When it first launched, TikTok was seen as a fun social media platform for young people who enjoyed making and watching short, entertaining videos. At first, many companies and creators didn’t give it much attention and they certainly didn’t look to the platform as a way to make money. Fast forward to now and you’ll see opinions have certainly changed.
Launched in 2017, by 2019, TikTok had exceeded 1.5 billion downloads, making it the third most downloaded non-gaming app in the world. As one of the fastest-growing social media platforms, TikTok garnered a lot of attention for its great monetization opportunities as well.
The majority of TikTok users are under the age of 30. It is estimated they are spending nearly an hour and a half on the platform daily. When compared to time spent consuming other advertising sources such as television commercials, or print ads, that’s a significant amount of time and opportunity to grab their attention. What does this mean for you?
How Business Owners Can Make Money On TikTok
As business owners, this means you have an opportunity to quickly reach a larger audience and showcase your products and services in a fun, creative way. The result is more followers and more sales.
For creators, this means that you have several opportunities to get your awesome content in front of viewers, rack up the views and engagement and monetize your content.
Beyond growing your following, in this post we’re going to show you how you can grow your earning potential as well on TikTok. There are several ways to make money with your TikTok content. In this article, we’ll go over three common ones. First, we’ll explore organic product linking in the comments as well as product linking in the video. Then, we’ll explain how to work with sponsorships from brands and find creators. Lastly, we’ll discuss the TikTok Creator Fund which allows for monetary support to creators directly from the app!
#1 How to Make Money On TikTok: Organic Product Linking and Shopify
According to TikTok, TikTok users are 1.7x more likely to have purchased the products they discover through the app. It’s as easy as linking a product in a TikTok video which users can click and be taken directly to the shopping page.
From February 2020 to February 2021, installs across Shopify’s social commerce channels increased by 76%. TikTok users can shop on TikTok using Shopify by clicking tagged products in a TikTok video and being redirected to the brand’s online store for checkout. The popular beauty brand, Glow Recipe, is an example of how well this works.
When Glow Recipe’s Watermelon Glow Drops went viral on TikTok, the company created a product catalog and added it to the platform’s shopping tab which is visible on business profiles. Glow Recipe said that by adding the shopping tab and tagging their products in TikTok videos was a way to increase awareness about their products.
And with a reported $110 million dollars spent by users on TikTock in 2021, it’s evident that TikTok has serious value that extends beyond entertainment.
#2 How to Make Money On TikTok: Brand Sponsorships/Partnerships
Creators are the lifeblood of TikTok. After all, the platform was essentially created with them in mind. The idea was simple; a fun place to showcase personality in short videos. Creators and brands can partner up on TikTok for mutual benefits.
For companies, partnerships increase audiences. When TikTok creators talk about or demo products in their videos, more people learn about the product. It’s a great way to expand an audience a brand would otherwise have a hard time reaching.
For creators, sponsorships and partnerships are a way to monetize TikTok content because they get paid to showcase products.
To get started as a paid creator or find one to work with your company, head over to the TikTok Creator Marketplace. Here, you can find TikTok creators including analytics about them to help you decide who is relevant for your brand. Creators, this is where you’ll want to be to increase your chances of discovery and landing that paid partnership!
Of course, another way to get discovered is to post authentic content, link to the brands and companies you want to work with, and get their attention. It’s totally okay to ask for the partnership before getting discovered!
#3 How to Make Money On TikTok: TikTok Creator Fund
The TikTok Creator Fund which was created in 2020 is expected to grow to $1 billion in the US over the next three years. Created as a way to help ad revenue share with creators, the Creator Fund pays out based on video views. While payments can be as low as a few cents per video, there’s the potential to earn six figures.
In March 2021, TikTok announced that creators will need at least 100K authentic video views in the last 30 days to be eligible to join the Creator Fund. Additionally, there are geographical requirements (the US is in), age requirements, and having at least 100,000 followers. Once you’re in, you can start earning. It really is as easy as post content, getting views, get paid.
It’s important to also remember the basics – have fun and engage with your audience. Don’t focus solely on making money. Often, content that goes viral stems from authentic, fun content created with no monetary expectations. Remember that the audience on TikTok is younger and create content that is relatable to them.
As we’ve shown you, TikTok is a great place to grow your following and find new customers. With the three tips we shared, it’s time to get out there and start making money using TikTok.