How Much Money Do People Make on TikTok?

TikTok has quickly become one of the most popular social media platforms globally, attracting millions of creators and an even larger audience. Known for its short, engaging videos, TikTok has turned into a money-making machine for many users. Whether you’re a casual creator or aiming to become a full-time influencer, TikTok offers various ways to earn income. But how much money do people actually make on TikTok?

In this article, we’ll explore the different income streams available to TikTok creators, factors that affect earnings, and how some TikTok stars have turned their content into profitable businesses.

1. TikTok Creator Fund: Earning from Your Content

The TikTok Creator Fund is one of the most direct ways for creators to earn money through the platform. Launched in 2020, the fund was created to reward TikTok creators for producing popular content.

a. How the TikTok Creator Fund Works

To qualify for the TikTok Creator Fund, you must meet certain eligibility criteria:

• Be at least 18 years old
• Have at least 10,000 followers
• Generate at least 100,000 video views in the last 30 days
• Follow TikTok’s community guidelines and terms of service

Once you’re accepted into the Creator Fund, TikTok pays you based on the number of views your videos receive. While TikTok has not disclosed the exact formula for calculating payouts, creators typically earn 2 to 4 cents per 1,000 views. This means that a video with 1 million views could earn anywhere from $20 to $40 through the Creator Fund.

b. Limitations of the Creator Fund

While the Creator Fund provides an opportunity for creators to earn money directly from TikTok, many creators report that the payouts are relatively small compared to other monetization methods. Additionally, there are concerns that once creators join the fund, TikTok limits their video reach, reducing their potential earnings.

2. Brand Deals and Sponsored Content: Major Revenue Source for TikTok Creators

For most TikTok influencers, brand deals and sponsored content are the primary ways to make money. As brands look to reach younger, engaged audiences, they turn to TikTok influencers to promote their products and services. This can be extremely lucrative, especially for creators with large followings.

a. How Sponsored Content Works

When you partner with a brand, they will pay you to create TikTok videos that promote their product or service. These partnerships can take different forms, such as:

• Product placements: Featuring a brand’s product in your video.
• Challenges: Participating in branded TikTok challenges.
• Reviews or endorsements: Creating videos that recommend or review a brand’s product.

The amount of money you can earn from a brand deal varies depending on several factors, including your follower count, engagement rate, and the brand’s budget. Influencers with 100,000 to 500,000 followers can earn anywhere from $500 to $2,000 per sponsored post, while creators with over 1 million followers can command $10,000 or more per post.

b. Negotiating Your Rate

To maximize your earnings from brand deals, it’s essential to understand your value as a creator. Brands are often willing to pay more if you can demonstrate high engagement rates, meaning your followers are actively liking, commenting, and sharing your content. Additionally, creators who have a niche audience or strong influence within a specific community (e.g., fashion, fitness, beauty) may be able to charge higher rates for sponsored posts.

3. TikTok LIVE: Make Money Through Gifts and Tips

TikTok offers another income stream through TikTok LIVE, where creators can receive virtual gifts from their followers during live streams. These virtual gifts are purchased with TikTok Coins, which viewers can buy with real money. When you receive gifts, you can convert them into Diamonds, which can be exchanged for real cash.

a. How TikTok LIVE Gifts Work

When you go live on TikTok, your followers can send you virtual gifts, such as flowers, hearts, or animated icons. These gifts have a monetary value, and you can convert them into real money once you accumulate enough Diamonds.

For example, TikTok Coins can be purchased at a rate of $1 for 100 coins. A gift worth 100 coins would therefore be valued at $1, but TikTok takes a cut of the revenue. Creators typically receive 50% of the gift’s value, meaning a $1 gift would result in a 50-cent payout for the creator.

b. Earnings from TikTok LIVE

The amount of money you can earn from TikTok LIVE depends on your ability to engage with your audience and encourage them to send gifts. Creators with highly interactive and entertaining live streams can make anywhere from $100 to $1,000 or more during a single live stream, depending on the size and generosity of their audience.

4. Affiliate Marketing: Earn Commissions from Product Sales

Another way to make money on TikTok is through affiliate marketing, where you promote products and earn a commission on sales generated through your affiliate link. Many influencers partner with brands or sign up for affiliate programs like Amazon Associates, RewardStyle, or ShareASale.

a. How Affiliate Marketing Works on TikTok

Affiliate marketing on TikTok works by creating content that features a product and encouraging viewers to purchase it using your affiliate link, which you can share in your bio or video description. When someone clicks on the link and makes a purchase, you earn a percentage of the sale, usually between 5% and 20% depending on the affiliate program.

For example, if you promote a $100 product with a 10% commission rate, you would earn $10 for every sale made through your affiliate link.

b. Tips for Success in Affiliate Marketing

To succeed in affiliate marketing on TikTok, it’s essential to create engaging and authentic content that highlights the value of the product. Instead of creating hard-sell ads, focus on creating fun, informative, or creative videos that demonstrate how the product can solve a problem or enhance the viewer’s life.

5. Selling Merchandise: Turn Your Brand into a Business

Many TikTok creators turn their popularity into a full-fledged business by selling merchandise. From custom apparel to branded accessories, creators can design and sell products that reflect their personal brand or popular catchphrases used in their videos.

a. How to Sell Merchandise on TikTok

You can use print-on-demand platforms like Teespring or Redbubble to create custom merchandise and sell it directly to your followers. These platforms handle the printing, shipping, and customer service, allowing you to focus on designing and marketing your products.

Once you have your merchandise set up, you can promote it in your TikTok videos by featuring the items, showing behind-the-scenes footage of the design process, or creating fun skits that involve your merchandise.

b. Earnings from Merchandise

The amount of money you can make from selling merchandise depends on your audience’s size and their willingness to support your brand. For example, if you sell a $30 t-shirt and earn a $10 profit per sale, selling 100 shirts would result in a $1,000 profit. The key to success is creating products that resonate with your audience and reflect your personal brand.

6. How Much Do TikTok Stars Really Make?

The earnings of TikTok stars vary widely depending on their level of influence, the types of monetization strategies they use, and their engagement rates. Some of the top TikTok stars, such as Charli D’Amelio, Addison Rae, and Dixie D’Amelio, have turned their TikTok fame into multi-million-dollar businesses.

Here are some examples of how much the top TikTok stars earn:

• Charli D’Amelio: Reportedly earned $17.5 million in 2021 through brand deals, merchandise sales, and other ventures.
• Addison Rae: Reportedly earned $8.5 million in 2021 from brand partnerships, her cosmetics line, and acting roles.
• Bella Poarch: Earned over $5 million through sponsorships, music deals, and merchandise sales.

While these earnings are exceptional, many smaller TikTok creators still make a good income by combining multiple revenue streams. Creators with 100,000 to 1 million followers can earn anywhere from $1,000 to $10,000 per month, depending on their niche and level of engagement.

Conclusion: Turning TikTok Fame into Fortune

TikTok offers numerous ways for creators to make money, from the Creator Fund and brand deals to affiliate marketing and merchandise sales. While the earnings vary depending on factors like follower count, video views, and engagement, TikTok provides opportunities for both large and small creators to turn their passion for content creation into a profitable venture.

Whether you’re just starting out or already have a dedicated following, diversifying your income streams and engaging with your audience are key to maximizing your earnings on TikTok.