If you own a phone in 2020, there is a high chance you’ve seen a Tiktok video before.
Tiktok has recently taken the social media world by storm, with the app being downloaded more than 1.2 billion times.
So…. what’s Tiktok?
(The Tiktok I know is the one above. Yes, age revealed. And no, that’s not what this is about.)
In essence, Tiktok is a short-form video app that has risen in popularity since its release in 2017, where users can post 15-second clips, or stitch clips together to make stories that are 60 seconds long.
The ease of usage of this app now allows anyone to be a viral content creator, where users can quickly come up with short videos and post them immediately.
What makes Tiktok so appealing then?
As compared to other platforms, Tiktok presents an alternative version of media sharing – simple, light-hearted and entertaining.
When posting a video, users also have the option to insert special effects, interactive filters, and interesting background tunes, making it fun and creative.
These posts usually feel more spontaneous less curated, sometimes even silly or goofy.
With this app largely dominated by Gen Zs, teenagers now are cashing in on opportunities found on this platform.
While I was happy collecting my weekly $20 allowance back then, 13-year-olds today are busy making $300/day on Tiktok.
If you’re screaming ‘What in the world…..?’ and wondering what you’ve been doing with your life – don’t worry, you’re not alone.
So how exactly are they doing it?
Here are some common methods Tiktok creators use to earn money.
TL;DR: Ways Tiktok Users Are Making Money
|Method||Earn money by|
|Live streaming||Receiving gifts which can be cashed out as money|
|Sponsorships||Being paid by brand companies for doing social media advertising|
|Selling merchandise||Selling own products such as clothing and jewellery|
|Growing and selling Tiktok accounts||Building Tiktok accounts and selling them for a profit|
|Consulting and Management services||Providing services for Tiktok creators with a large following|
Tiktok users can buy ‘coins’ using actual money via in-app purchases.
During live streams, users have the option of sending gifts, which can be bought by coins.
By sending gifts to live-streaming creators, this essentially means giving these creators a small amount of money as a token of appreciation for creating content.
With these gifts coming in different denominations, Tiktok creators might encourage larger donations by providing different types of incentives.
For instance, they might users to donate to join in a duet, allowing them to be displayed alongside these creators onscreen too.
Gifts received from these live streams can then be converted to diamonds, which can eventually be cashed out as real money.
As such, this is one common method used as an income stream, especially for users with a large following.
Well, this is one that we are all very familiar with.
Some might even say they are a little triggered by that
But triggered or not, social media advertising is here to stay, and Tiktok is a new frontier for it.
Businesses are currently leveraging on the large user base to get their brands out, with Tiktok influencers now being approached to promote products and music.
Instead of the usual “Here’s the item! Buy it!” method, Tiktokers try to integrate creative elements into the video, as they only have 15 seconds to create brand awareness.
This results in advertorial content to be slightly more refreshing and… bearable.
Another common method for Tiktok users to earn money is through the sale of merchandise.
Tiktok has an algorithm that allows endless scrolling of related videos. As such, it makes it easier to create a niche audience, allowing creators to make content in specific categories (beauty, gaming, sports etc) and generate a targetted following from that.
As such, Tiktok creators have been coming up with their own products such as clothing lines, stickers and even plush toys to sell on Tiktok.
These creators then market their own online stores through their Tiktok videos.
Growing and Selling Tiktok Accounts
Sounds interesting, and it’s true.
Tiktok users are now setting up accounts, growing them to having a sizeable following, and then selling them for a profit.
This takes the knowledge of being able to build a following, being able to organise content, knowing how to engage followers, and also take advantage of the platform’s algorithm to increase reach.
These accounts can then be sold to people who are looking to leverage on such a following, to capitalise on the audience.
For a rough gauge, an account with 50k to 100k followers can be sold for $500-$1000.
Time to be a Tiktok salesman.
Consulting and Management Services
Some Tiktok creators have garnered a huge following over time, amassing millions of fans worldwide.
This creates an opportunity for them to turn their accounts into a business line.
For individuals with relevant knowledge, a way to earn money would be to offer management services to such accounts.
This includes providing services such as seasoning and improving content strategy, growing of audience, being an account manager, or connecting them to brand deals.
If you have the knowledge and expertise in such a field, people would be willing to pay for it.
Ways Tiktok Users Are Making Money On The App
The internet has allowed money-making opportunities to go far beyond conventional ways, where bucks can be made with just a phone and internet, and at the comforts of your bedroom.
As long as you have some creativity, time and patience, you might be the next rising Tiktok star.