TikTok, as a video hosting platform, is fundamentally driven by profit motives, and its financial success is directly related to its ability to attract a large and engaged audience. This audience makes the platform highly attractive to advertisers seeking to capitalize on TikTok’s broad reach. The significant growth in the number of users on the platform has turned it into a powerful advertising platform that allows content creators to monetize their presence by promoting services and products. At the same time, brand owners and sellers of goods use the platform’s capabilities to create and distribute their own promotional videos, which further increases their visibility and facilitates market penetration.
How to make money with TikTok
The most important thing in earning income from TikTok is to become popular by creating cool videos or become a popular blogger who is watched by a lot of people, without this you will not be able to earn money. But if you have popularity, then here’s how you can make money from it.
Generating income through advertising. At the heart of TikTok’s monetization opportunities is advertising revenue. Content creators often partner with brands to run promotions, enter sweepstakes, or create custom filters and special effects to increase engagement. Such partnerships often lead to profitable deals.
Partnerships with brands. A significant portion of TikTok’s most influential users are people who have already established professional partnerships with various companies to showcase products in their videos. These authors use their fame on social networks to advertise various products, basically nothing new, they just switched from TV to TikTok.
TikTok’s Virtual Economy: Coins and Gifts TikTok is introducing a virtual currency known as TikTok Coins that creators can earn through live streaming, promoting music tracks, and participating in competitions on the platform. These coins can then be converted into real currency, opening a direct path to monetization. Additionally, TikTok gifts that can be purchased with TikTok Coins are another way to earn income.
The advantage of a small audience: Unlike other social networks, where a large number of followers is crucial for monetization, the TikTok algorithm levels the playing field by allowing creators with only 10-20 thousand subscribers to earn income, the popularity of the video will be determined by the quality of the content, not the number of subscribers.
How much can you earn on TikTok?
Making money on TikTok depends on many factors, including the number of followers, the level of audience interaction with the content, the frequency of posts and the ability to attract sponsorship deals. Here are the main aspects that affect potential income:
- Direct sponsorship offers. The most successful content creators can earn thousands of dollars per sponsored video, depending on their popularity and audience engagement. If you don’t have popularity, then most likely it will be very difficult for you to find a sponsor.
- Promotion and advertising of products. Content creators can earn income by promoting products and services in their videos. Income in this case can vary from small to significant amounts, based on the terms of the agreement with the brands.
- TikTok coins. With the live streaming feature, creators can receive “coins” from their followers, which can then be exchanged for real money. The amount of earnings here depends on the number and generosity of subscribers.
- Affiliate Programs: TikTok also offers affiliate programs such as the TikTok Creator Fund, which pays creators for interesting and quality content, although the income from this program is said to be not very high.
Here is an example of income:
- Beginning authors with a small audience can earn a few hundred dollars a month.
- An average popularity level with 10-20 thousand subscribers can bring in from several hundred to several thousand dollars per month.
- High-level influencers with millions of followers and highly engaged audiences can earn anywhere from a few thousand to tens of thousands of dollars per sponsorship, with annual income measured in the millions of dollars.