New to Monetizing TikTok? Here’s Everything You Need to Know
How do you make money with TikTok? Do you think it is possible?
If you’re an avid TikTok user or an occasional observer of the phenomenon, that’s TikTok. In either case you’ve probably thought about these questions.
To answer this question, Forbes magazine recently published an article about the highest-earning creators and TikTok influencers. The result shouldn’t shock you:
- Addison Rae Easterling, $5 million (84.3M TikTok followers)
- Charli D’Amelio, $4 million, (124.3M TikTok followers)
- Dixie D’Amelio, $2.9 million, (55M TikTok followers)
- Loren Gray, $2.6 million, (54M TikTok followers)
- Josh Richards, $1.5 million, (25.5M TikTok followers)
The most prominent TikTok creators are earning several million dollars. Not just that, its popularity TikTok itself has increased dramatically over the last few years. It is possible that you remember the rising popularity in popularity of the Sea Shanty challenges to lip-sync, or that “Tell me without telling me” challenge.
The hottest TikTok trends such as those have made the platform an original video creation tool that is beginning to outdo its rivals. In the end, an study from App Annie found that Americans have much more time using TikTok every month than Facebook as well as Instagram. The company also predicted that the app will have over one billion monthly users by 2021.
All indications point to the fact that the platform will be around for the long haul However, the question is how exactly are people making money off TikTok?
How to Make Money on TikTok: The Basics?
The first thing to note is that the typical TikTok creator doesn’t get direct payment for the creation or posting TikTok videos.
However, TikTok does offer funding through its Creator fund. However, in order to be eligible your TikTok profile must have at least 10,000 fans and 100,000 views within over the past 30 days. In addition the fact that these payments also consider the amount of views as well as your viewers’ engagement rate.
If you’re in the fortunate position of being in the TikTok Creator Fund and have the opportunity to earn it, the majority of TikTok creators don’t rely solely on this. Most of the time, TikTok’s top-paid users earn money through various streams of income (more on this in a minute).
Before getting down to the ins and outs of how you can earn money from TikTok There are a few essential things you need to know. Below, we’ve shared some tips that will provide the basis to the success of your TikTok strategy for monetizing:
Audience
Did you know that in 2021 TikTok is now home to more than 689 million active monthly users globally, surpassing rivals such as Snapchat, Twitter, and Pinterest?
TikTok is said to be the ‘platform’ for millennials and Gen Z’s as it has 62 percent of TikTok users in the US aged between the ages of 10 to 29. Gen Z, in particular is the subject of the media’s interest and for good reason. They currently account for 40% of all consumers in the world.
However, what’s more exciting for us as new entrepreneurs, is the fact that studies have revealed that the current generation is spending more time online than ever before. Therefore, it’s not surprising that TikTok’s popularity has exploded in this age group, with reports of it keeping over 100 million users on its platform in lockdown situations.
What’s TikTok’s Draw Over Other Social Networks?
According to HTG according to HTG, one of the main reasons behind TikTok’s popularity is the unique algorithm. TikTok utilizes AI in conjunction with machine learning to offer users information they would like to see , based on interactions with users and larger trends. In addition, TikTok has successfully created the feeling of community among users as well as content creators.
If you are aware of the distinctive characteristics TikTok provides and the main audience it attracts will help you position yourself in the process of making content that is TikTok-friendly. Of of course this is an essential aspect of earning money from TikTok but how can we identify our target audience?
TikTok is a platform that recommends spending the time to know your niche as creator. If you’re just beginning take a look at whether there are any creators already making similar content as you.
Then, decide on what type of subject matter you’ll create content for. In the beginning it’s best to play around with different types of content to determine the type of content that your viewers are attracted to. Once you begin getting attention for some of your videos, you’ll be able to look into the videos that are performing most effectively and then expand that particular area.
When you’re confident in your area of expertise, it’s time to start working on developing an environment for community. You could think of it as a curator-curated gallery. It’s a display and the pieces are a part of that. However, it’s not just the matter of showing on and going home. You must also interact with your audience. While responding to questions is one thing, but the goal should be to establish lasting relationships with your viewers to ensure that they return to return.
Live streaming is a method of responding to viewers’ questions and comments. It is also possible to give shout-outs to your most loyal followers and then react immediately to trends that are emerging. In addition, live streams can be a great way to gain insight into your followers using Tiktok’s built-in analytics tools. As an example, let’s say you have an active TikTok Pro account. If so you will be able to retrieve information regarding your viewers’ gender, their location and other activities. Then, you can use this information to tailor you content more attractive to your particular target audience.
In the end, staying in your area of expertise is essential be aware that TikTok is all about the latest trends. Whatever your field is, you must be able to adapt to the latest trends, while maintaining your own uniqueness. So, your content will be more likely to get seen by a larger audience , and possibly attract more followers.
How to Make Money on TikTok: The Creator Economy
You’ve got a good idea of TikTok’s primary target audience and the attraction of the platform itself but what is the industry keeping it all in place?
Cue The creation economy
“Creative economy” can be used to describe the system that allows creators to monetize their creativity and interests. It was the case that in past times, if someone came up with an idea that was a whole service, business or a simple product, they would typically have to use a variety of third-party companies to get their message out to customers. Nowadays, this isn’t the situation. In fact, it is possible to get your ideas before your intended audience in just a few clicks.
A study of over fifty social media platforms in the past 10 years, the creator’s earnings reached more than $10 billion. Additionally the number of creators who are on these platforms grew by an astounding 48% year-on-year.
The moral? Content creation has become its own economic system.
Many are leaving their traditional nine-to-five job and completely relying on the internet to earn their own money.
But, being creative isn’t all about earning money – be it through TikTok or elsewhere online. It’s also a means to learn more about the process of creating. It’s about pursuing a desire and finding people who are in the same boat. Therefore the business model must adapt to this market.
There is no longer any need for corporations to promote specific products or services. Instead people are now advertising their authenticity. According to Paul Saffo, a Stanford University forecaster, aptly stated:
“Mass participation” was the norm. Status is a result of creation. Value is generated through engagement.”
What Does This Mean for TikTok Creators?
What exactly is this all about to you as creator of TikTok creator? And how can you leverage the economy of creators to allow you to earn profits?
To begin when you decide to make money through every social network, TikTok included, don’t think of your followers as consumers. Instead, keep in mind that these are people you want to connect with. A focus on engaging with the audience is essential to how you market or monetize your business and how you grow as an artist.
instead of making one-time purchases (typically the result of traditional marketing techniques) you should focus on creating lasting relationships with your target audience.
Remember, your audience’s goal is:
Authenticity
Make use of your genuine interest in your talents, interests, and hobbies to attract a crowd. There’s plenty of room on TikTok. Find your niche, and then share the company of your friends. Research studies have revealed that 60 percent of TikTok users felt a sense that they were part of a community while using the platform. Additionally, they felt enthusiastic as well as confident and engaged. People want to be in a space where they feel safe and feel comfortable expressing their individuality. This is the kind of atmosphere you’ll want to foster by delivering content.
Engagement
Explore new ways to connect with your viewers. Incredibly, 79% of those who are mentioned in a post take time to read comments posted on videos. Naturally responding to comments and queries is a great way to start. But including a personal touch in your communication is an additional benefit to build rapport and create feelings of being connected to your viewers. Perhaps make an in-joke or reply using the person’s name? These are just two of the ways to personalize your responses to make them are more personal.
Value
It’s not enough to just post content that you enjoy. You must give your followers what they want and frequently! As we’ve said before, it’s important to stay at up to date with TikTok trends. Be aware that 88 percent of TikTok users find new content they like through the application. Therefore, consider your content as a chance to add value and draw new followers.
Monetization
With all of that with in your mind, this is the part you’ve been waiting for: the process of monetization.
You may be wondering what the reason we didn’t do this before starting. It’s because it’s essential to be aware of the fundamental rules of the game. We’ve said it before foremost the creation of content isn’t only about earning money, it’s about using your creativity and enthusiasm.
Three methods of monetization that work very well with TikTok:
- Marketing through affiliates
- Marketing with influencers
- Selling your own product
- Subscriber donations/subscriptions
- TikTok advertising
How to Make Money on TikTok: Affiliate Marketing?
The first is affiliate marketing..
In simple terms the term affiliate marketing refers to when you convince people to purchase third-party goods and/or services usually through your ” affiliate links. After that If you are successful in making sales, you’ll earn an income.
According to the entrepreneur and influencer Neil Patel, affiliate marketing is a profitable way to earn passive income. In the sense of passive, you’ll have to establish the foundation and once you’ve accomplished this, you’ll be able to be paid over and over without effort on your part.
The first step to affiliate marketing is joining an affiliate network, or call the brands you like to find out whether there is an affiliate marketing program in place and running. If you choose to go with the latter, the affiliate network acts in the role of an intermediary for both affiliates (in this instance it’s your) and the business you’re marketing. Some of the most popular affiliate networks are Clickbank, Amazon Associates, and the eBay Partner Network (EBN).
In the case of the affiliate market on TikTok you can make use of TikTok to advertise affiliate products or services, i.e., by offering them to your followers and reviewing the product making use of it in your videos, and so on.
How to Make Money on TikTok: Influencer Campaigns?
Influencer marketing is when firms or solopreneurs work with creators in order to promote or endorse their products to their fans.
For this method of marketing to be effective, and have any effect, the person who created it requires a large amount of fans. It is helpful, TikTok has a creator marketplace where both creators and brands are able to collaborate for projects. In the case of creators on the TikTok maker, it could be a fruitful partnership with the payment of sponsored posts, or other sponsorship agreements.
It doesn’t matter if you make a direct advertisement, or review it, or include it in one of your regular posts, regardless be aware that your target viewers must be the first to take notice.
Consider whether your alliances align the image of your company. Also, consider whether the partnership will add value to your customer’s experience. You don’t want your customers to feel as if you’re trying to sell them a bargain and this could harm the relationship you have with them.
How to Make Money on TikTok: Selling Your Own Merch
If you’re having trouble finding an outside party to work with, or to expand the ways you earn money from TikTok you should think about selling your own products. Although some creators even go so far as creating their own product by hand, merchandising could be as easy as using printing-on-demand services such as Printful, Printify, and Lulu Express to create t-shirts with your company’s name on them. The advantage of printing upon demand service is the fact that you don’t need to spend a lot of money on warehouse costs or inventory.
In addition, if you’ve got an artistic streak and are using TikTok to show off your talents viewers might be willing to purchase one of your works. This is the reason resale apps such as Posh mark and Depop as well as marketplaces on the internet like Etsy have turned into profitable outlets for a lot of TikTok creators.
Concerning things you can create by yourself, if you’re making educational TikToks, you have the potential for selling items such as ebooks and online courses. or any other educational items that be appealing to your target audience.
If you’re seeking to develop and launch a full-fledged online course and market it through an online marketplace such as Udemy, Skillshare, and Coursera which allow this.
To promote your course, you can live stream small snippets from the content of your course via TikTok to give your audience an idea of the offerings. This is not only an effective lead generator and a great way to receive feedback from your followers and also get feedback from them – winning!
How to Make Money on TikTok: TikTok Advertising
If you’ve got something that you’re confident that your target audience will appreciate it, think about launching a paid TikTok advertisement. The advertising on Tiktok isn’t just about growing interest in your product. It’s also about increasing your brand’s visibility by reaching out to more people, and establishing relationships based on trust that is mutually built.
Given that it’s not surprising that TikTok has seen an 500% rise in the number of advertisers running campaigns in the US in the last year. Participation in “hashtag challenges” and the various ad formats available have been particularly well-loved by advertisers. In recent times, TikTok has also experimented with different lengths of video to expand its offering and also expand into online shopping. This season, TikTok has partnered up in partnership with Shopify in order to provide live shopping and catalogs of products to the application. In the near future, users will not have to leave their stream to buy in-app purchases!
TikTok offers an manager feature that lets you create paid ads. However, before you can create a campaign, you’ll have to set up your own TikTok account.
After that, you’re now free to create your advertisement, beginning by defining the purpose. Then, the ad manager on TikTok will provide you with ways to optimize your ads. It will also ask you to define the budget you’re working with and also the design, i.e., video photos, video, etc. Then, you’ll be able to narrow down your target desired audience to ensure that your advertisement is seen by your intended audience.
If you’re trying to take advantage of TikTok’s advertising program Here are a few suggestions:
- Instead of running the same ads, TikTok recommends updating your advertisement every 7 days to prevent audience fatigue.
- If you opt for an online video, make sure that the resolution is at least 720p.
- Include an audio track in your video too. You want to grab the attention of viewers.
- Videos that are short tend to be the best The average of four top-performing videos runs Between 21-34 seconds.
- Also, when you watch videos, make sure that they’re on full screen. Additionally vertical videos are likely to be the most effective.
TikTok has reported the fact that 61% of its users believe that the paid-for advertising experience on TikTok is distinct among other popular media and social platforms. It is because advertisements is more authentic and fun on TikTok is more authentic and enjoyable than other channels on social media. Furthermore, people are more likely to purchase from brands that combine advertisements with other content. So, they do not feel as if they’re being targeted by a sales pitch.
How to Make Money on TikTok: Subscriber Donations/Subscriptions
The final method of monetization we’ll look at is your relationship with your customers. You’ve probably heard about the business Patreon. For the uninitiated, this is a subscription service that enables followers/subscribers to tip their favorite creators or subscribe/pay a certain amount to receive bonus content.
TikTok is also home to an option for live gifting which allows followers to express their appreciation live through sending online gifts that can later be used to pay. Tipping sites like Tippee and Kofi that allow you to redirect loyal users who would like to express their gratitude.
If you’re thinking of an idea that requires support. If that’s the case, think about crowd funding firms such as Kickstarter and Go Fund Me.
Utilizing this method of monetization make sure you’re 100% honest with your readers. Don’t be a victim of their generosity. Also, make sure you’re providing the highest quality service for their hard-earned money.
Are You Ready to Start Making Money on TikTok?
In the end, it’s crucial to understand TikTok as an app and what makes it different and the type of users it draws. Once you have this information in your hands, you’ll be better placed to design an appropriate business model.
In the meantime, let’s examine some of the most important conclusions from this article:
If you are using any form of monetization using TikTok it is important be cautious about over-saturating your users with advertisements. TikTok is designed for connecting with your friends personally. This means that you must to develop a mindset which allows you to build real and personal connections where you can discuss your shared interests. This is essential to secure your position in the expanding market for creators.
If you’re a novice Tiktoker or among the many long-running TikTok stars with a large following, having a solid knowledge of the economy of creators will only help you. Making money from your content should be a natural flow across the space you set out for you in the TikTok platform. Once you’ve built an audience of followers and friends, you can start exploring new possibilities and passions.
If you’re still having doubts, you might want to go through the article and discover what all the fuss is about. What’s the likelihood? You might earn some cash along the way. Make sure you read the guidelines for community members before you start to ensure that you’re in compliance with the rules and regulations of the platform. Best of luck and tell us what you think in the comments section below!
