If it seems like everyone is talking about TikTok these days, that’s because they are — TikTok has become a worldwide phenomenon. However, this application is much more than your basic social media platform. Instead, it can be used to generate revenue for both brands and content creators. Here’s everything you need to know about making money on TikTok:
What Is TikTok and Who Uses It?
TikTok is a social media platform that focuses on short videos that range from 15 seconds to one minute in length. TikTok stars create funny and engaging video content on the application based on built-in recording and editing capabilities. These videos then show up on a user’s “For You Page,” which uses an algorithm to provide users with relevant content based on likes and dislikes.
Aside from the “For You Page” or “FYP,” there’s also the “Discover” page. This page allows users to see and search for specific hashtags or trends on the platform. You can even search for specific sounds and filters on the application.
In terms of TikTok users, the application is particularly popular with younger demographics — specifically, Generation Z and Millennials. Breaking it down by age, 25% of TikTok users are between the ages of 10 and 19, 22.4% are between the ages of 20 and 29, 21.7% are between the ages of 30 and 29, 20.3% are between the ages of 40 and 49, and 11% of users are over the age of 50.
Clearly, TikTok is the place to be if you’re looking to reach Gen Z and Millennials with engaging and relevant content.
How Does TikTok Work?
TikTok is a diverse application that definitely has a lot going on. If you want to stand out, create native content. To do this, you can open the video recording feature that allows you to record, edit, and add sounds and filters to videos directly in the application. You can even use pre-made video templates to make it easier! On the other hand, you can also upload pre-recorded videos into the platform before editing and posting them.
TikTok makes consuming content easy, thanks to its “FYP” algorithm. This algorithm learns about your likes and dislikes based on how you engage with different types of videos. For instance, if you “like” a video, it will show you more similar videos in the future. It also gives users the ability to essentially “dislike” a video so that they can avoid seeing similar videos in the future.
Can Your Brand Generate Revenue on TikTok?
Many people are skeptical that you can generate revenue on TikTok. If you want to start a TikTok creators fund, this is especially true if you aren’t well-versed in the world of social media in general. However, we are here to tell you that you can definitely make money on TikTok — you just need to know how!
If you’re looking to use TikTok to boost revenue, the money you can make on the platform is all based on your brand’s number of followers. TikTok influencers who have more than 100,000 followers can make anywhere from $200 to $5,000 a month on the platform depending on their brand partnerships. If you have closer to a million followers, you can potentially earn up to $20,000 per post.
So while TikTok influencing can be lucrative, it certainly isn’t for every brand. The good news is that there are other ways that your brand can generate revenue on TikTok.
7 Ways to Make Money on TikTok
If you think that TikTok is all fun and games — think again! It’s definitely possible to generate revenue and make a profit on this burgeoning social media platform. For instance, you can grow and sell accounts, ask for donations, sponsor TikTok advertisements, offer Tiktok expertise, ask for TikTok expertise, or partner with a TikTok influencer.
Let’s explore each of these different methods in-depth so that you can start making money on TikTok in no time!
1. Grow Then Sell Accounts
The first way that you can make money on TikTok is to grow then sell profiles. The best way to do this is to create a TikTok profile or TikTok Pro Account and build a following and popularity based on a specific niche like makeup, fitness, skincare, etc. Whatever your brand is selling or offering, there’s a place for it on TikTok.
Once you have earned a substantial following, you can start reaching out to influencers and other brands for content partnerships. For instance, if your niche is fitness, you could sell your account to a company that sells workout routine videos, make merch like t-shirts, offer live gifting, or collect donations. All you need is one interested brand to make a sale and get some money in your pocket. That’s the best way to understand monetization. Just be sure to follow the rules for live streaming, getting a sponsorship, influencer campaigns, and setting up a PayPal account.
2. Ask for Donations
The second way that you can make money on TikTok is to ask for donations. Asking for donations is a feature on TikTok Live. This method works best if you’re a well-followed account that consistently creates quality content for your followers. Essentially, your content is what’s going to earn you donations.
So how do followers donate to you? TikTok creators and users are able to purchase “coins” in their accounts. For instance, you can buy 100 coins for $1.39. Users then donate coins to their favorite creators. From there, the creators can then turn the coins into “diamonds” and the diamonds can then be converted directly into cash via PayPal.
3. Sponsor TikTok Advertisements
The third way that you can make money on TikTok is to sponsor advertisements on the platform. This is probably the most obvious way to make money on Tiktok as the platform offers paid advertising opportunities similar to those seen in other applications like Facebook and Instagram. That being said, there are a few advertising formats that are unique to TikTok.
For starters, there’s classic in-feed video ads. These short ads show up while a user is scrolling through their feed. There are also brand takeovers that show up as soon as a user launches the application. For more interactive advertising formats, there are branded hashtag challenges and branded effects that focus on gathering more user-generated content.
4. Offer TikTok Expertise
The fourth way that you can make money on TikTok is to offer your TikTok expertise. Many brands are definitely behind the curve when it comes to this new and exciting platform. Help them catch up by offering your TikTok expertise.
By acting as a TikTok consultant for brands, content creators can help them create engaging content and build their accounts. While this method does require experience to be able to market yourself as a “TikTok expert,” it’s possible to use your experience building and selling TikTok accounts with this approach. Show off the different accounts you’ve built and show brands how you can do the same thing for them!
5. Ask for TikTok Expertise
If you’re not personally a TikTok expert, the fifth way that you can make money on TikTok is to work with TikTok experts to better utilize the platform. Believe it or not, but there are actually TikTok marketing agencies out there that can help you do this. These agencies have experts that have been using TikTok since its inception, and therefore, know the trends and the content on the platform.
For instance, MuteSix is a performance marketing agency that helps brands scale with creative media, targeted buying strategies, and data-driven results on platforms like TikTok and beyond. On TikTok specifically, MuteSix has seen incredible success for its clients by generating more than $130,000 in revenue since June 2020. We have also helped our clients obtain more than 80 million TikTok impressions over a six-month period. Finally, we have established relationships with more than 1,000 TikTok influencers.
6. Use an Influencer To Increase ROI
Speaking of TikTok influencers, the final way that brands can generate revenue on TikTok is to hire or use an influencer to market your service or product. Unfortunately, there’s no straightforward formula to hiring the best TikTok influencer for your brand. However, the best way to start is by exploring your niche. Think about your values and what makes you the expert on your corner of the market.
From there, you can find an influencer within that niche to create content. On TikTok, engaging and authentic content is more likely to go viral — so keep this in mind when searching for an influencer. You want someone who fits your brand’s unique voice. Once your brand has built up a following, you may begin getting offers for paid partnerships. You’d be surprised how much you can earn working with an influencer that shares your brand’s creative vision. Working with an influencer can open up an entirely new revenue stream, whether it’s someone with millions of followers or a micro-influencer with a niche audience.
7. Sell In-App Using Shopify
In August 2021, Shopify introduced in-app shopping on TikTok. Social commerce is one of the fastest-growing and buzziest types of e-commerce. It’s especially popular amongst Gen Z, giving merchants an entirely new way to reach this demographic and generate revenue from them.
Merchants with both a Shopify account and TikTok for Business account can now add a shopping tab to their profiles that is easily accessible to all of their followers. Features include the ability to sync product catalogues and create a mini-storefront. If you want to increase product posts with high engagement, the new in-app selling facilitates that, too: Merchants now have access to product links to tag products in any organic post, creating an entirely new shopping experience for customers–and a new revenue stream.
With Shopify’s in-app features on TikTok, any business can market to their unique audience and drive sales to generate revenue. It’s just a matter of getting started.
Final Thoughts on Making Money on TikTok
As you can see, with the right strategy and expertise, it’s definitely possible to make money on TikTok. So before you waste any more of your time on ineffective strategies that just don’t seem to be working, reach out to the TikTok experts at MuteSix for a free marketing consultation.