How Does TikTok Make Money

How Does TikTok Make Money?

If you are one of those who get their life busy with the internet, then you might have heard of TikTok. It’s a short video app that has blown up everyone’s life online. Users can only post 15 seconds video clips on this platform, but these clips are doing wonders on the platform. The app is getting a high impact on teenagers. Currently, the platform is having more than 500 million users worldwide, and this makes ByteDance the world’s most valuable start-up. ByteDance is a Chinese company that owns TikTok. There are a lot of means by which TikTok makes money. Here we will let you know each and every detail about the TikTok monetary income and How Does TikTok Make Money ?

What is TikTok and Who Owns It?

TikTok was called previously. was a well-known short-structure (15 seconds) video streaming and sharing application, with more than 100 million clients, up until August 2018. The application permitted clients plenty of music and exchange alternatives, with which they could lip-sync and make amusing or engaging recordings. The application was generally famous for certain substance makers ascending to the lobby of distinction dependent on their connecting with the content on The clients shared recordings via online media stages like Instagram, further driving the application’s fame.

In any case, in August 2018, the application was taken over by a Chinese organization ByteDance and its clients were moved to TikTok. The entirety of the substance and records that were available on were consequently moved to the new TikTok application. So TikTok is a short-form, video-sharing application that permits clients to make and share 15-second recordings on any theme.

TikTok keeps a different application for the Chinese market, known as Duyin, which has more than 300 million dynamic month-to-month clients. The new application’s logo is a blend of the and Duyin logos. The TikTok application depends on a similar short-structure video idea however is a lot more extensive in degree and not at all like doesn’t just zero in on lip synchronizing to music. The TikTok application offers clients a wide determination of sounds and tunes scraps, alongside the alternative to add embellishments and channels. There is additionally a choice to straightforwardly add recordings made on your telephone.

TikTok added the responses highlight, which permits clients to record their responses to recordings and offers. TikTok has additionally added advanced prosperity include that cautions clients when they go through more than two hours on the application. The new application is being advanced as a video-sharing informal community. TikTok clients can make an assortment of recordings going from difficulties, dance recordings, sorcery stunts, and clever recordings. The key separating factor between and TikTok is that the last has a lot more extensive degree for video creation.

How Does TikTok Make Money ?

The question that how TikTok makes money is riding in the mind of all the users. To know this, we have to understand the business model of TikTok. TikTok brings in money through its publicizing stage, the TikTok Ads Manager. From that point, brands can commence their marking efforts over TikTok. While we don’t know without a doubt how much money TikTok makes. We realize that Bytedance, TikTok’s proprietor made as much as $17 billion every 2019.

In-App Purchases

All the apps that are listed in Google Play Store or App Store are in-app purchases. In-app purchases can be understood as the app that bound individuals to buy the product or subscribe or play a game. TikTok is getting revenue through in-house purchases. TikTok app provided the in-app purchase of coins. These coins can be seen from 100 to 10000. These coins can be gifted by the users to friends and other creators. The creators can also exchange the coins for digital gifts. In 2018, the TikTok users spent more than 3.5 million dollars on in-app purchases.

TikTok Ads

Just like YouTube, TikTok also makes available ads to promote the brands. By using the in-feed video ads, any small or big brands can promote their products. With the help of these ads, the products will be shown whenever TikTok will be opened. Getting more engagement from TikTok is good, but it will charge you a lot to show the ads. You can also have some cheaper options that will offer TikTok likes.

The pricing models of TikTok are as follows.

Cost Per Click – When any user clicks on the ads, the advertiser is charged in this kind of pricing model. Users will be not be expected to purchase or subscribe to the newsletter.

Cost Per View – It is also called cost per mile. In this pricing model, TikTok charges the advertisers for 1000 impressions on the advertisements.

Cost Per Action – This is considered the important pricing model of TikTok. In this model, the advertisers have to pay for a specific action that is performed by the ad. The action can be anything like installation, purchase, subscription, etc.

Paid Subscription Plans

TikTok also earns money using the subscription model also. The services offer paid subscription plans for music like apple music and Spotify as this app will be soon launching its music streaming service. With the help of this music subscription plan, the platform will be able to reach more audiences and following.


Fundraising can be the best option if your projects are in the initial stage. Fundraising can be understood as getting donations by requesting from businesses or any charity foundations. For TikTok, fundraising is also one of the very important methods to make money. As per research, TikTok has made up to 3 Billion dollars using the fundraising of many investors.

TikTok is executing different approaches to bring in cash, for example, in-app purchases, promotions, paid membership plans, gathering pledges, and that’s only the tip of the iceberg. Likewise, TikTok permits huge content makers to adapt their substance and create money from it. Considering long-haul accomplishments for content makers, TikTok can be a mutually advantageous technique.


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