How TikTok Earns Money and How Users Can Earn

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TikTok, launched by the Chinese company ByteDance, has become one of the most popular social media platforms globally. Its short-form video format, engaging content, and viral trends attract billions of views daily. But have you ever wondered how TikTok earns money, and more importantly, how you can earn from TikTok and monitor your earnings?

Let’s break it down.

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TikTok’s business model is based on several revenue streams. Here’s how the company generates income:

TikTok’s business model is based on several revenue streams. Here’s how the company generates income:

1. Advertising (Main Revenue Stream)

Just like YouTube or Instagram, TikTok earns a large portion of its revenue through advertisements. It offers multiple advertising formats, including:

  • In-feed ads: These are short video ads that appear in the user’s feed.

  • Brand takeovers: Ads that appear when users first open the app.

  • TopView ads: Appear as the first in-feed post after a few seconds.

  • Branded hashtag challenges: Companies sponsor a hashtag challenge and pay TikTok to promote it.

  • Branded effects: Customized AR effects users can use in videos.

These ads are paid for by companies looking to promote their products or services to TikTok’s massive user base.

2. In-App Purchases – TikTok Coins

Users can purchase TikTok Coins with real money. These coins are then used to buy virtual gifts, which can be sent to content creators during their live streams.

TikTok takes a percentage of the revenue generated from gift-giving, making it a profitable feature for the platform.

3. E-Commerce and Shopping Integration

TikTok is increasingly integrating shopping into the app. Through TikTok Shop, creators can link products directly in their videos or live streams. TikTok earns a commission from each sale, often in partnership with affiliate marketing and brand collaborations.

PART 2: How Creators Earn on TikTok

TikTok allows creators to monetize their content in several ways. Here’s how you can earn on TikTok:

1. TikTok Creator Fund

TikTok pays eligible creators through the TikTok Creator Fund, a program that rewards content creators for their video views and engagement.

Eligibility Requirements:

  • Be at least 18 years old.

  • Have a minimum of 10,000 followers.

  • Have at least 100,000 video views in the last 30 days.

  • Post original content that complies with TikTok’s community guidelines.

The amount you earn depends on the number of views and engagement. Typically, creators earn $0.02 to $0.04 per 1,000 views.

2. TikTok LIVE Gifts and Diamonds

If you go live on TikTok, viewers can send you virtual gifts. These gifts are bought with TikTok Coins. You can convert the gifts into Diamonds, which you can exchange for real money.

  • 1 Diamond = roughly $0.005.

  • TikTok keeps 50% of the revenue from Diamonds.

3. TikTok Shop – Selling Products

You can sell your own products or promote affiliate products through TikTok Shop.

Example:

  • Promote a makeup product in a video.

  • Add the product link.

  • If someone buys through your link, you earn a commission.

4. Brand Sponsorships and Influencer Marketing

Brands may pay creators to promote their products or services. This is direct payment and often brings in the most money for top influencers.

A creator with 100K+ followers can charge $500–$5,000+ per sponsored post depending on the niche, engagement, and reach.

5. Affiliate Marketing

Even if you’re not using TikTok Shop, you can promote affiliate links in your bio or content. You earn a percentage from any sales made through your affiliate link.

6. Selling Services or Digital Products

Many creators earn money by promoting their skills:

  • Fitness trainers offer programs.

  • Coaches sell courses.

  • Artists sell prints or NFTs.

PART 3: How to Watch and Track Your TikTok Earnings

If you’re monetizing your TikTok account, you’ll want to monitor your earnings. Here’s how:

1. TikTok Creator Fund Earnings

To view your earnings from the Creator Fund:

Steps:

  1. Open the TikTok app.

  2. Tap on Profile > tap the three lines (☰) in the top right.

  3. Go to Creator Tools.

  4. Tap on Creator Fund.

  5. You’ll see a breakdown of daily earnings, total balance, and payment history.

You can transfer the money to your PayPal account once your balance reaches the minimum withdrawal limit (usually $10).

2. LIVE Gifts / Diamonds Earnings

To track your income from TikTok LIVE:

Steps:

  1. Go to Profile.

  2. Tap the three lines (☰) > select Balance.

  3. Tap LIVE Gifts or Income.

There, you’ll see:

  • Your Diamond balance.

  • Earnings history.

  • Withdrawal options.

Payouts are made via PayPal when you request a withdrawal.

3. TikTok Shop Earnings

If you’re using TikTok Shop:

Steps:

  1. Log in to your TikTok Shop Seller Center (via web).

  2. Go to the Finance or Earnings tab.

  3. Track:

    • Orders

    • Commissions

    • Pending withdrawals

    • Payment history

TikTok Shop often pays on a schedule, typically weekly or bi-weekly.

4. Third-Party Brand Deals

If you’re earning through brand deals or affiliate marketing, you’ll likely manage this externally through:

  • Email communication

  • Influencer platforms (e.g., Aspire, Collabstr)

  • Affiliate dashboards (e.g., Amazon, ClickBank)

You need to track your earnings manually or use tools like Excel or platforms such as Notion.

PART 4: Tips for Maximizing Your Earnings on TikTok

1. Grow Your Followers Organically

  • Use trending sounds.

  • Post consistently.

  • Engage with your audience.

2. Diversify Income Streams

Don’t rely on one method. Combine:

  • Creator Fund

  • LIVE gifts

  • TikTok Shop

  • Sponsorships

  • Affiliate links

3. Optimize Your Profile

Make your profile “brand-friendly”:

  • Add a bio with a call-to-action.

  • Link to other social platforms.

  • Include a linktree or Shopify store.

4. Niche Down

Creators in a specific niche (beauty, fitness, tech) often attract more sponsorship opportunities and higher-paying deals.

5. Stay Updated with TikTok Trends

Use trending audio and participate in challenges to increase visibility.

Conclusion

TikTok is not just an entertainment platform—it’s a money-making ecosystem for both the company and its users. While TikTok earns through advertising, in-app purchases, and e-commerce, users can make money through the Creator Fund, LIVE gifts, TikTok Shop, sponsorships, and more.

Tracking your earnings is easy within the app or through connected dashboards like PayPal and TikTok Shop. But remember: earning on TikTok takes strategy, creativity, and consistency.

Whether you’re just starting or already have a growing audience, TikTok offers powerful tools to turn your passion into profit.

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