TikTok is a video-sharing social networking service owned by ByteDance, a Beijing-based internet technology company. It launched in 2016 and has since become one of the world’s fastest growing social media platforms, with over 1 billion monthly active users as of September 2021.
TikTok allows users to create, share, and discover short videos of 3 to 60 seconds. Videos can consist of dances, stunts, jokes, recipes and more. The platform is especially popular among teenagers and young adults.
While TikTok started out just for fun, creative videos, many of its top creators have managed to build huge followings and turn TikTok into a full-time career. There are now several ways TikTok creators can monetize their accounts and earn money directly from the platform.
This article provides an overview of the main ways creators can calculate potential earnings from TikTok based on factors like number of followers, views, LIVE gifts, and sponsorships.
TikTok Creator Fund
The TikTok Creator Fund is a program that allows popular TikTok creators to earn money from their videos. To be eligible for the fund, creators must have at least 10,000 authentic followers and consistently post original, high-quality videos that comply with TikTok’s content guidelines.
TikTok pays creators from the fund based on the engagement and views their videos receive. According to Sprout Social, creators earn around 2-4 cents per 1,000 video views. There is a $10 minimum payout threshold that gets transferred to your digital wallet balance. TikTok calculates the payout amount daily based on the views received in that 24-hour period.
To check earnings and request a payout, creators can access the Creator Fund dashboard in their TikTok account settings. Payouts are made monthly via direct deposit or PayPal. TikTok may also offer creators additional bonuses for consistently posting high-quality content.
TikTok LIVE Gifts
TikTok LIVE allows creators to broadcast real-time video to their followers. Viewers can purchase virtual gifts to send to the broadcaster during a LIVE video as a way to show support and appreciation. When viewers purchase and send gifts, the creator receives a portion of the gift revenue.
To enable gifting on your TikTok LIVE videos, you need to have at least 1,000 followers. You can then go to your Profile > Settings > LIVE Streaming > Gift Settings to toggle on gifting and set your gift values. Fans can send gifts like flowers, lips, rainbows, and unicorns, with each gift worth a certain number of “coins” that can be exchanged for real money. For example, 100 coins equals $1, so a Rainbow gift worth 500 coins would net you $5.
According to this source, top creators can make between $20-$300 per LIVE session from virtual gifts alone. The key is building a consistent viewership that enjoys supporting you by sending gifts.
Brand Sponsorships
Brand sponsorships are one of the most lucrative ways for TikTok creators to earn money. Companies will pay TikTokers to create branded content and promote their products or services. The key to getting sponsorships is having an engaged audience in your niche that brands want to reach.
To get started with sponsorships, you’ll first want to grow your following and establish your authority in a specific niche like fashion, comedy, or cooking. Once you have at least 10,000 engaged followers, you can start reaching out to brands that are a natural fit with your content and audience. Make sure to tailor your pitch and explain why featuring their brand would be beneficial for both parties.
According to this article, TikTok influencers can earn anywhere from $100 to $30,000 for a branded TikTok video. Nano influencers with 5,000 to 20,000 followers typically earn around $100-$500 per post. Micro influencers with 20,000 to 100,000 followers can charge $500-$2,000. For macro influencers with 100,000 to 1 million followers, sponsored posts start at $1,000 to $5,000. And celebrity influencers with over 1 million followers can earn $10,000 to $30,000 per branded video.
The exact rate will depend on your specific follower count, engagement rates, and how well your niche aligns with the brand. But over time, you can potentially earn thousands per month through recurring sponsorships once you build your authority on TikTok.
TikTok Ad Revenue Sharing
TikTok launched an ad revenue sharing program in 2021 called TikTok Pulse that allows popular creators to earn a cut of the advertising revenue from ads displayed on their content. To participate in TikTok Pulse, creators must be at least 18 years old, have at least 100,000 followers, and post original content that adheres to TikTok’s community guidelines.
With TikTok Pulse, brands can place their ads on leading videos in certain categories like beauty, fashion, cooking, or gaming. TikTok shares 50% of the ad revenue generated on those videos with the creators. The amount each creator earns will depend on factors like their viewership and engagement rates on the video.
According to reports, top creators can make a few thousand dollars per month through TikTok Pulse. However, it remains a relatively small portion of earnings compared to other revenue sources. The program provides another way for popular TikTok creators to monetize their content and brand.
Affiliate Marketing
Affiliate marketing on TikTok involves promoting another company’s products or services and receiving a sales commission when someone makes a purchase using your custom affiliate link (Source: https://influencermarketinghub.com/tiktok-affiliate-marketing/). When viewers click your affiliate link and complete the desired action like making a purchase, you earn a percentage of the sale or a flat fee.
Popular affiliate programs used by TikTok creators include Awin, ShareASale, ClickBank, Amazon Associates, and more. You can promote products relevant to your niche and audience. Affiliate links are commonly added to TikTok bios or descriptions.
Estimated earnings vary greatly based on factors like audience size, engagement, niche, and affiliate program rates. One source estimates you can make $100 per month starting out and up to $5000 per month with 1 million followers (Source: https://www.authorityhacker.com/tiktok-affiliate-marketing/). Top creators likely earn even more from quality affiliate partnerships.
Selling Merchandise
Selling branded merchandise is another revenue stream for TikTok creators. Platforms like TikTok Shop and Teespring allow creators to design and sell custom apparel, accessories, and other products featuring their brand or content. Fans happy to rep their favorite TikTok creators can purchase t-shirts, hoodies, phone cases, mugs, and more.
The earning potential for merchandise sales varies based on factors like your number of followers and level of audience engagement. Creators with over 100k followers who actively promote their merchandise through TikTok posts and off-platform marketing could realistically generate thousands per month in merchandise revenue. Smaller creators can still earn supplemental income in the hundreds of dollars per month range.
TikTok takes a cut of sales made through TikTok Shop, while third-party sites like Teespring allow creators to set their own prices and take home a larger percentage of sales. Regardless of exact earnings, branded merchandise represents an additional way for TikTok creators to monetize their brand and content.
Third-Party Brand Deals
In addition to monetizing directly on TikTok, creators can also leverage their TikTok follower count and engagement to earn money through third-party brand deals outside of the app. These are indirect brand partnerships facilitated through an influencer marketing platform or talent management agency.
Many companies seek out TikTok creators to promote their products or services on other social media platforms like Instagram or YouTube. The creator films dedicated sponsored content, shares discounts or gives product reviews in exchange for a sponsorship fee. Rates depend on the creator’s follower count and engagement metrics on TikTok.
According to IZEA, nano influencers with 5,000 to 10,000 followers can charge around $200 per sponsored post, micro influencers with 100,000 to 500,000 followers can charge $500 to $750, mid-tier influencers $1000 to $3000, and macro influencers $4000 to $15,000.
TikTok is a discovery platform where creators can gain a huge following quickly if their content resonates. Leveraging TikTok growth into third-party brand deals can become a significant revenue stream.
Calculators and Estimators
TikTok money calculators and earnings estimators are online tools that allow you to estimate how much money you can make on TikTok based on your account stats and engagement. They provide a quick and easy way to get an idea of your potential TikTok earnings.
These calculators take into account factors like your number of followers, average views, likes, comments, shares, etc. You simply input your TikTok stats and the calculator will estimate your possible earnings from the TikTok Creator Fund, LIVE gifts, brand sponsorships, and more https://influencermarketinghub.com/tiktok-money-calculator/.
Some popular TikTok earnings calculators include the TikTok Money Calculator by Influencer Marketing Hub and the TikTok Earnings Calculator by Exolyt. To use them, first make sure you have accurate stats from your TikTok account analytics. Then enter your follower count, average views, etc. into the calculator fields.
The calculator will then crunch the numbers and provide estimates on how much you could potentially earn on TikTok. You’ll get dollar amounts for expected monthly and yearly earnings based on your current audience and engagement. This can help guide your monetization strategy and benchmark your progress.
While TikTok calculators provide estimates, actual earnings depend on many factors. However, they are useful tools for monetizing your account and valuing brand partnerships. Check your stats frequently and aim to grow your audience to maximize your TikTok money making potential.
Conclusion
There are several ways for TikTok creators to monetize their content and earn money on the platform. The main methods include the TikTok Creator Fund, LIVE gifts, brand sponsorships, ad revenue sharing, affiliate marketing, selling merchandise, third-party brand deals, and TikTok calculators.
The amount of money a creator can make depends on factors like number of followers, average views per video, types of content, and audience engagement. Generally, creators with larger followings and high engagement earn more than smaller creators. Brand deals also tend to go to creators with a substantial audience.
In closing, TikTok offers promising monetization opportunities for creators willing to put in the work to build an audience and quality content. With various revenue streams available, creators can diversify their income sources on TikTok. Consistency and persistence are key. While earnings may start small, they can scale up over time for creators who stick with it and continue growing their channel.
