How does TikTok make money?

Image Credit: Solen Feyissa

TikTok is a free app – so how do TikTok make money without charging users?

How does TikTok make money? TikTok makes revenue via a combination of ad revenue and selling in-app currency.

The phenomenally successful social media app may be free, but users are paying through exposure to branded advertising and optional in-app purchases.

TikTok Ads

TikTok mainly makes its money from in-app advertisements. TikTok for Business charges companies to run ads such as Brand Takeover ads, In-Feed advertisments, and Branded Hashtag Challenges.

In-Feed ads slot in between TikToks on the For You Page. Brand Takeovers put an ad straight at the top of the app.

Brands can pay for their own TikTok challenges complete with hashtag to appear on Discover feeds with Branded Hashtag Challenges.

Branded effects

Companies can pay to introduce their own lenses, AR filters and stickers for TikTok users to add to their videos.

TikTok Coins

TikTok also makes money with their in-app currency. Virtual TikTok Coins can be purchased and spent on the app by users, giving gifts to their favourite TikToker like a virtual tip.

How to make money on TikTok

Let’s talk about how you can make money on TikTok. If you’re a musician or producer who wants to sell your music, you can get your music on TikTok and earn money every time someone uses your song in a video on the app.

At RouteNote we upload your music to the TikTok sound library for free. You keep 85% of revenue earned from TikTok as well as 85% of royalties from plays on streaming services and stores.

Fancy being the soundtrack to the text viral TikTok? Upload your music with RouteNote today.

I write about music for RouteNote, sharing fun stuff, news, and tips and tricks for musicians and producers. Also a saxophonist and hater of marmalade.

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