6 Ways to Make Money on TikTok in 2023
Make Money on TikTok – TikTok has enormous earning possibilities for many creators and small businesses. In this article, we’ll go over six different ways to generate money on TikTok and discuss which one is best for you.
TikTok has people’s awareness, with over one billion animated monthly users. Every day, people with active TikTok accounts buy things they see on TikTok. As a result, TikTok is a rising source of income for many individuals and small businesses.
So, how exactly do you make money on TikTok?
TikTok has six basic ways to make money:
- Participate in the TikTok Creator Fund.
- Produce Sponsored Content Produce User-Generated Content
- Engage in Affiliate Marketing
- Sell Your Items
- Use TikTok Ads
Before you start promoting items and services in all of your TikTok videos, there are a few things you should consider. In this article, we’ll go through each of the ways mentioned above for making money on TikTok and putting you up for long-term success on the platform.
Let’s get started.
1. Contribute to the TikTok Creator Fund
What exactly is the TikTok Creator Fund?
The TikTok Creator Fund is a program that rewards content producers, influencers, and companies for producing outstanding TikTok videos. So, if your material is getting a lot of views and engagement, you’re on the right track.
Individual creators who are just starting with their brand have an advantage here. This can be more difficult for small enterprises. It’s tempting to promote your company overtly in all of your videos. However, keep in mind that most people dislike being sold to, which may impede your success on social media. To attract attention and earn money on TikTok, you must first create entertaining content.
How to Experience in the TikTok Creator Fund
The TikTok Creator Fund has many eligibility conditions for participation:
You must also:
- Have a total of 10,000 genuine TikTok followers.
- Over the last 30 days, I’ve received 100,000 genuine video views.
- You must be at smallish 18 years senior and a legal citizen of the United States, theGermany, United Kingdom, France, Italy, or Spain.
- Adhere to TikTok’s Community Guidelines.
- Have a current account in good standing
- We encourage reading and complying with all of the Creator Fund
- Terms to fully understand what is involved.
What is the TikTok Creator Fund’s salary?
Let’s discuss about how much TikTok pays now that you know how to join the Creator Fund.
While membership in the TikTok Creator Fund can assist you in making money on this social media network, it is not as lucrative as earning money on YouTube. Hank Green summarizes several of the issues with making money on TikTok in this video:
TikTok pays between $0.02 and $0.04 for every 1,000 views, according to actual creators in the TikTok Creator Fund. And having a larger account on TikTok does not appear to affect that rate.
So, if your video receives 100,000 views, you’ve just made $2.00-$4.00. If your video receives 1,000,000 views, you will earn between $20 and $40.
It takes a lot of effort to develop material that receives that many views consistently, and the return on investment from the Creator Fund is not significant. So, let’s have a look at some alternative ways to generate money on TikTok.
2. Develop Sponsored Content
Sponsored content is simply an ad that you post on your own TikTok account to promote a business or company. This type of content is frequently created by influencers for major brands. One of the easiest ways to generate money on TikTok is through sponsorships.
Influencer marketing relies on creators with large followings. It is critical to create intriguing and valuable material that gets people chatting in the comments and reposting your TikToks. You may expand on that engagement by reacting to comments on your videos and participating in the conversation.
This will not only enhance your engagement (which will affect the reach of your videos through the FYP), but it will also help you create a relationship with your followers. Because your audience trusts you, they are more inclined to buy the products and services you promote. This makes your TikTok account more appealing to marketers looking for influencers to provide sponsored content for them.
If you have a brand TikTok account, you can collaborate with influencers to generate sponsored content or discover creative methods to include your product in your account. To identify creators to work with, you can use platforms like Upfluence or Klear, or you can collaborate with an Influencer Marketing agency.
When posting sponsored content, keep the following points in mind:
1) Make the partnership public. This is not only a favor to your viewers to inform them that they are watching sponsored material; it is also legally mandated. To avoid getting into hot water, make sure you dot your i’s and cross your t’s.
Jaz Turner, a TikTok creator, made this video in collaboration with NYC Go, the official NYC travel guide publication:
To be on the right side of the FTC, all you need is a simple TikTok hashtag. In the preceding example, Jaz Turner declared her collaboration by using the hashtag #ad in her caption and marking the video as a paid partnership with TikTok creator tools.
2) Maintain your focus. As tempting as it may be to accept every brand offer that arrives in your inbox, keep in mind who your audience is and what they want from you.
Here’s an example by Hannah Pickerill, a TikTok watercolor artist. For this painting tutorial, she’s collaborated with an art supplies company, which makes sense given her content:
3) Maintain your authenticity. Because your audience trusts you and your endorsements, use caution when promoting things. Many influencers will not sign with a brand unless they use and appreciate their product. Aside from moral considerations, speaking a white lie for a salary may have an impact on your future capacity to obtain money from sponsorships if your viewers no longer trust you.
This mascara try-on video by Mikayla Nogueira is an example of a sponsored post that got an influencer in hot water:
Whether she wore fake lashes, as many viewers alleged, or not, this video made many of her fans question her recommendations.
3. Develop User-Generated Content
User-generated content (UGC) is content created by customers rather than brands. Previously, marketing teams would gather UGC organically by locating current users of a product or service who were already sharing information about it online.
Here’s an example of natural UGC:
Ethan, the developer of TikTok, explains why Doritos are so addictive, although it’s evident that Doritos did not contact him to generate this video. People instinctively make material about Doritos on social media because the brand has such a strong brand presence. Doritos might reach out to Ethan and ask for permission to publish this video on their platforms, which is how most UGC interactions used to work.
However, a whole microcosm of influencing has sprung up around the concept, with producers selling their services to businesses to create on-demand user-created content. If you’re a creator, this is an excellent method to monetize your TikTok material without requiring a large audience.
And, if you’re a brand, it’s an excellent method to capitalize on the marketing benefits of social proof. The concept of social proof is based on the assumption that people are more likely to trust other people, even strangers than they are to trust a brand.
If you’re unsure where to begin, simply search “UGC” on TikTok. Numerous creators on the app will teach you how to develop a portfolio, how to land your first brand agreement, and how to film, edit, and sell UGC.
While you don’t need a lot of followers to get started, UGC creators have built a robust community in which they share their skills.
4. Begin Affiliate Marketing.
TikTok also allows you to earn money through affiliate marketing. Affiliate marketing is when you earn a commission on a product sale. Brands may frequently pay affiliates a commission ranging from 5% to 50% for advertising their product or service. When you sell a tangible product, the fee is usually lower because the margins are often lower. The commission rate can be substantially larger if you promote a digital product or service.
You’ll need a TikTok account and to apply to several affiliate programs to become an affiliate. Amazon’s affiliate program is a popular way to earn money via affiliate marketing. Amazon’s affiliate program is one of the most generous in the industry. They provide commissions of up to 10% depending on the product sold.
Most artists increase affiliate sales by posting “Amazon hauls” or “Best Amazon finds” videos, such as this one by Chandler Isaac:
She includes a link in her TikTok bio where people can buy all of the things seen in the video, which is how she makes a commission.
The ideal approach to earning money with affiliate marketing is to focus your TikTok account on a specific topic. People are more likely to follow and engage with you if you specialize in TikTok content for a specific sector. As a result, when you market a product or service in the same industry for which you provide content, you are more likely to convert the audience because it is a relevant offer to them.
5. Market Your Products
This is an obvious revenue stream for TikTok businesses, but it’s also a terrific opportunity to generate money as an individual producer on the network. Consider both scenarios.
Selling Products as a Brand on TikTok
Small businesses constantly market their products and services on social media. You should do the same with your TikTok account. However, that should not be the main of your content. Remember to put value first. Answer questions, be engaging, create favorable brand sentiment, and demonstrate the advantages of your product.
Otherland, a small batch candle business, excels at this. Their TikTok account is chock-full of useful videos, such as this one on getting your candles to burn to the edge:
They provide instructions on how to trim a candle wick, wipe up spilled wax, and even recycle your candle jars once you’ve finished the candle. Being a resource like this for potential consumers before asking them to buy anything is essential for gaining their trust.
Simultaneously, you don’t want to rely just on brand awareness and recall. Instead, make sure there’s a clear path to the product so that visitors can purchase it if they want to. Adding a link to your TikTok bio is the most natural approach to drive users to the product. You can either link to your site directly or create a Linktree or similar landing page to guide traffic to popular product pages.
Many of these link aggregators include analytics, allowing you to track your progress over time.
It’s all about lowering the barrier between seeing, wanting, and purchasing.
Selling Products as a TikTok Creator
This may be a less obvious avenue for TikTok creators who do not have their brand, but producing your products can be a terrific way to generate money on TikTok.
You might form alliances with retail brands like Printful or Printify. You’ll need to hire a designer or create your designs to upload to the platform, which will print your designs on garments and other accessories as needed.
Don Marshall, or “that obscure LotR Facts Guy,” is a TikTok creator who uses the app to convey his knowledge of all things J.R.R. Tolkien. He runs a retail store in addition to offering entertaining Lord of the Rings knowledge and discussing problems important to the fanbase.
Members of the community he’s created may purchase Middle Earth-themed shirts and prints for $25 to $30. Merch could be a terrific method to monetize on TikTok if you’re creating a personal brand.
But what if you’re trying to market your knowledge?
TikTok is an excellent forum for exchanging information and ideas to assist people in purchasing their first home, making money online, or transforming their apartment into a house plant jungle. You may build course content, web apps, complicated Excel spreadsheets, coaching services, ebooks, software, or any other digital product or service depending on your niche.
The most profitable commodity you could sell to your TikTok followers is a duplicate of what they currently follow you for. Offer paid coaching consultations if people follow you for fitness guidance and motivation. Sell personalized itineraries if people follow you for travel advice. If people are following you because of your cooking videos, recommend that they subscribe to your premium Substack for exclusive, weekly recipes.
Consider the case of Elizabeth Minchilli. She is an Italian food blogger who organizes food trips throughout Italy. Her TikTok page is filled with “what I eat in a day in Rome” videos. When you click the link in her bio, you’ll be directed to her blog and encouraged to sign up for her Substack newsletter (paid subscription optional), where she discusses Italian food, provides recipes, and promotes forthcoming travels.
Allow yourself to be open to new possibilities. Pay close attention to your fans and provide them with exactly what they requested.
6. Display TikTok advertisements
TikTok advertising in the TikTok Creator Marketplace can also help you generate money. Of course, you’ll have to spend money to make money using this strategy. Creating TikTok advertising, on the other hand, can help you broaden your reach and drive more purchases if you’ve created an outstanding product or have an on-demand service.
For video commercials to be effective, they must be interesting (and not feel like an ad). Getting someone to sign up for your course, download your software, or employ you to solve their problem should happen in the first few seconds of the video.
The key to successful advertising and sales is to answer the question, “What’s in it for me?” That is, highlighting advantages and resolutions to complex problems. An ad will be more effective if people receive a suitable offer and comprehend the major value of it. Don’t make them think too hard. Get to the point swiftly and simply.
To make money on TikTok, you don’t need a million followers. Your monetization strategy might be as easy as collaborating with brands to sell user-generated content or including a link in your bio to sell your products or services. Your TikTok financial success will be determined by how engaging your content is and how much value you deliver to your clients.
Speaking of engaging material, Kapwing enables teams to make engaging videos more quickly. Kapwing is a professional video-editing application that leverages AI and templates to simplify the production of editing your TikTok films.
Frequently Asked Questions
1. How many followers do you need on TikTok to get money?
To be eligible for the TikTok Creator Fund, you must have at least 10,000 followers. However, there are other ways to make money on TikTok, such as sponsored content. Many brands work with micro-influencers, which are TikTok users who have modest followings yet strong interaction rates. When your account is small, emphasizing connection-building is critical to long-term financial success on TikTok. When your account is modest, you can approach other small brands or businesses about working together to make money on TikTok with less than 10,000 followers.
2. How can I earn money on TikTok Live?
You may use TikTok live streaming to engage your fans in real time and develop a better connection with them. TikTok Live is a fantastic way to earn money by receiving virtual presents that can be turned into TikTok diamonds and subsequently into money. Furthermore, you can promote things you offer on TikTok Live, increasing sales through the more direct, human element of live streams.
3. How many TikTok views do you need to get money?
To earn money from the TikTok Creator Fund, you must have at least 100,000 views in 30 days. You can make money with fewer views outside of this fund. You must provide the appropriate offer to the appropriate audience. Building an audience around a niche will make it easy to deliver the proper offer to them because the comments will contain the same types of demands. Having a particular emphasis can make collaborations with other businesses and people more productive, allowing them to continue collaborating with you.
4. What does TikTok pay?
TikTok pays between $0.02 and $0.04 for every 1,000 views through the TikTok Creator Fund. You can increase your earnings by complementing your TikTok earnings with sponsored content for brands, selling user-generated content (UGC), affiliate marketing, and selling your products and services.