As one of the fastest-growing social media platforms, TikTok has become a stage for individuals to express themselves and, quite interestingly, turn their creativity into cash. The platform offers numerous avenues to monetize the creators’ passion. From the excitement of live gifts to the strategic partnerships with brands, this platform is becoming a marketplace bustling with potential.
If you’re curious about how to navigate this dynamic environment and start earning, you’re in the right place!
Contents:
1. Can you make money on TikTok?
2. 5 ways to make money on TikTok
- Focusing on the TikTok Shop account
- Joining TikTok Creativity Program
- Live streaming
- Leveraging affiliate marketing
- TikTok Rewards referral program
3. How to choose the best way to get paid on TikTok
4. How to make money on TikTok FAQ
Key takeaways:
- The TikTok average annual income might not be the best source to rely on since TikTok is an area for both micro- and macro-influencers.
- Successful monetization on TikTok heavily depends on your ability to engage and grow your audience.
- With TikTok Shop, creators enjoy a seamless transition from content creation to ecommerce, enhancing the shopping experience while boosting engagement and sales.
Can you make money on TikTok?
Absolutely!
For those who captivate their audience and consistently deliver intriguing content, TikTok can become a rewarding financial venture.
TikTok Shop had already generated around $11 billion in gross merchandise volume in 2023, and the growth isn’t slowing down. Right now, making money on TikTok is a thriving reality for many creative individuals. It’s a good time to hop on board!
5 ways to make money on TikTok
The platform offers various ways for creators to monetize their content and influence. Each method requires understanding and effectively leveraging the platform’s capabilities.
Let’s proceed and explore the five most popular ways of making money on TikTok.
1. Focusing on the TikTok Shop account
The most obvious one is TikTok’s own marketplace, TikTok Shop.
Launched only six months ago, this in-app marketplace has quickly gained attention. Until the end of 2023, 37% of TikTok users in the U.S. reported having made purchases either through affiliate links or directly on the platform during the first three months. The numbers are only expected to grow by 67% by 2026.
What’s so special about it?
TikTok Shop effectively bridges the gap between entertainment and ecommerce, turning the passive viewing experience into an interactive shopping opportunity. It’s integrated directly within the app, allowing users to browse and buy products without leaving the platform. This seamless experience makes it easy to switch between watching and shopping online. It helps people get more engaged and buy more things, boosting conversion rates.
The best part is that TikTok Shop isn’t for sellers only. The platform provides 4 account opportunities:
- For the seller;
- For the creator;
- For the partner;
- For the affiliate.
If you’re already one of them or are planning to become one, TikTok Shop might be a good option for making money.
How it works
Once the account is established, sellers can list their products directly on the platform.
Sellers are encouraged to create engaging videos that feature their products in creative and entertaining ways. This content can be directly linked to the product listings on TikTok Shop, enabling instant purchases. TikTok Shop provides 4 native ways to promote the products:
- Live shopping;
- Shoppable videos;
- Product showcase;
- Shop tab.
While the first two options work more as ads in the users’ feeds with pinned products, the last two are more common to the good old ecommerce platforms.
→ Learn how to set up your TikTok Shop and start selling immediately.
Good to know: 1 in 4 TikTok users are interested in buying from TikTok LIVE because they get to see the product.
What to keep in mind when choosing to run a TikTok Shop
One of the most important aspects to keep in mind when you run an online shop is the importance of tracking your income and keeping your accounting records well-organized.
Using a professional accounting software solution can really help with this, especially, when using TikTok with QuickBooks Online as the final destination. A tool like Synder is tailored to help online businesses manage their finances effectively.
With Synder, TikTok Shop sellers can import delivered orders and payouts with all the details directly to QuickBooks Online and customize the sync, adding special triggers for creating additional classes, applying taxes, and more!
Overall, Synder simplifies the complex process of financial management by automating day-to-day accounting tasks:
- It facilitates accurate tracking of every transaction, including sales, returns, and discounts for ongoing and historical transactions.
- If you sell products on multiple platforms besides TikTok, Synder can synchronize transactions across various platforms into one centralized accounting system. This is particularly beneficial for sellers who use channels like Shopify, eBay, Etsy, etc.
- Synder offers advanced reporting capabilities that provide deep insights into your financial data.
Ensure that your TikTok Shop runs smoothly by implementing Synder! Connect your TikTok Shop to QuickBooks Online and reconcile the last month of your transactions for free!
Good to know: The software provides robust security measures to protect your financial data from unauthorized access, ensuring that sensitive information is handled securely.
2. Joining TikTok Creativity Program
TikTok Creativity Program replaced the TikTok Creator Fund. Creators already enrolled in the TikTok Creator Fund could upgrade to the Creativity Program.
The TikTok Creativity Program rewards creators for producing engaging and popular content. To be eligible, creators must meet specific criteria including:
- Be a U.S.-based creator;
- Have at least 10,000 followers;
- Have a minimum of 100,000 video views in the last 30 days.
Keep in mind that payments aren’t solely based on views; TikTok uses a special formula to calculate earnings, which takes into account various engagement metrics and the authenticity of those interactions.
Good to know: While it presents opportunities, it’s best viewed as one of several potential revenue streams for creators, alongside others like sponsored content, merchandise sales, and livestream gifts.
3. Live streaming
Live streaming on TikTok isn’t just a way to engage with your audience in real-time; it’s also a viable avenue for monetization through Live Gifts.
When a creator goes live on TikTok, viewers can purchase and send virtual gifts, which are fun, animated icons that appear on the screen during the broadcast. These gifts range from simple emojis to fancy animations, each with a different price. The more visually impressive or interactive the gift, the higher its cost.
As viewers send these gifts, they make the stream more lively and contribute financially to the creator. Once a gift is sent, it’s converted into a certain number of “Diamonds” in the creator’s TikTok account, depending on the gift’s value. Diamonds are TikTok’s virtual currency, which creators can then convert into real money and withdraw.
To make the most out of Live Gifts, creators often employ several strategies:
- Having regular live sessions to help build an audience and maintain engagement;
- Promoting upcoming live streams on TikTok and other social media platforms;
- Planning activities, games, Q&A sessions, or performances to keep the audience interested and interactive.
Moreover, if you create or sell products online, live streaming is an opportunity to showcase your items.
→ Learn more about 5 quick ways to promote your business using video marketing.
Good to know: 50% of TikTok users buy something after watching a LIVE stream.
4. Leveraging affiliate marketing
Taking advantage of the Creator Marketplace is another strategic approach that content creators can use to generate income.
Creator Marketplace serves as a connector between influencers and creators, letting both sides find the best options to collaborate. Affiliate marketing starts when a creator partners with a company or brand that offers an affiliate program. The creator is given a unique link or promo code, which they can share with their audience. When someone makes a purchase using this link or code, the creator earns a percentage of the sale.
Product promotions are organically integrated into the created content, whether through product reviews, demonstrations, or simply by showcasing the products in action within the usual content themes.
Good to know: Products weaved into engaging stories or useful content tend to see better results.
5. TikTok Rewards referral program
This is a perfect example of how social media platforms can use gamification to increase user engagement and expand their user base.
The TikTok Rewards operates on a simple referral mechanism. Users are given a unique referral code or link to share with friends, family, or their broader social network. When someone signs up for TikTok using this referral code or link and starts using the app, the referrer earns rewards.
The virtual points can be redeemed for actual money or as coupons or mobile top-ups. Rewards will be converted to cash at a fixed rate.
Currently, there’s no limit on how much TikTok Rewards a user can earn.
How to withdraw TikTok Rewards in cash?
The users need to link their e-payment channels (PayPal or bank account) to TikTok and withdraw the desired amount.
How to choose the best way to get paid on TikTok
Choosing the best way to monetize your TikTok presence involves a strategic approach that fits your unique strengths and audience characteristics. Here’s how you can deepen your understanding and optimize your earning potential on TikTok:
Learn how Synder can optimize the TikTok Shop accounting by booking a spot on a Weekly Public Demo session, where the experts are ready to answer all your questions!
#1. Understand your audience demographics
It’s always good to know who your followers are, including their ages, interests, and behaviors. Pay attention to the comments and interactions on your posts. Audience feedback can provide direct insights into what your viewers prefer and dislike.
Let’s use a quick example here.
Imagine you are a seller of eco-friendly skincare products looking to expand your business on TikTok. Your target market primarily consists of young adults who are conscious about sustainability and skin health.
Suppose you find that a significant portion of your audience is women aged 18-24, who engage most with content related to environmental activism and health.
Based on this information, you might post TikTok videos that highlight how your products are made with sustainable materials, their benefits for skin health, and how they contribute to reducing environmental impact. You can also participate in or start sustainability challenges or hashtags that appeal to this demographic. For instance, initiate a #EcoBeautyRoutine challenge asking users to share their sustainable skincare routines using your products.
By doing so, you can create a targeted marketing approach on TikTok that maximizes engagement and conversion rates.
#2. Align monetization with content type
Different types of content might attract different types of opportunities. For example:
- Educational content might be suitable for sponsored partnerships with educational brands or platforms.
- Entertainment content could work well with live gifts during streams, where fans are likely to donate as a show of support.
- DIY or craft-focused content may benefit from affiliate marketing by linking to tools or materials used in videos.
#3. Monitor trends
Speaking of trends, TikTok trends can change rapidly. Being one of the first to adopt a new trend can set you apart from others and attract new followers.
Keep an eye on TikTok’s Discover page to see trending hashtags, sounds, and challenges. Incorporating these trends into your content can increase your visibility and engagement.
Good to know: While it’s important to follow trends, ensure your content remains true to your brand and style. This helps maintain your existing audience while also attracting new followers.
Care for another example?
Let’s say you’re running an online boutique that sells trendy fashion apparel aimed at young adults. To identify current fashion trends and popular hashtags related to style and clothing you can regularly check TikTok “Discover” page. For example, if tie-dye outfits suddenly become popular on TikTok, ensure you have these products available in your store and prominently displayed in your TikTok content.
You can also launch promotions that align with trending events or seasonal trends observed on TikTok. As an option, offer a limited-time discount on all tie-dye products when the trend is at its peak to capitalize on the increased interest.
By actively monitoring and participating in TikTok trends, you can position your fashion business as a go-to source for the latest styles, thereby attracting more customers!
#4. Engage with other creators
Partner with other TikTok creators to tap into their audiences. This can be as simple as duets or more complex collaborative projects.
For example, if you sell handmade jewelry, you could partner with a creator who focuses on fashion and styling. By collaborating on a video, you could showcase how your jewelry complements their outfits. This not only exposes your products to their followers, who are likely interested in fashion, but also adds credibility to your brand through the endorsement of a respected figure in the community.
Conclusion
As we wrap up our exploration of earning opportunities on TikTok, it’s clear that this platform isn’t just about viral dances and trendy challenges, but a dynamic arena where creativity is monetized and passions are turned into profits.
Making money on TikTok involves understanding your audience, embracing current trends, and continuously innovating your content. So keep your videos fresh, stay engaged with your community, and let your unique voice lead you to success!
Share your thoughts
If you’ve got insights, experiences, or tips about making money on TikTok, don’t hesitate to share them in the comments below. What strategies have worked for you? What challenges have you faced? Drop a comment and let’s talk!
How to make money on TikTok FAQ
How much does TikTok pay per 1,000 views?
TikTok pays around $0.02 and $0.04 for every 1,000 views.
How many likes do you need on TikTok to get paid?
TikTok doesn’t pay directly for likes. Monetization through TikTok generally involves being part of the Creativity Program, which requires meeting eligibility criteria (described in detail in this article) that include a minimum follower count, a certain number of video views in the last 30 days, and adhering to community guidelines and terms of service.
How do I join TikTok Creator Fund?
Starting December 16, 2023, the Creativity Program fully replaced the Creator Fund in the US, UK, France, and Germany. Creators enrolled in the Creator Fund could upgrade to the Creativity Program.
If you’re new to this program, you must first meet the eligibility requirements which typically include:
- Being 18 years or older;
- Having a minimum of 10,000 followers;
- Having at least 100,000 video views in the last 30 days.
To apply through the app, navigate to the settings, find the Creativity Program section, and follow the application steps.
How much did TikTokers make?
Even though ZipRecruiter’s analysis as of April 2024 shows that the average annual pay for a Tiktok influencer in the U.S. is $131,874 a year, the number can be misleading.
TikTok is still an entertainment platform with mega-influencers that can sometimes pull in seven or eight-figure salaries, messing up an average salary number a bit.
Let’s take, for example, the Creativity Program: with 2-4 cents per video with 1,000 views, the creators can only make $20-40 for 1 million views.
As you can see, the numbers above are really hard to make.
What do Tiktokers get for gifts?
On TikTok, creators can receive virtual gifts from their viewers during live streams as a form of appreciation and support. These gifts come in various forms, such as emojis or stickers that viewers can purchase with TikTok Coins, the app’s in-app currency. Once received, creators can convert these virtual gifts into Diamonds, which can then be cashed out as real money.
The value of the gifts depends on the type of gift sent, with more elaborate gifts generally being worth more Diamonds.
