When was money made

A Tiktok star reveals how much money she makes

The 23-year-old student Salina has been uploading videos to Tiktok for several years under the user name "Salinakilla". She currently has 1.9 million followers and should soon break the 2 million mark.

Thanks to her success on Tiktok, she's now making so much money that she can consider her account like a part-time job, Salina told Business Insider.

According to Salina, there are four ways Tiktok creators can make money: through sponsorship, merchandise, livestreams, and affiliate marketing.

Tiktok creators are becoming more and more popular because the short videos they post on the platform achieve wide reach. The creators are now looking for ways to monetize their reach.

In addition to established platforms such as Youtube and Instagram, Tiktok also made it onto the list of the five most popular free iPhone apps of the year. The platform of the Chinese company Bytedance is one of the hippest generation Z social media platforms and is often criticized.

The influencer tries to upload two to four videos a day

Salina, a 23-year-old college student (who doesn't want to reveal her last name publicly), started posting videos to her Tiktok account a few years ago while on a family vacation in Japan.

“It all happened very quickly,” Salina tells Business Insider. She owes her success above all to the “For You” area, in which users are recommended other Tiktok videos. “I got around 10,000 new followers every day.

Salina, who appears on Tiktok under the name "Salinakilla", now has more than 1.9 million subscribers on Tiktok. Her videos are all about makeup, dancing, lip syncing and comedy. She spends several hours a day with Tiktok and tries to upload between two and four videos a day. This increases the likelihood that your content will end up on the trending page, says Salina.

The opportunity to make money with Tiktok

In contrast to YouTube, influencers on Tiktok cannot directly earn money with advertising. This takes detours: According to Salina, you can make money with the platform with sponsorship, merchandise, live streams and affiliate marketing.

Thanks to her success at Tiktok, she can now treat her account as a part-time job. Salina has also built up a following on Instagram - around 165,000 users follow her there. In the future, she is planning a podcast and wants to concentrate more on her YouTube channel and her fashion collection.

“In the long term, I don't know if anyone wants to make four videos a day for the rest of their life,” says Salina. Tiktok can be a good tool to get an audience's attention and then to be successful with other platforms or plans.

There are four ways Tiktok creators can make money, according to Salina:

1. Sponsoring

Tiktok sponsorship usually takes the form of a video that is marked as “paid content”. But brands often also ask for several videos and work with different platforms, such as on YouTube or Instagram, says Salina.

Creators on Tiktok can get sponsorships through the Tiktok monetization team, which contacts users for this purpose, but also through a brand, an agency or a record label. For an official Tiktok campaign, such as the “Hashtag Challenge”, Tiktok sponsors the relevant users themselves.

Record companies - for example Universal Music, Sony Music or Warner Music - often support TikTok users when they want to increase the streaming numbers for a known song or make another song known again.

According to Salina, sponsorship on Titok can bring in anywhere from $ 100 to several thousand dollars. The number of followers, fans or likes an influencer has on Tiktok also plays a role.

Several Instagram influencers told Business Insider that brands typically pay around $ 100 per 10,000 followers for a sponsored post on the platform. However, brands are increasingly paying attention to other factors.

In the still relatively new Tiktok ecosystem, the tariffs are more complicated and sponsoring, measured by the number of followers, is generally less lucrative, says Salina.

“It's not as black and white as many think,” says Salina. "You don't get a certain amount for 100,000 views."

Sometimes it happens that lesser-known artists want to put a song in their video for around $ 200 in the hope that the video could go viral.

David White, senior influencer manager at recruiting company Whalar Stars, says the price factors for a Tiktok campaign are typically viewership, licenses, brand exclusivity and campaign goals. A record label's song placement is much cheaper than official brand sponsorship.

According to Salina, many brands send influencers free products in exchange for a shoutout or a product mention.

2. Merchandise

Many influencers on Instagram or Youtube make money by selling merchandise. "Some users sell merchandise as soon as they have 10,000 followers," says Salina, referring to Tiktok. However, she would rather offer a fashion line: "I don't just want to put my name on a T-shirt."

3. Live streaming

Tiktok users can also make live streams with their followers on the platform. Meanwhile, they can give away virtual “gifts” for a corresponding number of so-called “coins” to the live streamer. 100 coins are available for about 1.09 euros.

Viewers can donate gifts at the following levels: “Panda” (five coins), “Italian Hand” (five coins), “Love Bang” (25 coins), “Sun Cream” (50 coins), “Rainbow Puke” (100 coins) ), "Concert" (500 Coins), "I'm Very Rich" (1,000 Coins) and "Drama Queen" (5,000 Coins).

“You get in touch with your fans and it's the fastest way to make money,” says Salina. “On average, I make between $ 20 and $ 50 per livestream. But sometimes it can be more than 100. "

"However, Tiktok can take around half the money I make," says Salina. "I'm not sure how much because there is no exact equation that converts coins."

The system is intentionally inaccurate. Tiktok users buy “coins” with money, which in turn are used to buy virtual “gifts”. If a live streamer receives these "gifts", they are converted into "diamonds". These "diamonds" are then converted into money and paid out to the influencer via PayPal.

The conversion rate from “diamonds” to real money is “occasionally determined by Bytedance with absolute discretion”, according to the company.

4. Affiliate Marketing

Just recently, Tiktok announced that the company was testing a new feature with which some users could directly link online shops in their profile description or in posts. If users click on these links, influencers can receive a commission with the help of these so-called affiliate links.

Also read: Zuckerberg considers Tiktok to be a danger to democracy - and does not mention that he wanted to buy its forerunner

Evan Asano, managing director and founder of influencer marketing platform Mediakix, told Business Insider that this move could make a big difference in how customers could be involved by platforms like Instagram. The option to place an external link could promote affiliate marketing.

Salina says she has used some affiliate links on other platforms, but not through Tiktok yet. They usually get a commission of five to ten percent per sale.

This article was translated from English by Jonas Lotz. You can find the original article here.