How to Make Money on TikTok
In 2021, TikTok reached the milestone of one billion monthly active users, capitalizing on its early fame as people gravitated towards its light, short-form content. This surge in popularity means TikTok is ripe for revenue opportunities, especially considering that around 37% of TikTok users in the US make $100,000 or more annually.
From the #TikTokMadeMeBuyIt trend to engaged subcultures like #BookTok, brands are finding creative and authentic ways to position their product or service and sell directly to TikTok audiences. You can do the same by creating engaging and helpful short videos that directly address your audience’s interests.
But where do you start? In this article, we share 10 strategies on how to make money on TikTok.
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- Run TikTok ads
- Collect tips or donations
- Work with a creator
- Try affiliate marketing
- Grow and sell TikTok accounts
- Publish sponsored posts
- Create a Patreon account
- Sell your products and goods
- Set up a TikTok shop
- Join the TikTok Creator Fund
1. Run TikTok Ads
About 43% of TikTok users are between 18 and 24 years old. This makes TikTok a powerful advertising choice for brands looking to market their products to Gen Z. TikTok Ads come with simple, powerful tools to help you advertise to millions of users. Ad formats vary by region, but all allow you to personalize your targeting based on age, location, interest, and other factors. You can choose one or more formats that work best for your brand.
Some of the most popular types of TikTok ads include:
In-Feed Video: Appear on the For You page of TikTok users who meet your targeting parameters.
Brand takeover: This will expand your display to the width of the entire screen for a few seconds. Then it becomes an in-feed video ad.
Hashtag Challenges: Create engaging challenges that encourage user-generated content. These challenges appear in the Discovery section on TikTok. This option is only available to managed brands that work with TikTok sales reps.
There are several other types of TikTok ads you can experiment with, but note that some are only available for certain types of accounts.
2. Collect tips or donations
TikTok launched a tipping feature, allowing select creators to earn money from tips and donations. Fans can use this feature to show their gratitude to the creators they love.
Video gifts allow viewers to send creators virtual gifts and coins. Some creators can collect gifts during a live stream. Gifts can be redeemed for Diamonds – TikTok’s digital currency.
When you have saved up enough diamonds, you can exchange them for real money.
Creators can also use tipping platforms to make money. Tipeee, Ko-fi, and Buy Me a Coffee can be connected to your TikTok account to act as a tip container.
3. Work with a creator
The latest Sprout Social Index™ shows that 33% of Gen Z and 28% of Millennials value collaboration between brands and content creators. TikTok’s thriving community of content creators makes it a great channel for collaborating with influential people in highly engaged communities.
The key is working with the right creators who can authentically position your brand to their audience, as branded content created by creators has an 83% higher engagement rate.
TikTok’s Creator Marketplace lets you connect with content creators across the network. In a few steps you can find influencers and run campaigns with them. Locate creators based on business goals, budget and industry, and find comprehensive performance and audience metrics for data-driven decision making.
TikTok has some Creator Marketplace eligibility requirements, so only select creators can join. This reassures marketers that the creators they work with are among TikTok’s top influencers.
4. Try affiliate marketing
Affiliate marketing programs allow creators and other businesses to promote and sell another company’s products or services for a commission.
To be a successful affiliate marketer, you need to generate sales online. Focus on promoting products that best fit your target audience. Create engaging videos that showcase affiliate products, their value and reasons to buy them. Try promoting brands you like and trust and share affiliate links or codes to track purchases influenced by your account.
If a follower makes a purchase using the link or code provided, you will receive a commission from the brand for that sale. TikTok does not allow personal accounts to place clickable links in video descriptions. However, you can ask followers to copy and paste links into their browsers or enter special codes at checkout. Sites like Beacons allow you to create a free webpage that includes affiliate links and details about the products being advertised. If you have a business account, you can add a link in your bio.
If you’re an internal marketer, create an affiliate marketing program with clear guidelines and instructions on how to participate. Invite TikTokers that align with your brand values and audience to participate. Encourage affiliates to promote the products or services that best align with your goals and shared audience. And most importantly, implement a tracking system so you can monitor affiliate performance and commission payments.
5. Grow and sell TikTok accounts
Growing a TikTok account organically can take months. However, you can buy an established account to get an instant boost in followers.
To successfully make money from selling TikTok accounts, creators should focus on niche topics that can be borne by the buyer. This makes it easier for the buyer to keep posting similar content and maintain follower engagement.
Brands considering purchasing an established account should conduct due diligence. An account with many followers but low engagement may not deliver the desired return. Also, make sure the account serves an audience you’re targeting and that the content aligns with your brand and goals.
Brands can get an account with active followers from platforms like 123accs, Accfarm, and Fameswap.
For smaller activations, brands can sponsor posts that appear directly on creators’ profiles. Similar to creator collaboration, these campaigns allow brands to pay content creators to promote their products in organic posts. Sponsor individual posts or create a series. If it’s trending, you can amplify the post to increase its reach even further.
7. Create a Patreon account
A Patreon account allows creators to earn revenue from fans through memberships that provide exclusive access to content. Use TikTok to promote membership applications.
Try to keep your subscription costs low to encourage subscribers and consider rewarding new subscribers. For example, give away merchandise or exclusive access to content to your most loyal followers. Add the link to your Patreon page in your videos or add it to your bio to make it easier for followers to subscribe whenever they are ready.
8. Sell your products and goods
Goods, goods, goods. This proven strategy also applies to TikTok. Turn original graphics, quotes or your brand’s logo into merch and promote it on TikTok. Feature your existing products in tutorials or showcase your product alongside a trend.
@useloom 🕯 New from Loom: brighten your calendar and brighten your day with canceled meetings from Loom – the first candle to help you reclaim your time. Featuring:✨ 8 ounce hand-poured candle✨ Peace on Earth, Peace at Work, a free zine✨ The relief of knowing you can cancel a meeting with Loom #loomunlocks
♬ Original sound – loom
Listen to your audience when they’re not sure what to sell. Create polls or ask them directly to find out what they might be buying.
If you have a personal account, create an e-commerce site to process sales transactions and advertise on your TikTok account. Add the shop to your videos and encourage your followers to check out your products.
If you have a TikTok Business account, you can connect platforms like Shopify, BigCommerce, Square Online, and Ecwid Store to your account.
9. Set up a TikTok shop
TikTok has partnered with Shopify to launch the TikTok shopping feature. Brands and creators can become official TikTok retailers and start selling directly in the app.
By creating a TikTok store, you can showcase products on in-feed videos, lives, and product showcase tabs. If you’re eligible for this feature, you can sign up as a seller in the TikTok Seller Center, where you can manage inventory, orders, partnerships with creators, promotions, and more. However, Seller Center is only available in select regions.
10. Join the TikTok Creator Fund
Users with a Creator account can monetize their profiles through the TikTok Creator Fund. Creators need to meet some requirements to join the program and start receiving funds from the platform. Creator Fund members earn money based on the number of engagements they receive for their content.
How to make money on TikTok FAQ
Still curious about TikTok monetization? Here you will find answers to some frequently asked questions.
How many followers do you need on TikTok to make money?
Some of the features mentioned in the monetization strategies above require you to reach a minimum number of followers on TikTok. For example, the Creator Fund requires at least 10,000 followers to join.
On the other hand, you only need 1,000 followers to receive virtual gifts on TikTok Live. But to get tips and gifts from other types of videos, you need to have at least 100,000 followers.
How many views does it take to make money on TikTok?
To join the Creator Fund, you must have viewed your videos at least 100,000 times within 30 days. Otherwise, you don’t need to have a specific number of views to share links to your products in videos or your bio.
Learn more about TikTok for business
These strategies can up your TikTok game and set you on a clear path to making money on the app. If you’re ready to take your TikTok strategy to the next level, read our TikTok guide for businesses to learn how to effectively grow your business on the network.