Alexis Kestler
Hey there! Have you ever wondered how people are earning massive amounts of money on TikTok? With over 1 billion monthly users, TikTok has become a goldmine for content creators to build an audience and generate income.
As an avid TikTok user myself, I‘ve been fascinated by how creators are leveraging the platform to quit their day jobs and make a full-time living. And the opportunities are only growing as TikTok keeps adding monetization features.
In this comprehensive guide, I‘ll walk you through the various ways to start making money on TikTok in 2023 and turn your account into a steady income stream. Let‘s get started!
Overview of Money-Making Methods
Unlike YouTube, monetization on TikTok is still relatively new. But the platform is expanding creator money-making tools quickly.
Here are some of the primary ways TikTokers are earning big bucks:
- TikTok Creator Fund
- TikTok LIVE Gifting
- Selling Merch
- Brand Sponsorships
- Affiliate Marketing
- TikTok Advertising
- Tips
- Subscriptions
- Reselling Accounts
The most lucrative creators combine multiple income sources to maximize their earnings. But even starting with one stream like the Creator Fund can grow into a sizable revenue channel over time.
Now let‘s dive into each money-making method in more detail:
1. TikTok Creator Fund
The TikTok Creator Fund is the easiest way for beginners to start monetizing their audience. TikTok sets aside over $200 million per year to pay creators through this fund.
To qualify, you need:
- At least 10,000 authentic followers
- Post regularly without major violations of TikTok‘s policies
TikTok doesn‘t disclose the exact calculations, but payouts are based on your views, engagement, and overall value brought to the platform. One metric I‘ve seen floated around is 2-5 cents per 1,000 video views.
So let‘s say you average 500,000 views per month. At a rate of 3 cents per 1,000 views, that‘s $15,000 in monthly Creator Fund revenue! Pretty good for just posting videos from your phone.
While $15k per month takes building a large audience, the earnings start adding up quicker than you may think. Consistency is key to long-term growth.
2. TikTok LIVE Gifting
LIVE streaming presents another excellent opportunity to get paid directly by your followers.
Fans can purchase virtual "gifts" during your LIVE broadcasts to show support and appreciation. Gift prices range from 5 cents up to $100.
TikTok takes a cut but creators receive the majority of the gift value. Top creators easily clear thousands in gift revenue per LIVE session.
To go LIVE you need at least 1,000 followers and be 18+. Gifting is currently available in select countries. But it‘s constantly expanding as TikTok invests more in LIVE capabilities.
3. Selling Merchandise
Merch gives super fans a tangible way to support their favorite creators, while generating strong profits.
Many top creators earn the bulk of income from merch sales. Products like t-shirts, hoodies, mugs, and other goods let fans rep their devotion.
Set up a Shopify store, promote it on your TikTok profile, and watch the orders roll in. Having a recognizable personal brand and style is key to success.
But creators have built merch empires earning millions in profits from their audience‘s loyalty and desire to look the part.
4. Brand Sponsorships
Brand sponsorships involve getting paid to promote products in your content. Rates vary greatly depending on audience size and engagement:
| Followers | Avg. Sponsorship Rate |
|---|---|
| 100k | $500 per post |
| 500k | $2,000 per post |
| 1 million | $5,000 per post |
| 5 million | $20,000 per post |
These are rough estimates, but you get the idea. Brand sponsorships can easily pay thousands per post once you build a sizable following.
The key is maintaining creative integrity. Only work with brands that authentically align with your content style and audience interests.
5. Affiliate Marketing
Affiliate marketing is another great way to monetize your audience through product recommendations.
You earn commissions ranging from 10-20% when viewers purchase products after clicking your affiliate links.
The key is seamlessly integrating affiliate products into content that provides your audience value. Don‘t just directly promote items. Share your honest thoughts and only endorse products you genuinely like.
Using affiliate links in TikTok bios and clickable pins is a popular approach. When done right, affiliate marketing can become a significant passive income stream.
6. Advertising Your Own Products
Once you build an audience, you can also earn by advertising your own products and services.
Promote your merch store, upcoming projects, affiliate offers, or any other business ventures by purchasing TikTok ad placements.
Ad formats include In-Feed videos, Brand Takeovers, and more. Target your ads carefully to get the most value from your spend.
While ad costs add up quickly, the tremendous audience reach TikTok provides makes it a possibly lucrative investment.
7. TikTok LIVE Subscriptions
TikTok recently introduced LIVE Subscriptions, allowing creators to offer exclusive perks to paying subscribers.
Fans subscribe at price points starting from $0.99 per month to access things like:
- Subscriber badges
- Members-only LIVE content
- Discounts on merch
- Exclusive behind-the-scenes footage
Creators earn the subscription cost minus TikTok‘s cut. Given the platform‘s huge user base, subscriptions offer a predictable recurring revenue stream.
8. Tip Jars
The TikTok Tip Jar feature allows fans to tip creators any amount between $1-$100. To be eligible, you need at least 100,000 followers.
TikTok doesn‘t take any commission from tips. So creators receive 100% of all tip amounts.
Tip Jar gives your loyal supporters an easy way to contribute direct monetary support. When combined with LIVE Gifting and Subscriptions, tipping capabilities make rewarding top fans simple.
9. YouTube Leverage
Expanding your presence onto YouTube is a smart way to diversify income streams.
Uploading TikTok compilations, behind-the-scenes footage, and other bonus material to YouTube allows you to earn revenue through the YouTube Partner Program.
You can also promote your YouTube channel to TikTok fans to accelerate your subscriber growth. YouTube monetization requires 1,000 subscribers and 4,000 watch hours.
But once you hit those targets, YouTube ad revenue provides a great additional earning source.
10. Crowdfunding
Crowdfunding campaigns help creators fund special projects by collecting donations from supporters.
Platforms like Kickstarter, Indiegogo, and GoFundMe allow you to pitch ideas to your audience. Backers then pledge money to help bring the project to life.
Offering exclusive content, merch, and other perks gives supporters more incentive to contribute. Top creators have raised thousands through successful crowdfunding drives.
If you have ambitious content ideas requiring bigger production budgets, crowdfunding can make them financially viable.
11. Reselling Accounts
This method is controversial, but some creators are able to earn huge sums by building up valuable accounts and selling them off. Brands will pay top dollar to purchase accounts with millions of targeted followers.
However, this violates TikTok‘s Terms of Service. There are also ethical concerns to consider when essentially selling off your audience.
But for those willing to accept the risks, growing niche-specific accounts with the intent to sell can become quite profitable. Proceed with extreme caution.
The earning possibilities on TikTok are real. But achieving a high, sustainable income requires the right strategies. Here are some tips to set yourself up for maximum success:
-
Pick a profitable niche. Consider categories like cooking, fitness, beauty, pets, etc. Brand sponsorships favor popular niches.
-
Post consistently. The more you post, the faster the algorithm spreads your content. 3-5 videos per day is a good goal.
-
Engage with your audience. Reply to comments, offer exclusive content, and build connections to keep fans invested.
-
Diversify income streams. Don‘t just rely on one money-making method. Combine options like LIVE, merch, and more.
-
Track analytics. Analyze performance data to optimize your content strategy. Give fans more of what they respond to.
-
Reinvest to grow. Allocate some earnings toward things like better production equipment to level up your content quality.
Making big money as an influencer takes time. But the possibilities to earn life-changing income through TikTok are very real with the right preparation and effort.
I hope this guide provided an overview of the many excellent ways creators are earning on TikTok in 2023. What I love about the platform is that anyone with a creative spark can turn their passion into a lucrative career.
TikTok has democratized influence by empowering everyday people to grow huge audiences with their mobile phones. There‘s no need for expensive production equipment or skills.
Authenticity, consistency, and determination are key. See which money-making method most interests you and start there. With time and commitment, you can build a highly engaged audience and profitable business as a TikTok influencer.
The opportunities are only expanding every day on TikTok. I can‘t wait to see what new creator money-making features they roll out next!
