How do TikTokers make money?
TikTok, an app owned by a Chinese technology company, has become extremely popular among teenagers in the past year. With the rise in popularity of the app, users have also seen a rise in the popularity of certain users, including Charli D'Amelio and Josh Richards. These users, many with millions of followers, make money off of their videos; a TikToker with about 500,000 followers makes about $450 on average, and some even make hundreds of thousands of dollars per post. However, TikTok doesn't actually share its revenue with them, so where are they getting their money from?
The main ways TikTokers make money is through gifting, partnerships with brands, attending brand-sponsored events, and selling merchandise. When users hold live streams, their followers can gift them coins (that they buy), which the users can then trade for real cash. Another way they earn money is through brand partnerships and by attending brand-sponsored events. Many famous TikTokers are paid by certain brands to advertise their products, and because the ad is coming from someone the audience trusts and genuinely likes, the audience listens more and is more likely to buy the product. Furthermore, brands also pay TikTokers to appear at their events and represent their products.
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This is an interesting read. As Tiktok has become increasingly popular this year, I feel like it has monopolized the social media industry - and so has its famous creators. For example, Charli D'amelio gained about 48 million followers since the beginning of this year. This fast growth and follower count is almost unheard of on any other app except Tiktok. I wonder if famous Tiktok creators earn more profit than Instagram or Youtube creators based off brand deals and live streams? To me, it appears that teenagers these days are enamored with Tiktok more so than any other app; thus meaning that their demand for Tiktok creators to produce is higher and they earn more that way.
ReplyDeleteI really like this subject because it's something that a lot of teenagers can relate to, not just because TikTok is extremely popular with people of our age group, but also because teenagers are most likely to be influenced by others at their age. Young adults are the most susceptible to falling victim to peer pressure, so I'm curious as to how much more advertisers are targeting this age group specifically and more importantly, what percentage of these large-scale TikTok account's followers are people in this age group.
ReplyDeleteI was surprised to learn that TikTokers do not make money directly from the app. I too have witnessed the incredible growth and popularity of TikTok and assumed it was a large income generator. I imagine that the people who post on TikTok and gain a large fanbase are able to move across other social media platforms where they can reap financial gains.
ReplyDeleteTikTok's popularity has definitely surpassed other social media platforms'. Famous TikTokers are used by companies to sell their product. Marketers are finally realizing that teens don’t want other people to tell them what to buy and what is cool. Now, they hire and use these influencers to advertise to their platform so consumers will be more incentivized to buy. When teenagers see their favorite idol use a product, the will often want to copy in order to be "trendy." I wonder if they make money from every video they post just like on Youtube where they have cost per mille (CPM).
ReplyDeleteTikTokers seem to earn in a similar manner to former Olympic athletes. At some point, your activity itself does not earn, but your brand as an influencer. You become an advertiser, whether the product is a motivational speech or a meet-and-greet or external products. You become a sticker on a product that encourages other people to buy that product, and the company that produces it will give you a cut. I always fear for TikTokers that their newfound fame may not last as long as they would like, but I guess that's why they have to keep hustling in every new space: they heavily advertise their other social medias to maintain their followings, and people like the D'amelio family are talking about having their own reality show.
ReplyDeleteThis article was interesting! It's always confused me how the revenue model of Tiktok has worked, considering they don't directly pay their creators like other platforms, such as Youtube. There's also no way for the viewers to directly pay, such as Patreon or Twitch. I guess their ideas are more of building a brand and becoming a creator in more profitable areas of the entertainment industry, such as modelling or acting.
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