How to make money on TikTok, explained by a guy who does it

How to make money on TikTok, explained by a guy who does it

How to make money on TikTok

TikTok has grown rapidly in recent years. It has approximately 17 million monthly active users in the UK, rising from around six million in 2020. Meanwhile, the TikTok app is on course to reach 1.5 billion global users in 2022.

So, how can users make money from TikTok and its fast growing audience?

There are three main ways to make money from TikTok:

  • earning money directly from TikTok through its Creator Fund

  • partnering with brands to post sponsored content

  • selling your own merchandise via the platform

To get in a position where you can start making money, you’ll need to follow these key steps:

  • build your following – you can start attracting the attention of brands with around 50,000 followers

  • identify a niche – if you have a smaller number of followers, developing a niche such as history or fishing can help you to get noticed

  • post regularly – make sure you’re consistent and don’t lose momentum by taking long breaks between posts

  • jump on trends – TikTok is known for its viral dances and music videos – can you incorporate the latest trend into your content?

  • engage with your followers – the more interaction you have with your followers, the better your sponsored posts will perform

#1. In-app purchases

TikTok Coins is an in-app virtual currency that is bought with real money.

Coins can be used to buy virtual items, known to TikTok users as “gifts” and “diamonds,” which can then be sent to content creators on TikTok’s platform, TikTok Live Stream Program, as tips in appreciation for their content.

As of January 2021, the cost of coins in US$ are: (coins are sold in bundles)

  • 65 coins: $0.99
  • 330 coins: $4.99
  • 1321 coins: $19.99
  • 3303 coins: $49.99
  • 6607 coins: $99.99

Their revenue from in-app purchases has skyrocketed over the past few years. Going from $1.5 million of in-app purchases in May 2018 to $7.4 million in April 2019, then increased tenfold to $78 million by May 2020, as reported by Sensor Tower and Bloomberg. (month-over-month in-app purchase revenue growth can be found in the chart below)

Note: TikTok has seen a 4,233% revenue growth in in-app purchases between June 2018 and May 2020.


Lets Get To How TikTok Makes Money

Watching TikTok videos gives us entertainment, but how does TikTok benefit from it?

Trends in TikTok can be viral overnight, and that is why TikTok has hooked many marketers and entrepreneurs in the app. It does not require you to have thousands and millions of followers. The zooming number of views draws companies to the platform. The reason why businesses are jumping into the popularity opportunity that TikTok has now.

Here are ways TikTok earns money:

Wrapping Up How Does TikTok Make Money

TikTok is an app that indeed serves its purpose of entertaining people. The app may have started solely for China’s market, but it reached this level of popularity globally and can now help its users earn from the app, and TikTok makes money from it. A win-win situation, if you may. The platform is not only a social media app, but it has also become a venue for businesses to establish themselves in the digital age. So while TikTok is in its prime, think about how you will take this opportunity to put your company out to the TikTok community.

If you’re also interested in finding more ways to make money, here are ideas on how you can make an extra $1000 a month with a new side hustle.

#3. TikTok Ads

In June of 2020, TikTik released a new advertising feature called TikTok for Business, allowing brands to advertise on the platform using in-feed ads, brand takeovers, and branded hashtag challenges.

There are already some big brands advertising on TikTok’s ad platform including brands like Calvin Klein, Guess, the NBA, Chipotle, and The Washington Post.

Though pricing is not displayed on the TikTok website, it’s reported that:

  • Pricing starts at $10 per CPM (cost per 1000 views)
  • Requires a minimum of $500 per campaign
Source: TikTok
Source: TikTok

Bonus: How to increase your TikTok views and boost your profile

To really make money on TikTok, you need to significantly increase the number of video views you get on the platform. More views will translate into more followers and a higher engagement rate.

Along with the compulsory factor which is creating great content, here are other ways you can increase your TikTok views.

Add hashtags to your videos

Adding hashtags to your TikTok videos can help increase the visibility of your video. If you click on the Discover search tab, you will see a list of trending videos by hashtag.

For example, if you are creating a video for a viral challenge, you need to add the hashtag of the challenge to your video. When a TikTok user clicks on the hashtag link, your content would be one of the videos that show up. This will help increase the number of views you can get.

Tip: While it's great to add hashtags to your videos, avoid the generic ones. Look for specific hashtags in your niche so that your videos can easily stand out.

Collaborate with other users

You can reach out to other users to collaborate on videos. By collaborating with other users, you increase your audience reach. If you partner with an influencer who has a huge following, you can significantly increase the number of views your videos get

Post regularly

To increase the number of views your videos get and also your chances of getting to the ‘For You’ page, you should post videos regularly on the platform. A ton of videos are posted on the platform per minute. To avoid getting lost in a sea of content, you need to post videos regularly.

Use TikTok effects in your videos

Use TikTok effects to help your videos stand out from the crowd. Under the Effects tab, you will find a wide range of effects that you can add to your videos. The effects are split into Trending, New, Interactive, Animal, Beauty, Funny, Editing, and World categories.

Another effect I personally like is the green screen effect. This effect allows you to change the background of your videos. Use this effect to make your videos more entertaining.

Use TikTok Ads

Brands that want to use TikTok to reach their target customers should consider using TikTok ads to amplify their reach. TikTok offers different advertising types that you can check out. To help you get started, we have written this in-depth guide to TikTok Ads.

How Does Tiktok Operate?

After installing the app, a user can instantly begin exploring videos. However, to upload your own video, one must first create an account by registering with the email address, phone number, or a third-party platform such as Facebook, Instagram, or Twitter.

After setting up the profile, a user can navigate

After setting up the profile, a user can navigate through various sections of the app, which are:

  • Home: It displays two feeds that a user can switch between: Following and For you.
  • Discover: It shows a user’s videos that have been tagged with a trending hashtag.
  • Create video: This opens up the record screen, where a user can record a video.
  • Inbox: It displays all activity on a user’s videos in one place.
  • Profile: This is visible to both the user and other users.

Here’s a rundown of the key activities that TikTok provides to its customers:

Explore Videos

The TikTok experience revolves around videos. Thus, a user can watch an infinite number of videos ranging from comedy, gaming, DIY, food, sports, memes, pets, and so on.

For You section

The TikTok’s “For You” page, which functions as a homepage, is the first thing users see. Here, users can see a stream of videos tailored to their preferences, making it simple to discover new content and creators. This feed is driven by an AI recommendation system that curates a personalised feed for each user.

Next to this page is the “following” page to see videos from people a user follows. Also, a series of icons can be found on the right side of every TikTok video. The first takes the user to the creator’s profile who originally uploaded it. Then, there’s a heart, which works similarly to Instagram’s hearts or likes, followed by the comments. Next in the column is a right-pointing arrow for sharing individual TikTok to other platforms. Also, under the share option of someone’s video, users can select “React,” wherein they may film their reaction while the video is playing and place their overlay video next to the original video. The last icon is the spinning record representing the song excerpt the user is playing in their TikTok.

DiscoverSection (the magnifying glass icon next to the home button)

This section allows users to search and explore the various content available in the TikTok community. This includes popular videos, sound, effects, hashtags, creators, and sponsored content.

Create Videos

Creators are the heart and soul of the platform. Thus, they are provided with an array of tools to customise their videos when they start recording using the plus sign at the bottom of the screen. On the screen, there are several icons such as:

  • Speed: helps to capture the video in slow motion or at fast speed.
  • Beauty: an AR filter that helps to smooth out their complexion and cover flaws.
  • Filters: this three-circled icon at the bottom of the screen allows users to change the camera’s colour filter.
  • Timer: helps to establish an auto-record countdown.
  • Sounds: available at the centre of the screen, this icon opens up the musical overlay or sound effect a user wants to use.

Additionally, creators can also engage in –

  • Duets: This feature allows users to record a video alongside another video. It can range from genuine collabs, remixes, spoofs and so on. Usually, users use this feature to promote tracks and communicate with fans. Challenges: Also known as TikTok Trends, it’s basi
  • Challenges: Also known as TikTok Trends, it’s basically creating a video using a famous song or hashtag. Trending tunes and hashtags like #eyelipsface, #dontjudgemechallenge, #bottlecapchallenge , #ButHaveYouSeen and #fliptheswitch encourages users to try out new dancing techniques or come up with their own spin on a topic and thus increase their views or followers.Follow other users: In order to keep up with a won
  • Follow other users: In order to keep up with a wonderful creator, a user can “follow them” by clicking the icon with their profile image and a plus sign above the heart button on their video. One can also scan their TikCode to locate them, and Tikcode is beneficial for companies or individuals who wish to advertise their TikTok channel on other websites or in person. Every user has their tikcodes located on the profile page in the upper right with four squares.

9. What is the Valuation of TikTok?

According to Bloomberg, TikTok is now worth $250 billion, making it the world’s most valuable privately held company.

According to previous reports from Insider, the company owns several social networking apps that operate in China. In 2019, the company launched FlipChat, a WeChat competitor, and Duoshan, a video messaging app.

Sell your own merchandise

You can make money selling your own merchandise on TikTok. The best part is that you don't need thousands of followers before you can sell your own products or services.

Similar to other social media platforms, you can use TikTok to promote your business or store. The secret is creating engaging content that will attract the attention of your target customers. So even with 100 followers, you can start making sales via the platform.

For example, you may have a business selling beauty products. You can create creative 15-second makeup tutorial videos and post on TikTok. In the last 3 seconds of the video, you can add a promotional frame advertising your own products and how customers can reach you.

By putting up interesting and creative videos, you would attract attention to your TikTok profile and also generate leads for your business.

How Much Money Can You Earn on TikTok

The amount of money you can earn on TikTok varies, but just like any social media platform, if your content goes viral it could be lucrative. There aren’t any third party sources yet that have objectively quantified how much money TikTok creators are making. 

Even popular creators, like Ryan Shakes, who’s been wildly successful, don’t release their earnings. Instead, we can estimate how much money you can make on TikTok by piecing together anecdotal evidence.

Start your Tiktok business bank account

For example, London-based economist Tom Hartmann estimated in a Medium article that TikTok creators with 100,000 followers earn about $500 to $2,000 for sponsored videos. Doing the math, that could mean that top TikTok creators make somewhere between $50,000 and $150,000 for sponsored posts. 

Another way to estimate earnings is by reviewing figures released by marketing agencies. TalentX Entertainment, an influencer agency, estimates they charge brands between $0.01 to $0.02 per video view on TikTok. 

Then there’s TikTok’s creator’s fund — which they hope will encourage creators to make content full-time through the platform. It hasn’t released any information on what a full-time income might look like, but the idea is that it’d be substantial enough that creators don’t have to work other jobs. 

4. What is the Pricing Model of TikTok Ads?

TikTok provides an amazing platform for brands to promote their products and services. Through in-feed video ads, both small and large brands are promoting their products or services on TikTok.

These videos appear between the user-generated content. Additionally, TikTok offers brand takeover ads to its users. These advertisements enable users to promote their brand whenever they access TikTok.

While it may be costly to advertise on Tiktok to increase engagement on the platform, there are significantly less expensive third-party options that offer and deliver TikTok Likes.

TikTok offers a variety of pricing models for advertising on its platform. Here is the list of pricing models:

  • Cost Per View: Cost Per Mile is another term for Cost Per View. Advertisers pay TikTok for 1000 impressions of their advertisement.
  • Cost Per Click: TikTok charges the businesses or advertisers on TikTok each time a user clicks on their advertisement. Users are not required to purchase the newsletter or subscribe to it in CPC. The charge is based on the number of clicks.
  • Cost Per Action: It is a critical pricing model for businesses. TikTok charges advertisers or businesses when a specific action is taken as a result of the advertisement. The action could be installing an app, making a purchase, submitting a form, or subscribing to a newsletter, for example.

How much money does tiktok pay for 1 million views?

You’ve probably wondered how much does tiktok pay you for 1 million views. A million views is equivalent to $40 in YouTube cash. But, before you get too excited, you should know that the platform only pays creators a few cents for every 1000 views, so you won’t really be able to live off this amount. Fortunately, there are ways to earn more.

here, you’ll know how much does tiktok pay for 1 million views.  The site will give you around $50 per million views. Moreover, you can also get paid for live performances. now you know how much money does tiktok pay for 1 million views.

There are two ways to earn from TikTok. One way is to sign up for the Creator’s Fund. This is an opportunity that pays creators for every thousand views they get. This fund provides a steady income, so an influential video creator with millions of followers could earn anywhere from $20,000 to $300,000 annually. However, the amount of money you can earn from TikTok depends on your level of popularity and your skill.


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