Making TikTok Money With Monetization↘
Social media plays host to masses of digital marketing potential, which is why well-informed entrepreneurs and businesses turn to the likes of TikTok to increase awareness and audience reach for their brand(s).
TikTok became the 7th most downloaded app since launching internationally in 2017, which has created a huge opportunity for businesses on the web to turn their marketing efforts into something extremely rewarding where monetization is concerned.
We’d be surprised if you haven’t already joined fellow merchants in jumping on the TikTok bandwagon, as other businesses are already leveraging the platform’s massive user base to build their brand’s audience, but if you haven't perhaps this article will shed some light on why you should?
According to the inaugural list of highest-paid TikTok stars featured in Forbes last August; Addison Rae Easterling, Charli D’Amelio, Dixie D’Amelio, Loren Gray, Josh Richards, Michael Le and Spencer X made over a million dollars in 12 months on the platform, but how did they do it?
If you’re desperate to know the answer then you’re in luck because we are going to reveal the strategies of how top creators are making TikTok money by monetizing their business on the platform but before we get involved with the details, there’s a couple of questions that we’d like to answer first:
Are Content Creators Paid to Upload TikToks? 💰
We should make it clear that TikTok does not directly pay creators to produce or upload videos onto its platform, nor does TikTok offer to fund creator content in the form of the TikTok Creator Fund.
We’ll talk about the TikTok Creator Fund in further depth later on in this article, but for now, we’d like to make it known that any TikTok money generated by monetization varies greatly as figures will be based on factors such as; the number of views a video receives, the level of engagement that a video receives and the authenticity of users who engage with the post.
In some cases, brands may pay popular influencers and content creators to record and upload videos, but TikTok’s highest-paid users usually monetize their accounts through multiple income streams, which is how top-earning users make a substantial amount of money on TikTok.
Can Merchants Make TikTok Money?
There are many ways that merchants can make money on TikTok’s platform. Some of the strategies include; brand sponsorships, selling merchandise and creating in-feed ads.
Multiple income streams provide a greater realm of security for entrepreneurs and businesses, but the biggest factor to success for online stores is their audience. Understanding who your business appeals to is a key gateway to making money on TikTok. However, it’s important to consider that a brand’s audience is likely to skew a little younger on this particular platform as opposed to a business’ presence elsewhere on the web.
The demographics will speak for themselves but it’s a well-known fact that the majority of TikTok users are under the age of 30 and a whopping 32.5% of users are under 20.
Recent surveys published by Fortune magazine show that a growing number of millennials are joining the platform as social networks tend to be most popular with teens at their inception. So, this means that there’s a gap in the market to catering for TikTok’s maturer users and we think that this could be hugely beneficial to certain businesses in a few years.
Right now though, we should focus on the present, as TikTok content widely varies. What works for one audience might not for another so, the type of content posted should be guided by an audience’s interests, but there are some common features of TikTok content that users are likely to be more receptive to. These features include:
- Authenticity: The most popular TikTok accounts may range where talent is concerned, but what they all have in common is authenticity.
- Engagement: TikTok offers a ton of unique ways for accounts to engage with their audience via; Q&As, duets and video replies. It’s fair to say that TikTok users expect a personal touch, so we’d suggest making use of these features as often as possible.
- Frequent Posting: A consistent stream of content will keep your business at the forefront of your followers’ minds, whilst adding valuable content (in the eyes of TikTok’s algorithm). Additionally, accounts that frequently share new content will increase their chances of going viral which will naturally expand the audience scope.
There’s no one-size-fits-all approach to making TikTok money, but having a solid understanding of your audience will put your business in a better position to find the best ways to monetize its following on the platform.
Methods to Make TikTok Money 🤑
Now it’s the moment you’ve all been waiting for, as we’re just about ready to walk through seven techniques of how merchants can make money on TikTok, starting with the Creator Fund:
N0.1: Join the TikTok Creator Fund
As we touched on earlier, the TikTok Creator Fund is a great outlet for making TikTok money, but this strategy is more suited for the accounts that have built up a substantial following.
Revenue from the Creator Fund can vary from user to user which is calculated based on factors such as; the size of an audience, the quality of an account’s engagement and the account's posting frequency.
For accounts to be able to join the TikTok Creator Fund, the following criteria will need to be met:
- Account-holders must be at least 18 years of age.
- Account-holders must be based in the; US, UK, France, Germany, Spain, or Italy.
- The account must have a minimum of 10,000 followers.
- Videos must have had at least 100,000 video views in the last 30 days.
- The account must adhere to the TikTok Community Guidelines and terms of service.
The Creator Fund is a great idea to pursue if your business already has an established following, however, this strategy does not guarantee steady payment. So, if your brand is just starting on TikTok, we’d suggest taking a look at the other strategies listed within this guide as there will be more than one way to monetize your account.
Even if your business is well established and you’ve already joined the Creator Fund, we’d highly recommend pursuing additional streams of revenue.
N0.2: Selling Merchandise
Selling branded products is great to monetize nearly any type of content. Any content creator can make and sell merchandise for their most loyal fans so, it makes sense for merchants to be able to sell their products on the platform too don't you think?
If you’re interested in moving forward with this strategy, there are a wide variety of print-on-demand companies that can create a wide variety of merchandise products for TikTok merchants.
If you're wondering how this might work, let's say a clothing brand for example may sell; t-shirts, tote bags and hats that are unique to TikTok, whereas a homeware brand might sell; pillowcases and coffee mugs, or any other combination of products that they may like.
Selling print-on-demand products boast benefits beyond uniqueness and revenue, as branded merchandise will enable followers to develop a personal connection with the brand and the content they upload.
Additionally, any follower that wears a brand’s products in public will open up the pathway to new opportunities, spreading the word about the business at hand.
N0.3: Go Live and Collect Virtual Gifts
Live gifting just happens to be one of TikTok’s most useful features for creators, entrepreneurs and brands looking to monetize their content through live streaming.
Many social networks have a live streaming feature in 2021, but what makes TikTok unique is that it allows followers to show their appreciation in real-time by sending virtual gifts, which can be redeemed for payment.
Want to learn more? Here are a few tips to help your business get the most out of going live:
- Timing: You’ll want to go live when most of your followers are online. To do this, check your audience insights by visiting your profile settings and selecting ‘Analytics’ to discover when your audience is most active.
- Longevity: Not every user will stick around for the full duration of a live stream, but staying on air for long enough will give more users a chance to log on and catch a glimpse of the broadcast.
- Post and Stream: When accounts post a short video while live streaming, TikTok will prompt users who see the posted video to check out the stream with a link to the live broadcast.
- TikTok Hashtags: As with other social media networks, users frequently browse hashtag pages looking for new accounts to follow so, just like Instagram, we’d recommend making use of TikTok’s handy hashtag feature to increase the video's reach.
- Internet Connection: Don’t overlook the technical aspects of going live. Make sure that your; internet connection, lighting and sound equipment are capable of being used for prolonged periods.
- Stay Safe: Remember that TikTok gives users the ability to; filter comments, mute users and block viewers. Don’t be afraid to use these features for users who aren’t contributing to the conversation in good faith.
Engaging with users in real-time is a great strategy to build valuable relationships with your followers. Audiences that have a strong connection to a brand tend to develop a personal stake in their success, which means going live can help to boost other monetization streams as well.
N0.4: Collaborate on the TikTok Creator Marketplace
One of the most innovative ways that TikTok allows account holders to make money is through the Creator Marketplace.
The Creator Marketplace connects the right brands to the right influencers, facilitating partnerships in a way that’s fast and easy for both parties involved.
The brands that are looking to run an influencer campaign will be able to browse the marketplace and quickly shuffle through content made by creators so that they can be sure the potential candidates are open to partnering with brands in general.
We like to think of the Creator Marketplace as an influencer agency, letting both sides indicate their willingness to work with one another. This relieves some of the awkwardness of approaching influencers that marketers might experience with influencer marketing on other platforms such as Instagram.
N0.5: Create In-Feed Ads
The latest TikTok news is that the platform has a ton of great organic marketing opportunities, but if a business is willing to spend a little to expand the reach of the content that it creates, store owners should consider creating in-feed ads with the TikTok ads Manager tool.
TikTok ads appear in a users’ feed and will automatically play like any other video on the platform. However, brands that make use of paid ads will be able to ensure that their videos are reaching audience members that are most interested in their products.
What’s the best part? TikTok’s ad Manager seamlessly integrates with Shopify, meaning that merchants on the platform can; create TikTok ads, select a target audience and track ad performance all from within their Shopify store.
N0.6: Collect Tips
If you’re filled with ideas and are looking for a fast and easy way to accept donations, merchants should consider using a tipping platform on behalf of their business.
Tipping platforms are a more personal finance option to take, as they operate like a real-life tip jar. The option is available to fans, but it is of course not mandatory that audience members should leave a tip. This leaves the choice up to the individual and if they choose not to donate, this won’t be a missed opportunity because fans can donate any amount they like at any time they want.
So, maybe the gap to bridge is the fact that users will need to reap value from your business and build a trustworthy relationship with the brand in the process, but if your business can target the right audience and supply them with valuable TikTok content, the chances are that making sales and collecting tips will be a closer reality than you may first think.
Wondering how to get started with tipping platforms? Here are two outlets to check out:
- Tipeee: As a platform,Tipeee doesn’t offer subscriptions, but its strength is in its simplicity. On Tipeee, businesses and creators can set up a page for their fans to directly “tip” any amount they'd like, whenever they'd like.
- Ko-fi: Similarly, Ko-fi offers; tips, memberships and commissions for personalised content such as custom tutorials and video chats.
N0.7: Fan Subscriptions
If you’re looking to secure a more regular stream of income, you might like to consider using a creator-based subscription platform, like Patreon.
For those of you who are new to the concept, subscription-based models of income work splendidly for content creators, because individual subscription costs can be kept to a minimum, whilst allowing content creators to focus on growing their number of subscribers.
A low-cost subscription such as one dollar a month is an easy sell to a dedicated fan. However, when a business or an individual has lots of dedicated fans, those dollars will start to add up.
Patreon was the first large platform built to let content creators and influencers generate revenue through paid memberships from their most loyal fans. On Patreon, merchants can set up membership tiers that allow brands to offer exclusive content to their biggest supporters.
Additionally, Patreon has the added benefit of brand awareness, which adds a level of trust from prospective supporters. So, if you’re thinking that a subscription service might be the best way for you to monetize your brand’s TikTok account, here are some practices to keep in mind:
- Transparency: Success on Patreon involves building a high level of trust with your audience, so be transparent about the amount you’re making and how your funds are being spent.
- Rewards: Audiences are likely to increase their donations for a brand or creator if they’re getting something worthwhile in return. So, be sure to reward your biggest supporters with alluring benefits, like exclusive content and free merchandise.
- Thank Supporters: Make your fans feel appreciated and they’ll be more likely to keep supporting your work. If you aren't already, start replying to comments, tagging users and giving video shout-outs to your fans as frequently as possible.
- Promote: Fans of your brand will not be able to donate if they don’t know that you’re accepting donations. To avoid any confusion, link your TikTok profile to your Patreon page and mention this in the content that you post on behalf of your business.
- Subscription Costs: It’s easier to get $1 from 50 followers than it is to get $50 from one follower, so try to keep your subscription costs low and focus on growing the number of subscribers that your business has.
- Content Calendar: Paying audiences will have higher expectations when it comes to how frequently new content is released so we’d recommend keeping a content calendar to plan when your brand is going to release new content.
As we’re sure you’ve come to realise there’s no single approach to monetization, but the highest-earning TikTok accounts usually maintain several complementary income streams.
Deciding how to monetize your brand’s TikTok account will become easier with time. Just be sure to gain a deep understanding of your business's target audience and you’ll be all set.
If you haven’t already heard the latest TikTok news, the platform recently announced its partnership with Shopify to scale social commerce via the new in-app shopping experience. Click the link provided to discover the latest on TikTok shopping.
So, that concludes today’s article on making TikTok money with monetization techniques. Let us know what you think of these tips and if you’re currently using any of them for your business.
If you’re actively looking to work with a Shopify agency designer or developer to assist you with your business, we’d love to hear from you. Get in touch to get started!