How To Make Money on TikTok in 2024

TikTok has exploded onto the scene as a juggernaut of social media influence.

How many active users are we talking, globally? 1 billion. No, you didn’t mishear us. That’s 1 billion people spending an average of 95 minutes on the app per day.

Ignoring TikTok is like ignoring the elephant in the room…except this elephant is dancing, engaging, and, most importantly, driving significant revenue for those savvy enough to harness its power.

To put it bluntly, ignoring TikTok’s potential is like leaving money, and we’re talking serious money, on the table.

But this is where it gets interesting: influencers and content creators aren’t the only ones cashing in on the TikTok gold rush. Businesses, brands, and even the most unassuming of entrepreneurs are finding their niche, engaging with audiences, and turning those views into dollars.

The platform’s unique algorithm and culture of authenticity make it a fertile ground for just about anyone willing to invest time and creativity. Yes, that includes small to medium-sized businesses looking to dip their toes into a sea of potential customers who are ready and willing to spend money.

How do you make money on TikTok? That’s what we’re here for. Let’s roll out the TikTok carpet!

1. The TikTok Goldmine: An Introduction to Monetization

At its core, TikTok is more than just a platform for viral dances and lip-syncs; it’s a fertile ground for digital entrepreneurs, influencers, and businesses aiming to capture the attention of a diverse and engaged audience.

The secret sauce? A unique algorithm that champions content discoverability. This means it’s possible for even the newest creators to go viral and gain a following overnight. This level of accessibility is simply genius. It offers a direct path to visibility and monetization that other platforms struggle to match.

But how do you turn those likes and comments into a steady income stream? It’s pretty simple. You leverage the platform’s diverse monetization options. Let’s dig into these!

1.1. The Creator Fund

Launched as a direct response to the growing demand for monetization avenues on the platform, the Creator Fund is TikTok’s ambitious initiative to reward its most innovative and engaging creators financially.

This move underscores TikTok’s commitment to fostering a thriving creator ecosystem. It also opens up a new realm of possibilities for those looking to make a living out of their TikTok presence.

The Creator Fund isn’t a one-size-fits-all program. Instead, it’s a performance-based payout system designed to compensate creators for the quality and impact of their content. Unlike traditional advertising models that pay based on clicks or views, the Creator Fund takes a more holistic approach. It considers factors like video views, engagement rates, and the authenticity of the audience. This means that creators are rewarded for producing content that resonates with their audience. The outcome? You’re working with a much more genuine and creative content creation process.

TikTok sets forth specific eligibility criteria for creators to ensure a level playing field where both popularity and positive contribution to the community are recognized. These criteria are designed to maintain the integrity and quality of content that TikTok is known for. Here’s a detailed breakdown of what you need to qualify:

• Age Requirement: Creators must be at least 18 years old.
• Minimum Follower Count: Creators must amass a certain threshold of followers. This benchmark ensures only those with a significant audience reach and impact can participate. It helps maintain a high standard of content within the Creator Fund pool.
• Consistent Engagement and Views: Eligibility isn’t solely based on follower count but also hinges on consistent engagement and views. This ensures that creators are actively contributing to the platform and generating content that resonates with their audience.
• Adherence to Community Guidelines and Terms of Service: TikTok places a strong emphasis on community safety and positivity. Creators must strictly adhere to the platform’s community guidelines and terms of service.
• Location: Eligibility may also depend on the creator’s location (e.g., the Creator Fund is available in specific countries or regions where TikTok operates this program). As of March 2024, the Creator Fund is available in the US, UK, Germany, France, Spain, and Italy.
• Original Content: The content must be original and created by the user. The Creator Fund rewards genuine creativity and discourages copyright infringement.

1.2. LIVE Gifts and Diamonds

TikTok’s LIVE Gifts and Diamonds feature represents one of the most direct and engaging ways for creators to monetize their presence on the platform.

Viewers can show their appreciation for creators in real-time by sending them virtual gifts during LIVE sessions. These gifts range from simple emojis to more elaborate virtual items; each carries a specific monetary value. Viewers get to express their support and affection in a tangible way while creators can directly monetize their live content through the reception of these gifts. It’s a win-win!

What happens next is where the magic of monetization really kicks in. LIVE Gifts received by creators are converted into Diamonds, TikTok’s in-app currency, which can then be cashed out for real money. Diamonds serve as the measure of a creator’s earnings from LIVE sessions; they’re a coveted commodity in the TikTok ecosystem.

The rate at which gifts are converted into Diamonds, and subsequently into cash, highlights TikTok’s commitment to providing creators with a viable revenue stream. Creators are directly rewarded for their efforts to engage and entertain the TikTok community.

How can small to medium-sized businesses benefit here? Let’s start by understanding the incredible amount of direct engagement LIVE Gifts and Diamonds have to offer. Businesses can interact with their audience in real-time, answer questions, showcase products, and provide a behind-the-scenes look into the workings of their business. This real-time interaction builds a sense of community and loyalty among viewers. They can and very well should be encouraged to send LIVE Gifts as tokens of appreciation.

SMBs can use the LIVE feature to personalize their customer experience. By hosting Q&A sessions, product demos, or tutorials, businesses can address their audience’s specific needs and preferences. This personalized interaction means higher customer satisfaction. It also encourages viewers to support the brand through LIVE Gifts. There’s no way you can go wrong here.

1.3. TikTok Shop

Imagine a world where the line between entertainment and shopping disappears entirely. That’s the magic of TikTok Shop. It’s not just another add-on; it’s a game-changer that seamlessly integrates product discovery, engagement, and shopping, all within the TikTok ecosystem.

TikTok Shop is a suite of features, including a fully integrated shopping tab, product showcases within videos, LIVE shopping experiences, and more. For SMBs, this means an unprecedented opportunity to reach potential customers on a platform where they spend a significant amount of their time.

But how exactly can SMBs harness the power of TikTok Shop? By seamlessly integrating your product catalog directly into your TikTok profile. From there, the possibilities are endless. You can highlight products in your TikTok videos and tap into the platform’s unique algorithm. This isn’t just targeted advertising; it’s targeted storytelling that blends product promotion with the authentic content that TikTok users love.

The LIVE Shopping feature takes things a step further by allowing businesses to host real-time shopping events where viewers can browse and buy products directly through the app as they watch. It’s an interactive way to showcase your products, offer exclusive deals, and interact with your audience in a way that feels personal and genuine.

This direct interaction boosts sales and builds a loyal community around your brand. It’s a brilliant way to turn viewers into advocates and repeat customers.

2. Find Your Profitable Space on TikTok

Now that you have a better understanding of how monetization works on TikTok, let’s move on to the meat of the matter: how to make money on TikTok.

You can’t just waltz into the TikTok space and expect dollar coins to fall at your feet. That’s not quite how things work. In order to master the art of making money on TikTok, you need to first identify your profitable space.

This starts with a deep dive into your brand identity and value proposition. What sets your business apart? Is it your innovative product line, unmatched customer service, or perhaps a unique brand story? This differentiation is your ticket to standing out in the TikTok crowd.

However, differentiation alone isn’t enough. It must be coupled with a keen understanding of your target audience on TikTok. Who are they? What content do they enjoy? And, most importantly, how can your business provide value in a way that resonates with them?

Confused? Here’s a cheat sheet:

You can’t dive into the deep end of TikTok monetization without first grasping these ropes, answering these questions, and developing a clear understanding of what it is you ought to achieve. This cheat sheet helps you neatly check all of these boxes off the list.

Let’s put it into action. Let’s say you run a sustainable home goods store. You want to make money on TikTok, but you’re not quite sure how to go about it. Using this cheat sheet, you can pinpoint a niche on TikTok that values sustainability and conscious living.

By understanding your target audience’s deep interest in reducing their carbon footprint, you can craft content that educates viewers on the benefits of sustainable living (from biodegradable materials to zero-waste packaging).

You can showcase behind-the-scenes footage of how your products are made, feature user-generated content of customers enjoying their eco-friendly purchases, and offer tips for a greener lifestyle to solidify your brand identity as a champion for the environment. See how this works?

3. Create Strategic Content for Maximum Earnings

Your audience is bombarded with content every time they swipe up. You can’t just be another video in their feed. To stand out and make money on TikTok, you need to be the reason they stop scrolling, watch, and engage. This means creating content that delivers value in a way that entertains, informs, and, most importantly, connects. This is where strategic content swiftly enters the picture.

The businesses that understand this are the ones that see their TikTok efforts translate into sales. They’re the ones who know that a well-crafted tutorial, a perfectly timed behind-the-scenes glimpse, or an expertly executed piece of trendjacking can rack up views and open wallets.

But let’s be clear. This isn’t about selling out or losing the essence of what makes TikTok, well, TikTok. It’s utilizing the platform’s unique culture and capabilities to present your brand in a way that resonates with the modern consumer. It’s the art of being clever, creative, and, yes, a bit cunning. It’s masterfully using every tool at your disposal to craft content that doesn’t just fit into the TikTok mold but breaks it in a way that benefits your bottom line.

And how can you achieve all this?

Let’s show you the way.

3.1. TikTok Trends Are the Way to Go

TikTok thrives on trends from viral challenges to popular sounds. When creating content for TikTok, you can’t ignore these gold nuggets. They’ll ultimately help you boost your visibility and make money on TikTok.

The art of leveraging TikTok trends wisely starts with discernment. Not every trend is a fit for every business. The key is to select those that resonate with your brand values and audience interests. This selective approach will ensure that when you do jump on a trend and do so smartly, it feels authentic to your followers. The goal is to enhance your audience’s connection to your brand rather than dilute it.

For instance, a local bookstore might find a natural fit in a trend that celebrates literary challenges, whereas a fitness studio could capitalize on a dance challenge to showcase their community’s energy and spirit.

Once you’ve identified a trend that aligns with your brand, the next step is to infuse it with your unique twist. This is where creativity takes center stage. You can’t just replicate a trend and call it a day; you must reimagine it in a way that highlights your products or services.

A coffee shop, for example, could take a popular lip-sync trend and adapt it to tell the story of their morning rush with employees and customers lip-syncing to a day-in-the-life narrative. This could showcase the shop’s vibrant atmosphere and menu items in an engaging and memorable way. Here is an excellent example of Dunkin’ Donuts using a viral TikTok sound to connect with their audience and drive sales in a unique way:

@dunkin Is it friday yet? ♬ Hey It’s Me – Official Sound Studio

But leveraging trends on TikTok isn’t just about what you create; it’s also about timing. The platform’s fast-paced nature means that timing is critical. Jumping on a trend while it’s on the rise maximizes visibility and engagement, whereas lagging behind can mean missing out on a prime opportunity to capture the audience’s attention.

Closely monitor TikTok’s Discover page and trending hashtags to stay ahead of the curve. This proactive approach will ensure that your content doesn’t just ride the trend but does so at the crest of its wave.

But the magic doesn’t end with hopping on trends at the right time. The real sorcery lies in how you engage with these trends to create a ripple effect far beyond the initial splash. This is where TikTok’s communal spirit shines brightest.

By inviting your followers to throw their hats into the ring (whether it’s through participating in a challenge using your products, sharing their unique takes on a trend, or simply tagging your brand), you’re fostering a community, turning passive viewers into active participants and, ultimately, brand ambassadors.

Take, for example, the way a beauty brand might leverage the #TikTokMadeMeBuyIt phenomenon. By jumping on this trend early, showcasing their products in action, and encouraging users to share their own experiences with the hashtag, they can capitalize on the trend’s momentum and crowdsource authenticity. It’s downright genius.

Or consider a local café that sees an uptick in a coffee-related challenge. By quickly creating their own unique take on the challenge, featuring their signature drink, and encouraging customers to participate in their version, they can tap into the trend’s popularity and drive foot traffic to their location. This is how you turn an online trend into real-world engagement. And that’s what TikTok is all about!

Work with a social media management company that can do all the heavy lifting for you. They’ll identify the top TikTok trends at the right time and help you strike while the iron is hot. Look into affordable social marketing to keep your budget intact while reaping all the benefits TikTok has to offer.

3.2. Showcase Your Products Creatively

Think of TikTok as your stage and your products as the stars of the show. The spotlight is on, the audience is waiting, and it’s your cue to dazzle. But how do you ensure that your products don’t just make an appearance but steal the show?

First off, let’s debunk a myth: product showcases on TikTok need to be anything but straightforward. The days of static images and dry descriptions are long gone. TikTok demands dynamism, creativity, and a touch of the unexpected. If you want to make money on TikTok, you must master the art of turning the mundane into the magical and transforming everyday products into objects of desire.

Think of a simple coffee mug. In a standard ad, it’s just a container for your morning brew. But in the TikTok universe, it’s the vessel for a mini-drama where the first sip turns a dreary morning into a musical extravaganza. Or perhaps it’s the main character in a comedy skit about “the quest for the perfect coffee.”

The point issimple: your product should be the key player in a narrative that resonates with your audience (whether it’s through humor, inspiration, or sheer ingenuity).

And this is where the magic of TikTok filters, effects, and music comes into play. These tools are your special effects department; they’re capable of transforming your product showcase into an engaging story that captivates your audience.

A makeup tutorial can become a transformative journey with just the right filter, a DIY tool can turn into a superhero gadget with the perfect sound effect, and a piece of jewelry can become a talisman in a mystical tale set to an enchanting soundtrack.

But let’s take it a step further. Why not make your audience the directors of their own experience with your product? Encourage them to create their own content using your products. This provides you with authentic material and deepens your audience’s connection with your brand. It’s a win-win: your followers get a platform to showcase their creativity and you get genuine endorsements that resonate with the TikTok community.

Fenty Beauty by Rihanna is an excellent example. The brand has mastered the art of using TikTok’s visual and audio elements to highlight the unique qualities of its products. Fenty Beauty often features tutorials that utilize the brand’s makeup in various creative ways, from everyday looks to more avant-garde appearances, demonstrating the versatility and quality of their products.

Want to follow suit? Approach your social media management company with an idea of the direction you want to head in. They’ll take the reins from there. However, in order for this to work, you must provide them with a comprehensive understanding of your products. This will help them brainstorm ideas to showcase your products creatively on TikTok.

3.3. Create Value-Driven Content

At its very core, value-driven content educates, entertains, or inspires. It’s the kind of content that people don’t just want to consume; they want to share it, talk about it, and engage with it.

For SMBs, this means delving deep into what makes your audience tick. What do they care about? What problems do they face that your products or services can solve? How can you make their day a little brighter, their lives a little easier, or their knowledge a bit wider?

One of the most straightforward ways to create value is through educational content. This could be a quick tutorial on how to use your product, tips related to your industry, or even a deep dive into the science or craftsmanship behind your offerings. The goal is to leave your audience feeling like they’ve learned something valuable that enriches their understanding or appreciation of your niche.

For example, a skincare brand might share bite-sized videos on the benefits of each ingredient in their products. Or a tech product could break down the technology behind their bestselling product (but make it sound cool and interesting instead of boring).

Entertainment is another powerful form of value (especially on a platform as dynamic as TikTok). But entertaining content doesn’t have to be disconnected from your brand’s core message or offerings. You must find creative ways to highlight your products or services while keeping your audience engaged. This is how you make money on TikTok!

3.4. Engage and Interact

First off, let’s get one thing straight. Engagement isn’t just about racking up likes and comments; it’s the art of fostering a genuine connection with your audience. This connection is what transforms viewers into followers, followers into fans, and fans into customers. You engage your audience by creating a community around your brand.

The secret sauce to boosting engagement on TikTok? Prompt participation. This could be as simple as ending your videos with a question that encourages viewers to comment with their thoughts or experiences. Or, take it up a notch by creating interactive content like polls, quizzes, or challenges that invite your audience to share their own content in response.

TikTok offers a plethora of features designed to foster interaction. We’re talking duets, stitches, live streams, and so much more. SMBs can leverage these features to showcase their products in a new light and directly engage with their audience. Host a live Q&A session to answer product-related questions, use stitches to react to customer testimonials, or encourage duets as a creative way for followers to engage with your content. These interactions will amplify your reach and build a sense of belonging among your audience. If you’ve been looking for organic ways to monetize TikTok, this is as organic as it gets.

4. Monetize Through Sponsored Content and Brand Partnerships

The journey to monetization on TikTok often starts with sponsored content. And no, we’re not talking about plastering your products in every video. Instead, you must learn how to weave your offerings into the fabric of what makes TikTok tick: creativity, authenticity, and engagement.

The magic of sponsored content lies in its ability to not feel like an ad. The most successful TikTok ads are those that viewers watch, share, and engage with without realizing they’re ads.

Creating this type of content requires a deep understanding of both your product and your audience. What aspects of your product can spark joy, solve a problem, or fulfill a need for your TikTok viewers? From there, you craft narratives or scenarios where your product naturally fits into the storyline. The goal is to engage the viewer so effectively that by the end of the video, they’re intrigued, invested, and inching closer to conversion.

Beyond sponsored content, brand partnerships on TikTok open the door to a wider audience and bring a layer of credibility and intrigue to your brand. The key here is alignment in values, content style, and brand ethos. A successful brand partnership feels effortless to the audience; it’s a natural merging of two brands’ worlds in a way that adds value and excitement to the viewer’s TikTok feed.

In order to negotiate and nurture these partnerships, you need a keen eye for potential synergies and a clear communication of goals, expectations, and metrics for success. The effort is well worth it. A well-matched brand partnership can catapult your brand into new audiences, engender trust through association, and create a buzz that transcends the sum of its parts.

5. eCommerce and Affiliate Marketing on TikTok

TikTok has ingeniously integrated eCommerce capabilities directly within the app. It provides businesses with the tools to seamlessly convert engagement into sales.

Through features like shoppable ads, product links in bios, and the more recent introduction of TikTok Shops (discussed earlier), the platform has blurred the line between content and commerce. For SMBs, this means the ability to showcase products in action, in real-time, to a global audience ready to swipe up and shop.

Imagine showcasing your latest product line through a series of engaging video stagged with direct links to purchase. It’s direct marketing, sales, and entertainment all rolled into one!

Affiliate marketing on TikTok takes the concept of word-of-mouth marketing and supercharges it. By partnering with TikTok creators and influencers, SMBs can tap into established audiences, leveraging the trust and rapport these influencers have built with their followers. It’s a mutually beneficial arrangement; influencers get to offer fresh content to their audience while businesses gain access to potential customers.

The key here is selecting the right partners whose content style, audience, and brand values align with your own. When an influencer’s recommendation comes across as genuine and authentic, their followers are more likely to take action, clicking through affiliate links and making purchases.

Success in TikTok eCommerce and affiliate marketing cannot come from just putting content out there. You must, instead, take the time to understand what works and why.

Think of TikTok’s analytics as your very own crystal ball that offers a glimpse into your audience’s hearts and minds. This isn’t a matter of counting likes or tallying up views. It’s the art of peeling back the layers to reveal the why behind the what.

Which videos make your audience’s hearts beat faster? What content prompts them to take the leap from viewer to customer? These insights are gold dust for small to medium-sized businesses looking to fine-tune their strategies.

Let’s break it down. You launch a series of videos. Through the lens of TikTok’s analytics, you watch as the numbers roll in: views, likes, shares, comments, and the holy grail: conversions. Like a detective at a crime scene, you’re looking for clues. Which video sparked the most joy? Which partnership brought in the cavalry of customers? This isn’t guesswork; it’s strategic detective work guided by data and driven by a desire to connect and convert.

Armed with these insights, you refine your approach. Perhaps it’s the humorous how-to video that becomes your blueprint for success. Or the heartfelt partnership with an influencer that resonates most with your audience. Each piece of data is a stepping stone towards a more effective TikTok strategy that propels your eCommerce and affiliate marketing efforts from mere shots in the dark to well-aimed arrows hitting the bullseye.

And so, the cycle continues: create, analyze, optimize, repeat. It’s a dynamic process that ensures your TikTok content remains relevant and revolutionary.

For SMBs venturing into the world of TikTok eCommerce and affiliate marketing, embracing this continuous cycle of learning and optimization is the blueprint for building a brand that turns the vast ocean of TikTok into your own personal goldmine.

6. The Power of TikTok Ads

The TikTok algorithm, often hailed as the wizard behind the curtain, operates with a level of sophistication and intuition that sets TikTok Ads apart in the online advertising arena.

This algorithm doesn’t just throw your ads into the vast ocean of content, hoping someone swims by. It’s more like a skilled matchmaker who meticulously pairs your ads with users who are primed and ready to engage with them.

This precision targeting is what transforms TikTok from a mere advertising platform into a powerful, in fact, ultra powerful, tool for driving tangible business results.

The TikTok community has a finely tuned radar for authenticity. Users flock to the platform for genuine connections and real stories instead of polished sales pitches. This calls for a creative strategy that roots your ads in the reality of the user experience.

Showcasing real people, genuine reactions and authentic stories related to your product can make your ad relatable and trustworthy. Let your brand’s personality shine through in a way that feels personal to viewers. They should feel like they’re engaging with a friend rather than a faceless corporation.

Fun is the currency of TikTok. It’s also the currency of TikTok Ads. And, therefore, the currency of making money on TikTok. It’s what users come seeking and what keeps them scrolling for hours. Embedding this element into your ads can transform them from mere interruptions to eagerly anticipated content. Incorporate music, dance, challenges, or playful narratives that align with trending themes on the platform. An ad that entertains or offers a fun challenge can quickly become part of TikTok’s cultural zeitgeist. It’ll earn shares, likes, and, importantly, a place in the audience’s heart.

Approaching TikTok Ads as an investment means recognizing the potential for a tangible return on every dollar spent. This return could manifest in various forms: increased brand awareness, a surge in website traffic, or direct sales conversions. The key is to set clear objectives for your ad campaigns (whether it’s boosting product sales, driving downloads for an app, or simply expanding your brand’s reach). With each campaign tailored to meet these objectives, your investment is poised to recoup its initial outlay and generate profit.

Investing in TikTok Ads also means continuously optimizing your creative content for better performance. The platform’s instant feedback loop, in the form of engagement metrics, allows you to understand what resonates with your audience. A/B testing different ad creatives, formats, and calls to action (CTAs) will give you data-driven insights into what works best. You’ll be able to allocate your budget more effectively towards high-performing ads.

The real measure of success for your TikTok ad investment is your return on investment (ROI). Calculating your ROI involves comparing the revenue generated from your ads against the cost of running them. TikTok’s analytics tools provide comprehensive data on campaign performance, including conversion rates, cost per click (CPC), and overall ad spend. By analyzing this data, you can refine your advertising strategy.

7. When Do You Start Getting Paid on TikTok?

Alright, you know how to make money on TikTok. But when do you start getting paid? Use this cheat sheet:

Working with social media management experts is an excellent way to track and optimize your payments. These professionals use sophisticated analytics and tracking systems to dissect your monetization streams with surgical precision. They can help you identify which content types yield the highest returns, which partnerships are most lucrative, and how to adjust your ad spend to achieve the best ROI.

Beyond mere number crunching, social marketing experts can also provide strategic guidance on content creation, audience engagement, and platform trends.

Let Global-marketing Inc. Show You the Way!

One thing’s pretty clear by now: mastering TikTok is no small feat. It’s a multifaceted task that requires a dash of creativity, a pinch of persistence, and a deep understanding of the platform’s nuances.

This is where the expertise of seasoned professionals can make all the difference.

At Global-marketing Inc., we’re your partner in crafting a TikTok strategy that resonates, engages, and converts. Our expertise in understanding and, quite simply, mastering the TikTok ecosystem helps us steer you towards success. Yes, you can make money on TikTok. And we don’t just show you how; we do all the legwork for you.

Are you ready to learn how to monetize TikTok? And are you ready to watch the $$$ come rolling in? Explore our social media management services to get started! Once you’re ready, sign up for a free consultation. Our experts are ready to make magic happen…TikTok style!