TikTok, owned by the Chinese tech giant ByteDance turned as among the most successful native micro-video platforms, and it became the go-to platform for millions of young users. Thus, the “TikToker” has already become the evolution of the “influencer” from platforms like Instagram. Those TikTokers make money in a few ways, such as monetary gifts, sponsorships, advertising agreements, affiliations, and more.
We may as well start with one of the most obvious ways to make money: influencer marketing.
Here, companies hire TikTokers with large followings to promote their products, services, or general brand. Promotional activities may involve unboxing videos, trying on clothes, or simply speaking directly about the benefits of a product.
TikTok is the Chinese creative social media platform primarily driven by short-form video content. It launches challenges of various types to tap into the creativity of its users and generate engaging (if not addicting content) accessible via an infinite feed. TikTok primarily makes money through advertising, thus making it an attention-based businessmodel.
Online influencer marketing is a relatively new creation, but it has fundamentally changed how brands communicate with consumers. People with targeted audiences are now the focus of advertising efforts. Influencers can tap from small to larger audiences thus, giving companies another way to promote their products. Indeed, influencers make money by selling digital products via sponsorships and affiliations, brand ambassadors programs, and physical products.
One example of influencer marketing at work is Loren Gray, who with over 52 million followers landed a deal with cosmetic company Revlon. Gray posts on the company’s TikTok account and also creates Revlon-sponsored posts for her own account.
Monetary gifts
TikTokers also make money by receiving monetary gifts from their fans. First, the fan must purchase TikTok coins and then exchange them for a variety of unique, virtual gifts.
Gifts are then sent to the TikToker and converted into virtual diamonds on their profile. Diamonds are used to measure the popularity or influence of a user on the TikTok platform.
They cannot be bought or sold, but TikTokers can exchange them for cash once a certain amount of diamonds have been accrued.
Cross-posting
To earn extra money for the same content and reach a wider audience, many TikTokers choose to repurpose their videos on similar platforms such as YouTube. Alternatively, they may share their content on a personal blog.
If nothing else, this form of self-promotion leads to increased exposure and more followers.
Flipping accounts
Believe it or not, many Tiktokers make money by growing accounts to a certain size and then selling them for a profit. This practice has been going on for years in the website industry but is relatively new to TikTok.
Many TikTokers choose a specific niche and then create engaging content that goes viral. Once this has been accomplished, they reach out to brands and attempt to sell the account which has a list of targeted followers.
Advertising
TikTok also offers an advertisement service where brands or businesses can sell their products to a wider audience.
This form of paid traffic is much the same as Facebook and Instagram ads.
Management services
Some TikTokers make money by selling account management services to other users. By its very nature, the TikTok platform turns ordinary people into overnight sensations with millions of followers.
Often, these TikTokers become overwhelmed and need advice on content strategy and creative strategy. Many also need schooling on how to best manage and negotiate the deals or offers that come their way.
Key takeaways
TikTok is a platform for the younger generation, with 41% of active users being in the 16-24 age bracket. What’s more, 86% of young people want to make money through social media influencing.
TikTokers make money through influencer marketing in much the same way as other platforms. They can also accept donations in the form of virtual gifts which can later be exchanged for cash.
Some TikTokers make money by creating accounts with targeted followings and then selling them to brands. Account management services are also popular as many users become famous on the platform overnight.
Alternatives platforms to TikTok where to build your audience
YouTube is the most popular online video platform, a hybrid between a video search engine and a social media platform with a continuous feed prompted by social interactions and engagement. In fact, the platform is so popular that YouTube.com is the second most visited website on the internet. After being acquired by Google in 2006 for $1.65 billion, the platform now boasts over 2 billion registered users. Collectively, these users upload 500 hours of video every minute. The platform competes with other video engines like Vimeo, Dailymotion, and social platforms like IGTV, TikTok, and Twitch.
Blogging is a prevalent and well-established practice, with popular blogging platform WordPress powering many websites on the internet. While a few successful bloggers really make money, those who do usually monetize through affiliate marketing, Google AdSense (or other advertising platforms), sponsorships, memberships, or selling their own digital and physical products.
TikTok, owned by the Chinese tech giant ByteDance turned as among the most successful native micro-video platforms, and it became the go-to platform for millions of young users. Thus, the “TikToker” has already become the evolution of the “influencer” from platforms like Instagram. Those TikTokers make money in a few ways, such as monetary gifts, sponsorships, advertising agreements, affiliations, and more.
Online influencer marketing is a relatively new creation, but it has fundamentally changed how brands communicate with consumers. People with targeted audiences are now the focus of advertising efforts. Influencers can tap from small to larger audiences thus, giving companies another way to promote their products. Indeed, influencers make money by selling digital products via sponsorships and affiliations, brand ambassadors programs, and physical products.
Podcasts make money in several ways. The primary sources of revenues from podcasting come from affiliate marketing, advertisements (in the form of pre-roll, mid-roll, post-roll), sponsorships, selling your own products, or by using podcasting to sell consulting services. Podcasting is an effective marketing and distributionchannel, and it can be integrated within a businessmodel.
Influencer marketing involves the marketing of products or services that leverages the popularity, expertise, or reputation of an individual. Influencer marketing is often associated with those who have large social media followings, but popularity should not be confused with influence. Influence has the power to change consumer perceptions or get their audience to do something different.
Instagram makes money via visual advertising. As part of Facebook products, the company generates revenues for Facebook Inc. overall businessmodel. Acquired by Facebook for a billion dollar in 2012, today Instagram is integrated into the overall Facebook business strategy. In 2018, Instagram founders, Kevin Systrom and Mike Krieger, left the company, as Facebook pushed toward tighter integration of the two platforms.
TikTok makes money through advertising. It is estimated that ByteDance, its owner, made over $17 billion in revenues, for 2019. While we don’t know the exact figure for TikTok ads revenues, given it counted over 800 million users by 2020, it is a multi-billion company, worth anywhere between $50-100 billion and among the most valuable social media platforms of the latest years.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
