Where there’s an audience, there’s money to be made. TikTok stars seem to live lavish lives – but where is the money coming from? Let’s investigate…

TikTok is the latest popular social media platform to take the world by storm. It features a lot of flamboyant individuals doing whatever they can to entertain their audiences.

Like with all platforms and social structures, some are much more popular than others.

How To Make Money On TikTok + Tips To Grow Your AudiencePin

We know YouTubers make money and we know Instagram influencers make money – but now it seems TikTok personalities are making money, too.

It doesn’t take a genius to work out that advertising to an audience will generate income, but how exactly does the process work in relation to TikTok in particular?

How Do TikTok Stars Make Money?

When it comes to the exact revenue funnels from which the money these TikTok personalities make comes, there are three glaring answers: TikTok’s Creator Fund, Brand sponsors and product/merchandise sales.

These are the very same methods of making money that content creators use on all other platforms like YouTube, Instagram and Twitch.

In terms of brand sponsors, you’ll get more offers – and more lucrative offers – the larger your fan base is. The more views your TikToks get, the more money you’re going to make through sponsors. Generally speaking, anyway.

Products and merchandise sales follow the same trend. The bigger your audience, the more sales you’re likely going to make, as long as the quality is there.

And finally, what exactly is the TikTok Creator Fund?

What Is The TikTok Creator Fund?

The TikTok Creator Fund is the official funding system that has been set up by TikTok to reward creators for the content they are producing and sharing on their platform.

Like the other two funding sources, the amount of money you get from this fund heavily depends on the number of fans you have and your videos get.

The fund allows creators to work on their TikTok careers full-time and receive the compensation they deserve for doing so.

The fund was initially set up in 2020 with a budget of $200 million, however the platform has stated that they plan on increasing this up to $1 billion within just a few years. That’s a lot of money for TikTok stars to compete for.

The company promises that the entire fund won’t go out to just fashion vloggers, beauty tipsters and viral challenge-promoting, Instagram-style social media influencers. They say all original and authentic content will be rewarded by the system.

How To Build An Audience On TikTok

So, we’ve established that the money you make on TikTok is mostly influenced by the size of your audience.

If you’ve already put the effort into growing an audience elsewhere, then it can be fairly easy to transfer your fans over to a new platform. They’ll essentially just follow you.

If you have not yet built an audience and you’re hoping to do so on TikTok itself, there is a small list of things you can do:

  • Follow trends.
  • Post regular, consistent content.
  • Be original.
  • Engage with your audience.

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