By now, there’s hardly anyone left who hasn’t heard of TikTok. Hence, one of the objectives of professionals, brands, and companies is to start monetizing TikTok and learn how to earn money with this social network that is now a trend.
The Chinese video network has been the absolute protagonist of the moment, from its explosion in popularity during confinement to its acquisition by Oracle to avoid a ban in the United States.
Is it possible to make money on TikTok? How can we monetize our account? We leave you 7 ideas to start with.
7 Ways To Make Money With TikTok
1) TikTok Creator Fund
Amid speculation about acquiring the app to continue operating in the United States, TikTok announced the launch of a special fund to reward the creators of the platform. As explained by those responsible in a statement:
“To further support our creators, we’re launching the TikTok Creator Fund to encourage those who dream to use their voices and creativity to launch inspiring careers. The fund in the US will start with $200 million to help ambitious creators.” who are looking for opportunities to foster a livelihood through their innovative content. The fund will be distributed over the next year and is expected to grow over that time.”
Given the good reception of the initiative, shortly after TikTok announced that the fund would be expanded to one billion dollars for the United States in the next 3 years and more than double that amount for the rest of the world.
This initiative allows creators to earn money directly from TikTok. Thus, the social network wants to avoid falling into the same trap as Vine, which had to end up closing because the creators abandoned it for not having a monetization model.
2) TikTok Shopping
In late October 2020, TikTok announced a global collaboration with the online store platform Shopify. The deal allows Shopify users to use TikTok to promote their products. And conversely, TikTok content creators can create a store with their products on Shopify and promote them through the social network.
Shopify users can create, run, and optimize TikTok marketing campaigns directly from the Shopify admin by installing the TikTok channel on the Shopify App Store. With this tool, marketers can create native and shareable video content.
It is also possible to separately measure conversions from TikTok using a specific pixel.
To encourage people to try it out, TikTok is offering $300 of ad credit for Shopify merchants to start advertising on TikTok.
3) Direct links
In February 2020, TikTok began adding the functionality to embed links in user profiles. Similar to Instagram’s famous “link in bio”, this allows creators to leverage visits to their content to drive traffic to a web page.
To use this functionality, just click the “Edit Profile” button and add a website just below the bio. It is not necessary to include the “HTTPS”, starting with “www” is enough.
The option to include links in the bio opens two possibilities for creators to earn money with TikTok:
- Link to a brand’s website. Influencers can more easily reach sponsorship agreements with brands now that they have a very simple way to measure the success of campaigns in terms of traffic to the advertiser’s website.
- Link to your products and services. If the creator has an online store where they promote their products and services, or an affiliate website where they promote third-party products in exchange for a commission, the link in the bio allows them to take advantage of the traffic coming from TikTok to monetize it.
4) TikTok Ads
In early 2019, TikTok first launched a beta version of its advertising platform. Since then, many brands have been encouraged to use it to promote their products, including big brands like Nike and Apple.
Advertising on TikTok has multiple formats such as:
TopView – Full-screen videos of up to 60 seconds, displayed in a preferred location within the platform.
In-Feed – Videos embedded in the “For You” feed, displayed as if the advertiser is just another TikTok creator.
Brand Takeover – A large static or dynamic ad that appears when users open the post. You are limited to one advertiser per day.
Hashtag Challenge: the brand presents a video with a challenge for users and encourages them to try it and upload the result to their profiles with a hashtag.
Gamified Branded Effect: filter with more than 20 different formats so that users can interact with the brand through their facial expressions, gestures, and postures.
Branded Lenses – Custom augmented reality filters.
Image: Social Media Today
TikTok advertising revenue does not accrue directly to content creators, but may be used by content creators to promote their products and services or their presence on the platform.
5) TikTok Creator Marketplace
TikTok Creator Marketplace is the official platform for brands and creators to collaborate on TikTok. It is a site specially designed so that brands and influencers can connect to reach agreements with each other.
For content creators, the TikTok Creator Marketplace provides an easier way to monetize their work on the network. For advertisers, it’s a free way to find the perfect influencer to promote their brand. And for both parties, the platform offers data, tools, direct access, and communication at no additional cost.
At the moment, the Tiktok Creator Marketplace is not open to all advertisers but works on an invitation system. Businesses can apply to use it through the TikTok website.
Once registered, advertisers can filter creators based on different criteria: the country, the topics they talk about, their reach, and the demographics of their followers.
By tapping on a creator, you can see more data about them, such as average views for each post, interactions and shares, average performance, and even engagement rate. It also includes data such as the gender, age, and devices of your followers and how your audience has grown over time.
Once the advertiser has selected the influencer they are most interested in, they can message them directly through the Creator Marketplace.
6) Individual agreements with brands
In addition to using the TikTok Creator Marketplace, content creators and brands can also make their deals to promote products or services.
As with any other sponsorship, the key to marketing with influencers on TikTok is to find a natural fit between the brand and the person promoting it, so that their followers do not feel that they are being forced to consume advertising.
More than the number of users, the key for a collaboration to work is in the ratio of the interaction of the audience with the content, the profile, and interests of the followers, and the type of content for which the influencer stands out. In recent years, we have been seeing a trend away from sponsorships with mega-influencers, who often charge a very high price for collaborations, and opt instead for micro-influencers with niche audiences.
7) Coins and gifts
TikTok has a live streaming feature called Go Live, which can be used by creators with more than 1,000 followers. This not only allows influencers to have more direct contact with their audiences but also to monetize their presence on TikTok.
During a live stream, the influencer’s followers can gift virtual coins as a thank you. In addition to donating coins directly, users can also purchase emojis and diamonds to give away to their favorite creators.
Users can buy these coins through TikTok, with a price that varies depending on the size of the pack. These coins are stored in a virtual wallet until it is time to give them to the creators. The prices on Android and iOS vary slightly, but they move in these sections:
- 65-70 coins: 254 PKR
- 330-350 coins: 1280 PKR
- 1321-1400 coins: 5127.01 PKR
- 3303-3500 coins: 12821.02 PKR
- 6607-7000 coins: 25644.37 PKR
In turn, when they have collected enough coins, the influencers can exchange them for real money (with a maximum limit of $1,000 per day). In this way, users can support their favorite creators and creators can monetize their presence on TikTok.