional way for popular Canadian TikTok creators to earn money through the platform, on top of avenues like brand sponsorships. It incentivizes creators to continue posting original, engaging videos for their growing Canadian audiences.
Eligibility Requirements
To join the TikTok Creator Fund, Canadian creators must meet certain eligibility requirements set by TikTok. The main requirements are:
- Have at least 10,000 authentic followers
- Be at least 18 years old
- Have accrued at least 10,000 video views in the last 30 days
- Post original content that follows TikTok’s Community Guidelines
TikTok reviews applications to join the Creator Fund and accepts creators who meet these initial thresholds. The minimum follower and view counts may increase over time as more creators join the platform.
Creators must continue posting consistently and generating a minimum number of views to remain part of the fund. TikTok evaluates accounts monthly based on these ongoing eligibility criteria.
How Much Money Can Canadian Creators Earn?
Canadian creators on TikTok have several ways to earn money through the platform. The main avenue is the TikTok Creator Fund, which provides monthly payouts to eligible creators.
The TikTok Creator Fund pays between 2-4 cents per 1,000 video views in Canada (Source 1). The exact payout per view depends on factors like the video’s engagement and overall demand in the Canadian TikTok marketplace. Payouts are calculated based on the previous month’s views.
For comparison, top creators can earn 4-6 cents per 1,000 views in the United States. So Canadian payout rates are on the lower end globally, but can still add up for creators who consistently get millions of views (Source 2).
Overall, Canadian TikTokers have the potential to earn thousands of dollars per month through the Creator Fund with enough views and engagement. But the earning potential varies widely based on view counts and remains lower than in some other countries.
How and When Are Creators Paid?
Canadian TikTok creators are paid through direct deposit on a monthly basis via the TikTok Creator Fund. Payments are deposited around the 30th of each month for views accrued in the previous calendar month.
For example, earnings from views in January would be paid out around February 30th. TikTok does not offer options for weekly or biweekly payments at this time.
To set up direct deposit for the Creator Fund, Canadian TikTok creators must provide their banking information through the payment settings in the TikTok app. Only bank accounts based in Canada are eligible for direct deposit of Creator Fund earnings.
TikTok also provides monthly statements detailing views, engagement, and earnings from the Creator Fund. These help creators track their progress and earnings month-over-month.
In addition to the Creator Fund, Canadian creators can earn money through TikTok LIVE features like gifts and tips. These are paid out on the same monthly schedule, around the 30th of each month.
TikTok LIVE Gifts and Tips
TikTok allows creators to receive monetary gifts and tips during LIVE broadcasts through its LIVE Gifts feature. Fans can send coins as gifts during a LIVE broadcast to show their appreciation. These coins can then be converted to cash by the creator.
To send gifts, viewers press the “Gift” icon that appears on the righthand side during a LIVE and can choose from a selection of different gift coins to send. The gift coins cost the viewer money to purchase. For example, a viewer may spend $0.99 to send 100 coins as a gift.
TikTok also allows viewers to send direct tips to creators during LIVE broadcasts. Fans can tap the “Tip” button and choose an amount they wish to tip the creator.
The gifts and tips a creator receives during LIVE broadcasts are added to their TikTok wallet balance. Creators can then withdraw their earnings to a PayPal account or other payment method once they reach the minimum withdrawal threshold.
According to one source, popular Canadian creators can earn anywhere from $100 to $5000 per week from TikTok LIVE alone at high viewership levels.
Sponsored Content
One way Canadian creators can earn money on TikTok is through sponsored content and brand partnerships. According to TikTok’s Branded Content Policy, creators can get paid by brands to promote their products or services in TikTok videos.
To properly disclose sponsored content, creators must enable the “Branded Content” toggle when posting the video. They must also verbally disclose the partnership in the video or through overlays/captions. The disclosure requirements vary slightly by country as outlined in TikTok’s Branded Content Policy.
Popular Canadian brands often partner with TikTok creators to promote products or campaigns. Some examples include McDonald’s, Hudson’s Bay, Revlon, and Canada Goose. The amount creators earn varies based on their audience size and engagement. Micro and nano influencers may earn hundreds per sponsored post, while top creators can earn thousands.
Other Monetization Avenues
In addition to direct payment from TikTok and brand sponsorships, Canadian creators can also earn money through other monetization methods like affiliate marketing and merchandise sales:
Affiliate Links – Creators can include affiliate links in their TikTok bios or videos to earn a commission when followers click and make a purchase. Popular affiliate programs used by TikTokers include Amazon Associates, Shopify, and other retail affiliate programs.
Merchandise – Many top creators design and sell custom merchandise like t-shirts, hoodies, and other products. This allows fans to financially support their favorite creators while getting unique merch.
Apps and Services – Some creators offer paid apps, online courses, consulting services, shoutouts, etc. This gives fans a way to pay for more exclusive, personalized content.
Crowdfunding – Platforms like Patreon allow creators to offer exclusive content and experiences to paying subscribers who support their work.
In summary, affiliate marketing, merchandise, paid services, and crowdfunding allow TikTokers to earn money outside of TikTok’s native monetization features. Diversifying income streams is key for long-term financial viability as a creator.
Taxes on TikTok Earnings
Canadian TikTok creators need to pay taxes on any income earned through the platform. This includes earnings from the TikTok Creator Fund, gifts, tips, sponsored content, and any other monetization avenues. TikTok income is considered taxable personal or business income that must be reported when filing taxes.
According to the Canada Revenue Agency, social media influencers are required to report all income earned from their online activities when filing their tax returns. TikTok earnings would fall under “other income” on a personal tax return.
If a TikTok creator earns a significant income through the platform, they may need to register as a sole proprietorship or corporation and file business taxes. Deductions for equipment, studio rental, editing software etc. may be claimed as business expenses to offset taxes owed.
TikTok creators should maintain records of their earnings and expenses to calculate taxes owed each year. Consultation with an accountant is recommended to ensure full compliance with Canada’s tax laws.
Conclusion
In summary, there are several ways for Canadian creators to monetize their content on TikTok. The TikTok Creator Fund provides direct payment for videos based on their engagement and viewership. To qualify, creators need at least 10,000 authentic followers and 10,000 video views in the last 30 days. Payments are distributed monthly for cents per 1000 video views.
Live streaming gifts and tips from viewers offer another revenue source. Sponsorships with brands allow creators to earn money by promoting products or services. Selling merchandise, promoting affiliate links, and licensing content are other options. While TikTok itself doesn’t directly pay creators outside of the Creator Fund, the platform provides monetization through partnerships and audience building.
Overall, Canadian TikTok creators have a variety of options to earn money from their content. With strategic partnerships, sponsorships, and ancillary products or services, financially successful channels can be built on TikTok. Taxes will need to be paid on this income like any other earnings.
