TikTok has exploded in popularity over the last few years and become one of the top social media platforms. With over 1 billion monthly active users, it's no surprise that many creative users have been able to build massive followings and turn themselves into bonafide TikTok stars.
But how exactly do these TikTok celebrities make money from the platform? Here are the main ways TikTok stars monetize their content and earn an income from TikTok:
Key Takeaways:
- TikTok stars can earn money through TikTok's Creator Fund, brand sponsorships, merchandise, live streams, and more.
- The TikTok Creator Fund allows popular creators to earn money from TikTok based on their views.
- Brand sponsorships are a huge source of income, with stars getting paid to promote products in their videos.
- Merchandise like custom clothing and accessories is another revenue stream for top stars.
- TikTok LIVE allows gifting of virtual goods and TikTok Stars get a cut of the revenue.
TikTok Creator Fund
One of the easiest ways for TikTok stars to monetize their audience on the platform is through TikTok's Creator Fund.
The TikTok Creator Fund was launched in 2020 as a way for the app to start sharing advertising revenue with top creators.
TikTok sets aside a massive pool of money each year (over $200 million in 2020) and distributes it to popular creators based on the engagement and viewership of their videos.
To qualify for the fund, creators must:
- Be 18 years or older
- Have at least 100,000 authentic followers
- Have at least 100,000 video views in the last 30 days
- Post original content that follows TikTok's content guidelines
The more views, likes, comments and shares a creator's video gets, the more money they stand to earn from the Creator Fund. It's an easy, passive way for stars to monetize their TikTok audience.
Brand Sponsorships
Possibly the biggest source of income for many top TikTok stars comes from partnering with brands for sponsorships.
If you have a huge following on TikTok, brands will pay big money to have you feature their products or services in your videos. Rates vary greatly, but stars can earn anywhere from $10,000 for a single brand video to $100,000 or more for an ongoing campaign.
Some examples of popular TikTok sponsorships include:
- Makeup and beauty products
- Fashion and clothing brands
- Food and beverage companies
- Entertainment services like Hulu or Netflix
- Video games
The key is finding brands that resonate with your audience and niche. A gaming influencer would focus on different sponsors than a fashion influencer, for example.
Merchandise Sales
Creating and selling custom merchandise is a great way for TikTok stars to monetize their loyal fan base. Things like T-shirts, hoodies, phone cases and other items with original designs, catchphrases or logos can be huge sellers among dedicated followers.
Platforms like Shopify make it easy to set up a TikTok merchandise shop and sell to your followers straight from your TikTok bio. Fans feel more connected to creators when they rep their merch, and sales add up quickly, especially around new product releases or limited drops.
Influencers also partner with merch companies like Fanjoy to produce and ship their designer items around the world. Top stars easily clear 6 figures a month selling hot merchandise via TikTok.
TikTok LIVE Gifting
TikTok LIVE allows creators to broadcast in real-time and interact with followers. Fans can purchase virtual "gifts" during LIVE videos to show support for their favorite creators. Gifts cost money, and TikTok stars get a cut of the profits.
Gifting is extremely popular in TikTok LIVE streams, with rare gifts selling for hundreds or even thousands of dollars. The gifting feature provides another way for loyal followers to donate to creators they love. Stars regularly rack up huge earnings from gifting during their LIVE sessions.
| Revenue Stream | Description |
|---|---|
| TikTok Creator Fund | Share of ad revenue distributed to popular creators by TikTok based on views/engagement. |
| Brand Sponsorships | Paid promotions with brands for featuring products in videos. Big money is paid based on follower count and niche. |
| Merchandise | Custom apparel, accessories and products featuring creator's brand and designs. Sold through platforms like Shopify or Fanjoy. |
| TikTok LIVE Gifting | Users pay to send virtual gifts during TikTok LIVE broadcasts and creators receive a cut. Major source of revenue from die-hard supporters. |
Frequently Asked Questions
How much do top TikTok stars make?
It varies widely, but the highest-paid TikTok creators bring in millions per year from their various monetization methods. For example, Charli D'Amelio reportedly earned $17.5 million in 2021 from her huge TikTok success.
How many followers do you need to earn money on TikTok?
To qualify for the Creator Fund, you need 100,000 authentic followers. But most creators don't start regularly earning until they reach around 500,000 followers and 1 million views per month. Big brand sponsorships usually require 1 million+ followers.
What is the most lucrative way for creators to earn money?
Big brand sponsorships tend to be the most profitable for major influencers on TikTok. A single branded video integration can easily pay over $50,000. Ongoing brand deals with multiple videos can pay creators over $100,000. you can check TikTok Star Briana Armbruster Net Worth.
Do TikTok stars only earn money on TikTok?
No, many diversify their revenue by leveraging their TikTok fame on other platforms like Instagram or YouTube. Cross-promoting and branching out to new channels allows creators to maximally monetize their audience.
How do you get discovered and become a popular creator on TikTok?
Use trending audios, hashtags and effects to increase discovery. Engage your followers, post consistently, and promote your account through cross-posting content on other platforms. Most importantly, create unique, high-quality content tailored to a specific niche.
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