The TikTok app has become a global phenomenon, creating a new generation of influencers with millions of followers, earning money simply by creating short, viral videos. While top TikTok influencers earn millions of dollars annually, aspiring content creators flock to the platform hoping to achieve financial success easily. Those who have found significant success on the social media platform have expanded their empires into major money-making ventures, including movie roles, television shows, and clothing lines.
Despite the fame granted by the app to the "TikTok Kings" (those with the largest number of followers and highest earnings), it is challenging to pinpoint exactly how much one can earn from the app. Earnings depend on various factors such as the extent of virality one achieves, the type of content produced, and the monetization strategy chosen, whether through sponsored posts or participation in the "Creators Fund."
#### What is the "Creators Fund" on TikTok?
The TikTok Creators Fund was established in 2020 to reward users with a steady following for using the app. However, to be part of this exclusive community, one typically needs around 100,000 genuine followers, making it unnecessary to purchase bots to inflate follower counts. Nevertheless, the fund does not seem to be as profitable as initially presented. A prominent TikTok user, Preston Seo, who currently has 2.5 million followers, told Business Insider that between January and May 2021, the fund paid him a total of approximately $1,664.
Other TikTok Kings, like Hank Green, reported receiving between $0.02 and $0.03 per thousand views on the platform.
#### Earning Money from TikTok's Ad Revenue Sharing Program
As the popularity of the app grew, TikTok announced in 2022 that brands could place their advertisements alongside the "top 4%" of videos from users with at least 100,000 followers in various content categories, such as cooking, gaming, or beauty. This initiative falls under a program called TikTok Pulse, which gives top TikTok users the opportunity to earn money through the app by sharing advertising revenue between companies and content creators. The content creator featured before an advertisement will receive 50% of the revenue. However, creators have described the payments as "disappointing," with some stating to Business Insider that they received between a few cents and $17 in their first two monthly payments from the Pulse program.
#### TikTok's Virtual Gifts as a Revenue Stream
TikTok allows content creators to receive gifts during live streams, which can be converted into cash. For instance, Jakey Boehm, an Australian TikTok creator, reportedly made $34,000 through live broadcasts in one month while trying to sleep, with fans doing their best to keep him awake.
#### Profiting from Sponsored TikTok Ads
Any brand can sponsor a TikTok creator to promote their products, whether they are fashion items, food, or skincare products. Companies like Gymshark, Chipotle, and even Rihanna's Fenty Beauty use influencers to advertise their brand. The payment given to a TikTok user varies depending on the virality of their videos and the level of engagement they can bring to the company. Sponsored posts can also take the form of product reviews and challenges, which can be identified by hashtags like #ad or #sponsored.
According to the influencer marketing software company Social Book, users with followers ranging from 1,000 to 10,000, known as Nano influencers, can earn about $25 to $125 per sponsored post on TikTok. Those with larger followings, ranging from 10,000 to 100,000, categorized as Micro influencers, earn an average of approximately $30 to $400 per post. Social Book indicates that Micro TikTokers could make at least $50,000 annually, assuming they secure about five sponsored posts daily.
Moreover, those classified as Macro influencers, with over 100,000 followers, can earn between $1,200 and $2,500 per post, indicating potential yearly earnings of around $400,000. TikTokers in the Mega category, with one million followers or more, can earn over $2,500 per post, potentially reaching around one million dollars annually with slightly more than one post each day.
