TikTok has exploded in popularity over the last few years, becoming one of the most used social media platforms in the world. As of February 2023, TikTok had over 1 billion monthly active users globally (https://backlinko.com/tiktok-users). With such a massive user base, many creators are realizing they can make money by producing entertaining and engaging content.
There are several ways for TikTok creators to monetize their audience and turn their accounts into income streams. This post will provide an in-depth look at the main options available, including the TikTok Creator Fund, TikTok LIVE gifts and tips, sponsored content, affiliate marketing, selling merchandise, promoting music, and more.
By the end of this article, you'll have a clear understanding of the various methods creators are using to make money on one of the hottest social platforms today.
TikTok Creator Fund
The TikTok Creator Fund is a program that pays creators for videos that perform well on TikTok. To qualify for the TikTok Creator Fund, you must:
- Be 18 years or older
- Have at least 10,000 followers
- Have at least 100,000 video views in the last 30 days
You can apply to join the Creator Fund through the TikTok app. Go to your profile, tap the three-dot menu, choose “Creator Fund,” and follow the on-screen instructions. TikTok reviews applications and accepts creators on a rolling basis.
Once accepted, you can start earning money based on the engagement and views your videos receive. According to TikTok, the minimum payment is $100, and top creators can earn “thousands of dollars per month.” Payments are calculated based on factors like video views, engagement, and more (Source).
Here are some tips for getting accepted into the TikTok Creator Fund:
- Post consistently and grow your following
- Create high-quality, original videos that get a lot of engagement
- Optimize your videos with strong thumbnails, titles, hashtags, etc.
- Promote your account and videos outside of TikTok as well
- Analyze your best-performing content and make more of it
TikTok LIVE Gifts and Tips
TikTok LIVE allows creators to broadcast live videos to their followers. Viewers can send virtual gifts to show appreciation and support. Gifts cost coins, which fans purchase with real money. Popular gifts include drama queen, rose, sunflower, and more. When sent, an animation plays on screen.
For every gift received, the creator earns a certain amount of diamonds. 100 diamonds equals $1. The more expensive the gift, the more diamonds earned. TikTok takes 50% of gift revenue and creators receive the other 50% [1].
Tips work similarly, allowing fans to directly tip broadcasters. Creators can withdraw their earnings when they reach the $100 minimum threshold.
Strategies for earning more gifts and tips include going live consistently, promoting when you'll be live, interacting with commenters, and expressing gratitude for gifts received. Popular creators can earn hundreds or even thousands in gifts per broadcast.
Sponsored Content and Brand Partnerships
Sponsored content and brand partnerships are a major way TikTok creators can monetize their audience and content. Brands are eager to partner with popular TikTokers to promote their products or services through sponsored content. According to Forbes, Charli D'Amelio earned $4 million from brand deals in 2021.
To get sponsored, creators should have a large, engaged following in their niche. Brands want to partner with influencers who can drive awareness and sales. Creators can reach out to brands directly or go through an influencer marketing platform like Grapevine or CreatorIQ. The platform connects creators with paid partnership opportunities.
Earnings from sponsorships vary greatly depending on follower count and engagement rates. Micro-influencers with 5,000 to 100,000 followers might earn $50 to $5,000 per sponsored post. Larger influencers with over 1 million followers can earn $10,000 to $100,000 for a single sponsored video (https://influencermarketinghub.com/tiktok-money-calculator/).
To maximize earnings, creators should clearly communicate their rates and deliverables upfront. Highlight past campaign performance and craft custom partnerships that align with the brand's goals. Stay authentic to avoid turning off your audience with overly promotional content.
Affiliate Marketing
Affiliate marketing is a popular way for TikTok creators to earn income from their content. With affiliate marketing, creators earn commissions when their followers purchase products or sign up for services through special affiliate links. There are a few main ways creators utilize affiliate marketing on TikTok:
TikTok has its own affiliate program called the TikTok For Business Affiliate Program. Creators can join and earn $10 for every new user they refer who signs up for a TikTok business account and adds $100 in ad spend. According to The Ultimate Guide to TikTok Affiliate Marketing, the program pays out a flat $40 commission when you refer new users who create a TikTok Business account and add cash to it.
Many creators also join affiliate programs for popular brands and services like Amazon Associates, Shopify, Clickbank, Shareasale, and more. They then promote these brands in their content and bios. When viewers purchase through their affiliate links, the creators earn commissions.
To promote affiliate links, creators will link to products in their TikTok bios or verbally mention them in TikTok videos. Some also hold up physical products or promo codes on-camera to promote affiliate sales. The key is seamlessly working affiliate links into content without being overly promotional.
Some tips for earning affiliate income on TikTok include: consistently uploading videos in a niche, building trust and authority, adding affiliate links to your profile, collaborating with brands on custom affiliate programs, and tracking your links with affiliate software to optimize your strategy.
Selling Merchandise
Selling merchandise is a great way for TikTok creators to monetize their audience and build their brand. According to Bonfire, merch allows creators to turn their followers into walking billboards. Branded merch not only generates revenue through sales, but also spreads brand awareness.
When setting up a merch store, TikTok creators should consider using print-on-demand platforms like Teespring or Bonfire. These services handle production and fulfillment, allowing creators to design and promote merch without upfront costs or inventory. According to Shopify, print-on-demand makes merch accessible for creators of all sizes.
To drive merch sales, creators should promote their products directly to followers on TikTok and other platforms. Short videos showing off new merch designs tend to perform well. Collaborating with other creators on co-branded merch is another strategy. Most importantly, ensuring designs align with their brand and appeal to their target audience is key.
Promoting Your Music
Musicians can earn money on TikTok in a few key ways when it comes to promoting their music. The main method is through TikTok's licensing deals that pay royalties based on how many times a song is used in a video. According to recent data, TikTok pays around $0.03 per video that uses your song [1]. This means the more your song gets used in popular TikTok videos and trends, the higher your royalty payouts will be. Hypebot estimates musicians can earn $0.001 to $0.008 per stream on TikTok based on their popularity [2].
To maximize streams and royalties, musicians should lean into popular TikTok trends and sounds by creating clips and snippets of their songs for others to use. Making the instrumental or hook of your song available as a sound on TikTok makes it easy for others to create videos with your music. You can also directly engage with influencers and creators to promote your song in their videos. The key is getting your song actively used in as many videos as possible.
Other promotional strategies include using TikTok to tease new releases, share behind-the-scenes footage, and directly interact with fans. TikTok Live is another way to perform live and drive interest. The more you can boost your follower count and overall engagement, the more leverage you'll have to earn royalties through song licensing.
Licensing Content
Licensing viral TikTok content can be a lucrative way to make money on the platform. As TikTok videos continue to gain massive viewership, many companies are eager to license the content and repurpose it for their own marketing and advertising campaigns. If your TikTok videos gain traction and views, you may have the opportunity to license the content out.
There are a few key platforms that actively license viral TikTok content. Jukin Media is one of the largest licensing companies that works directly with TikTok creators. They have licensed thousands of viral videos and helped creators earn revenue from their content. Other companies like ViralHog and Storyful also license out viral videos to major media companies and advertisers.
The earning potential for licensing a viral TikTok video can be significant. According to Jukin Media, creators can earn anywhere from $100 to $10,000+ for a licensed viral video, depending on the level of engagement and viewership. More unique or high-performing content will command higher licensing fees. Even videos with 1-2 million views can earn in the hundreds or thousands of dollars range through licensing deals.
If you think your TikTok content has licensing potential, it's important to actively pitch it to licensing companies. Check platforms like Jukin, ViralHog and Storyful and submit your top performing videos. Provide as much context and background as possible on the content. Having a large follower count on TikTok will also make your content more attractive to potential buyers. With the right viral video, licensing your TikTok content can certainly translate to big earnings.
Transitioning Followers to Other Platforms
Once you've built up a sizable following on TikTok, you may want to start expanding your reach to other social media platforms. Transitioning some of your TikTok followers to platforms like YouTube, Instagram, or Twitter can help diversify your audience and open up new revenue streams.
YouTube in particular is a great platform for monetization through the YouTube Partner Program. By directing your TikTok fans to subscribe to your YouTube channel, you can start earning a share of ad revenue from your YouTube videos once you meet the eligibility requirements. You can promote your YouTube channel in your TikTok bio, or directly in some of your TikTok videos.[1]
Instagram also offers monetization features like affiliate links in Stories and the ability to get paid for branded content. Letting your TikTok fans know they can follow you on Instagram allows you to tap into these money-making opportunities. You can cross-promote by mentioning your Instagram handle in TikTok videos or adding it to your bio.
No matter which platforms you expand to, focus on creating customized content for each, rather than just reposting TikTok videos everywhere. This will lead to higher engagement and faster growth as you build audiences tailored to each platform.
Conclusion
In summary, there are several effective ways to monetize a TikTok following and earn money as a creator on the platform. The TikTok Creator Fund provides direct payment for videos based on their engagement and views. LIVE streaming allows viewers to send virtual gifts and tips. Brand sponsorships are a lucrative option, where you can get paid to promote products in your videos. Affiliate links allow you to earn commissions for leading followers to purchase or sign up for services. Selling custom merchandise like t-shirts taps into your audience’s fandom. Uploading music to the platform unlocks additional monetization opportunities. Licensing viral TikTok content allows brands to reuse it. And transitioning followers to other platforms like YouTube opens up even more money making possibilities.
A few additional tips: Collaborate with other popular creators for cross-promotion opportunities. Make the most of TikTok's built-in monetization features like gifting and tipping. Use affiliate links strategically without being overly promotional. Produce branded content that aligns with your niche and creative style. Engage with your audience and reward loyal followers with exclusive merchandise offers.
In conclusion, with creativity and persistence, TikTok creators can turn their audience and content into multiple revenue streams. Patience and consistency is key, as it takes time to build a following and unlock monetization features. But by leveraging TikTok's tools and diversifying income sources, it is possible to earn a full-time living as an influencer on the platform.
