TikTok is a popular social media platform and mobile app that allows users to create, share, and discover short-form videos. It was launched in September 2016 by the Chinese company ByteDance and has since gained widespread popularity worldwide. TikTok's primary feature is its short video format, with videos typically ranging from 15 seconds to 3 minutes in length. TikTok is a dynamic and engaging social media platform known for its short videos, creative content, and global user base.
Over the past few years, TikTok has emerged as a promising income source for digital creators who are willing to master the platform and invest effort in crafting captivating content. While the substantial earnings of TikTok's biggest stars might be rare, there are countless creators and micro-influencers who are generating a substantial income through this viral video-sharing app. Some have even transformed their TikTok endeavors into full-fledged careers.
How much does TikTok pay creators?
You might be reading this article because you've wondered, "What's the earning potential for TikTok creators?" or perhaps, "How much can I realistically make on TikTok?" The fact of the matter is, there's no one-size-fits-all answer to these queries.
The income that TikTok creators can generate varies significantly, depending on a multitude of factors, such as their follower count and engagement levels. What adds complexity to this matter is the sheer diversity of income-generating avenues available on TikTok.
In recent years, TikTok has introduced various programs that enable creators to directly monetize their content through the platform. These initiatives encompass the TikTok Creator Fund and the recently launched Creativity Program Beta, both of which compensate creators based on their video views, drawing from TikTok's revenue.
Nonetheless, it's worth noting that many of TikTok's top earners predominantly generate their income off-platform, often through lucrative brand collaborations or by marketing their own products. Before delving into these external income streams, let's explore the ways in which you can directly earn money on TikTok and gain insight into TikTok's compensation structure for creators.
What is the payout structure for TikTok's Creator Fund?
In 2020, TikTok introduced its Creator Fund as an initiative to motivate and compensate creators for their exceptional TikTok content. Through this fund, TikTok provides creators with a portion of its revenue, determined by various factors, including view count, engagement metrics, and more.
TikTok has maintained a degree of secrecy regarding the precise payouts from the Creator Fund. Fortunately, some of the program's top creators have shared their earnings, shedding light on the compensation structure. It appears that the TikTok Creator Fund pays approximately 2 to 4 cents for every 1,000 views, translating to around $20 to $40 for one million views.
What is the payout rate for creators participating in TikTok's Creativity Program Beta?
Earlier this year, TikTok responded to creators' concerns about the low payouts from the Creator Fund by launching the Creativity Program Beta.
TikTok stated that this new initiative was designed to "enhance revenue potential" for creators across various niches. In essence, the Creativity Program Beta aims to provide creators with even higher earnings compared to its predecessor.
Given that the Creativity Program Beta is still in its early stages and undergoing beta testing, there is limited information available about the exact compensation rates for creators. Currently, we must patiently await the release of more data. However, the program does hold promise.
As of September 2023, the TikTok Creativity Program Beta is accessible to eligible creators in the United States, United Kingdom, Brazil, France, Germany, Japan, and Korea. Creators who are already part of the TikTok Creator Fund can smoothly transition to the Creativity Program Beta through the app.
Alternative Methods for Earning Income on TikTok
While TikTok's Creator Fund and Creativity Program Beta provide creators with direct in-app earnings, there exist numerous additional avenues to maximize your income on TikTok.
Continue reading to discover six alternative methods for generating revenue through TikTok, encompassing options such as selling digital products, merchandise, and capitalizing on livestream monetization.
- Offer Digital Products for Sale
Digital products, whether they are templates or ebooks, encompass items that can be offered for sale online as downloadable files. With the digital media market expected to reach an impressive $536 billion in 2023, the timing couldn't be better to embark on creating and selling digital products online. Essentially, if it's downloadable, it holds profit potential.
Selling digital products serves as a relatively low-effort strategy to boost your income as a TikTok creator. Firstly, digital products necessitate minimal investment for production and sales—there's no need to rent physical stores or manage physical inventory.
Moreover, because they only need to be created once, digital products represent a robust source of passive income. Once you've uploaded a digital product to your online store and linked it to your TikTok following, you can simply relax and observe the downloads (and income!) accumulating. For an estimate of how much you could potentially earn by promoting your digital products on the platform, based on your follower count and engagement rate, utilize our TikTok Money Calculator.
- Collaborate with a Brand
Collaborating with brands is among the most popular and highly sought-after methods to monetize your presence on TikTok. In this form of influencer marketing partnership, a third-party brand engages and compensates a content creator to promote its products or services through sponsored content. On TikTok, these partnerships can manifest in various ways depending on the circumstances, but typically, the brand and creator will agree upon a predetermined fee for each sponsored TikTok video.
The earnings potential from a brand partnership varies and depends on several factors, including your follower count and engagement rate. It's almost intuitive that TikTok creators with a larger following and higher engagement levels stand to earn more through brand collaborations.
To maximize your income in these influencer marketing campaigns, it's essential to focus on boosting your TikTok engagement and expanding your audience. A great starting point is knowing your current engagement rate, and you can calculate this with the assistance of our TikTok Money Calculator. This tool not only helps you determine your engagement rate but also provides insights into how much you should charge for sponsored posts based on your TikTok account's performance metrics.
- Engage in Affiliate Marketing
TikTok's affiliate program offers a convenient way to generate income while endorsing products and brands you have a genuine affinity for on the platform. Within TikTok's marketplace, which features a diverse array of over 10,000 products, you can peruse and even request samples from brands. Then, seamlessly incorporate your favorite products into your videos and livestreams.
With each purchase made through your affiliate link, you'll receive a percentage of the sale as commission. It's a neat way to earn!
- How can I make money on TikTok?
You can earn money on TikTok through various methods,
including the TikTok Creator Fund, brand partnerships, selling digital
products, affiliate marketing, and more.
What is the TikTok Creator Fund?
The TikTok Creator Fund is a program that pays creators
based on the performance of their videos, such as views, engagement, and other
factors.
How do brand partnerships work on TikTok?
In brand partnerships, companies pay TikTok creators to
promote their products or services through sponsored content. These
partnerships can be highly profitable, especially for influencers with a large
following.
Can I sell digital products on TikTok?
Yes, you can sell digital products like ebooks, templates,
or other downloadable items to your TikTok audience. You can use TikTok to
promote and market these products.
How much can I earn on TikTok?
Your earnings on TikTok depend on various factors, including
your follower count, engagement rate, and the monetization methods you use.
- Is TikTok a viable source of income?
TikTok can be a viable source of income for creators who
invest time and effort into building their presence and leveraging various
monetization strategies. However, it's essential to understand that success on
TikTok can vary from person to person.
Do I need a specific number of followers to start earning on
TikTok?
While having a larger following can increase your earning
potential, some monetization methods, like the TikTok Creator Fund, may have
eligibility requirements related to follower count. However, other methods,
such as affiliate marketing, are accessible to creators of all sizes.
Can I earn money from TikTok without a large following?
Yes, you can still earn money from TikTok with a smaller
following by focusing on engagement, niche content, and leveraging strategies
like affiliate marketing, selling digital products, or participating in brand
collaborations suitable for micro-influencers.
Are there any risks or challenges to earning on TikTok?
Like any online platform, TikTok has its challenges,
including content moderation, algorithm changes, and competition. Additionally,
it's important to maintain transparency and adhere to TikTok's guidelines when
engaging in monetization activities.
