It was an invention born of short dance and comedy videos that teen kids could share — and somehow, it became the launchpad for internet fame. Many creators are laying down their quills and resigning to TikTok as the creative outlet they once knew, as a full-time job. Many top creators are making life-changing money by being sponsored by brands, selling merchandise, and other monetization strategies based on their large TikTok followings.
So how does a follower turn into a dollar? We break down exactly how the average people are making real money on TikTok by following the right strategy.
Cashing in on Sponsored Content
The holy grail for many top creators is landing brand sponsorship deals. Companies are flocking to sponsor popular TikTokers to promote their products or services. The right sponsorship arrangement can bring in anywhere from a few hundred to a few hundred thousand dollars per post.
Rates are based on TikTok followers, engagement, and video views. Someone with 500k followers and high engagement may earn $5,000 for a sponsored post. Meanwhile, megastars like Charli D’Amelio with 130 million followers can bring in up to $250,000 per #ad.
The best part is looking into the brands that you can fit with your field and the physique you’re supposed to appeal to your audience. A chef, comedian, or makeup artist will land different deals. However, fantastic opportunities are present throughout niches – it all entails constructing that engaged subscriber base brands want to promote to.
On the video side of sponsorship, things are most certainly more than slapping a product on your video and then slowly working your way over to #ad. However, brands work very closely with creators, and they thrive on doing creative campaigns that are engaging for the audience and are authentic. More sales for the company and more sponsorship deals for the creator are the result of this.
Turning Home Videos Into Cash Cows
TikTok has a built-in monetization program called the Creator Fund. Creators with at least 100k authentic followers and 10 million video views over the last 30 days can apply to the fund and start earning money from their views.
Payouts are based on region and engagement but commonly range from 2-4 cents per video view. While that may not seem like much, it adds up fast. Someone averaging 5 million views per month could earn $100k or more per year, simply from posting their usual videos.
TikTok also offers a Creator Marketplace, connecting brands with creators for paid partnerships based on their niche, engagement metrics, and asking rate. Marketplace deals tend to pay better than the Creator Fund, so it’s wise to apply once eligible.
Beyond these programs, creators are building their mini-media empires. They might promote their products like merch or ebooks, take on brand sponsorships outside of TikTok’s platforms, or leverage their audience to kickstart projects like books, songs, or other business ventures. Their TikTok popularity gives them a huge head start with built-in marketing and sales potential.
Turning Fame Into Fortune
Building a money-making TikTok account takes time, consistency, and understanding your niche. But for those able to build a large, engaged following, the opportunities are endless.
While scoring your first brand deal feels great, most creators emphasize keeping that pipeline of income diversified. Relying solely on sponsorships leaves you vulnerable to brand deal droughts. Combining sponsorships with Creator Fund earnings, merch sales, and any other monetization angles you can think of leads to long-term, sustainable income.
But money isn’t everything. The creators earning big on TikTok have a passion for what they do. Their audiences can feel that authenticity, which keeps them engaged over time.
Yes, you can get rich and famous on TikTok. But keeping it real along the way is the best path to long-term success.
The Keys to Unlocking TikTok Riches
TikTok fame leading to fortune is the Cinderella story of the creator economy. With billions of users and seemingly endless demand from brands, TikTok has become a launchpad for building an entire lifestyle business.
But sustainable success doesn’t happen overnight. Consistency, passion, and understanding of TikTok’s unique algorithms are key to building an audience and monetizing it.
Here are the step-by-step keys to actually making money from TikTok:
Choose Your Niche Carefully
TikTok is an incredibly competitive space covering every interest under the sun. The key is identifying and dominating a specific niche that you’re genuinely passionate about – not just chasing trends.
Consider your unique experiences and interests you can create valuable content around. Analyze categories that are popular yet don’t have an overwhelming amount of competition. Stand out by becoming THE authority in your niche.
Once you identify your niche, stick with it. Jumping between unrelated topics will only splinter your audience. Become known for a specific type of content to attract an engaged community.
Understand the TikTok Algorithm
TikTok’s For You feed algorithm is the secret sauce behind videos going viral. When first starting, learning how to play into trends and optimize content for the algorithm is key.
Pay attention to sound trends and hashtag challenges popular in your niche. Use trending sounds and effects to increase discoverability. Strategically use hashtags and captions to signal to the algorithm what your video is about.
Interact heavily with other top content in your niche by liking, commenting, and duetting. This signals TikTok to share your content with people interested in that topic.
The more you post using smart optimization tactics, the more data TikTok’s algorithm has to understand your content. As you build an audience, it will start to work more in your favor.
Be Consistent and Engaging
Posting 1 or 2 viral videos will give you a temporary boost, but won’t lead to long-term success. To build a sustainable career on TikTok, you need to show up consistently so both the algorithm and your new followers start expecting daily content.
Analyze when your niche is most active on TikTok, and aim to post at least once daily during those key hours. Stay engaged in the comments section with your followers – it’s key for keeping people coming back.
Pay attention to which types of videos get the most engagement, and double down creating more of that content. Give followers more of what they can’t get enough of.
TikTok is also focused heavily on trends and current events. Don’t just stick to evergreen content in your niche – jump into trending hashtag challenges and put your unique spin on new sounds. This keeps your content feeling fresh and exciting for existing followers.
Level Up Production Value
As your following grows into the hundreds of thousands, it’s time to level up your video quality. Production value matters, especially as you start approaching brands for sponsorships.
Invest in some simple video gear like ring lights, microphones, and editing software. Upgrade your equipment incrementally as your budget allows.
Work on shooting in appealing, consistent locations that reinforce your niche. For example, fashion creators want an aesthetic background showcasing their style.
Take inspiration from creators in your niche that are already killing it on TikTok. Analyze their video styles and production value as benchmarks.
Follow the 80/20 Rule
When working towards monetization, it’s easy to get sucked into promoting yourself across every platform imaginable. But most successful creators swear by the 80/20 rule when building their brand.
Spend 80% of your effort dominating on TikTok, since that’s where you’re building your audience and authority. Spend just 20% of your time cross-promoting your TikTok content on other platforms like Instagram and YouTube.
Overextending yourself early on leaves less time for creating the great content that helped you build an audience in the first place. Stay laser-focused on taking over TikTok before directing energy elsewhere.
Milestones for Monetization
Reaching certain followers and engagement milestones on TikTok unlocks new money-making opportunities. Here are the thresholds you should aim for:
- 100k Followers. Apply for the Creator Fund to start earning a few cents per video view
- 500k Followers. Qualify for the TikTok Creator Marketplace to connect with brands for sponsorships
- 1 Million Followers. Start getting approached directly by brands to promote products/services
- 10 Million Followers. Congrats, you’re now a celebrity! Expect to earn $100k+ per sponsorship
The more followers and engagement you build, the more potential avenues for generating revenue. But you need exciting content and a clear niche first and foremost. Numbers alone won’t pay the bills.
Conclusion: Should You Quit Your Day Job?
Earning a comfortable living from TikTok sponsorships, Creator Fund payments, and other monetization strategies sounds like a dream. But determining the right time to make a full-time leap into content creation is a delicate balancing act.
On one hand, juggling a regular job while building towards TikTok fame can burn you out quickly. It may take longer to grow when you don’t have as much time to create content.
But quitting your steady job too early is extremely risky if you don’t have considerable savings or income from TikTok yet. Budget carefully and have at least 6 months of expenses banked before leaping.
Analyze your niche, engagement metrics, and monetization projections to decide if supporting yourself full-time from TikTok income is realistic yet. Move cautiously and only quit when the numbers make sense.
