TikTok has become one of the most popular social media platforms, with over 1 billion monthly active users as of September 2021. The app allows users to create and share short videos, often set to music. TikTok’s algorithm is exceptionally good at determining users’ interests and showing them relevant content, leading to many videos going viral and creators amassing huge followings.
With the rise in popularity of TikTok, top creators on the platform have found themselves becoming bonafide celebrities with lucrative sponsorship deals and earnings. For example, Charli D’Amelio, the most followed creator on TikTok with over 142 million followers, reportedly earned $17.5 million in 2021 from brand deals, merchandise sales, and other business ventures. Other top earners include Addison Rae with estimated earnings of $8.5 million in 2021.
The potential to earn life-changing money from TikTok fame has motivated an increasing number of users to pursue full-time careers as creators on the platform. This article will explore the various ways TikTokers monetize their content and estimate typical earning ranges.
TikTok Creator Fund
TikTok launched the Creator Fund in 2020 as a way to pay creators for their innovative content on the platform. To be eligible, creators must be over 18, meet a minimum follower threshold, and post original videos that follow TikTok’s community guidelines.
The Creator Fund started with $200 million available to distribute to creators in the US. By 2021, TikTok expanded the fund to over $1 billion to distribute to creators globally. The exact amount each creator earns depends on the views, engagement, and overall quality of their videos.
TikTok only shares a creator’s total estimated earnings and does not break it down per video. Creators have reported earning somewhere between 2-4 cents per 1,000 video views through the fund. Payments are sent to creators monthly via direct deposit once they hit a $100 minimum threshold.
The Creator Fund provides a way for top TikTok creators to earn money directly from the platform for their content. However, it is still a relatively small amount compared to earnings from brand sponsorships, affiliates, and other monetization methods.
Brand Sponsorships
Brand sponsorships are a popular way for creators to monetize their TikTok fame. Brands will pay TikTok creators to promote their products or services in TikTok videos. According to Quora, top TikTok influencers can make anywhere from $500 to $50,000 per sponsored post, depending on their follower count and engagement levels.
According to Business Insider, some sample estimated earnings from sponsorships are:
- Paulina Perez (89,000 followers) charges between $1,250 – $1,750 per sponsored post
- Colin Rocker (114,000 followers) shares he can make around $2,500 for a branded TikTok video
So while earnings vary, top creators with millions of followers can make a very healthy living through branded sponsorships alone.
Livestreams
TikTok’s LIVE feature allows creators to broadcast live video to their followers. Viewers can show appreciation and support for livestreams through TikTok’s gifting feature, which allows fans to send virtual gifts to creators during a LIVE video. Gifts cost coins, an in-app currency that viewers can purchase with real money. Popular gifts include roses, drama queen (an animated crown), and thumbs up.
The amount a creator earns from LIVE videos and gifts varies widely. According to one report, popular TikTok creator Jakey Boehm earned over $34,000 in a single month from LIVE gifting revenue [1]. The coins viewers spend on gifts get converted to diamonds, TikTok’s other in-app currency, which can then be withdrawn as cash. How much creators earn depends on factors like the number of viewers, engagement, and how often they go live. Overall, LIVE gifting represents a significant monetization avenue for top TikTok creators.
TikTok Ad Revenue Sharing
In 2022, TikTok launched an ad revenue sharing program called TikTok Pulse, allowing creators to earn money from ads displayed on their content. According to research, TikTok splits ad revenue 50/50 with creators [1]. However, earnings seem to be very low so far.
One estimate based on creator reports suggests TikTok Pulse pays around $7.09 per 1,000 video views [2]. However, creators have complained that the actual payouts are much lower than expected. For example, creator @JoshBarracks earned only $0.03 per 1,000 views in November 2022 [3]. So while TikTok splits ad revenue equally, the actual earnings for creators remain small for now.
Affiliate Marketing
Another way TikTok creators can earn money is through affiliate marketing programs. This involves promoting products or services and receiving a commission when users make purchases through the creator’s affiliate links. Many popular influencers on TikTok utilize affiliate links in their videos to monetize their audience.
To participate in affiliate programs on TikTok, creators need to first find relevant affiliate offers that appeal to their niche and audience interests. They can join affiliate networks like ShareASale, Impact, or Rakuten Affiliate to access offers from hundreds of brands. Creators earn a percentage of any purchases made through their special affiliate link.
The typical commission rate for TikTok influencers ranges from 5-15%. However, popular influencers with 1 million+ followers can negotiate up to 25-30% commissions with brands. With large audiences, it’s possible for TikTok creators to earn thousands of dollars per month through affiliate promotions alone.
But even influencers with smaller followings around 10k can utilize affiliate marketing on TikTok to earn extra income. By consistently promoting 2-4 affiliate offers per month, these nano-influencers can expect to earn $100-500 monthly through commissions.
Selling Merchandise
Many popular TikTok creators leverage their large followings to sell custom merchandise like t-shirts, hoodies, and other apparel. With print-on-demand services like Teespring, creators can design and sell merch without any upfront costs or inventory. According to Shopify, launching limited edition merch drops on TikTok can earn creators thousands in revenue. The key is promoting the merch launches through videos and encouraging fans to buy before the deadline. Top creators can easily make over $10,000 per merch collection. However, building an engaged audience and promoting merchandise takes significant time and effort before seeing major merch sales.
TikTok Gifts
One way TikTok creators can earn money is through virtual gifts sent by fans during livestreams. Fans can purchase various digital gifts to send to their favorite creators, with prices ranging from as low as 5 TikTok coins (around $0.012) to as much as 35,000 coins ($500+) for the most expensive “Universe” gift [1]. When a fan sends a gift, the creator receives a percentage of the gift’s coin value.
According to TikTok, the commission rate creators receive varies based on factors like region and other program criteria. However, creators typically earn around 25% of a gift’s coin value [2]. So for example, if a fan sent a Rainbow Puke gift worth 500 coins ($7.99), the creator would earn around 125 coins or $1.99. Gifts add up quickly during active livestreams, allowing top creators to earn thousands per broadcast.
Multi-Platform Earnings
Many top TikTok creators earn significant income from other platforms like YouTube, Instagram, brand sponsorships, and more. This allows them to leverage their TikTok fame and expand their earning potential across multiple channels.
For example, Charli D’Amelio, the top earner on TikTok, also has a massive presence on YouTube with over 10 million subscribers. According to Forbes, she earned an estimated $4 million from her YouTube channel in 2021.
Her sister Dixie has over 24 million followers on Instagram, allowing her to secure lucrative brand deals. She earned around $2.9 million from Instagram sponsorships in 2021 according to Forbes.
By leveraging multiple platforms, the top TikTok creators have earnings well above $10 million per year. This demonstrates the full income potential for influencers who can expand their audience and monetization across different channels.
Conclusion
TikTok offers various ways for creators to monetize their content and brand. The main avenues explored in this article include the TikTok Creator Fund, brand sponsorships, livestreams, TikTok’s ad revenue sharing program, affiliate marketing, selling merchandise, receiving virtual gifts, and leveraging a multi-platform presence.
For aspiring TikTok creators looking to earn money, it’s important to build an engaged audience that truly connects with your content and personality. Consistently creating high-quality videos focused on your niche is key. Once you’ve built up a sizable, loyal following, you can begin exploring monetization methods like sponsorships, livestreams, merchandise, and more. Collaborating with brands that authentically align with you and your audience is advisable over promoting products purely for money. Multiplying your revenue streams across TikTok, YouTube, Instagram and other platforms is also a smart strategy. Most importantly, keep creating great content and engage with your community. With persistence and creativity, TikTok can become a fulfilling and profitable channel.
