How To Make Money On TikTok (Top 6 Ways)

The homepage of the TikTok Creator Portal.
Courtesy of TikTok.com.

 

Now to make money on TikTok?

Certain content creators earn millions of dollars per year on TikTok. This makes TikTok attractive to aspiring online entrepreneurs looking to build a fortune, as well as to brands that aim to reinforce their online presence.

TikTok provides creators with numerous routes for making money. This article aims to introduce you to those routes, as well as to give you an idea of TikTok’s potential when it comes to income, and answer the question of how to make money on TikTok.

 

How To Make Money On TikTok?

On TikTok, content creators themselves have several avenues for generating income. Aside from that, TikTok may be used for promotion by brands that do not yet have presence on the platform. Finally, TikTok has money-making opportunities for marketing managers and social media consultants.

An overview of income-generating methods in each of these categories of business people can be found below.

 

1. TikTok Creator Fund payouts

The Creator Fund is one of the ways to make money on TikTok.
Courtesy of TikTok.com.

 

TikTok creators may apply for the TikTok Creator Fund for financial support. The US fund started in July 2020, with $200 million allocated to reward creators. TikTok expects the fund to grow to $1 billion over the following 3 years, and more than double that globally.

At the time of this article’s writing (April 29, 2021), only creators in the US, the UK, Germany, Italy, France, and Spain were eligible to apply for the Creator Fund. Other eligibility requirements existed as well:

  • Over 10,000 authentic followers.
  • Over 100,000 authentic video views within the last 30 days.
  • The creator must post original videos in line with the TikTok Community Guidelines.
  • The creator must be at least 18 years old.

Approved creators receive funds monthly. TikTok doesn’t reveal how the payout amounts are exactly calculated:

A number of factors influence how funds are calculated for videos under the program. These elements include video views, video engagement, as well as ensuring the videos adhere to the Community Guidelines and Terms of Service.

Creators may withdraw funds 30 days after the month in which they were accrued ends. At the moment of this article’s writing, TikTok supported PayPal and Zelle for withdrawals.

HITS claims that participants in the Creator Fund earn 2 to 4 cents per thousand views. Thus, a video with 500,000 views would translate to earnings of $20.

On January 29, 2021, Vice wrote that TikTok creator Anika – a 20 years old sophomore college student – earned about $70 over two days from one of her videos that gained over 6 million views and over a million likes. Overall, she earned “a little more than $200” over the course of 5 months.

According to Vice, an anonymous 17 years old TikTok creator had earned $1,200 over the past 5 months, regularly receiving tens and sometimes hundreds of thousands of views per post.

21 years old Savannah earned $200, mostly from a video that gathered over 7 million views and around 1.7 million likes since January 6 (i.e. over the course of about 3 weeks). She raised another $6,000 through direct donations and GoFundMe support.

 

2. LIVE stream donations

TikTok users may donate to creators via virtual gifts during LIVE streams. To do so, viewers need to first purchase virtual coins in the TikTok app. Only users aged 18 or older can send or receive gifts.

TikTok then converts the received gifts into Diamonds, “at a rate of conversion to be determined by us [TikTok] from time to time in its absolute and sole discretion”.

Creators may withdraw Diamonds to their PayPal account, but note that the first and last name of the creator needs to exactly match the details indicated in their PayPal account.  In some areas, creators may be able to withdraw via another withdrawal method.

On its Cash & Bonus Point Award Scheme terms page, TikTok writes that 1 Diamond is equal to 1 Australian dollar, but the conversion rate may change over time.

 

3. Sponsorships through the Creator Marketplace

TikTok creators may earn money through sponsorships acquired on the Creator Marketplace.
Courtesy of TikTok’s Creator Marketplace.

 

TikTok allows brands to reach out to popular TikTok creators via the Creator Marketplace. Consequently, the Creator Marketplace enables content creators to generate money through brand deals and sponsorships.

To be able to join the Creator Marketplace, the creator needs to meet certain eligibility requirements, including over 100,000 followers and age of at least 18.

To assist brands with selecting the best partner, TikTok provides audience demos, growth trends, and performance statistics of a given creator.

Sponsorships appear to be a far higher-earning source of income than the Creator Fund or virtual gifts. In December 2020, Business Insider spoke with 10 influencers to determine how much they charge per sponsored post:

  • Lindy Goodson (about 67,000 followers as of August 2020) – $150 to $250.
  • Symphony Clarke (about 210,000 followers as of December 2020) – $350 to $600.
  • Carolina Freixa (about 260,000 followers as of October 2020) – $200 for music integration, $400 to $600 for brand or product integration.
  • Alexa Collins (about 438,000 followers as of November 2020) – $500.
  • HoneyHouse (about 700,000 followers as of November 2020) – $5,000 to $250,000.
  • Young Yuh (about 1 million followers as of October 2020) – $1,000 to $3,000.
  • Dana Hasson (about 5 million followers as of October 2020) – $3,000 to $6,000.
  • The McFarlands (over 2 million followers as of November 2020) – $5,000 to $8,000, additional $3,000 – $6,000 for cross-promotion on Instagram.
  • JJ Yosh (about 2 million followers as of February 2020) – $10,000 to $50,000.
  • Alan Stokes (about 15 million followers as of February 2020) – “low five-figure deals”.

 

4. Merchandise sales

Merchandise on shelves.
Courtesy of Pixabay.

 

In August 2020, USA Today wrote that TikTok was intending to partner with commerce platform Teespring to allow TikTok creators to sell merchandise directly through TikTok. The feature was to be officially launched in September 2020.

In October 2020, Shopify announced that Shopify merchants would be able to leverage TikTok to reach a broader audience and promote their products.

No income figures for merchandise sales via TikTok were available as of late April 2021. Nonetheless, merchandise sales is another possible income source for TikTok creators and product/service vendors from other platforms, like Shopify.

 

5. Promotion of businesses from outside TikTok

Brands may use the TikTok ads platform to promote their businesses.
Courtesy of TikTok.com.

 

Businesses that don’t yet have presence on TikTok may use the platform as a promotional channel for their brand. Some of the methods brands may employ to promote their products and services on TikTok are:

 

6. Management and consulting services for TikTok creators

Colored pieces of paper symbolizing a checklist.
Courtesy of Unsplash.

 

Those who have a deep understanding of the TikTok platform could offer consulting and management services to creators. In addition to walking beginning creators through the basics of the platform, consultants and managers may offer assistance with brand development, promotion strategy, and follower acquisition.

 

TikTok Earning Calculators

TikTok earning calculators may provide a rough estimate as to how much a TikToker can earn based on a number of factors.

As an example, a calculator designed by Influencer Marketing Hub takes into account total likes, total followers, and total videos to estimate earnings from brand deals.

An example of a TikTok earning calculator in action.
Courtesy of InfluencerMarketingHub.com.

 

These tools may be used to approximate the earning potential of TikTok, but keep in mind that TikTok is not associated with the developers of earning calculators and does not endorse them. This means that third-party earnings calculators may be inaccurate.

 

How Much Do TikTokers Make?

Earnings of TikTokers vary widely, starting from tens of dollars and reaching millions for the most popular creators.

In August 2020, Forbes compiled a list of the 7 highest-paid creators on TikTok based on their pretax earnings from June 30, 2019, through June 30, 2020. The list was focused on “stars native to TikTok”.

On the #1 spot was Addison Rae Easterling, a 19-year-old (at the time of the Forbes article’s writing) who earned $5 million in this time frame.

Addison Rae - the highest-earning native TikToker according to Forbes.
Courtesy of Easterling’s TikTok profile.

 

Forbes writes:

A year ago, Easterling was just settling into life at LSU and making choreographed TikToks that drew on a childhood as a competitive dancer. She hit a million fans by the fall—she remembers the day exactly: October 27—and was getting recognized around campus: “My name would be called out when I was walking to class, which was pretty mind-blowing,” Easterling recalls. Younger teens at LSU football games would ask to get their picture taken with her.

As a TikTok celebrity, Easterling became the main global spokesperson for American Eagle teen clothing company. She launched a makeup line called Item Beauty – a joint venture with beauty startup Madeby – as well.

Easterling was followed by these 6 TikTok creators:

  • Charli D’Amelio – $4 million.
  • Dixie D’Amelio (the older sister of Charli D’Amelio) – $2.9 million.
  • Loren Gray – $2.6 million.
  • Josh Richards – $1.5 million.
  • Michael Le – $1.2 million.
  • Spencer X – $1.2 million.

 

How Many Followers On TikTok To Get Paid?

To be able to use the TikTok Creator Fund, a creator needs to have at least 10,000 authentic followers on TikTok. The Creator Marketplace requires at least 100,000 followers.

Outside of TikTok’s in-house ways to generate income, there appear to be no minimum follower requirements.

 

How Many Likes On TikTok To Get Paid?

To join the Creator Marketplace, creators need to have received over 100,000 video likes over the last 28 days.

The Creator Fund didn’t have requirements for likes as of April 29, 2021.

 

Conclusion

To find more information related to TikTok creators, visit the TikTok creator portal. Note that the eligibility requirements and earning methods covered in this article may change at any time – follow TikTok news for the most recent updates.

 

 

 

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