TikTok has exploded in popularity since launching in 2016. It grew from just 55 million monthly active users in January 2018 to over 1 billion monthly active users in 2021 (Source). The platform’s addictive short videos have made it one of the most downloaded apps globally.
With such a massive userbase, many TikTok creators have been able to turn the platform into a full-time career. Top creators can earn significant incomes through TikTok’s Creator Fund, brand sponsorships, live streams, affiliate marketing, selling merchandise, promoting brands, licensing content, and expanding their audience to other platforms. This article will explore the various ways TikTok creators monetize their content and follower base.
TikTok Creator Fund
The TikTok Creator Fund is a program launched by TikTok in 2020 that pays creators for the videos they post. To be eligible for the fund, creators must meet certain requirements:
- 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 videos that comply with TikTok’s community guidelines
If accepted into the fund, creators can earn money based on the engagement their videos receive. According to sources, TikTok pays between 2 and 4 cents per 1,000 video views [1]. Payments are sent monthly through direct deposit and have a $10 minimum payout threshold [2]. TikTok determines payout amounts based on factors like video views, engagement, and overall performance on the platform.
The Creator Fund provides an additional revenue stream for top TikTok creators. However, the payments are relatively small for most. Brand sponsorships, merchandising, and other monetization methods are often more lucrative.
Brand Sponsorships
Brand sponsorships have become a massive source of income for top TikTok creators. Popular brands are eager to partner with influencers who have large, engaged followings that match their target demographic. A sponsored TikTok post can earn anywhere from a few hundred dollars for nano-influencers to over $100,000 for creators with tens of millions of followers.
Sponsorship deals usually involve creating branded content like sponsored posts, product reviews, unboxings, or giveaways. The exact terms are negotiated between the brand and creator. Compensation can include a flat fee per post, a monthly retainer fee, or a percentage of sales driven by the creator’s promotion. Top creators work with their talent managers to secure lucrative brand partnerships and ensure their content aligns with the brand’s goals.
To get sponsorships, creators should focus on growing their audience and engagement. Once they have at least 10,000 engaged followers in a core demographic, they can start reaching out to relevant brands. Having a clear niche and content strategy makes it easier to get sponsors targeted to that audience. Maintaining brand-safe content and responding to comments also makes creators more attractive to work with.
Livestreams
One way TikTok creators can make money is through livestreams, where viewers can send virtual gifts. According to https://www.nfi.edu/how-much-does-tiktok-pay/, the value of these gifts range from a few cents to over $100. TikTok takes a cut of the revenue from gifting, but the rest goes to the livestreamer.
The amount earned from livestreams depends on factors like follower count and engagement, but averages around $20-$300 per stream according to creators (https://www.businessinsider.com/how-much-do-tiktokers-make). Top earners can make up to $2,000-$4,000 for a single stream.
Some of the highest earning TikTok livestreamers include influencers like Charli D’Amelio and Addison Rae. D’Amelio reportedly earned over $1 million from livestreams in 2020 alone.
Affiliate Marketing
Many TikTok creators make money through affiliate marketing by promoting products and services in their videos and bios. When viewers click on the affiliate links and make a purchase, the creator earns a commission. This allows creators to monetize their influence and content without relying solely on TikTok’s monetization programs.
Using affiliate links in videos and bios is an effective affiliate marketing strategy on TikTok. Creators can showcase products in hauls, reviews, tutorials, and more. Displaying the affiliate link on screen or in the caption makes it easy for viewers to click and shop. Creators should also include affiliate links in their TikTok bios for easy access.
Some popular affiliate programs used by TikTok creators include Amazon Associates, AvantLink, Rakuten Marketing, ShareASale, and more. These programs offer everything from fashion and beauty to tech products and services. With so many options, creators can find affiliate programs that align with their niche and audience.
Affiliate marketing presents a major money-making opportunity for TikTok creators. Strategic use of affiliate links allows them to earn commissions passively from their existing content and audience.
Selling Merchandise
One way TikTok creators can monetize their content is by creating and selling custom merchandise through platforms like TikTok Shop and third-party services like Shopify. Products like t-shirts, hoodies, phone cases, and stickers featuring a creator’s brand or popular catchphrases allow fans to directly support their favorite TikTok stars.
According to Shopify, top TikTok merchandise sellers can make upwards of $300,000 per month just from merch sales. Creators like Charli D’Amelio and Addison Rae Easterling regularly promote new merch drops to their millions of followers. Limited edition and collectible merchandise tied to popular memes or viral moments can also generate huge sales for creators.
Overall, merchandise represents a significant revenue stream for many top TikTok creators. As their followings grow, developing custom products allows them to further capitalize on their brand and gives fans more ways to engage.
Promoting Brands
One of the most lucrative ways for TikTok creators to earn money is by partnering with brands to promote products or services. Brand sponsorship deals typically involve creators making dedicated promotional posts or videos in exchange for a flat sponsorship fee. According to Business Insider, top creators report getting paid anywhere from $5,000 to $20,000 to promote a brand in a single video. The exact rate depends on factors like the creator’s follower count, average views, and audience demographics. Brands want to partner with influencers who have strong engagement and an audience aligned with their target market.
In addition to one-off sponsored posts, some brands partner with influencers over longer time periods through “brand ambassador” deals. This involves an ongoing relationship where the creator regularly promotes the brand’s products across their feed and stories. These long-term partnerships can be quite lucrative, paying anywhere from $5,000 to over $100,000 per month depending on the influencer’s reach and prominence on the platform.
Overall, promoting brands and products represents a significant money-making opportunity for TikTok creators once they build up a sizable, engaged following. Posting branded content can net creators hefty fees, especially as brands increasingly turn to influencer marketing to connect with younger demographics on TikTok.
Licensing Content
One way TikTok creators can earn money is by selling licenses for others to reuse their videos. When a media outlet or brand wants to reuse a viral TikTok video, they may offer to pay a licensing fee to the original creator. According to user discussions on Reddit, online newspapers like The Daily Mail have offered $100-200 to license viral TikTok videos for articles and social media.
The payout for a licensed TikTok video depends on how viral it went and how the licensing company wants to use it. Videos with millions of views can fetch higher fees in the thousands. But for many creators, licensing offers are in the $100-500 range. This provides a nice bonus on top of advertising revenue for TikTokers with viral hits.
Moving to Other Platforms
As TikTok has grown in popularity, many top creators have started moving their audience and content over to other platforms like YouTube and Instagram where there is often more monetization potential. According to Business Insider, YouTube offers significantly higher earning potential per view compared to TikTok.
YouTube pays creators anywhere from $0.18 to $0.30 per 1,000 views on average, compared to just $0.02-$0.04 per 1,000 views on TikTok. This means successful YouTubers stand to make 5-10x more from ad revenue alone. YouTube also offers additional monetization like channel memberships, SuperChats, and merchandise shelves.
Instagram also offers lucrative brand partnership opportunities, with top influencers earning thousands for a single sponsored post or Story. While TikTok limits videos to 3 minutes, YouTube and Instagram allow longer-form content, enabling more high-quality videos. Overall, moving an established TikTok audience to platforms like YouTube or Instagram allows creators to tap into much larger revenue streams.
Conclusion
There are many ways for TikTok creators to make money and build a career these days. Here’s a quick recap of the main monetization strategies we discussed:
– The TikTok Creator Fund provides direct payment for videos that perform well.
– Brand sponsorships allow creators to get paid for promoting products in their content.
– Livestreams enable viewers to donate and tip creators during live broadcasts.
– Affiliate links let creators earn commission referring sales of other companies’ products.
– Selling merchandise like t-shirts with original designs is a popular money maker.
– Getting paid to promote brands’ products or campaigns can be lucrative.
– Licensing viral content, catchphrases or memes can generate income too.
– Expanding to other platforms like YouTube opens up additional monetization.
For those looking to make money as a TikTok creator, the key is consistency. Keep posting quality content regularly, engage with your audience, and explore different revenue streams. See which approaches work for your brand and style. Stay adaptable as the platform evolves. With persistence and creativity, you can absolutely turn TikTok into a full-time career!
