Content of the material
- How Much Money Can You Earn on TikTok?
- Idea Behind TikTok
- Technological Resource: A Unique AI Algorithm
- How do you get paid on TikTok? 10 strategies to follow
- Find a niche for your videos
- Lean on TikTok’s Creator Marketplace
- Land brand partnerships
- Try micro-influencing
- Stay in touch with followers
- Don’t just post ad content
- Promote your own services and goods in a fun way
- Go native
- Apply to TikTok’s Creator Fund
- Make a press kit
- Making Money on TikTok vs. Instagram and YouTube
- Tips For Growing Your TikTok Business
- How much do TikTokers make in 2022?
- Summary: How to Monetize TikTok in 2021
- Strategy No. 1: Direct Users Off the Platform
- Executive Summary
How Much Money Can You Earn on TikTok?
To say it’s difficult to pin down exact earnings potential on TikTok is an understatement. With so many different factors influencing a TikTok salary, e.g. a TikToker’s location and the location of their followers, there is simply no cut and dry answer. Instead, we are left to our educated guesses. Despite such ambivalence, there are two things we can be certain of when it comes to making money on TikTok: the amount you can earn on TikTok varies wildly, and a TikTok’s number of followers and engagement rate directly correlates with the amount of money a TikTok user can make. Many claim TikToks with less than 100,000 followers will walk away empty-handed, while those with over one million will undoubtedly make the most. For TikTokers with large followings, reports say they could earn anywhere from $200 to $5,000 per month. Of course, this number is dependent on the size of their following. London-based economist Tom Hartmann estimated in a Medium article that TikTokers with 100,000 followers earn roughly $500 to $2,000 per sponsored video. Seeing that sponsored videos are only one form of making money on TikTok, it begs the question of whether or not we will ever be able to truly quantify the earning potential of TikTok. Calculating an absolute amount is made further difficult by the fact that many top TikTokers do not release their earnings. While there is a slim possibility of matching Addison Rae’s TikTok salary of $5 million per year as reported by Forbes, with the right strategy, you can turn a decent profit with your TikTok content.
Idea Behind TikTok
TikTok has had such massive success because its parent company Bytedance acknowledged that people, particularly Gen Z, are constantly keen to try new things. The platform created the culture of trending videos wherein famous artists frequently design original themed dances, which the users on TikTok subsequently attempt, and dances that become very popular often become dance trends in real life. Therefore, the app has completely changed how music hits are made and promoted.
Additionally, the app catered to a large market of consumers searching for a few minutes of micro-entertainment and diversion during the day.
However, developing a “video-based app” wasn’t altogether a new concept as both Vines and Musica.ly were established and successful video apps with a similar idea. Their success familiarised users with the concept of a video-based app, and their exit from the market served as the foundation for the success of TikTok.
All in all, the idea behind launching TikTok was to provide an entertaining outlet for the younger generation where users could express themselves freely.
Technological Resource: A Unique AI Algorithm
TikTok adopted Douyin’s sophisticated AI-based algorithm to develop and deliver its offering. The algorithm is designed such that it frees consumers from a plethora of video options and provides personalised recommendations that are based on a combination of factors like:
- User Interactions such as videos users like or share, the accounts they follow, the comments they make, videos they’ve added to their favourites, videos they’ve marked as “Not Interested”, videos they’ve reported as inappropriate and the content they create.
- Video Information which is based on the content a user searches on the Discover tab, such as Captions, Sounds, Hashtags, Effects, and Trending topics.
- Device and Account Settings that include language preference, and device type.
Moreover, the algorithm does not recommend duplicate content, videos a user has already seen, or videos flagged as spam and potentially disturbing content. Also, the algorithm is inclusive and does not make suggestions based on the number of followers. Thus, if a user creates outstanding content that speaks directly to the target audience, he has just as much chance as the biggest TikTok stars of landing on their For You page.
How do you get paid on TikTok? 10 strategies to follow
Making money on TikTok is attainable, but it takes strategy. You can’t just create content and expect a magical direct deposit. To make money on TikTok, you have to work at growing your audience and earning sponsorships.
Not sure where to start? Here are our top strategies for making money on TikTok:
Find a niche for your videos
Making money on TikTok starts with choosing a niche. Your TikTok niche is essentially the corner of TikTok where you fit in best. It defines the theme of your content and who you are creating content for.
Choosing a niche will help you get more followers. When viewers see a video they like, they might visit your profile. If it’s filled with content relevant to their interests (AKA elements of your niche), then they’ll probably click the follow button to make sure they’ll see your content again.
Choosing a niche narrows your target market. As a result, you’ll face less competition. If your audience is filled with niche users, you’ll likely have higher engagement rates on your content. It will also help you understand what resonates with your audience; if something doesn’t fall into your niche and performs poorly, you know to pivot in future videos.
Higher engagement rates help you get more money from brand deals.
Lean on TikTok’s Creator Marketplace
The TikTok Creator Marketplace is a collaboration platform that connects brands and creators on TikTok. Once you have 100,000 followers, you can apply to the TikTok Creator Marketplace and get the opportunity to connect with brands and sponsorship opportunities. You’ll also get official support from TikTok on brand campaigns, access to collaboration tools, and pointers for how to create advertiser-friendly content.
When you join the TikTok Creator Marketplace, you create a profile where brands can see your analytics. Whenever a brand is interested in working with you, you’ll get a notification with campaign details and a contract to sign. After that, you’ll submit your video to make sure it meets the guidelines.
Land brand partnerships
Brand partnerships are a great way to make money on TikTok, and you can get them even if you aren’t part of the TikTok Creator Marketplace.
The first step to getting brand partnerships on TikTok is building your following. Here are some ways to do that:
- Define your niche
- Interact with other TikTokers in your niche
- Engage with your followers
- Post on a consistent schedule– at least twice per day around the same times
- Use trending music and hashtags
- Check your analytics often
Try to include some brand-favorite content types in your posts. These include product reviews, hacks, how-tos, etc. You’ll also want to build a presence on other platforms (especially Instagram). Having an audience across multiple platforms makes you more competitive.
Make sure brands can contact you easily by clicking on your TikTok profile. You’ll want to link your other social media handles and include your business email address. Additionally, you can include a message to brands in your bio saying you are open to sponsorships. This message will take up space in your bio that could be used for keywords, though, so you might want to test both options for a month each and compare the analytics and opportunities you get during those two time periods.
Once you’ve got all this setup, you can start emailing brands in your niche. Say you’re interested in a brand partnership and share an example of what you could do for them in the email.
When you start posting brand deals on TIkTok, make sure you use the branded content toggle. This shows your audience the post is sponsored. It’s a way to build trust with your audience, as they know you are not trying to hide your sponsorship.
You don’t have to have oodles of followers to make money on TikTok. On TikTok, creators with 50,000-150,000 followers are considered micro-influencers. The term micro-influencers describes users with a smaller following who often specialize in a specific niche. TikTok influencers with less than 50,000 followers are considered nano-influencers.
Many brands actually prefer micro-influencers to bigger creators, as the rates are more budget-friendly and micro-influencer engagement rates tend to be higher.
To be a successful micro or nano influencer, focus on creating niche content and raising your engagement rate. Contact brands that align closely with your niche. Make sure to sell yourself in the email. Show brands why they should choose to work with you.
Stay in touch with followers
Engaging with your community is essential to growing your audience on TikTok. When you see another post in your niche, comment on it. Duet your followers to show that you care about them. Respond to comments to show that you appreciate the engagement, and make sure your comments have a personal touch. Create lasting relationships with your most loyal followers. All of these steps are crucial to creating the engaged, growing audience you need to make money on TikTok.
Don’t just post ad content
This isn’t a podcast or a long YouTube video. TikTok videos are short. You don’t really have enough time to mention a product without it being the main focus of the post. Once you start getting brand deals often, choose your ideal ratio of branded content to regular content and stick with it. This might take a little trial and error. If you post a lot of brand deals in a given time period and your analytics take a dip, it might be time to sprinkle in more regular content.
Promote your own services and goods in a fun way
TikTok is a never-ending supply of ideas for promoting your goods and services in an entertaining way. See a new trend? Work your products into that trend. Share how-to videos, style guides, and storytimes that relate to what you are selling.
Your branded content doesn’t have to look like an ad. As long as you fulfill the brand’s expectations and disclose that the video is sponsored, you can include the products in your video however you want. Here’s a great example of a non-sponsored TikTok that took the world by storm.
Ocean Spray’s non-sponsored feature in the video led to lots of positive press and word of mouth, launching meme after meme. After all, brand awareness is an always-valuable marketing metric to follow.
Apply to TikTok’s Creator Fund
The TikTok Creator Fund is TikTok’s way of compensating creators for posting good content. To be eligible for the TikTok Creator Fund, you have to be a legal resident of the United States, 18 years or older, have over 10,000 authentic followers, at least 100,000 authentic video views in the 30 days prior to applying, and post original content that meets TikTok’s community guidelines.
Compensation varies from creator to creator, depending on your video views, engagement, and whether or not your videos meet the community guidelines.
Make a press kit
Creating an influencer press kit will help you get brand deals. Think of a press kit as your TikTok resume, portfolio, and sales pitch combined. It shows brands why they should work with you and how they can contact you.
When creating your press kit, include the following:
- An introduction to who you are and what your brand is all about
- Links to your social media platforms
- Your latest analytics
- Engagement rates for your 10 most recent posts
- A list of past brand partnership experiences, with links
- Sponsorship formats you offer, along with your rates
- Case studies on your most popular content
- Sales records from campaigns, merch, and affiliate programs
Making Money on TikTok vs. Instagram and YouTube
YouTube pays creators a sum based on advertising dollars made by the platform from creator videos. TikTok, however, doesn’t have a specific equation for how creators are paid, making it more like Instagram. TikTok and Instagram allow creators to get paid by brands for creating sponsored content.
For some creators, this could create a barrier to getting paid — you need to establish a relationship with brands and convince them your content is worth their money. If you need to make money fast, the process of monetizing your following by establishing an audience and connecting with brands might take too long for you.
Other creators feel this strategy opens doors, as it allows them to eventually maximize earnings with any businesses that are interested.
|Active Monthly Users (Worldwide)||Nearly 700 million||More than 1 billion||More than 2 billion|
|Monetization Options||Product salesBrand partnershipsTikTok Creator’s FundHost a livestream||Product salesBrand partnerships||Ad money as a YouTube PartnerProduct salesBrand partnershipsChannel memberships|
|Barriers of Entry||Need a smartphoneNeed relationships with brands||Need a smartphoneNeed relationships with brandsCould need graphic design or photo editing knowledge to succeed||Need a smartphoneTypically, high-production videos perform better. Might need audio or lighting equipment.|
Related: How to Make Money on YouTube
Tips For Growing Your TikTok Business
Regardless of the TikTok monetization strategy you choose, views are everything. As a TikTok creator, you need eyes in your videos and profile if you want a chance at making money on the platform.
Growing your business and your TikTok followers for your account can be done similarly to other social media platforms with some basic strategies:
- Use popular hashtags (ones with thousands of followers) in your posts as much as possible.
- Collaborate with other users who are in your TikTok niche. By coordinating your efforts, each creator can tap into the audience of the other.
- Be consistent and stick to a theme for your profile and your videos. This will help you build a genuine and loyal audience.
- Leverage effects and other fun aspects of the TikTok video creation screen.
- Make sure your profile picture is friendly and, if possible, reflects what your account is all about.
- Even though you can post videos as long as three minutes (as of early 2022), stick to short video content unless your profile theme requires more detail.
- Use popular songs on your videos. This will increase the likelihood that your video appears on a user’s feed.
Above all, focus on increasing the traffic to your profile. Other helpful strategies center around connecting with your audience on a deeper level. After all, nobody wants to support a person who pretends their following doesn’t exist.
If you’re hitting a creative wall, reach out to your followers. Live stream and talk with them, and ask what content they would like to see created. All of these tips can help you slowly start to grow your TikTok.
How much do TikTokers make in 2022?
As seen above, there are many ways to make money on TikTok and how you decide to monetize your content will determine your earnings.
Brand partnerships on TikTok can make you upwards of $80,000. That’s right — if you’re a big enough creator (with a large and engaged audience and a track record of success on the platform), you can buy an expensive car with your earnings from one video.
As for the TikTok Creator Fund, you can earn between 2 and 4 cents for every 1,000 views. This means you might expect $20 to $40 after reaching a million views.
Summary: How to Monetize TikTok in 2021
Learning how to get paid on TikTok isn’t sophisticated or tricky.
The main thing to keep in mind is that you need amazing content that people love, and you need to work hard at continuously growing your following.
If you approach it with the right mindset, and you’re willing to learn as you go and pay close attention to what’s working and what isn’t, you’ll be making money before you know it.
To recap, here are 7 ways to start making money on TikTok:
- Become a TikTok Influencer
- Grow and Sell TikTok Accounts
- Publish Sponsored Posts
- Sell Your Own Products
- Collect Donations
- Become a TikTok Consultant
- Start A TikTok Talent Management Agency
What steps have you taken to monetize your TikTok account? Let us know in the comments section below.
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Strategy No. 1: Direct Users Off the Platform
Clickthrough rates on TikTok seem low compared to other platforms, but Farzin, whose strategy relies mainly on affiliate link commissions, believes this has more to do with the app still being new and having unusually high post reach.
“My conversion rate is anywhere between 10 and 15 percent,” he says. “Watching the video, going to my bio, and clicking on the link, there are three or four clicks until they get to that product. It’s phenomenal that they follow through.”
Farzin emphasizes that valuable content is the key. “It’s about that value-driven content. When people land on my page, they’re able to say ‘Okay, this guy does products, but there are also some other categories, too. Maybe I should follow him.’”
TikTok is the hottest social media site right now, and everyone who wants to be famous is uploading there. The app for short-form video sharing is a roaring success among millennials and allows you to share your skills with the world.
Looking at the success stories coming out of the platform, it seems like a place for ordinary people to become overnight sensations.
Yours can be the next success story from the platform.
All you have to do is follow the right steps, and you can also tap into all of the moolah.