Mastering TikTok's profit model: In-depth analysis of TikTok's money-making strategy

Author: Sicily Choi

As a popular video social media platform in the world, TikTok is a profit channel that many content creators focus on. The first step must be to understand TikTok's profit model. This article mainly provides a clear guide for those who are eager to find ways to make money on TikTok, including how to deeply understand TikTok users, master the six major profit methods, and implement effective promotion and marketing strategies. Through these aspects, we will take you to achieve the introduction of TikTok marketing .


Gaining insights into TikTok users

Age distribution: TikTok users have a wide age range, but are mainly concentrated in the young group of 18-24 years old. 62% of users are under 30 years old and 32.5% of users are under 20 years old.

Gender ratio: There is little difference in the ratio of male and female users.

Geographic location: Users are spread all over the world, with Asia, North America and certain countries in Europe as the main markets.

Active time: This mainly depends on the target market, and different regions have different active times.


In addition to these basic data, behavioral analysis and preference analysis can also be performed on target TikTok users.

Behavioral analytics involves an in-depth study of users’ interaction patterns on TikTok, including what type of content they like, their commenting and sharing habits, and how long they stay on the platform.

Preference analysis focuses on specific content types that users like, such as dance, food, travel, or education. By analyzing user interaction data (such as likes, comments, and shares), the most popular content types and topics can be identified.


How to Leverage TikTok User Analytics to Supercharge Your Content Strategy

  • Customize content strategy based on user characteristics
  • Consider the user's active time to publish content
  • Adjust content topics and formats based on user preferences
  • Use a data-driven approach to testing and optimization


Six ways TikTok makes money

Native advertising revenue : brand partnerships and challenge sponsorships

TikTok offers brands a variety of ways to collaborate, including brand challenges and brand performance ads.

Branded challenges encourage users to generate relevant content by creating specific topics or challenges. These challenges are usually accompanied by customized music, tags or special effects to attract user participation.

Brand performance ads are ads displayed on the user's For You page, seamlessly integrated with the user's content stream. In these ways, TikTok helps brands increase exposure and generate advertising revenue.



TikTok live broadcast rewards : live broadcast interaction and revenue sharing

TikTok allows users to reward creators with virtual gifts during live broadcasts, which can be converted into real money. During the live broadcast, viewers can buy and send virtual gifts to show their support for TikTok content creators. TikTok will extract a certain percentage of the revenue, and the rest belongs to the creator.


TikTok Creator Fund : Join the Creator Fund to Earn Profits

The TikTok Creator Fund is a rewards program designed to support and reward outstanding creators on the platform. Eligible creators can apply to join the fund and receive income based on the number of views and user interactions of their videos. This fund encourages creators to continue to produce high-quality content.



Promote other social media and content platforms : cross-platform traffic conversion

Creators can also use TikTok's high traffic to promote their accounts or content on other social media and content platforms. By building a strong fan base on TikTok, creators can guide fans to other platforms to expand their private traffic . For example, creators can promote their own YouTube channels or Instagram accounts and realize profits on multiple platforms through advertising sharing, brand cooperation, etc.



TikTok Creator Marketplace : Collaborate with brands through the official marketplace

TikTok Creator Marketplace is an official platform for brands to work directly with certified creators. Here, brands can find creators suitable for their marketing activities and work with them to promote products or services. Creators earn revenue by working with brands, and TikTok will extract service fees from them.


Merchandise sales : Using TikTok to promote products and e-commerce features

TikTok is a platform that combines content marketing with e-commerce functions, allowing creators and brands to promote and sell products directly through videos. Content creators can add product links in videos to guide users to purchase. In addition, TikTok has also launched a direct in-app shopping function in some regions, and obtains transaction commissions from it.


How to Simplify TikTok Customer Communication with SaleSmartly

SaleSmartly is an omnichannel chat aggregation tool that integrates messages from different social media platforms into one interface, including TikTok’s private messages. Such integration is particularly important for brands and creators who use TikTok as a marketing and customer service channel, and can effectively improve communication efficiency.


Unified message management: SaleSmartly allows users to aggregate messages from social media platforms such as TikTok into one interface, avoiding the hassle of switching between different applications and ensuring that no important customer interactions are missed.

Customer data integration: SaleSmartly can collect and organize customer interaction data to help brands better understand customer needs and preferences, especially user behavior on TikTok, so as to provide more personalized services.

Team collaboration and dispatch: Within a team, SaleSmartly can help reasonably dispatch customer inquiries to ensure that every customer question can be answered promptly and professionally, especially during peak periods such as when user inquiries surge after a TikTok live broadcast.


common problem

How to balance creativity and commercial interests?

Balancing creativity and commercial interests on TikTok requires creators to consider the commercial potential of their content while maintaining its originality and appeal. Creators need to ensure that the integration of commercial information does not undermine the entertainment value of the content. For example, through native advertising and brand challenges, creators can subtly integrate brand information into creative content without affecting the user experience while achieving commercial goals.


How to allocate TikTok marketing budget properly?

Properly allocating TikTok marketing budgets requires evaluating the effectiveness of different profit channels and adjusting them according to the target audience and marketing goals. Brands and creators should monitor the return on advertising, including user engagement, conversion rate, and direct revenue generated.

Brands and creators need to set clear KPIs (key performance indicators), such as click-through rate of ads, depth of video viewing, frequency of user interaction, number of viewers of live broadcasts, and number of products sold through TikTok. These data can help them understand which types of content and promotion strategies can best arouse the interest of the target audience and promote purchases.

Share this Article
Last modified: 2024-07-04Powered by