What is TikTok?
TikTok took over where Music.ly left off and then moved things on a bit. Where Music.ly was where teens and young folk uploaded 15-second videos of themselves lip-syncing to the latest Beyoncé track, TikTok has widened that to 15 seconds videos of anyone doing anything.
TikTok has 2 billion users, but only 200,000 quality creators
TikTok Tik Tok covers 150 countries, the U.S., the U.K., and all the other countries it can cover, so the user base is large.
What are the TikTok Coins?
TikTok Coins are an in-app currency paid for with real money. You can buy gifts for your favorite creators and Diamonds with Coins to give to someone as appreciation for their work or to say thank you.
We have seen this kind of thing before like tipping in Twitch. If you like what you see, you tip a certain amount to show appreciation. The broadcaster makes some change and you get to feel good about yourself for a minute. In a sense, TikTok enables you to monetize you having fun to a certain degree.
Coins vary in value and depend on exchange rates. At the time of writing, 100 Coins cost $0.99 USD and you can buy them in varying amounts up to 10,000 coins at a time.
This system seems to be in flux as not long ago you could buy 300 Coins for a dollar and 10,000 for $122. That has changed now so keep an eye on what’s going on with Coins.
How can you use TikTok Coins?
Once you’ve purchased your TikTok Coins they are stored in your Wallet and can be used only within the app. They are non-refundable and come with the usual limitations that most virtual items come with. The TikTok T&Cs are quite clear and concise for once and can be read here.
You can only send gifts to your favorite creators on TikTok. Those under the age of 18 (or the adult age in other regions) are no longer allowed to send these gifts as TikTok attempts to protect their younger audience from scams.
Once you’ve purchased coins you can send a gift to another TikTok user when this transaction is complete; you will see the amount deducted from your wallet. Each gift has a different monetary value and is converted to Diamonds by the recipient for cash. Understanding TikTok gifts is vital to monetizing your page.
The system works a lot like Twitch. You can purchase gifts of varying types with varying values. You can then tip the streamer depending on how much you liked their performance. The more you tip, the more prominent your name and the more likely you are to get a shout out. It’s a feedback loop that encourages the streamer to perform well and encourage the audience to spend money to gain recognition.
How to buy TikTok Coins
Buying TikTok Coins is simple. to learn how to buy TikTok Coins, please follow these instructions:
Once complete, the number of Coins you bought will be added to the total in your TikTok Wallet. You can now use your Coins as you see fit whenever you want.
Gifting TikTok coins
You can only receive gifts during a live stream. To live stream you must have 1000 followers.
Check out what large accounts are doing during their live streams to get an idea of what you can do / talk about.
You can also read more about earning money on TikTok in our post.
Difference between coins and diamonds
Type of TikTok gifts
A user makes a gift in the form of an emoji. And those emojis represent different amounts of coins.
Panda – 5 coins
Current value: $0,065
Diamond value: $0,0325
Italian hand – 5 Coins
Current value: $0,065
Diamond value: $0,0325
Love bang – 25 coins
Current value: $0,325
Diamond value: $0,1625
Sun Cream – 50 coins
Current value: $0,65
Diamond value: $0,325
Rainbow puke – 100 coins
Current value: $1,3
Diamond value: $0,65
Concert – 500 coins
Current value: $6,5
Diamond value: $3,25
I’m very rich – 1000 coins
Current value: $13
Diamond value: $6,5
Drama Queen – 5000 coins
Current value: $65
Diamond value: $32,5
How to withdraw your TikTok gifts
You need a PayPal account matching your first and last name in the account in order to cash out.
The minimum amount required to withdraw is a total of $100 in your account and you need to link a PayPal account in order to complete the transaction. You can redeem the gifts for cash for a maximum of about $1000 per day.
Steps to make money from TikTok
Step 1: You have to make a unique TikTok profile. Think of creating contents which people will welcome and like continuously. Your motto of making TikTok account should be increasing followers as many as possible.
Step 2: You have to pick those songs or concepts which are trending on the internet. You can do a little bit of surfing on some popular social media platforms to understand the mood of audience.
Step 3: You can link your YouTube and Instagram account with TikTok. It will help you to increase audience reach for your TikTok videos. To add your YouTube channel, you need to navigate yourself to the Profile tab on TikTok, tap Edit Profile and then tap Add YouTube option.
To add your Instagram account, you can tap Add Instagram under Edit Profile option.
Step 4: You have to make sure that your video reaches to a large audience. If you can do this successfully, your views and engagement count will get increased pushing up your organic search traffic.
Step 5: Similar to Twitter or Instagram, add related hashtags you are posting to boost visibility of your content.
Step 6: Once you get a decent amount of followers on your profile, you can be approached by brands to showcase their product on your video. Usually brands offer money to influencers for their promotion.
Step 7: You can also ask celebrities or other influencers for your video. It will too help you to gain people’s attention on your content.
How to Monetize Your TikTok
Monetizing your TikTok is one of the newest ways to make money online. Here are some of your options.
Audio Sponsorships
TikTok is a platform that emphasizes audio, with songs and audio clips often going viral on the platform — take Lil Nas X’s Billboard 100 hit “Old Town Road” as a prime example.
Artists attempting to replicate Lil Nas X’s path to success have started to pay TikTok influencers to include their audio in posts. Creator Skylar Krupa, who posts videos of his grandparents, has used this method to monetize his growing audience. He charges a rate of $25 per 25,000 followers.
There’s no formal way to arrange audio sponsorships, so teens who want to monetize their following this way, or even grandparents from the example above, have to reach out to artists directly or through artist management teams.
Product Sales
Creators who want to monetize their audiences directly, without relying on a brand’s advertising dollars, can turn to selling merchandise and products to their audience. TikTok’s partnership with Teespring means creators can sell merchandise directly in the app. The integration allows TikTok creators to customize a design from 180 different products.
To test the integration, TikTok and Teespring launched with an initial cohort of 7,000 creators in September 2020. They’re expected to announce how additional creators can start utilizing the integration.
Creators can also add links in their bio to a personal website or alternate merchandise platform where fans can purchase products. For example, TikTok user, @thedottist, has a trackable link to purchase her artwork directly embedded in her bio.
Promote a Business or Brand
Audio sponsorships aren’t the only way to make money with branded content on TikTok. Creators can also leverage their videos to help brands or businesses launch and promote products.
One of the early examples of influencer marketing on TikTok was Mucinex, the cold and flu medicine. Mucinex worked with creators to promote its products during the cold and flu season. The brand launched a challenge called #BeatTheZombieFunk and TikTok influencers, such as the brother-sister duo OurFire, to participate.
Creators who want to get started with brand sponsorships and don’t have representation can reach out to brands and businesses themselves or find opportunities through TikTok’s official Creator Marketplace.
Get Paid by TikTok
TikTok wants to help its biggest creators succeed and earn money solely through the platform. In pursuit of this ambition it’s launched a $200 million creator’s fund, with hopes to grow it to $1 billion by 2023. Through this program, TikTok will pay creators directly for making videos.
TikTok has been vague about how much creators can earn and how many creators will receive funding, including information about the minimum number of followers needed to qualify. Some TikTok experts have said you need at least 10,000 followers and 10,000 views on your profile within the last 30 days, but this hasn’t been confirmed by the platform.
Creators can apply through their TikTok profile. In the notifications section of your messages you’ll get an invitation to apply directly from TikTok if you meet their minimum requirements.
Convert Gifts to Diamonds
A popular way of earning money on TikTok is for creators to host live streams where their fans send them gifts, purchased with virtual coins that are bought within the platform. Creators can then convert these gifts into “diamonds” (TikTok’s virtual credits) which can be cashed out.
In order to purchase coins, fans must be at least 18 years old.
Creators who are 18 years old or over can withdraw diamonds for a cash value decided by TikTok at any time. Payment is made to a Paypal account of the creator’s choosing. TikTok imposes daily limits on withdrawals, which are displayed during your withdrawal process.
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.
TikTok Money Calculator [Influencer Engagement & Earnings Estimator]
The TikTok Money Calculator allows you to calculate your estimated earnings from your TikTok account if you believe you are an influencer based on your engagement and number of followers.
TikTok Influencer Engagement and Earnings Calculator
The tools below are not official TikTok tools and not in any way associated with or endorsed by TikTok. We developed this tool to provide earning potential guidelines to influencers. Ultimately, both the brand and influencer negotiate what they consider to be fair value for endorsing the product or service. This is only an estimation and can vary greatly by niche, country, audience location and audience brand affinity.
influencermarketinghub.com
Making Money on TikTok vs. Instagram and YouTube
YouTube pays creators a sum based on advertising dollars made by the platform from creator videos. TikTok, however, doesn’t have a specific equation for how creators are paid, making it more like Instagram. TikTok and Instagram allow creators to get paid by brands for creating sponsored content.
For some creators, this could create a barrier to getting paid — you need to establish a relationship with brands and convince them your content is worth their money. If you need to make money fast, the process of monetizing your following by establishing an audience and connecting with brands might take too long for you.
Other creators feel this strategy opens doors, as it allows them to eventually maximize earnings with any businesses that are interested.
Growing Your TikTok Account
10 kinds of TikTok money-making methods:
Creator incentive money
short video with affiliate links
stream with affiliate links
stream bounty
diversion tubing to earn CPM earnings,
advertising
music promotion
star map task
sell anything you want
account trading
etc...All of these require you to have a large number of followers.
TikTok took over where Music.ly left off and then moved things on a bit. Where Music.ly was where teens and young folk uploaded 15-second videos of themselves lip-syncing to the latest Beyoncé track, TikTok has widened that to 15 seconds videos of anyone doing anything.
TikTok has 2 billion users, but only 200,000 quality creators
TikTok Tik Tok covers 150 countries, the U.S., the U.K., and all the other countries it can cover, so the user base is large.
What are the TikTok Coins?
TikTok Coins are an in-app currency paid for with real money. You can buy gifts for your favorite creators and Diamonds with Coins to give to someone as appreciation for their work or to say thank you.
We have seen this kind of thing before like tipping in Twitch. If you like what you see, you tip a certain amount to show appreciation. The broadcaster makes some change and you get to feel good about yourself for a minute. In a sense, TikTok enables you to monetize you having fun to a certain degree.
Coins vary in value and depend on exchange rates. At the time of writing, 100 Coins cost $0.99 USD and you can buy them in varying amounts up to 10,000 coins at a time.
This system seems to be in flux as not long ago you could buy 300 Coins for a dollar and 10,000 for $122. That has changed now so keep an eye on what’s going on with Coins.
How can you use TikTok Coins?
Once you’ve purchased your TikTok Coins they are stored in your Wallet and can be used only within the app. They are non-refundable and come with the usual limitations that most virtual items come with. The TikTok T&Cs are quite clear and concise for once and can be read here.
You can only send gifts to your favorite creators on TikTok. Those under the age of 18 (or the adult age in other regions) are no longer allowed to send these gifts as TikTok attempts to protect their younger audience from scams.
Once you’ve purchased coins you can send a gift to another TikTok user when this transaction is complete; you will see the amount deducted from your wallet. Each gift has a different monetary value and is converted to Diamonds by the recipient for cash. Understanding TikTok gifts is vital to monetizing your page.
The system works a lot like Twitch. You can purchase gifts of varying types with varying values. You can then tip the streamer depending on how much you liked their performance. The more you tip, the more prominent your name and the more likely you are to get a shout out. It’s a feedback loop that encourages the streamer to perform well and encourage the audience to spend money to gain recognition.
How to buy TikTok Coins
Buying TikTok Coins is simple. to learn how to buy TikTok Coins, please follow these instructions:
- Open TikTok and navigate to your profile.
- Select the Settings icon in the top right.
- Select ‘Balance’ from the menu that appears.
- Tap ‘Recharge’
- Select an option for the number of coins you want to buy.
- Confirm your purchase on the next page.
Once complete, the number of Coins you bought will be added to the total in your TikTok Wallet. You can now use your Coins as you see fit whenever you want.
Gifting TikTok coins
You can only receive gifts during a live stream. To live stream you must have 1000 followers.
Check out what large accounts are doing during their live streams to get an idea of what you can do / talk about.
You can also read more about earning money on TikTok in our post.
Difference between coins and diamonds
- Coins is what you purchase using real money.
- TikTok Diamonds are what you gift to a live streamer.
Type of TikTok gifts
A user makes a gift in the form of an emoji. And those emojis represent different amounts of coins.
Panda – 5 coins
Current value: $0,065
Diamond value: $0,0325
Italian hand – 5 Coins
Current value: $0,065
Diamond value: $0,0325
Love bang – 25 coins
Current value: $0,325
Diamond value: $0,1625
Sun Cream – 50 coins
Current value: $0,65
Diamond value: $0,325
Rainbow puke – 100 coins
Current value: $1,3
Diamond value: $0,65
Concert – 500 coins
Current value: $6,5
Diamond value: $3,25
I’m very rich – 1000 coins
Current value: $13
Diamond value: $6,5
Drama Queen – 5000 coins
Current value: $65
Diamond value: $32,5
How to withdraw your TikTok gifts
- Press the three dots
- Click balance
- Click Live gifts
- Click Cash out
- Link your PayPal and choose amount.
You need a PayPal account matching your first and last name in the account in order to cash out.
The minimum amount required to withdraw is a total of $100 in your account and you need to link a PayPal account in order to complete the transaction. You can redeem the gifts for cash for a maximum of about $1000 per day.
Steps to make money from TikTok
Step 1: You have to make a unique TikTok profile. Think of creating contents which people will welcome and like continuously. Your motto of making TikTok account should be increasing followers as many as possible.
Step 2: You have to pick those songs or concepts which are trending on the internet. You can do a little bit of surfing on some popular social media platforms to understand the mood of audience.
Step 3: You can link your YouTube and Instagram account with TikTok. It will help you to increase audience reach for your TikTok videos. To add your YouTube channel, you need to navigate yourself to the Profile tab on TikTok, tap Edit Profile and then tap Add YouTube option.
To add your Instagram account, you can tap Add Instagram under Edit Profile option.
Step 4: You have to make sure that your video reaches to a large audience. If you can do this successfully, your views and engagement count will get increased pushing up your organic search traffic.
Step 5: Similar to Twitter or Instagram, add related hashtags you are posting to boost visibility of your content.
Step 6: Once you get a decent amount of followers on your profile, you can be approached by brands to showcase their product on your video. Usually brands offer money to influencers for their promotion.
Step 7: You can also ask celebrities or other influencers for your video. It will too help you to gain people’s attention on your content.
How to Monetize Your TikTok
Monetizing your TikTok is one of the newest ways to make money online. Here are some of your options.
Audio Sponsorships
TikTok is a platform that emphasizes audio, with songs and audio clips often going viral on the platform — take Lil Nas X’s Billboard 100 hit “Old Town Road” as a prime example.
Artists attempting to replicate Lil Nas X’s path to success have started to pay TikTok influencers to include their audio in posts. Creator Skylar Krupa, who posts videos of his grandparents, has used this method to monetize his growing audience. He charges a rate of $25 per 25,000 followers.
There’s no formal way to arrange audio sponsorships, so teens who want to monetize their following this way, or even grandparents from the example above, have to reach out to artists directly or through artist management teams.
Product Sales
Creators who want to monetize their audiences directly, without relying on a brand’s advertising dollars, can turn to selling merchandise and products to their audience. TikTok’s partnership with Teespring means creators can sell merchandise directly in the app. The integration allows TikTok creators to customize a design from 180 different products.
To test the integration, TikTok and Teespring launched with an initial cohort of 7,000 creators in September 2020. They’re expected to announce how additional creators can start utilizing the integration.
Creators can also add links in their bio to a personal website or alternate merchandise platform where fans can purchase products. For example, TikTok user, @thedottist, has a trackable link to purchase her artwork directly embedded in her bio.
Promote a Business or Brand
Audio sponsorships aren’t the only way to make money with branded content on TikTok. Creators can also leverage their videos to help brands or businesses launch and promote products.
One of the early examples of influencer marketing on TikTok was Mucinex, the cold and flu medicine. Mucinex worked with creators to promote its products during the cold and flu season. The brand launched a challenge called #BeatTheZombieFunk and TikTok influencers, such as the brother-sister duo OurFire, to participate.
Creators who want to get started with brand sponsorships and don’t have representation can reach out to brands and businesses themselves or find opportunities through TikTok’s official Creator Marketplace.
Get Paid by TikTok
TikTok wants to help its biggest creators succeed and earn money solely through the platform. In pursuit of this ambition it’s launched a $200 million creator’s fund, with hopes to grow it to $1 billion by 2023. Through this program, TikTok will pay creators directly for making videos.
TikTok has been vague about how much creators can earn and how many creators will receive funding, including information about the minimum number of followers needed to qualify. Some TikTok experts have said you need at least 10,000 followers and 10,000 views on your profile within the last 30 days, but this hasn’t been confirmed by the platform.
Creators can apply through their TikTok profile. In the notifications section of your messages you’ll get an invitation to apply directly from TikTok if you meet their minimum requirements.
Convert Gifts to Diamonds
A popular way of earning money on TikTok is for creators to host live streams where their fans send them gifts, purchased with virtual coins that are bought within the platform. Creators can then convert these gifts into “diamonds” (TikTok’s virtual credits) which can be cashed out.
In order to purchase coins, fans must be at least 18 years old.
Creators who are 18 years old or over can withdraw diamonds for a cash value decided by TikTok at any time. Payment is made to a Paypal account of the creator’s choosing. TikTok imposes daily limits on withdrawals, which are displayed during your withdrawal process.
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.
TikTok Money Calculator [Influencer Engagement & Earnings Estimator]
The TikTok Money Calculator allows you to calculate your estimated earnings from your TikTok account if you believe you are an influencer based on your engagement and number of followers.
TikTok Influencer Engagement and Earnings Calculator
The tools below are not official TikTok tools and not in any way associated with or endorsed by TikTok. We developed this tool to provide earning potential guidelines to influencers. Ultimately, both the brand and influencer negotiate what they consider to be fair value for endorsing the product or service. This is only an estimation and can vary greatly by niche, country, audience location and audience brand affinity.
TikTok Money Calculator [Influencer Engagement & Earnings Estimator]
The TikTok Money Calculator allows you to calculate your estimated earnings from your TikTok account. Calculate any TikTok accounts estimated post worth
influencermarketinghub.com
Making Money on TikTok vs. Instagram and YouTube
YouTube pays creators a sum based on advertising dollars made by the platform from creator videos. TikTok, however, doesn’t have a specific equation for how creators are paid, making it more like Instagram. TikTok and Instagram allow creators to get paid by brands for creating sponsored content.
For some creators, this could create a barrier to getting paid — you need to establish a relationship with brands and convince them your content is worth their money. If you need to make money fast, the process of monetizing your following by establishing an audience and connecting with brands might take too long for you.
Other creators feel this strategy opens doors, as it allows them to eventually maximize earnings with any businesses that are interested.
| TikTok | YouTube | ||
| Active Monthly Users (Worldwide) | Nearly 700 million | More than 1 billion | More than 2 billion |
| Monetization Options | Product salesBrand partnershipsTikTok Creator’s FundHost a livestream | Product salesBrand partnerships | Ad money as a YouTube PartnerProduct salesBrand partnershipsChannel memberships |
| Barriers of Entry | Need a smartphoneNeed relationships with brands | Need a smartphoneNeed relationships with brandsCould need graphic design or photo editing knowledge to succeed | Need a smartphoneTypically, high-production videos perform better. Might need audio or lighting equipment. |
Growing Your TikTok Account
10 kinds of TikTok money-making methods:
Creator incentive money
short video with affiliate links
stream with affiliate links
stream bounty
diversion tubing to earn CPM earnings,
advertising
music promotion
star map task
sell anything you want
account trading
etc...All of these require you to have a large number of followers.
