How are Tiktokers so rich?

businessinsider.com - How Much Money TikTokers Make, According to Creators

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TikTok has created a new generation of digital stars who have built massive audiences on the app.

But many creators are still experimenting with how to make money.

Here's how much TikTokers earn from brand deals, song promotions, livestreams, its Creator Fund, and ad-revenue sharing. TikTok ushered in a new generation of digital stars. But for many creators, it can be difficult to make money from TikTok alone. Unlike YouTube, which has a well-established ads program where it shares a percentage of ad revenue with qualifying users, TikTok has only recently begun experimenting with splitting dollars with some of its influencers. The company has several built-in monetization tools like virtual "gifts," as well as a Creator Fund to pay users with at least 10,000 followers and 100,000 views in a 30-day period for their videos. TikTok also recently begun trialing a subscriber program for some of its livestreamers.

How much TikTokers make from the Creator Fund

While Creator Fund payments aren't calculated based on views alone, the effective payouts for videos have amounted to a few pennies for every one thousand video plays, some TikTokers have told Insider. Top TikTok creators like Hank Green and MrBeast have spoken out about the low payouts, with Green revealing in a January YouTube video that he was paid what amounted to between $0.02 and $0.03 for every one thousand views on TikTok. Personal-finance influencer Preston Seo, who now has 2.4 million TikTok followers, earned a total of about $1,664 from the Creator Fund between January 2021 and May 2021, according to documentation he shared with Insider. His TikTok account earns between $9 to $38 a day on average. Other creators who shared their fund earnings with Insider reported similar daily payouts.

How much TikTokers make from its ad-revenue sharing program, Pulse

The Creator Fund isn't the only in-app monetization tool for TikTok creators.

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The company also shares some ad revenue with creators through a contextual-advertising program called TikTok Pulse. In May 2022, the company announced brands could buy ads alongside "the top 4%" of content in different categories like cooking, beauty, and fashion. It said it would split 50% of the revenue with the creator whose video appeared before the in-feed ad. Only creators with at least 100,000 followers qualify for the program. As with the Creator Fund, the first two payments from TikTok Pulse have been disappointing, creators told Insider. Eight influencers who shared their monthly payouts, view counts, and revenue for every 1,000 video views (RPM) from Pulse earned between a few pennies and $17 in their first two monthly payments. The creators had between a few hundred thousand and a few million followers; Several make content around gaming, while others film lifestyle videos.

Other built-in TikTok monetization features

Some TikTokers also make money by receiving virtual "gifts" during livestreams or in other parts of the app, which can be converted into cash. ASMR content creator Lucy Davis told Insider she earns between $20 and $300 each time she goes live, for example. Jakey Boehm, an Australian creator who livestreams on TikTok while he sleeps, earned $34,000 from TikTok Live in a single month. "It's seriously life-changing money," he told Insider. "The first week I made about $5,000 dollars, and that's where I thought 'This is big, I can do something really crazy here.'"

How TikTok creators make money from brand sponsorships

Because virtual gifts, Creator Fund payments, and Pulse earnings don't pay the bills on their own, many influencers turn to brand deals to earn money from their TikTok content. Rates for a sponsored post can vary widely depending on a creator's follower count and content niche. Seo, for example, said he charged about $600 per sponsored post on TikTok.

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Symphony Clarke, an Atlanta-based TikTok creator with about 200,000 fans, told Insider that she charged between $350 and $600 for a sponsored post. Alex Ojeda, who has around 8.3 million TikTok followers, has a starting rate of $20,000 for a sponsored video on the app. Other TikTok influencers earn money by making content for companies to use on a brand's own TikTok account. Fitness creator Salha Aziz, for instance, charges hundreds of dollars to create UGC content for brands to use in marketing campaigns.

Here's how much creators are earning from brand deals:

How TikTok creators make money from song promotions

One of the most popular ways to earn money as a TikToker is by promoting songs in videos. Music marketers and record labels regularly pay TikTok users to post on the app in an attempt to make a new track go viral. TikTok-creator trio Nicole, Natalie, and Nika Taylor, who now have over 12 million followers on the app, told Insider they charge $750 to promote a song in a single video, $1,400 for two videos, and $2,000 for three videos. For micro influencers with fewer followers, rates are more variable, but can fall anywhere from $20 to $150, said Austin Georgas, a former senior account manager focused on music marketing at the Gen-Z media company Flighthouse. Music producers can also make money on TikTok by creating sped up, slowed down, or remixed versions of tracks for artists and record labels. Read more about how much creators get paid to promote new tracks on TikTok:

businessinsider.com - How Much Money TikTokers Make, According to Creators

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