TikTok was launched in the US in 2018 and can now boast nearly 80 million users, with over a billion worldwide, making it one of the fastest growing social media platforms. To help keep short-form video creators on its app, the company set up a Creator Fund in 2020 that distributes money based on certain conditions. Creators can also accept virtual gifts from fans during TikTok LIVE videos. But the influencers on the site make far more through sponsorships.
In December, TikTok announced an additional way that creators could monetize their content on the site, receiving money directly from viewers even when they are not livestreaming. The company has created a new “Creator Next” portal which will organize all money-making avenues in one place.
Before TikTok set up the Creator Fund, TikTokers had to rely on deals and sponsorships they secured outside of the app. However, they need to have a minimum of 100,000 followers to participate and only the most popular creators could hope to make serious money through the fund. The platform also let creators receive virtual gifts called Diamonds while they were broadcasting TikTok LIVE videos. TikTokers could then redeem those Diamonds for money.
Now, though, TikTokers can receive virtual gifts even when they aren’t livestreaming and also get money straight from the viewers as Tips. TikTok will not take a cut of the Tips but those sending the money pay a small processing fee. The app avoids Apple’s App Store in-app purchase fees and 30 percent commission for in-app purchases by using its own payment provider Stripe.
In order to be able to monetize a TikTok account, personal creators need to meet certain requirements, Business Accounts are ineligible to participate. They need to have at least 10,000 followers to be allowed to sign up for the TikTok Creator Marketplace according to TechCrunch, but can differ depending on region. This will give them the opportunity to collaborate with brands on various opportunities.
Mark Zuckerberg became $31 billion poorer on Thursday, and he's saying it's because of TikTok 👉https://t.co/LidsG96wlP pic.twitter.com/vrB1VURBMk
Creators must be at least 18 years of age to participate and in good standing with the Community Guidelines. Their content must have a minimum of 100,000 views in the last 30 days in addition to posting three new videos in the same time frame.
Currently, creators in US, UK, Germany, France, Italy or Spain can be invited to participate in the TikTok Creator Marketplace. In the coming months it will be expanded to Canada and Australia.
According to SEO Design Chicago TikTokers that qualify for the Creator Fund, those who have at least 100,000 followers, could make between $200 to $1,000 a month. Those with over a million could earn $1,000 to $5,000 and more per month. Viral content creators could potentially make up to a million dollars per post. But unfortunately most TikTokers don’t make very much if anything from the Creator Fund.
Business Insider spoke to several TikTokers to get an idea of how much can be made. Personal finance influencer Preston Seo told them that his account makes about $9 to $38 a day on average. With his 2.1 million views he got less than $1,700 from the Creator Fund over a five-month period. To supplement their income TikTokers make brand deals and promote songs on their accounts. In the case of Seo, he earns $600 per sponsored post.
Top-Earning TikTokers 2022: Charli And Dixie D’Amelio And Addison Rae Expand Fame—And Paydays https://t.co/0R4bhl0ldA pic.twitter.com/JjmRIJjdfC
The amount a TikToker gets paid doesn’t always correlate with the number of followers. Earning money from the platform is more about how an influencer markets their own brand, how much sponsors are willing to pay them to promote a product and merchandising. Here are Forbes estimates for the top five TikTok earners in 2021.
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