TikTok has become one of the most popular social media platforms in recent years. It allows users to create and share short-form videos set to music. TikTok has over 1 billion monthly active users worldwide.
Like other social platforms, TikTok offers creators opportunities to monetize their content. TikTok provides several ways for creators to make money directly from the app, including the Creator Fund, LIVE gifts, and tipping. There are also opportunities for brand sponsorships, affiliate marketing, and selling merchandise.
The key monetization features offered directly by TikTok are the Creator Fund, LIVE, and tipping. The Creator Fund allows popular creators to earn money based on their views. LIVE allows viewers to send virtual gifts to creators during livestreams. Tipping allows fans to send direct monetary tips to creators.
Outside of TikTok, creators can also earn through brand deals, affiliate links, merchandise sales, and third-party monetization apps. However, creators need to be cautious of potential scams as monetization grows on the platform.
TikTok Creator Fund
The TikTok Creator Fund is a way for creators to earn money from views on their TikTok videos. To join the fund, creators must meet certain requirements set by TikTok.
To be eligible, you must:
- Be 18 years or older
- Have at least 10,000 authentic followers
- Have at least 10,000 video views in the last 30 days
- Post original content that follows TikTok’s community guidelines
If you meet the requirements, you can apply through the Creator Portal. TikTok will review your account and let you know if you’re approved.
Payments are calculated based on the number of video views and level of engagement on each video. TikTok sets aside a certain amount of money each day, which is divided among qualifying videos based on their proportional share of total daily views.
Funds are paid out monthly directly to your bank account. You must earn a minimum of $100 per month to receive payment. The amount varies, but most creators earn around 2-4 cents per 1000 video views.
TikTok LIVE Gifts
One way TikTok creators can earn money is through virtual gifts sent by viewers during live streams. Viewers can purchase TikTok Coins and use them to send various animated gifts during a live broadcast. According to TikTok’s support page, “LIVE Gifts is one of the features that allows creators to collect Diamonds, which are awarded based on the popularity of your LIVE videos.”1
The virtual gifts have different values in TikTok Coins. For example, a Drama Queen gift costs 5 TikTok Coins while a Mustang costs 1,000 TikTok Coins. Once a user sends a live gift, the coins are converted into diamonds for the creator. Specifically, one diamond is worth half a TikTok Coin. So if a fan sends a Mustang gift worth 1,000 coins, the creator will receive 500 diamonds.
The diamonds can then be exchanged for cash rewards. According to TikTok’s terms, creators must earn a minimum of 100,000 diamonds before they can submit a redemption request. The minimum payout amount is $100. So in order to cash out diamonds for money, creators need to accumulate at least 200,000 diamonds from fan gifts. TikTok pays out creator earnings on a monthly basis.
Sponsored Brand Partnerships
One of the most lucrative ways for influencers to earn money on TikTok is through sponsored content and brand partnerships. As TikTok has grown, brands have taken notice and are eager to partner with creators who have an engaged following. According to Sidewalker Daily, brands’ influencer marketing budgets continue to rise, making TikTok brand deals an effective monetization strategy for creators.
So how do you actually get sponsored and partner with brands on TikTok? Here are some tips:
Reach out to brands that are a natural fit for your content and audience. Make sure to highlight your followers, engagement rates, and any relevant metrics. According to Linktree’s blog, you’ll generally need at least 10,000 followers before most brands will consider partnering with you.
When negotiating rates, take into account your follower count, typical views and engagement, and the brand’s asks. Rates can vary greatly, but Business Insider found creators can earn an average of $0.01 – $0.02 per sponsored view. Be sure to account for your time and creative efforts as well.
Set clear expectations about what you will deliver, such as sponsored posts, shoutouts, reviews, etc. Establish timelines, usage rights, and other parameters upfront to avoid issues down the line.
Maintain transparency with your audience by properly disclosing sponsored content as required by FTC guidelines.
By partnering selectively with brands that resonate with your followers, creators can establish lucrative sponsored content deals on TikTok.
Affiliate Marketing
Affiliate marketing is another way for TikTok creators to earn money from their videos and audience. With affiliate marketing, creators promote products or services and receive a commission when someone purchases using their affiliate link. TikTok creators can include affiliate links in their profile or video descriptions to direct viewers to products they recommend.
Affiliate rates vary depending on the brand, but commissions are often around 5-20% of each sale. According to Influencer Marketing Hub, typical earnings from affiliate marketing range from $10 to $50 per conversion. With a large TikTok following, creators have the potential to drive a high volume of traffic and sales to affiliate offers. However, smaller creators can also benefit from affiliate marketing by consistently promoting relevant products over time.
To maximize affiliate earnings on TikTok, creators should focus on showcasing products naturally through reviews and recommendations in their videos. Providing an honest opinion and useful details will be more effective than overtly promotional content. Researching high converting affiliate programs in your niche and sharing your custom links prominently in your profile and videos can help drive conversions while being transparent about the affiliate relationship.
Tip Jar Tips
One way for TikTok creators to earn money is through the Tip Jar feature. This allows fans to send virtual tips to their favorite creators as a way to show support and appreciation. To enable Tip Jar, creators must have at least 100,000 followers and be 18 years or older. TikTok takes no cut of the tips sent through Tip Jar.
According to a MarketWatch report, TikTok creators are receiving millions in direct tips from fans. Top creators can earn up to $11 million per day from Tip Jar alone. However, smaller creators with engaged audiences can still earn hundreds or thousands per month from consistent tipping.
Fans appreciate the ability to directly reward their favorite TikTokers. Meanwhile, creators generate revenue beyond relying solely on TikTok’s Creator Fund or sponsored content deals. Overall, Tip Jar provides a new monetization avenue for creators while allowing fans to actively support their work.
Third-Party Monetization Apps
TikTok creators can use third-party apps like TikTok Pulse, Poplar, etc. to monetize their content and earn money.
These apps work by allowing creators to set a price for access to exclusive content and interactions. Fans can pay to subscribe and get special perks like shoutouts, behind-the-scenes footage, live streams, etc. The apps handle payment processing and distribute earnings to creators after taking a cut, typically around 20-30%.
For example, with TikTok Pulse creators can post “Pulse Videos” that are only viewable by paid subscribers. These private videos don’t appear on a creator’s public TikTok profile. Fans must pay a subscription fee (set by the creator, starting at $1/month) to view Pulse content. TikTok Pulse takes a 30% cut of creator earnings.
Poplar offers monetization features like pay-per-view videos, paid DM requests, paid promotions, and more. Poplar takes a 25% cut of creator revenue. So these third-party platforms allow TikTokers to generate revenue beyond what’s available through TikTok’s native monetization tools.
Selling Own Merchandise
One of the most lucrative ways for top TikTok creators to monetize their audience is by creating and selling custom merchandise. With TikTok’s huge global reach, creators have an enormous potential customer base eager to purchase merchandise related to their brand.
TikTok allows creators to set up online stores directly linked to their TikTok profile using platforms like Shopify and Teespring. Creators can design their own t-shirts, hoodies, mugs, phone cases and other accessories then promote them through their TikTok channel. The most popular creators can make thousands of dollars per merchandise drop by marketing to their loyal followers.
For example, gains twins the Merrell Twins created custom merchandise like hoodies, shirts and phone cases and earned over $300,000 from their merchandise store in 2019 at the height of their TikTok popularity. Other top creators like Baby Ariel, Loren Gray and Zach King have also earned six-figure sums from branded merchandise sold directly to fans.
Selling own merchandise provides a way for creators to capitalize on their TikTok fame and monetize their audience beyond just brand sponsorships or digital gifts. As long as creators continue to produce engaging content, they can leverage their brand to sell custom merchandise and generate substantial earnings.
Cautions About Scams
As with any platform where money is involved, users need to be aware of potential scams and shady tactics on TikTok. According to this source, some common TikTok scams include fake giveaways, duplicated accounts impersonating celebrities, and romance scams.
One tactic to watch out for are offers that seem too good to be true, like easy opportunities to make money fast. TikTok warns users to avoid opening links or giving any personal information if contacted by suspicious accounts promising verification or asking for account details. As their support page states, TikTok will never contact users asking for that type of information.
In summary, apply healthy skepticism to earning opportunities on TikTok. Stick to legitimate monetization methods endorsed by the platform, and avoid providing sensitive information or payment to any unverified sources. With caution, creators can benefit from the many genuine ways to earn money from TikTok views and engagement.
Maximizing Earnings from TikTok
To make the most money from TikTok, it’s best to pursue multiple income streams and not rely solely on one strategy. Here are some tips to maximize your earnings:
Grow your audience organically by consistently posting high-quality, engaging content. Building a large, loyal following opens up more monetization opportunities. Use relevant hashtags, viral trends, and collaborations to expand your reach.
Diversify your revenue streams. Combine strategies like the TikTok Creator Fund, LIVE gifts, brand sponsorships, affiliate links, selling merchandise, and tipping. Multiple income sources lead to more stability and higher overall earnings.
Interact often with your followers through LIVE videos, Duets, commenting, etc. An engaged audience is more likely to support you financially.
Post frequently and remain active. The more content you publish, the more chances for your videos to go viral and gain views. Consistency is key.
Analyze niche trends and optimize content accordingly. Identify high-traffic hashtags and topics popular with your target audience. Tailor videos to capitalize on viral moments.
Promote your TikTok across other social platforms to direct followers to your channel. Cross-promoting expands your reach and visibility.
With persistence and hard work, TikTok can become a lucrative source of income. Combining multiple strategies and constantly engaging your audience are the best practices for maximizing earnings.
