How Does TikTok Monetisation Work?

Are dollar signs in your eyes yet? Let's face it, while many of us start on platforms like TikTok for the fun and creativity, the potential to earn can be a game-changer. 

And TikTok isn't shy about providing that platform. But how does one go from dancing in their living room to cashing in those digital rewards? 

There are various streams through which the pennies flow, each with its unique way of boosting your earnings as a social media influencer. Let's look at what some of them are, shall we?

TikTok Creator Fund: Your Ticket to Direct Earnings

TikTok's Creator Fund is a program designed to reward creators for their contributions to the platform. In the UK, this fund is part of Creator Next, which provides creators access to a network of brands, tips, and gifts. 

To qualify, you must be 18 years or older, have at least 10,000 followers, have accumulated 100,000 video views in the last 30 days, and have uploaded at least 3 videos in the last 30 days. 

Although the earnings may start small, with estimated payments of 2 to 4 cents for every 1,000 views, the potential to earn increases as you garner more views regularly through the Creator Next support.

Brand Partnerships and Sponsored Content

Brands are constantly on the lookout for influencers with a significant reach to promote their products. The more followers you have, the higher the likelihood of brands approaching you for partnerships. 

Earnings can vary greatly depending on your niche and following, but as a general guideline:

• Nano-influencers: £4.32-£21.60 per post
• Micro-influencers: £21.60-£107.90 per post
• Mid-tier influencers: £107.90-£1,079 per post
• Macro-influencers: £1,079-£2,157.90 per post
• Mega-influencers: £2,157.90+ per post

Selling Merchandise: Capitalising on Your Personal Brand

With a substantial following, you can also venture into selling your own merchandise via TikTok. Whether it's apparel, accessories, or any other branded merchandise, your TikTok platform can serve as a powerful channel to drive sales.

Affiliate Marketing: Earning Through Referrals

Affiliate marketing on TikTok involves promoting products for other brands and earning a commission for every sale made through your unique referral link. 

This method requires you to share and promote your affiliate link as much as possible to maximise earnings.

Receiving Gifts and Tips from Followers: Appreciation Translated to Earnings

TikTok has introduced a feature known as Live Gifts, allowing followers to tip creators during live sessions. These tips come in the form of TikTok Coins and TikTok Diamonds, which can be converted into cash.

Your followers can tip up to £86 per transaction and up to £431 per day. Promoting this feature during your live sessions could translate to a regular income stream.

Looking for an influencer accountant? Get in touch with Capture today

As a relatively new profession, there is limited specialist accounting support out there for influencers, but Capture is here to change that. We are passionate about providing helpful, relevant advice to social media professionals so that they don't pay too much tax and keep more of their hard-won earnings. Contact us today to get started!