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Despite only launching internationally in 2017, TikTok (along with its Chinese counterpart Douyin) was the seventh most downloaded app of the 2010s. This has great marketing potential for entrepreneurs and marketers.
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If you’re looking to leverage TikTok’s massive user base to build your audience, take a look at the strategies of the social media platform’s top creators and marketers.
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Deciding how to monetize TikTok users will be easier once you have a better understanding of your target audience. There is no single method of monetization, but the top earners usually maintain some complementary income streams. From sponsored content to organic marketing, the opportunities on TikTok are nearly endless.
Creator Fund revenue varies by user and is calculated based on factors such as audience size, user engagement, and frequency of TikTok posts.
The Creator Fund is a great idea if you’ve built a following, but it can be very exclusive and doesn’t always guarantee steady payments.
If you’re just starting out, there are plenty of other ways to monetize your account. Even if you’re part of a Creator Fund, it’s still a good idea to have an additional source of income.
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Selling your own products on TikTok is great for monetizing almost any type of content. Any creator—whether they’re a dancer, singer, or comedian—can create merchandise and sell it to their most loyal fans.
For all kinds of print-on-demand companies, there is a huge selection of items to choose from. You might be selling t-shirts, tote bags, pillowcases, hats, coffee mugs, stickers, notebooks—or any combination of products.
Selling print-on-demand products can even outweigh revenue. Having branded merchandise allows your fans to create a more personal connection to your work, and every fan who wears your merchandise spreads the word about your business.
Clothing brand Unxpectd started as a school project conceived by six high school students. But when the group took to TikTok to promote clothes they had handmade in their parents’ basement, their lives were changed forever.
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Unxpectd’s TikTok account first went viral in December 2020, and in just a few months its follower count skyrocketed. After graduation, the team moved to Los Angeles, where they’re still dyeing and embroidering their products — when they’re not creating fresh TikTok content.
In conjunction with Unxpectd’s TikTok account, it is rarely used to directly promote its products. Instead, Unxpectd invites followers to get to know the brand’s founders on a more personal level, taking them on a brand-building journey.
Live Gifting is one of the most useful features on TikTok for creators looking to monetize their content through live streaming.
Most social networks have a live-streaming feature, but TikTok is unique in that it allows fans to show their gratitude in real time by sending virtual gifts, which can be redeemed for payments.
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Interacting with users in real time is great for building valuable relationships with fans. Viewers who have a strong connection to creators tend to gain a personal stake in their success, which means live streaming can help facilitate other monetization channels as well.
Founded by teenage brothers Eli and Spencer Zied, Habits 365 is a New York-based clothing company whose credo is building positive habits for success—and the brand’s upbeat young founders are the perfect ambassador for that philosophy.
The success of Habits 365 lies in its founders’ willingness to let users get to know them personally. Their frequent use of TikTok’s live-streaming feature, often posting short videos of themselves working on their brands late at night, has helped them become one of the most popular TikTok accounts in the world.
One of the most innovative ways TikTok allows its creators to make money is through its creator marketplace.
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Creator Marketplace helps connect the right brands with the right influencers, facilitating partnerships in a way that’s quick and easy for both parties. TikTok makes it incredibly easy to create valuable sponsored content.
Brands looking to launch an affiliate campaign can browse the marketplace and take a quick look at content produced by creators they can be sure they want to partner with.
Creator marketplaces act as influencer agencies, allowing both parties to show that they are willing to work with each other, alleviating some of the awkwardness of reaching influencers that marketers may experience when doing influencer marketing on other platforms.
Like many great businesses, skincare brand Peace Out was created when its founder had a problem with no solution until he created one.
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After battling skin problems such as acne and hyperpigmentation, Enrico Frezza began to study the skincare development process and build his own skincare brand.
Want to learn more about how Peace Out partnered with TikTok influencers to grow their brand? Check out our interview with founder Enrico Frezza on the Masters podcast.
There are plenty of organic marketing opportunities on TikTok, but if you’re willing to spend a little money to increase the reach of your content, you might consider creating your own feed ads using the TikTok Ads Manager.
TikTok ads appear in users’ For You feeds and autoplay like any other TikTok video. With paid advertising, you can ensure your videos reach the audience who are most interested in your product.
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But what’s the best part? TikTok’s Ads Manager works with . This means you can create TikTok ads, choose your target audience, and track your ad performance —all from within your store. TikTok can really be one of the best online marketing tools you can use.
Luxe Collective is a Liverpool-based luxury fashion outlet offering the latest pre-owned luxury goods at a fraction of the price of other retailers. Luxe Collective initially found great success on Instagram rather than TikTok to grow its social media audience.
Over the past few years, Luxe Collective has built a following on TikTok and nearly tripled its Instagram following.
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Luxe Collective’s TikTok account is filled with fashion tips, tutorials and the latest news from all the biggest luxury fashion brands. Allowing the characteristics of its audience to dictate its content, Luxe created a social media account that doubles as a news source for the exact audience interested in purchasing its products.
Crowdfunding is one of the most accessible ways to earn money for creators. You’ve invested a lot of time and effort into producing content for your fans, so giving them an easy, stress-free way to give back can go a long way in securing a regular income stream.
Crowdfunding can take many forms, depending on the type of funding you’re looking for. If you’re looking for start-up funding for a specific project, you can build your following by setting fundraising goals and hosting live fundraising events.
If you don’t have a specific project in mind, or aren’t ready to offer equity to investors, a crowdfunding platform might not be ideal. For a quick and easy way to accept donations, consider a tipping platform.
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The tipping platform is a more personal financial choice. They work just like real life tip jars. This option is available to fans, but not mandatory, and they can donate any amount at any time.
Crowdfunding is great for large projects, and tipping is the easiest way to raise money quickly. But what if you’re looking for a more regular stream of passive income? In this case, you might consider using a creator-based subscription platform such as Patreon.
A subscription-based revenue model is great for content creators because you can keep your individual subscription costs low and focus on growing your subscriber count.
For example, a low-cost subscription of $1 a month is easy to sell to a loyal fan. If you have a lot of loyal fans, the money starts to add up.
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Patreon is the first major platform for creators and influencers to generate income through paid memberships of their most loyal fans. On Patreon, you can set membership tiers, allowing you to provide exclusive content to your biggest supporters.
Alternatives exist (most notably Ko-fi, which also includes a tipping feature), but Patreon has the added benefit of brand recognition, which increases trust from potential supporters.
If you think a subscription service might be the best way to monetize your TikTok account, here are some best practices to keep in mind:
Each of these users made over $1 million in 12 months — but how did they do it? Let’s take a look at some of the ways the top earners are making money on TikTok.
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Funding for creators in the form of the TikTok Creator Fund (more on that above). Still, payouts vary based on factors like video views, engagement rates, and the authenticity of users who engage with posts.
In some cases, brands may pay popular micro-influencers to create videos, but TikTok’s top paying users usually monetize their accounts
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