November 2, 2020 6 min read
Opinions expressed by Entrepreneur contributors are their own.
There’s no denying that the platform is powerful, with a single viral video driving stores to sell out of cranberry juice. This success is not an anomaly. TikTok has better organic reach and longevity of content than its competitors, making it an alluring place to be for businesses.
Earlier this year, TikTok invested $50M into their Creative Learning Fund to entice creators to post informative content. In part, these funds were meant to drive up the age of the average user and encourage universal participation on the platform, particularly from those who value substance over killer dance moves.
TikTok is a network with high earning potential for companies and individuals alike. If you’re eager to get paid for your social media efforts, here are seven ways to monetize a TikTok account.
Aside from the Creative Learning Initiative, TikTok has a $200M fund to compensate US-based creators. To be eligible you must be 18 years old, have 10,000+ followers, and have received a minimum of 10,000 views on your videos in the last 30 days.
Once accepted, TikTok pays creators based on the number of views they get. TikTok pays on a CPM basis, issuing an average of $.02-$.04 per 1,000 video views. In contrast, the average YouTube CPM is between $6-$8 per 1,000 views. Most creators won’t be making a full-time living at this rate but it’s a nice bonus considering other platforms pay nothing at all.
Traditionally, influencer marketing and connections have been done through third-party sites. The Creator Marketplace a unique concept and one not seen in any of TikTok’s competitors. It is TikTok’s official platform for brand collaborations and sponsorships and is hosted in-app.
To join, users must be 18 years old, have 100,000+ followers, have posted a minimum of three videos in the last 28 days, and have received over 100k video likes in the last 28 days. Once accepted, brands reach out to the creators they want to work with directly. Rates for a single sponsored video can range from a few hundred to tens of thousands of dollars depending on the creator’s reach.
Even if you don’t have enough followers to qualify for TikTok’s paid programs, you can still generate traffic and sales with the use of the “link in bio” feature. You need 1,000 followers to gain access to this feature. Note, if you activate a pro-business account you will get access to this feature immediately but lose the ability to use copyrighted music in your videos.
TikTok users have a high clickthrough rate so utilize link space accordingly. If you want ad revenue, link to an ad generating site. If you want product sales, link to your sales page. If you want new clients and consultations, link to your booking page.
Accounts with 1,000 followers or more have the ability to go live. At that time, viewers can send virtual gifts to the account. Each gift is worth a different amount and users have to pay money to purchase gifts before sending them. At the end of a live session, gifts received by the account are tallied and accrued. TikTok takes 50% of these gift revenues. When a $100 threshold is met, money can be withdrawn with a limit of $1,000 withdrawal per day.
Accounts with millions of followers go live several times a week and offer everything from giveaways to voice messages to get viewers to send high-ticket gifts. The most expensive gift comes out to roughly $50 in the final payout.
TikTok is still figuring out ads and how to best integrate them into the platform. Currently, users see them while swiping. The pop up sporadically in between videos on their regular feed. TikTok has a program aimed to help businesses affected by the pandemic and is offering a $300 ad credit to be used by December 31st, 2020. Additionally, they’re matching any spending thereafter with a one-to-one credit up to $2,000.
If your business has utilized social media advertisements in the past, it is worth it to take advantage of the incentive and see if TikTok ads yield a higher return.
TikTok influencer platforms
While many traditional influencer platforms have begun expanding to include TikTok in their reach, there have also been new platforms popping up that cater specifically to the TikTok crowd. For instance, QuikTok is a platform that promotes brands and music alike. Creators set their own rates for campaigns. PlaylistPush is another option that caters to music specifically and pays for use of new songs in creator videos.
It is unclear whether these platforms are sanctioned by TikTok as TikTok may deem that inorganic music growth violates their terms and conditions and want to discourage brands from doing business outside of their designated marketplace.
Looking to sell items you’ve showcased on your feed or even items on the feeds of others? A platform called Vop offers “TokShop,” a shoppable TikTok feed for customers of an e-commerce store. It currently only integrates with Shopify but there are plans to expand to other sites in the near future. There are also rumors of an in-app swipe feature that will allow users to shop their feed without ever leaving the platform. This is still in a beta testing stage.
Make no mistake about it, there is money to be made on TikTok, and no time like the present to get started.