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How to earn money from Tiktok?
Whether
you are a TikTok user or just a casual observer of the event, TikTok, in that
case, may have asked yourself these questions.
In
response, Forbes magazine recently published an article on the highest-paid creators/Tiktok
influencers, and the result probably will not surprise you:
·
Addison
Rae Easterling, $5 million (84.3M TikTok followers)
·
Charli
D'Amelio, $4 million, (124.3M TikTok followers)
·
Dixie
D'Amelio, $2.9 million, (55 million TikTok followers)
·
Lauren
Gray, $2.6 million, (54M TikTok followers)
·
Josh
Richards, $1.5 million, (25.5M TikTok followers)
High-profile TikTok creators are making some big dollars. Not only that, but the popularity of TikTok itself has exploded in the past year.
You might remember the rise of
Sea Shack, the lip-sync challenges, or the "Tell me without telling
me" challenge.
Such popular TikTok trends have established the platform as a unique video creation tool that outperforms its competitors.
Indeed, a report from App Annie confirmed that Americans now spend more time each month on TikTok than on Facebook or Instagram.
All signs point to the fact that the platform is here to stay, but the question remains: How are people making money from TikTok?
How to Make Money
on Tiktok: Basics
First,
the average TikTok creator does not get paid directly for creating and
uploading TikTok videos.
That said, TikTok does offer funding through its Creator Fund. However, to be eligible, your TikTok profile needs to have at least 10,000 followers and 100,000 video views in the last 30 days.
Not to mention, these payouts also
take into account the number of views and the engagement rate of your audience.
Even if you are in the lucky position where you are eligible for TikTok's Creators Fund, most of the TikTok creators do not fully rely on it.
Typically, the
highest-paid users of TikTok monetize their accounts through multiple income
streams (more on that in a second).
However, before going into the specifics of how to make money on TikTok, there are a few things you should know first. Hence, below we have provided some important advice to help you lay the foundation for your TikTok monetization strategy:
Tiktok Audience-
Did
you know, as of 2021, TikTok now has over 689 million monthly active users worldwide,
beating competitors like Snapchat, Twitter, and Pinterest?
TikTok is touted as a 'platform' for Gen Z and Millennials, with 62% of TikTok users in the US aged between 10 and 29. Gen Z, in particular, has received a lot of media attention and with good reason.
They already represent 40% of consumers
worldwide.
However, more interesting to us as budding entrepreneurs is that studies have shown that this generation spends more time online than ever before.
So it should come as no surprise that TikTok's popularity with this demographic exploded, with reports that it kept more than 100 million users engaged during the lockdown situation.
What is the draw
of TikTok over other social networks?
According to HTG, a major reason for TikTok's popularity is its unique algorithm.
TikTok uses AI and machine learning to provide users with the content they want to see based on user interactions and broader trends.
Not to mention, TikTok has
successfully created a sense of community for users and content creators alike.
By understanding some of the unique features that TikTok offers and the key demographics that use it, you can position yourself in a better position when it comes to creating TikTok-friendly content.
Of course, this is a fundamental
part of making money on TikTok, but how do we find our audience?
TikTok
recommends taking the time yourself to know your place as a producer. If you
are starting, see if creators are already creating similar content for you.
Next, determine what type of niche you will be creating content for. It is best to experiment with different content during the early stages to get a feel for what interests your audience.
Then, once you start gaining traction on some of
your videos, you can dig deeper and expand on the content that performs best in
that area.
Once you are more confident about your niche, it is time to develop a community space. You can think of it as a curated gallery.
You are putting on a show, and all the work fits seamlessly into that. However, it is not just a matter of getting up and going. Instead, you need to engage with your audience.
It is one
thing to respond to comments, but your aim should be to build a lasting
connection with your audience so they can come back for more.
Going live is a way to answer questions and comments from your audience. You can also shout out to loyal followers and react in real-time to emerging trends.
Not to mention, 'Jeevan' is an excellent opportunity to learn more about your audience using TikTok's built-in analytics tools.
For example, let us say you have a TikTok Pro account. In that case, you can retrieve data about your audience's gender, location, and activities.
You can then use this information to make
your content appealing to your specific audience.
Lastly, though staying in your niche is important, do not forget that TikTok is all about trends.
Whatever your niche, you need to be flexible enough to respond to trends while maintaining your sense of divisiveness.
This way, your content is
more likely to be shown to a wider audience and potentially get you more
followers.
How to make money
on TikTok: Maker Economy
Now that you know the primary audience of TikTok and the appeal of the platform, what about the industry putting it all together?
Creator economy is a term used to describe an ecosystem where creators can monetize their interests and creativity.
In the past, when an individual had an idea, whether it was an entire business, service, or just a product, they often had to go through multiple third parties to reach their consumers.
Today, this is not the case.
Instead, you can put your ideas in front of your target audience in just a few
clicks.
In a
study of more than 50 social media platforms over the past ten years, creator
earnings reached more than $10 billion. Furthermore, the number of creators on
these platforms has grown by a whopping 48% year on year.
The
moral of the story? Content creation has become its economy.
More
and more people are leaving their regular nine to five jobs and are completely
dependent on the internet to generate income.
However, being a creator is not just about making money, whether on TikTok or anywhere else online. It is also a way to trace creation itself.
It is investing in a
passion and finding other people who share your beliefs. In such a situation,
to meet this market, the business model will have to be changed accordingly.
We are no longer dependent on the Group to advertise specific products or services; Instead, people are now marketing their authenticity.
As Stanford
University prophet Paul Sappho put it aptly:
"Mass
participation has become the new normal. Goods are cheap; The situation comes
from creation. The association creates value. ,
What does this mean for TikTok creators?
So
what exactly does this mean for you as a TikTok creator, and how can taking
advantage of the creator economy help you make money?
For starters, when you set out to make money on any social media platform, TikTok includes, do not treat or treat your audience as consumers.
Instead, remember,
these are the people you are trying to build a relationship with. Focusing on
audience engagement is integral to how you advertise, monetize and grow as a
creator.
Instead
of focusing on outright purchases (usually an affiliate result of traditional
marketing methods), focus on building a long-term relationship with your
audience.
Just remember, your audience wants to:
Authenticity
Use your genuine interest, talent, and passion to draw in the crowd. There is a place for everyone on Tiktok. Find your niche and enjoy it with your audience.
Studies have found that 60% of TikTok users felt a sense of community while on the platform.
They also felt more motivated, confident, and entertained. Users want a place where they feel accepted and can express themselves.
This is the
type of environment you want to develop through your content.
Engagement
Think of unique ways to engage with your audience. Interestingly, 79% of users mentioned in a comment take the time to read the comments on the video.
So, of course, answering comments and questions is a good start. However, adding a personal touch to your communication is even better for creating a sense of rapport and connectedness with your audience.
Maybe crack a joke or respond by using the
name of the commenter? These are just some of the ways you can customize your
responses so that they feel more personal.
value
Posting content you like is not enough. You have to give your audience what they want - and regularly!
As we have already said, it is wise to stay on top of the TikTok trend. Remember that 88% of TikTok users search for new content they enjoy while using the app.
Therefore, think of your posts as an opportunity to add value
and attract new fans.
Monetization
Here
is the section you have been waiting for, Monetization, with all this in mind.
Now
you must be wondering why this was not our beginning. This is because it is
important to consider the broad rules of the game. As we have already said,
first and foremost, content creation is not just about making money; It is
about taking advantage of your ideas and passions.
That said, three
monetization strategies that work well on TikTok are:
· Affiliate marketing
· Influencer Marketing
· sell your merchandise
· Customer Donations/Subscriptions
· TikTok ad
· How to make money from Tiktok:
Affiliate Marketing
First, there is affiliate marketing.
In
basic terms, affiliate marketing is where you induce people to buy third-party
products and/or services, usually through your 'affiliate links .' Then, if you
make a sale successfully, you will make a commission.
According to entrepreneur and influencer Neil Patel, affiliate marketing can be a lucrative way to generate passive income.
By passive, we mean you need to lay
the groundwork, then once you do, there is a possibility of getting paid again
and again with minimal effort on your part.
The first step in affiliate marketing is to join an affiliate network or contact your favorite brands to see if they have an affiliate program up and running.
If you choose the first one, the network acts as an intermediary between the
affiliate (in this case, you) and the company you are promoting. Popular
affiliate networks include ClickBank, Amazon Associates, and the eBay Partner
Network (EBN).
When it comes to affiliate marketing on TikTok, you can use the platform to promote affiliate products/services, i.e., by recommending them to your customers, reviewing the product, using it naturally in your videos, Etcetera.
How to Make Money
on Tiktok as an Influencer Campaigns
Influencer marketing is when companies and solopreneurs collaborate with creators to endorse or mention their products.
For this marketing method to have more impact, the creator needs a higher number of followers.
Helpfully, TikTok has a creator marketplace where brands and creators can partner on projects together.
For a TikTok creator, this can
result in a useful collaboration with paid-for-sponsored posts or other
sponsorship deals.
Whether
you post a straight-forward ad, review a product, or naturally include it in
your regular post—no matter what, remember: Your audience has to come first.
Think about whether your partnership is in line with your brand. Also, ask yourself whether it will add value to your audience's experience.
You do not want your
audience to feel like you are selling them a bad deal, as it will only damage
your relationship with them.
How to make money on TikTok: Selling your merch
If you are struggling to find a third party to collaborate with or want to diversify the way you monetize TikTok, consider selling your merchandise.
While some manufacturers go as far as developing their product from scratch, merchandising can be as simple as using print-on-demand companies such as Printful, Printify, and Lulu Express to create T-shirts with your name on them. For.
The advantage of print on demand is that you do not have to print on
inventory or warehousing costs.
Alternatively, suppose you have a creative streak and use TikTok to showcase your talent.
In
that case, audience members may be inclined to purchase one of your creations.
This is where resale apps like Poshmark and Depot and online marketplaces like
Etsy have become attractive outlets for many TikTok creators.
On
the subject of things you can create yourself, if you are creating educational
TikTok, there is much potential to sell things like online courses and eBooks.
Alternatively, any other educational product that your audience might enjoy.
If
you want to design and launch a completely online course and market it, there
are sites like Udemy, Skillshare, and Coursera where you can do that.
To market your course, you can live stream snippets of your course material on TikTok to give viewers a taste of what it has to offer.
Not only is it an
effective lead magnet, but you are also likely to get some feedback from your audience
– a win-win!
How to make money on Tiktok: Tiktok Advertising
Once you have a product, you know your audience will love, consider launching a paid TikTok ad.
Advertising on TikTok is great not only to increase interest in a
product; It is also about expanding your brand by reaching more people and
building relationships built on mutually established trust.
In light of this, it should come as no surprise that TikTok has experienced a 500% increase in advertisers running campaigns in the US over the past year.
Participation in "hashtag challenges" and various ad formats has proven particularly popular for brands. More recently, TikTok has experimented with new video lengths to diversify its offerings and expand into eCommerce.
TikTok partnered with Shopify to bring live shopping and product catalogs to
the app earlier this year. Soon users will not have to leave a stream to make
in-app purchases!
TikTok
has an Ads Manager feature to set up paid advertising campaigns. However, first
of all, to design a campaign, you need to create a TikTok account.
Once you have done that, you are free to create your ad, starting with defining its purpose.
Then, the Ads Manager of Tiktok will give you customization options. You will also need to specify your budget and the format of your ad, i.e., video, photo, etc.
Next, you can drill down on the audience of your choice to
ensure your ad's exposure to your target demographic.
If
you want to take advantage of TikTok's paid advertising, here are some tips :
·
Instead
of running the same ad continuously, TikTok recommends updating your ad every
seven days to avoid audience fatigue.
·
If
you decide on a video, make sure the resolution is 720p or higher.
·
Also,
add an audio track to your video. You want to attract people's attention.
·
Short
videos are usually the best - one in four top-performing videos last between 21
and 34 seconds.
·
Lastly,
for videos, make sure they are full screen. Also, vertical videos work best.
Tik
Tok reports that 61% of users feel that paid advertising on TikTok is unique
from other top social and video platforms. Namely, because advertising on
TikTok is more authentic and fun than other social channels. Additionally,
people are more likely to purchase from brands that mix advertising with their
other content. That way, people do not feel like they are being sold.
How to Make Money
on Tiktok: Subscriber Donation/Subscription
The previous monetization method that we will discuss depends on your relationship with your audience. You must have heard about Patreon company.
For starters, it
is a subscription service that enables followers/subscribers to subscribe/pay a
certain amount to tip their favorite creators or receive bonus content.
TikTok itself also has a Live Gifting feature where followers can show their appreciation in real-time by sending virtual gifts, which can be redeemed for payments.
There are also tipping platforms like Tippy and Kofi to redirect loyal
fans who want to show some love.
Alternatively,
let us say you have a project in the works for which you need support. In that
case, consider crowdfunding companies like Kickstarter or Fund Me.
With this monetization method, always be 100% transparent with your audience.
Do not
take advantage of their generosity, and make sure you always give the best
service in return for their hard-earned money.
Are you ready to start earning money on Tiktok?
In short, it is imperative that you understand TikTok as a platform, what makes it unique, and the kind of audience it attracts.
Then, with this knowledge at your
fingertips, you are in a better position to build a business model accordingly.
That
said, let us take a look at some of the key excerpts from this article:
As with any monetization method on TikTok, you want to be careful about overloading your audience with promotional material.
TikTok is geared towards personal connections. As such, you need to adopt a content-first mindset that enables you to build genuine and personal relationships where you can explore your shared passions.
This is the key to cementing its place in the growing
manufacturer's economy.
Whether you are a novice TikToker or one of the many full-time TikTok stars who have established followers, a healthy understanding of the creator economy can only benefit you.
Monetizing your content should flow organically through the space you create on the platform.
Then, once you have built up a community of
supporters, you can explore new ideas and interests.
If you have any remaining doubts, perhaps you should look at yourself and see what the fight is all about. Do not know?
Maybe you will make some real money along the way.
Just be sure to read TikTok's Community Guidelines first to make sure you comply with the platform's rules and regulations.
Good luck, and let us know how you get on in the comment box below!