If you‘ve spent any time on TikTok, you‘ve probably wondered how much your favorite creators are earning from the platform. Can posting short videos really provide a full-time income? How many followers do you need to start making serious money? As a tech writer who closely follows the creator economy, I‘ve dug into the data to give you the inside scoop on TikTok monetization in 2024.
The TikTok Creator Earnings Breakdown
While TikTok doesn‘t publicly share creator earnings, we can make some educated estimates based on top creators‘ reported income, typical brand sponsorship rates, and TikTok‘s own Creator Fund payouts and promotional events. Here‘s a breakdown of what TikTokers are likely earning on average according to their follower count:
| Follower Count | Estimated Monthly Earnings |
|---|---|
| <10,000 | $0-$50 |
| 10,000-50,000 | $50-$500 |
| 50,000-250,000 | $500-$2,000 |
| 250,000-1 million | $2,000-$5,000 |
| 1-5 million | $5,000-$20,000 |
| 5-10 million | $20,000-$50,000 |
| >10 million | $50,000-$500,000+ |
Keep in mind these are rough estimates and actual earnings vary widely depending on factors like engagement rate, content niche, and sponsorship deals. According to Forbes, these are some more specific earnings examples from TikTok‘s top stars:
- Charli D‘Amelio (133M+ followers): $17.5M in 2022, including a $1M for a Super Bowl commercial
- Addison Rae (86M+ followers): $8.5M in 2022 from her TikTok fame and other ventures
- Khaby Lame (145M+ followers): $5M estimated 2023 earnings primarily from brand deals
- Bella Poarch (88M+ followers): $5M estimated 2023 earnings, including a music record deal
Clearly, if you can crack the top echelon of TikTok fame, the earning potential is astronomical. But even creators with just a few million followers can generate a very comfortable full-time income from the platform. So how exactly do they do it? Let‘s break down the most common TikTok income streams.
How TikTokers Make Money
1. TikTok Creator Fund
In 2020, TikTok established a $200 million Creator Fund to share revenue with top creators. To be eligible, users must be 18 or older, have 10,000+ followers, and have 100,000+ video views in the last 30 days. Fund payments are based on a number of factors including views and engagement. While it‘s a nice bonus, creators report earning only a few dollars per day or a few hundred dollars per month.
2. Brand Sponsorships
This is where the big bucks are. By creating sponsored content promoting a brand‘s products or services, TikTokers can earn hefty sums. Exact rates depend on follower count and engagement metrics, but generally range from $50-$1,000 per 10,000 followers according to Influencer Marketing Hub. So a creator with 1M followers could charge $5,000-$100,000 per sponsored post.
Some more specific brand deal examples:
- Josh Richards (25M+ followers): Charges up to $25,000 per sponsored post
- Michael Le (51M+ followers): Earns $50,000-$80,000 per sponsored post
- Dixie D‘Amelio(57M+ followers): Reportedly charges $100,000+ per sponsorship on TikTok and Instagram
3. Merchandising
Many TikTok stars leverage their loyal fanbase to sell branded merchandise. Charli and Dixie D‘Amelio reportedly made $70 million in 2022, largely thanks to merch like hoodies and phone cases sold at Abercrombie and Hollister. By promoting their products to TikTok followers, creators can drive massive sales.
4. TikTok Live Gifting
During TikTok live streams, viewers can send monetary "gifts" which can be withdrawn for cash (after TikTok takes a 50% cut). To go live, users need 1,000+ followers and must be 16+. Top live streamers like Michael Le report earning up to $5,000 per week from gifts. However, only a small percentage of users actually purchase gift points.
5. YouTube AdSense Revenue
Smart TikTokers build a following on YouTube, where they can earn ad revenue through the Partner Program. YouTubers typically earn $3-$5 per 1,000 views – so a video with 1M views could bring in $3,000-$5,000. Addison Rae‘s YouTube channel has over 5M subscribers and likely generates substantial ad revenue.
6. Instagram Influencer Marketing
TikTok fame often translates to Instagram followers, where creators can charge big bucks for sponsored posts and stories or earn affiliate commissions. Addison Rae, who has 40M+ Instagram followers, frequently partners with top brands like Reebok and American Eagle.
7. Twitch Donations & Bits
Some TikTokers also live stream on Twitch, where fans can support them with monetary donations or "Bits" (a virtual good purchased from Twitch). Twitch streamers earn 1 cent per Bit. TikToker Bella Poarch has over 500,000 Twitch followers and likely receives a healthy sum in donations.
How TikTok Virality Works
To maximize TikTok earnings, creators need to understand how to go viral on the platform. Unlike other social networks, TikTok is designed to show users new content rather than just posts from people they follow. This means anyone can go viral, regardless of follower count, if their video resonates with users and performs well in the algorithm.
TikTok‘s algorithm considers many factors, including:
- User interactions (likes, comments, shares, completions)
- Video information (caption, hashtags, sounds)
- Account settings (language, device, location)
Essentially, if a video gets a lot of engagement right away, TikTok will show it to more users, creating a snowball effect. To improve virality chances, focus on hooks (give people a reason to keep watching in the first few seconds), post at high-traffic times, use trending hashtags and sounds, and most importantly – create unique, entertaining content that provides value.
The Future of Making Money on TikTok
As TikTok continues to explode in popularity (over 1 billion users and counting), its money-making potential for creators will only grow. The platform is constantly testing new monetization features like tipping and paywalled content to help creators earn more revenue directly from fans.
Industry experts predict TikTok‘s ad revenue will surge to $11.64 billion by 2024, surpassing YouTube and Twitter combined. As more ad dollars flow to the platform, creator sponsorship rates will also rise. Already, some TikTok influencers are out-earning their peers on Instagram and YouTube.
However, competition on TikTok is also fiercer than ever, with over 2 million creators vying for views and brand deals. To stand out, creators need to post consistently (ideally at least once per day), stay on top of trends, and continually adapt their content strategy. Cross-promoting on other platforms like Instagram and YouTube is also critical for growth.
Tips For Maximizing TikTok Earnings
If you want to turn your TikTok habit into a money-making machine, here are a few key tips:
Find your niche: Focus on a specific content category and target audience to build a loyal following. Whether it‘s comedy, dance, fashion, or gaming, become known for your unique voice and style.
Post consistently: TikTok favors accounts that post regular, high-quality content. Aim to post at least once per day, if not more. But don‘t sacrifice quality for quantity.
Engage with followers: Reply to comments, run Q&As, and use audience suggestions to create content. The more your followers feel invested in your brand, the more likely they are to support you financially.
Collaborate with other creators: Join forces with TikTokers in your niche to tap into each other‘s audiences. Duet, stitch, or otherwise creatively engage with viral videos to increase discoverability.
Expand to other platforms: Build a presence on YouTube, Instagram, Twitch, etc. to create additional revenue streams and cross-promote your TikTok. The more ways you can reach your audience, the better.
Explore all monetization options: From the TikTok Creator Fund, to selling merch, to sourcing brand deals – diversify your income streams to maximize earnings and minimize risk. Don‘t put all your eggs in the TikTok basket.
Deliver value to brands: Securing lucrative sponsorships is all about creating engaging, click-worthy content that drives results. Mention the brand in the video itself and pin a comment with their handle and link. Use trackable affiliate links when possible to quantify your ROI.
While building a full-time TikTok career isn‘t easy, it‘s more possible than ever with the right strategy and work ethic. Even micro-influencers with a few thousand loyal followers can start monetizing their audience and earning real revenue from the platform.
But TikTok stardom won‘t happen overnight. Focus on creating quality content, optimizing for the algorithm, and diversifying your online presence. With persistence and creativity, you can turn your passion into a profitable online business. And who knows? Maybe you‘ll be the next Charli D‘Amelio raking in millions from 15-second videos. Dare to dream!
