How to Make Money on TikTok in 2024: A Step-by-Step Guide

MAKE MONEY - SIDE HUSTLES
Make money on TikTok by monetizing your account through sponsored content, merchandise sales, and more.
Updated Jan. 22, 2024
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TikTok creator talking in front of a camera phone

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TikTok, a platform that has exploded in popularity in recent years, isn’t only for sharing videos. You can learn how to make money on TikTok and turn this platform into a side gig you can do on your own time from anywhere with internet access.

Content creators and influencers can make extra cash from sponsored content, merchandise sales, brand partnerships, and more. Explore these strategies in depth and learn how to maximize your earnings through TikTok in this guide.

In this guide to making money on TikTok

Earning money on TikTok: Is it worth it?

Pros Cons
  • Provides a money-making method by interacting with followers in fun ways
  • Offers several methods for content monetization
  • Rewards engaging content, which may highlight creative creators
  • Earning a sizeable amount of income may require amassing a large following
  • Succeeding depends on an algorithm that may be unpredictable
Verdict: Making money on TikTok can be a good option if you like being active on social networks, have a knack for developing viral content, and enjoy engaging with followers regularly. However, maintaining a following requires consistent effort since there is also a lot of competition, and profit may be unstable.

What is TikTok?

TikTok is a social media platform built around sharing short-form videos. The platform was founded by a Chinese company, ByteDance, which first launched a similar service in 2016 under the name Douyin.

Two years later, ByteDance bought an app called Musical.ly to help enable expansion into the U.S. market and integrated it into Douyin (Douyin is still available for download in China). This helped create TikTok and turn it into a global sensation.

TikTok is extremely popular, with more than a billion users spread around 150 countries. Many of its users have amassed large numbers of followers and can earn money through paid partnerships, the TikTok Creator Fund, virtual gifts, and other means.

While you cannot invest in TikTok stock because it isn’t a public company, you can make cash on TikTok by becoming a video creator and embracing one of the different approaches available to monetize your account.

How to make money on TikTok

There are several possible ways to make money with TikTok, including earning cash from the TikTok Creator Fund, receiving gifts during LIVE videos, gaining sponsors, and directing traffic to your own product.

Join the TikTok Creator Fund

Pros Cons
  • Provides money rewards for video creators
  • May help TikTok influencers grow their audience
  • Encourages creating high-quality content
  • May be challenging to meet the requirements
  • May provide smaller rewards as competition within the fund increases

You must meet the eligibility requirements and apply to become a member of the TikTok Creator Fund program to make money online using this method.

To be eligible, you need to be at least 18 and reside in the United States, United Kingdom, Germany, Italy, France, or Spain. Your TikTok account should have at least:

  • 10,000 TikTok followers
  • 100,000 authentic video views in the last 30 days

If you meet these requirements, you can apply to the program. Once approved, you can earn money from eligible videos you post on the platform. The exact amount you earn will depend on various factors, including the number of views your videos receive.

The money you earn will appear on your dashboard within three days of receiving eligible views after you become a member of the Creator Fund and post videos. You will need to wait 30 days after the end of the month during which you earned money to withdraw your funds.

Keep in mind
The minimum withdrawal amount you can take out of the TikTok Creator Fund is $10.

Post LIVE videos and receive virtual gifts

Pros Cons
  • Offers a way to make extra cash with relatively easy requirements
  • Can bring more attention to your TikTok account
  • Provides a fun way of interacting with your followers
  • Requires a consistent schedule and effort
  • May offer varying income from one LIVE feed to the next

You can receive virtual gifts when you go LIVE on TikTok, which you can withdraw as real money.

To share LIVE videos and receive virtual gifts on TikTok, you will need a TikTok account that:

  • Has been active for at least 30 days
  • Has at least 1,000 followers

When you post a LIVE video, viewers can send gifts in real time. Interacting with your audience by answering their comments and responding to their requests may increase your chances of earning these virtual gifts. In addition, you can also use the gift feature to send them tokens of your appreciation.

You can redeem these gifts for Diamonds, which you can turn into money to withdraw. You can view the value of your gifts and your potential to earn Diamonds in your "Balance" tab on the TikTok app.

Keep in mind
You must be 18 or older to go LIVE, and the amount of money you earn depends on the number and value of the gifts you receive. TikTok may take a cut of the gift value before you receive the rest as income.

Gain sponsors who pay you to post videos

Pros Cons
  • Can provide you with clear agreements and direct payments
  • May help you reach a larger audience and increase your visibility
  • May enable further collaborations with other creators and brands
  • Creating sponsored content can be time-consuming
  • May present a risk to the identity of your message or brand

Acquiring sponsorships that pay you to post videos on TikTok is another way to monetize your content and grow your audience. There are no specific requirements here, but you can reach out to brands that fit your identity or message and offer to work with them to promote their product or service through your TikTok videos.

While there are no specific requirements, you can take a few steps to attract sponsors:

  1. Identify your target audience: Build your brand around the subjects that are most interesting to your target audience. This can help focus your efforts on establishing a core identity and loyal audience.
  2. Build a following: Sponsors are often more interested in working with creators and influencers with an engaged following. Focus on building your audience by consistently posting new content and interacting with your followers while staying true to your message and goals.
  3. Collaborate with other creators: Collaborating with other creators can help you reach a larger audience and increase your visibility on the platform. This can make you more attractive to sponsors.
  4. Prepare a sponsorship request: Write a document that outlines your audience demographics, engagement metrics, and past collaborations. This can help sponsors understand your value as a creator and make it easier for them to decide whether to work with you.

Attracting sponsors can be competitive and may take time. It's important to be patient and keep working on creating high-quality content and building your audience.

Keep in mind: You must enable the Branded Content toggle when you post a sponsored video. This will add an advertising disclosure to your video to comply with state or federal laws.

Use TikTok to bring attention to your products or services

Pros Cons
  • Offers a large user base that can engage with videos showcasing your product
  • Can grow organically or through paid advertising options
  • Access to the TikTok Shop feature makes it easy to reach your product
  • Comes with low diversity in the age groups you may reach
  • Depends on algorithms that can be unpredictable

You can use TikTok to do a form of influencer marketing for your own products or services. For example, you can drive traffic to your website, where you sell merchandise or offer certain services that may interest your audience.

The key is creating compelling and engaging content that resonates with your target audience. You should also include a clear prompt that mentions your website or online store.

You can also use the TikTok Shop feature, which allows you to add your products or links to your products on your TikTok profile. Additionally, TikTok allows you to buy paid advertising to reach a wider audience and acquire more traffic.

How much can you earn on TikTok?

The amount of money you can earn on TikTok varies dramatically and depends on factors like:

  • Number of followers
  • Content views
  • Brand deals or sponsorships
  • Audience engagement

Some of the platform’s top-paid celebrities earn a small fortune. For example, famous TikTokers Charli and Dixie D’Amelio netted $27.5 million in combined income in 2021.

An example of a Creator Fund payout

However, most people earn far less than this amount. The TikTok Creator Fund, for example, pays between $0.02 and $0.04 for every 1,000 views. You may need around 1 million views to receive between $20 and $40 from this source.

TikTok Creator Fund payout Required number of views
$0.02 to $0.04 1,000
$5 to $10 250,000
$20 to $40 1,000,000

Historically, TikTok didn’t share ad revenue with creators. However, a recently announced pilot program called Pulse will enable TikTok ads to run on the platform’s top 4% of videos. Video creators should receive a portion of the revenue earned.

How to withdraw your earnings

If you get paid directly through TikTok, such as through its creator program, you can request to withdraw your money using your Creator Fund dashboard.

TikTok supports withdrawals using PayPal, which you can connect to your bank account. There is a per-day limit on the amount you can withdraw and a $10 minimum withdrawal requirement. Once you request to take money out, TikTok should process the request within 72 hours.

Who can make money on TikTok?

When determining how to make money on TikTok, it's important to understand who can actually profit from this platform. The specific eligibility requirements can vary depending on the method you use to make money through your TikTok videos.

For example, if you want to earn money through the TikTok Creator Fund, you must:

  • Be at least 18 years old
  • Be a legal resident of the U.S.
  • Have at least 10,000 authentic followers
  • Have accumulated at least 100,000 authentic video views over the past month
  • Create original videos that comply with TikTok's community guidelines
  • Be part of the Creator Next Program

If you want to earn through LIVE gifts on TikTok, you must:

  • Be at least 18
  • Have at least 1,000 followers
  • Have an account that is at least 30 days old
  • Have a personal — not business — account
  • Be part of the Creator Next Program

Keep in mind
It’s important to review what you need to qualify for any program you plan to participate in since requirements can vary.

How to sign up for TikTok

Setting up a TikTok account is simple. Follow these steps:

  1. Download TikTok from Google Play or the App Store and open the app.


  1. Select "Sign Up" or create an account using an existing account on Facebook, Apple, Google, Twitter, or Instagram.


  1. Type in your username and password to authorize an existing account, or provide your phone number and email to make a new account.


Managing your TikTok business expenses

To get started on TikTok, you might want to invest in lights, a green screen, wardrobe updates, and more. A business credit card could help you manage your expenses. Here's a card we recommend:

Ink Business Unlimited® Credit Card

This card offers unlimited 1.5% cash back on every purchase, so you’re rewarded for every purchase. Its $0 annual fee makes it an affordable option, and its welcome offer allows you to earn $750 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening.

Another unique feature of this card is that it has a 0% intro APR for 12 months on purchases (then 18.49% - 24.49% Variable). Businesses and side hustles can be expensive to get up and running, and the intro APR can help you get started on the right foot (and you could earn the welcome offer for an extra boost).

Apply now for the Ink Business Unlimited® Credit Card

Find out more in our full Ink Business Unlimited credit card review.

FAQs about making money on TikTok

What are TikTok Coins?

TikTok Coins are a type of in-app currency TikTok users can buy in the TikTok app to give virtual gifts during LIVE TikTok streams. Each coin costs around a penny, though it can fluctuate and change depending on location. For example, you can buy 70 coins for $0.74 or 700 for $7.40.

How to qualify for the TikTok Creator Fund?

To qualify for the TikTok Creator Fund, you must:

  • Be a U.S. citizen who is at least 18 years old
  • Have at least 10,000 authentic followers
  • Create videos that comply with TikTok community standards
  • Have at least 100,000 video views in a 30-day period

How are TikTok gifts used?

TikTok gifts are used for showing appreciation to a video creator during a LIVE TikTok video stream. Viewers can buy gifts and give them during these LIVE streams, and content creators can collect them and use them to buy Diamonds. Creators can then redeem these Diamonds with TikTok for real cash.

Other side hustles to consider

Successful TikTok content creators can make money while having fun, too. But if making and sharing short videos doesn't sound like the right side hustle for you, consider the following options and explore our list of the best side hustles and ways to make $100 a day.

Neighbor.com

Neighbor.com is an online platform that lets homeowners and property owners rent out spare storage space, such as an unused basement, shed, or garage. You can earn passive income without too much effort by renting out this extra space.

Renters can search and browse through listings and communicate with space owners to make arrangements. Neighbor.com can be an easy way to add extra income to your personal finances.

Learn more in our Neighbor.com review.

Fiverr

Fiverr is an online marketplace where freelancers and small businesses offer various services, including graphic design, content creation, music production, and more. You can advertise your freelance business by setting up a profile that explains the services you provide and their costs. Then, match with potential buyers to perform the agreed-upon work and receive payment through the platform.

Find out more in our Fiverr review.

Author Details

Christy Rakoczy Christy Rakoczy has a Juris Doctorate from UCLA Law School with a focus in Business Law, and a Certificate in Business Marketing with an English Degree from The University of Rochester. As a full-time personal finance writer, she writes about all things money-related but her special areas of focus are credit cards, personal loans, student loans, mortgages, smart debt payoff strategies, and retirement and Social Security. Her work has been featured by USA Today, MSN Money, CNN Money and more, and you can learn more at her LinkedIn profile.

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