TikTok launched in 2017, has become a global platform with nearly 108 million users in the US as of 2024.
With a significant Gen Z user base,
the platform offers significant marketing potential for entrepreneurs.
To leverage this massive user base,
top creators and marketers have developed strategies for building audiences.
TikTok offers tips on how to make money on the platform,
including fan merch sales and paid subscriptions.
By understanding these strategies,
entrepreneurs can unlock their earning potential and monetize their TikTok presence,
unlocking their potential and leveraging the platform's massive user base.
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TikTok offers eight ways to earn money:
1 :joining the Creativity Program.
2 :selling merchandise.
3 :offering virtual gifts.
4 :affiliate partnerships.
5 :creating in-feed ads.
6 :crowdfunding projects.
7 :collecting tips.
8 :paying for Patreon subscriptions.
Understanding your target audience helps in monetizing TikTok users.
There's no single approach,
but the highest earners maintain multiple income streams,
including sponsored content and organic marketing,
offering virtually endless opportunities.
1 :joining the Creativity Program.
The TikTok Creativity Program,
launched in May 2023, allows US-based creators with at least 10,000 followers and 100,000 authentic video views within the past 30 days to make money.
To join, users must be at least 18 years old, meet minimum follower and video view requirements, and have good standing accounts.
Existing creators can upgrade to the program, replacing the TikTok Creator Fund.
2 :selling merchandise.
The TikTok Creativity Program, launched in May 2023,
allows US-based creators with at least 10,000 followers and 100,000 authentic video views within the past 30 days to make money.
To join, users must be at least 18 years old, meet minimum follower and video view requirements, and have good standing accounts.
Existing creators can upgrade to the program, replacing the TikTok Creator Fund.
3 :offering virtual gifts.
TikTok's unique feature is its Live Gifting feature,
which allows followers to show appreciation in real time by sending virtual gifts that can be redeemed for payment.
This feature is particularly useful for creators looking to monetize their content through livestreaming.
Engaging with users in real time helps build valuable relationships with fans, and going live can boost other monetization streams.
Livestreaming also presents an opportunity for ecommerce retailers to showcase their products,
as it generates more interest from shoppers than other social media features. For instance,
hair scrunchie business Enchanted Scrunch experienced a significant increase in sales after switching from Instagram to TikTok,
with orders increasing from two orders a week to almost 500 orders a week.
4 :affiliate partnerships.
TikTok's Creator Marketplace is a unique platform that connects brands with influencers, facilitating fast and easy partnerships.
This platform allows brands to quickly browse content created by creators they know are open to collaboration, acting as an influencer agency.
This relieves some of the awkwardness of approaching influencers, which marketers may have experienced with influencer marketing on other platforms.
TikTok Shop is another way to make money on TikTok using affiliate links.
This tool allows users with business accounts to create shoppable videos and livestreams,
allowing them to tag products when they feature in their videos and add product information and buy buttons to drive traffic to their affiliate partner.
If running an affiliate business through a Shopify store,
you can integrate directly with TikTok Shop to allow users to scroll through items from within the app.
TikTok Shop features reduce friction for your audience,
as they don't need to leave TikTok to find out more about your or your affiliate partner's products.
Like many great businesses, skin care brand Peace Out Skincare was created when its founder encountered a problem that didn't have a solution.
5. Create in-feed ads.
TikTok offers numerous organic marketing opportunities,
but if you're willing to invest in paid ads, you can create in-feed ads with the TikTok ads manager.
These ads appear in users' "For you" feeds and auto-play like any other TikTok video. With paid ads,
you can ensure your videos reach the most interested audiences.
TikTok's ad manager integrates with Shopify, allowing you to create ads, select a target audience,
and track their performance from your Shopify store.
6. Crowdfund projects.
Crowdfund projects are a popular way for creators to secure a regular income stream by offering an easy, no-pressure way for fans to give back.
Crowdfunding can take various forms, depending on the type of funding needed. For startup funds,
TikTok can be used to rally followers by setting up a funding goal and hosting live fundraising events.
Popular crowdfunding sites include Kickstarter, Indiegogo, Fundable, and Crowdcube.
Kickstarter is the web's most widely used platform, giving credibility to fundraising efforts.
Indiegogo offers a flexible fundraising goal, allowing funds to be received after a deadline.
Fundable allows startups to offer equity in exchange for funding, but is only available to users in the United States.
Crowdcube offers exclusive benefits to companies that succeed in their fundraising goals through its Crowdcube Funded Club.
7. Collect tips.
Tiping platforms are a convenient way for fans to support creators and receive tips for their content.
They function like a real-life tip jar, allowing viewers to donate any amount they like at any time.
Some popular tipping platforms include TikTok's native tipping feature, Tipeee, Buy Me a Coffee, and Ko-fi.
TikTok's native tipping feature allows users to tap a button on their profile to pay creators.
Tipeee offers a simple platform for creators to set up a page for fans to directly tip, without offering subscriptions.
Buy Me a Coffee allows followers to purchase as many "coffees" for the creator,
which are $1 payments transferred to the creator via PayPal or online banking.
Ko-fi offers tips, memberships, and commissions for personalized content, such as custom tutorials or video chats.
8. Patreon subscriptions.
Patreon subscriptions are a great way for content creators to generate passive income by keeping individual
subscription costs low and focusing on growing their number of subscribers.
With a low-cost subscription of $1 a month, creating a loyal fan base can be an easy sell.
Patreon allows creators to set up membership tiers that offer exclusive content to their biggest supporters.
Alternatives like Ko-fi also have tipping features, but Patreon has the added benefit of brand awareness,
adding trust from prospective supporters. To monetize your TikTok account, consider enticing fans with rewards,
thanking supporters directly, promoting your Patreon page, keeping subscription costs low, and consistently creating new content.
Connect with shoppers on TikTok using Shopify tools to tell your brand story and create TikTok in-feed ads quickly.
Start selling on TikTok through the TikTok Rewards referral program,
which allows active users who meet minimum age requirements to refer new users in return for TikTok Rewards points.
Rewards can be converted into small amounts of cash at a rate determined by your location, and can be withdrawn to your bank account or PayPal account.
In some countries, Rewards can also be redeemed for coupons and mobile top-ups.
Check the Task Rules page on your app to see the amount of
TikTok Rewards points you'll be eligible to receive and the tasks your referred user
can complete for extra points for themselves and you.
TikTok referrals work by inviting a new user to join the platform,
creating a profile, and entering the referral code. The friend must enter the code within 24 hours to earn invitation rewards points.
If the new user watches videos, they and the referred user will earn extra rewards.
The amount of videos they need to watch depends on location but TikTok recommends watching videos for a few minutes every day.
As time goes on, new users can also earn points by posting videos and interacting with content.
To make money from your TikTok audience, it is essential to know who they are.
On TikTok, users are likely to be younger, with 62% being under 30, and 32.5% of active users being under 20.
A head start on catering to TikTok's older users could give you a big advantage in a few years.
Always put content first when using social media to sell products is crucial. Users appreciate good content,
so it might help to take a "content-first" approach. Instead of starting with your sales pitch and building content around it,
create the content first and let it inspire the best ways to monetize your account. This approach worked for Parade,
a sustainable underwear company that found success by advertising to millennial and Gen Z customers on TikTok.
Parade's growth marketing manager, Darya Dziadzenka,
quickly found that the most effective TikTok marketing content is authentic: it prioritizes relevance and humor over chasing sales.
The key thing to success on TikTok is making the content as organic to the platform as it can be.
Your TikTok posts should offer value to your audience—not just sell to them.
Partly Sunny Projects, an online plant brand shipping California greenery across the country,
is an example of this approach. Founder Sonja Detrinidad started the business as a distraction from her day job and took to TikTok to capture the process.
Her authentic TikTok videos align with her audience's interests, and her captivating personality makes her use of TikTok for her business so successful.
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