TikTok is all the rage right now, with over 1 Billion active users each month. How much money is the famous TikTokers making and how does it all work?
According to Forbe’s magazine, they estimated that one of TikTok’s most popular creators – Addison Rae made about $5 million dollars on TikTok. This was a combination of the creator fund, sponsored content, and merchandise, which according to Forbes made up 2/3 of the revenue. Then branching out to create a Podcast and a beauty line. However, these results would be the exception and not the rule.
As a reminder, I have an MBA, I am a Certified Public Accountant (CPA), and have almost 15 years working in finance and accounting. These are my opinions based on researched facts and my understanding of those facts. However, this is not legal, financial, or tax advice. This is me presenting facts and my opinions to help you decide if you think this is something you should spend your time doing. If you need legal, financial, or tax advice, you should reach out to a professional for a 1:1 chat! All opinions are my own.
What are the Different Ways to Make Money on TikTok?
TikTokers make money on TikTok in a few different ways:
1. TikTok’s Creator Fund
Eligibility for TikTok’s Creator Fund
TikTok has a creator fund that is available to certain accounts if they meet the criteria. The criteria is you must be 18 years old, live in the US or one of its territories, and have at least 10,000 followers and over 100,000 views in the last 30 days.
How much do TikTokers Make in the Creator Fund?
This is where it gets tricky. TikTok does not openly disclose how much you can make in the Creator Fund. TikTok themselves states that the payments depend on a variety of factors, including – views and engagement. And of course, everything must be in compliance with TikTok’s Community Guidelines. However, HITC reported that on average, TikTokers make 2-4 cents per 1,000 views on a post.
Making Money with TikTok’s Creator Marketplace
TikTok’s Creator Marketplace is a system designed to connect brands wanting to market their product and content creators on the app. This allows partnered marketing companies to see statistics on who a creator’s audience is and decide if that is their target audience. These partnerships between Brands and Creators likely vary dramatically based on numerous factors, including the audience of the Creator, how big the Brand is, the Brand’s budget, etc.
TikTokers Going Live to Earn Monetary Gifts From Followers
Once a TikToker reaches 1,000 viewers, they can start to go live on the app. When they are live, the followers that join the Livestream with them can give them gifts. First, the follower would purchase coins from 70 coins for $.99 to 7,000 coins for $99.99. Then they would purchase little gifts to send to the Creator. Ultimately, those gifts, convert to a point system the Creator can eventually cash out.
Other Ways to Make Money on TikTok
- You can seek brand deals on your own (not through the Creator Marketplace) to promote someone else’s product
- You could promote an Etsy shop or your own business to drive traffic to make sales
- A lot of Twitch streamers post to TikTok to gain a following to convert that to Twitch subscribers
- Make videos to drive traffic to your YouTube site
How are you Making Money on TikTok? I’d love to hear more!
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