How Brands and Creators Are Making Money on the Platform ?
In the span of a few years, TikTok has gone from an entertaining app full of short-form videos to becoming an e-commerce market. With TikTok Shop recently formed, TikTok has another revenue stream for its creators and brands. However, how much will you actually earn from TikTok Shop?
What Is TikTok Shop?
TikTok Shop as an e-commerce function that sits within the TikTok app, that enables users to purchase products online within the TikTok app. Users can buy directly from a featured creator by clicking on the product link within a live, video, or product showcase. TikTok Shop allows creators and brands the opportunity to bridge content into commerce.
How TikTok Shop Earnings Work?
For TikTok Shop, you can earn from:
• Affiliate Commissions: Creators Shop who promote e-commerce, products sold by other sellers, they will earn a percentage, commission if a viewer clicks to buy a product that is linked to their shop.
• Own Products: If you have your own brand from being a seller or creator, you can sell your own products, directly to your audience; this means creators have more profit, from selling something that they either created themselves, or sourced.
Live selling is trending. Creators and brands are now running live demo events of products that entice purchases with limited-time exclusive deals. This could potentially lead to sales in just minutes.
Brand Partnerships:
Creators can be paid by brands for creating lifestyle/product demonstration videos for TikTok Shop products. Creators traditionally received a flat fee as well as bonuses on top of commission.
How Much Can You Make?
Revenue on TikTok Shop can very by follower count, engagement rate, niche, and consistency of content- but here are some estimates:
Small creators (10K - 50K followers): $100-$1,000/month
Mid-tier influencers (50K - 500K followers): $1,000 - 10,000/month
Top creators (500K+ followers): $10,000 to $100,000+/month!
These figures take into account not just earnings, but also affiliate commissions and product sales, and sponsors as well! Some viral moments or high converting videos will drastically increase income but will only last for short bursts of time!
Ways to Increase Revenues for TikTok Shop
• Utilize High-Converting Products: Attempt to focus on popular, problem-solving, or stunning visual products that perform well as video content.
• Strong Call to Action: This might go without saying, but ensure that you explicitly tell users to click the link with strong call to actions, "shop now," "link in bio," etc.
• Be Authentic: People on TikTok love authentic. Make the video look unscripted to make it feel more relatable to your audience. Show the product as it is looks like in real life, tell your e-com story, and save your sales pitch for somewhere else.
• Try Live Selling: Try live-selling by going live to sell products, demo products and answer your seller's product questions. Try to go live regularly and provide a live-window pricing discount.
• Use Analytics: Use TikTok's analytics for studying what you perform well with content so that you can do more of that or make it better.
Final Thoughts
TikTok Shop is changing the game for consumers and sellers alike. If influencers and entrepreneurs can be creative, be consistent, and develop the right product mix, the platform can be a very lucrative source of income. There really has never been a better time to hop onto TikTok Shop and monetize your social karma as the social leveling continues to rise!
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