On a platform with no direct monetization how TikTok influencers manage to make more than just a living? Does all this money come from fans' donations, selling merch, or brand partnerships?
Are you like many others wondering how to make money on TikTok? We reveal what the brands are ready to pay for sponsored posts, and why tools like TikTok Money Calculator come in handy not only for influencers but also brands.
With over 800 million active users on TikTok logging in every day to watch silly dance challenges and memes, TikTok has taken the world by surprise. While YouTube creators push hard to monetize views into real-world cash running ads, TikTok stars land six-figure sponsorship deals.
Because no fees for sponsored posts are set by the platform, all campaign charges negotiated between brands and influencers. But how much should influencers really get? And what the brands are looking for when negotiating the price of an influencer campaign?
What TikTok Money Calculator Is and How To Use It?
A brand new TikTok Money Calculator from FeedPixel is an engagement and earnings estimator that provides detailed reports on any TikTok account. It is a free online tool that estimates the overall profile engagement score and influencer earning potential based on certain metrics.
• The total number of followers and likes on account;
• The overall number of posts;
• Performance of the last 50 posts;
There is hardly another TikTok calculator that graphically displays engagement for each post so that users can see the dynamics. Aside from drawing the chart with the last 50 posts performance, you will find the most engaged, most viewed, commented, and shared videos on TikTok. This gives you insights into what your audience interests are.
Although the brands have a set budget for campaigns, knowing an account worth an influencer may ask for bigger commissions. But that’s not the only use of a TikTok calculator.
Emerging influencers who want to work with the agencies and brands are not only able to track each post engagement but get insights into the others earning potential.
Yet the more brands are dealing with TikTokers, the more they question whether it is a good investment. The number of account followers no longer is the sole metric for assessing the ROI of the campaign.
Although followers count still impacts the choice of influencers, the creator's engagement rate is what picks brands’ interest. In search of lucrative business deals, influencers often buy TikTok followers which represents no value for marketers since many of followers are disengaged. To detect inactive followers and uneven engagement, companies have to look at likes, shares, and comments distribution. In such cases, marketers often use third-party tools like the TikTok Money Calculator to get the data they need.
To use FeedPixel’s TikTok Money Calculator you simply provide a TikTok username and tap the“Calculate” button. No paid subscription plans or annoying ads.
How TikTok Engagement Earns Reputation and Money
Now as you know post engagement matters, you may be curious how much money brands pay influencers for a single campaign.
While the average engagement on Instagram is 3 - 4.7%, the average engagement on TikTok is about 2-3 times higher, at 12 - 13%. But is this engagement an all-time high?
While influencers with under 500 000 followers record not the highest engagement, they typically are preferred to TikTok celebrities. Despite a slightly lower engagement, micro influencers have a niche audience, create authentic content, and charge times less than big names.
This high TikTok engagement rate explains why F’real Food, a US milkshake brand pays $400-$450 per sponsored post. Alec Ledbetter, an associate consumer-marketing manager at F’real says that TikTok posts average at 25% engagement rate, compared to 1.6% for paid ads on other platforms.
But F’real Food is not the only brand collaborating with popular creators on TikTok.
The big-name labels like Chipotle, Walmart, TwoFaced, McDonalds, Wendy’s, and dozens of others are also seeking TikTokers to launch product campaigns. The regular fees for top-tier TikTok influencers kicking off hashtag challenges easily count a million.
Other TikTok creators like Greg Auerbach known as @gregtube, a talented video producer with 1.1 million followers on TikTok, charges a $500 flat fee “to cover video production cost. He also negotiates a rate per video views or downloads, as part of his earnings.
Cosette Rinab (@cosette) is yet another creator with 2.2 million followers on TikTok who landed partnerships with Bumble, Hollister, and Universal. Rinab shares that the average rate for a brand sponsorship on TikTok is between $1000 and $2000 per 100 000 views.
Negotiating a flat fee per sponsored post, or getting commissions per certain number of views a post receives, both ways as engagement grows so do influencer commissions and reputation. Since creators are left to decide how to charge brands for sponsorships, accurate estimation by TikTok Money Calculator is a must.
How TikTok Money Calculator Is Developed
Before running the formulas and coefficients, marketers and developers collected extensive data through APIs, public data, and analytics software. In 11 months nearly 1 million TikTok profiles were thoroughly reviewed for the number of posts, likes, comments, shares, and views.
Registering the number of likes, comments, and shares on each post, FeedPixel team obtained standard coefficients. Then, as the first 100 000 profiles on TikTok are analyzed by the software and engagement formula used, the results were tested.
From the survey of 15 000 TikTok users, TikTok Money Calculator proved to be 91% accurate*.
To determine the earning potential of an individual account, engagement and followers count, the two big factors of influencer success were examined.
First, about half a million profiles were split into 5 groups based on the number of followers. Then, we algorithmically calculated engagement range within each group to factor in both results in our earnings formula.
Although FeedPixel’s TikTok Money Calculator proved to determine influencer earnings with a 70% accuracy rating (as for 15 000 creators), those figures are just the estimates. As such, they serve to predict earnings from sponsored posts.
In reality, influencer rewards are negotiated between the creator and a certain brand.
- But the development of our TikTok Money Calculator won’t stop there. As our TikTok data grows influencer engagement and earnings will be updated.
Some Other Ways To Make Money Off TikTok
It’s clear that getting a paid partnership is likely to bring robust commissions, but is this the only way to make money off TikTok?
Apparently, not.
Popular creators blessed by a great number of loyal fans not only accept but trick people to send them donations in exchange for a phone number. But there is no physical money donated.
When a creator goes live, the followers may choose to buy in-app coins and send them to the creator to thank for fun content. Just like in Twitch live streams.
Collected coins can later be turned into diamonds, and then cashed on PayPal. While it seems an inherently simple and natural way to support a content creator, the payouts are not always generous. In reality, unless you go Live every day and get hundreds of coins from fans, donations won’t pay for your bills.
Another way you can make money on TikTok is through selling merch. But this comes in handy only if you count your followers in hundreds of thousands. Even then, the profits of designing and selling your merchandise do not always cover expenses. As many influencers share, followers are mostly not engaged with the promoted merch.
With uncommon donations and low interest in buying the merchandise, you have no doubts why TikTok influencers set their eyes on the brand campaigns.
How Brands Use TikTok Money Calculator
With more influencers looking for sponsorships, deciding which partnership would generate most views and revenue becomes harder for brands.
Even though TikTok Creator Marketplace matches brands and creators, not every account there could guarantee high campaign engagement. Oddly enough, it is quite common on TikTok to have one or two posts going viral while others barely gain a thousand views and reactions.
To spot accounts with not only a great deal of followers but consistent engagement, small business owners, marketers, and advertisers use TikTok Money Calculator.
Besides a general profile engagement rate, the tool displays the two graphs with the last 50 posts performance. The higher the changes within the posts, the more inconclusive campaign results might be. Brands should watch for the consistently high number of views, likes, comments, and shares across all uploads.
Using a TikTok calculator, a marketer can also monitor niche influencers to finally choose one for collaboration.
The Bottom Line
Whether you have already gained some followers and amassed hundreds of views, or just getting started on TikTok, tracking your engagement and earnings with TikTok Money Calculator is a good idea. After all, who knows when a brand may approach you, right?
Same if you are a marketer looking to launch an effective hashtag challenge on TikTok with a certain influencer. Checking on post engagement and estimated earnings of a creator helps you predict the campaign's potential. It will also suggest what a price tag of a partnership may look like.
Comment on your experience if you already tried FeedPixel’s new TikTok Money Calculator.
Top comments (5)
The money that comes out of TikTok can simply be calculated. I have a pretty large number of followers on TikTok; this is why I can tell you for sure. First, the number of views and followers is significant. To get viral, at first, I had to buy views and likes from popularitybazaar.com/tiktok-likes/. After that, I didn't need it anymore. The money is calculated according to the number of views and followers on each video, the number of views on past clips, and the overall number of posts. This is why it varies from one to another.
Thanks For sharing such an amazing article. But I have to find the solution of enable option of repost on tiktok. I don't know how to enable repost on tiktok , would you help me in this case to find the solution of it.
Your post is extremely helpful in understanding the potential to make money on TikTok. This article gave me valuable insights and practical tips on monetizing my TikTok account. Earning from TikTok and making your video viral, you can read the ultimate guide get TikTok hearts.
Great share, thanks for that
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