EXPLAINER: How to make money on TikTok

With over 1.5 billion monthly active users as of 2025, TikTok has become a powerful space for creators, influencers, and businesses to not only grow their audiences but also generate income in a variety of ways.

The highest earners on TikTok are those who have gone beyond viral videos, they’ve built personal brands, diversified their income, and leveraged TikTok’s global reach to create lasting business empires.

One of the most direct ways to earn money on TikTok is through the TikTok Creator Fund, launched to reward users for their content based on engagement and views.

“TikTok is committed to rewarding creativity and equipping creators with the best tools to find their community, grow their careers and transform their passions into sustainable income streams,” said Boniswa Sidwaba, Head of Content Operations, Sub‑Saharan Africa.

To be eligible, creators typically need to meet certain criteria—such as having a minimum number of followers (usually 10,000), consistent video views, and adherence to TikTok’s community guidelines.

 “Our goal is to give back to creators who bring joy and information to the TikTok community every day,” the company said on its website.

While the Creator Fund is a good starting point, many creators note that earnings can vary widely based on factors such as video performance, audience location, and niche.

Perhaps the most lucrative method of making money on TikTok is through brand deals and sponsored content.

As a creator gains followers and influence, companies may pay them to promote products or services. These deals can range from a few hundred to thousands of dollars, depending on the creator’s reach and niche.

Brands are increasingly turning to TikTok for authentic storytelling.

Creators who understand their audience and maintain trust are uniquely positioned to benefit from sponsorship opportunities.

Many influencers use platforms like TikTok Creator Marketplace, which connects brands directly with suitable content creators.

Creators who go live on TikTok can earn money through virtual gifts, which are purchased by fans using TikTok Coins. These gifts can be converted into Diamonds, which can then be redeemed for real cash.

This method favours creators with a loyal fan base and high engagement during live sessions.

Engaging in Q&As, shoutouts, or exclusive performances during live streams can encourage viewers to send more gifts.

Creators can also earn money by promoting products and earning commissions on sales through affiliate links. TikTok now allows some users to place product links directly in their bios or videos, especially in regions where TikTok Shop is available.

Many creators use their TikTok following to promote their own products, such as merchandise, digital courses, art, or books. By leveraging the platform’s short-form video content to tell their story and connect with followers, entrepreneurs can drive traffic to external shops or websites.

Charli D’Amelio, once best known for her viral dance videos, has become one of TikTok’s richest stars.

With an empire that includes brand endorsements, her own reality show, product lines, and a podcast, Charli reportedly earns over $17 million  (Sh2.1 billion) per year.

Her sister, Dixie D’Amelio, also ranks high on the list, thanks to her music career and joint business ventures with Charli.

Khaby Lame, the most-followed person on TikTok as of 2025, has turned silent, comedic reaction videos into a global brand. His relatable content has earned him partnerships with major global companies, including fashion brands and tech firms.

Reports suggest Khaby earns up to $750,000 (Sh96.8 million) per sponsored post, with annual earnings crossing the $10 million (Sh1.3 billion) mark.

Another standout is Addison Rae, who turned TikTok fame into Hollywood opportunities. With a Netflix movie, beauty brand, and high-profile endorsements, Addison reportedly makes around $8–10 million (Sh1 billion-Sh1.3 billion )per year.

Similarly, Bella Poarch, who gained fame from a single lip-sync video that went massively viral, has leveraged her fame into a successful music career and lucrative brand deals, earning millions annually. 

TikTok is known for its wide variety of content — from dance challenges, comedy skits, and beauty tutorials to educational content, cooking videos, and trending sounds.

Its strength lies in its powerful algorithm, which quickly learns users’ preferences and serves them highly engaging and personalised content through its “For You” page.

The platform was developed by the Chinese tech company ByteDance and was launched internationally in September 2016 under the name Douyin in China.

In 2018, ByteDance merged TikTok with Musically, a U.S.-based lip-syncing app it had acquired, to create a single global platform under the TikTok brand. This merger helped TikTok gain a significant foothold in Western markets, particularly among teenagers and young adults.

Challenges, trends, and memes spread quickly across the app, often crossing over into mainstream media.

TikTok also benefited during the COVID-19 pandemic, when people turned to social media for entertainment and connection during lockdowns. Celebrities, influencers, and even brands have joined the platform, further boosting its popularity.

It is especially popular among Gen Z and Millennials, but its user base continues to diversify across age groups and regions.

The app has been downloaded more than 3 billion times, making it one of the most successful mobile apps in history. Its influence on music, pop culture, and even news consumption has made it a powerful force in the digital age.