The short-form video platform TikTok rolled out new ways for creators to make money on the platform in December 2021. Previously, TikTok creators could solicit virtual gifts during TikTok LIVE videos. But the new TikTok Creator Next portal offers additional monetization methods.
After a stellar year, in which Sensor Towers reported that U.S. consumers spent almost $110 million in the app, it’s a prime time to invest in TikTok marketing and sales tactics. Learn how to make money on TikTok with these techniques for small businesses, social media influencers and individual creators.
Design in-feed ads using the TikTok ads manager
Business users can create short native video ads on TikTok to increase product sales and website traffic. Get inspiration by studying how large brands achieve success on TikTok. However, it can be more expensive to advertise on TikTok than on other platforms, such as Google or Facebook.
The ads start at $10 per 1,000 views and require a $500 minimum. Due to the higher cost, small businesses may prefer to use other channels for advertising and focus on selling merchandise on TikTok.
[Read more: 6 Social Savvy TikTok Strategies for Small Businesses]
Join the TikTok Creator Next program
TikTok Creator Next is TikTok’s monetization portal. It’s where you go to access the TikTok Creator Fund, TikTok Creator Marketplace, LIVE and video gifts and tips. However, business accounts are ineligible, making the TikTok Creator program best for influencers and individuals.
TikTok’s eligibility terms for U.S. users are:
- Have 10,000 or more followers on TikTok.
- The creator must be at least 18 years of age or older.
- Be in good standing and not in violation of the community guidelines.
- Have 1,000 or more video views in the last 30 days.
- Have three posts or more in the previous 30 days.
Participate in the TikTok Creator Fund
In 2020, TikTok developed the TikTok Creator Fund. According to the Digital Marketing Institute, TikTok sets aside $200 million for U.S. creators, and the company expects the “fund will grow to $2 billion globally” by 2023. Eligible TikTok Creator Next users make money based on engagement and video views. Plus, you can gain exposure and earn endorsements and sponsorship deals.
It can be more expensive to advertise on TikTok than on other platforms, such as Google or Facebook.
Create videos that drive sales
TikTok videos can increase brand awareness, build your company’s reputation and send traffic to your website. Make videos that drive sales with a strategy mixing entertainment with informational content. Share a snippet of your team packing orders, or provide a sneak peek behind the scenes of your office.
Avoid overly promotional videos. Instead, research your target audience and niche. Create content that piques their interest, such as beauty tutorials using your store’s products.
[Read more: TikTok for Small Business: Tips from Business Creators]
Use your videos to collect gifts and tips
TikTok users can show their appreciation for your videos by sending a tip or gift. Viewers can tip up to $100 per transaction, and you need a Stripe account for processing. Another way to earn money on TikTok is through diamonds. Users can give a gift of diamonds on LIVE and regular videos. TikTok pays out around $0.05 per diamond. Duets, sponsored content, Stitch videos, ads and promoted posts aren’t eligible.
Discover partnerships in the TikTok Creator Marketplace
Apply to join the TikTok Creator Marketplace, where you can connect with brands for collaboration opportunities. Like other TikTok monetization methods, you need to meet the qualifications in the TikTok Creator Next portal. Brands find you in the marketplace and send an invite to collaborate on their campaigns. Alternatively, you can search through open campaigns and apply to work with various brands. Contracts and payouts differ per brand and campaign.
Add affiliate links to your profile
Affiliate marketing is an excellent way to earn passive income on TikTok. This works well if you’re part of an affiliate program, such as Amazon Associates or ClickBank. You make a commission every time a person clicks on your link. In some cases, your affiliate partners will share a unique promo code that you can mention in your video.
Since you can only have one link in your profile, many TikTok users use the free LinkTr.ee platform. When users click on a LinkTr.ee link, they see several URLs, such as affiliate and website links.
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