Complete Guide: How to Make Money on TikTok
It's an understatement to say that TikTok has exploded in popularity since its global launch in 2018, with around 100 million monthly active users and two billion downloads.
As the site gains traction, it's reasonable to question if content producers can make money on TikTok.
Here's what you need to know if you're building a TikTok following and want to monetize your audience.
Why Making Money on TikTok is Getting Easier
TikTok monetization wasn't always the standard, there were few branded posts in TikTok's early days.
With a growing number of corporations entering the market, producers are finding it simpler to sell sponsored content on the social network.
The amount of money you may make on TikTok varies, but if your material gets popular, it can be lucrative, just like any other social media site.
It's also actively assisting viewers in monetizing their audiences without the assistance of brand agreements.
Creators may now sell products directly to their followers thanks to TikTok's connection with Teespring, which was revealed in late August 2020.
Top 5 Strategies on How to Monetize Your TikTok.
Merchandise Sales
Creators who wish to directly monetize their audiences without depending on advertising revenue from brands can offer items and products to them.
Creators can now sell products directly in TikTok thanks to a partnership with Teespring.
TikTok producers may choose from 180 different goods to create their designs.
In September 2020, TikTok and Teespring launched an initial cohort of 7,000 creators to test the integration.
They're anticipated to reveal how other developers may begin using the integration.
In their profile, creators can also provide links to a personal website or an additional retail platform where fans can purchase stuff.
For example, @thedottist, a TikTok user, has a trackable link to purchase her artwork right in her profile.
Promote Brands and Businesses
Audio sponsorships aren't the only way to profit from TikTok's sponsored content.
Creators may also use their videos to aid in the introduction and promotion of items by companies or enterprises.
Mucinex, a cold and flu drug, was one among the first brands to use TikTok for influencer marketing.
During the cold and flu season, Mucinex collaborated with producers to advertise its products.
TikTok influencers, such as the brother-sister combo OurFire, were invited to take part in the #BeatTheZombieFunk competition.
Creators without representation who want to get started with brand sponsorships may approach companies and businesses directly or use TikTok's official Creator Marketplace to locate possibilities.
Get Paid Directly by TikTok
TikTok aspires to assist its most successful creators in achieving success and earning money only through the platform.
In order to achieve this goal, it has established a $200 million creator's fund, with the goal of increasing it to $1 billion by 2023.
TikTok will pay creators directly for generating videos under this scheme.
TikTok has remained tight-lipped on how much creators may earn and how many will be funded, as well as the minimum amount of followers required to qualify.
According to some TikTok experts, you need at least 10,000 followers and 10,000 views on your profile during the previous 30 days, however the site hasn't verified this.
Creators can submit their applications using their TikTok profiles.
If you meet TikTok's minimum requirements, you'll receive an invitation to apply directly from them in the notifications section of your messages.
Convert Gifts to Diamonds
Creators that offer live streams where their followers send them presents purchased with virtual coins purchased within the site are a popular method to make money on TikTok.
The creators may then turn these presents into "diamonds" that can be exchanged for cash.
Fans must be at least 18 years old in order to acquire coins.
Creators who are 18 years old or older can cash out their diamonds at any time for a monetary value determined by TikTok.
Payment is made to the creator's Paypal account of choice.
Withdrawals from TikTok are subject to daily limitations, which are indicated throughout the withdrawal procedure.
Making Money on TikTok vs. YouTube and Instagram
YouTube pays creators a fee depending on advertising revenue generated by their videos on the network.
TikTok, on the other hand, lacks a specific formula for how creators are compensated, making it more similar to Instagram.
Brands may pay producers to create sponsored content on TikTok and Instagram.
This might be a roadblock for some producers in terms of being compensated - you need to build a connection with businesses and persuade them that your material is worth their money.
If you need money quickly, the process of monetizing your following through building an audience and partnering with businesses may be too time consuming.
Other authors believe that this method opens doors since it helps them to maximize revenue with any interested company.
| TikTok | YouTube | ||
| Active Monthly Users | Nearly 700 million | More than 1 billion | More than 2 billion |
| Monetization Options |
Product sales Brand partnerships Host a livestream |
Product sales Brand partnerships |
Ad money as a YouTube Partner Product sales Brand partnerships Channel memberships |
| Barriers of Entry |
Need a smartphone Need relationships with brands |
Need a smartphone Need relationships with brands Could need graphic design or photo editing knowledge to succeed |
Need a smartphone Typically, high-production videos perform better. Might need audio or lighting equipment. |
Using TikTok as a Side Hustle
TikTok is growing in popularity, and as the software develops, more profitable revenue options will become available.
If you're prepared to put in the effort to grow your audience, you can be rewarded financially.
This platform may be ideal for creatives who want to make money on social media without putting in the time and effort that sites like YouTube and Instagram generally demand.
To flourish on TikTok, though, you'll need a deep grasp of the platform's intricacies and culture, which might take a lot of effort.