TikTok Monetization: Full Breakdown & Transcript

[00:00] Ah, earning money from TikTok. What a weird, mystical world that confuses pretty much everybody. Except for me, of course. But okay, in all honesty, TikTok has a confusing

[00:13] app system when it comes to earning money from GIFs, so I'm here to try my best to break it down for you. And before we get into the video, I'm going to need you to destroy that like button

[00:29] and subscribe if you haven't already. Hey, thank you. And because you gave something to me, I have something for you. Here you go. A gift for your eyeballs and your heart. We're going to start with

[00:42] the first person in this equation. The person who wants to send a gift on TikTok. You're watching a creator's live stream, you're loving their content, and you want to show them some support. Fabulous.

[00:54] I love it. In order to send a gift to someone, you need coins. TikTok coins are the in-app currency that you purchase with real green dollar bills. Now, you may be wondering, where do I purchase these TikTok coins?

[01:10] If you're on a TikTok app, and here on my profile, if you go to the three little bars in the top right and click on settings and privacy, you'll then see a little tab that says balance. If you click on that there, you'll see a nice pink button that says recharge.

[01:25] And by clicking on that, that is where you can go to purchase coins on TikTok. Or you can purchase them on your computer by going to TikTok.com slash coin. Now, I do want to note, apparently, buying coins on the desktop version is cheaper than buying them on the app.

[01:43] So I'm going to be using the desktop prices for this video. You can use coins three ways on TikTok. Number one, you can send GIFs on TikTok live, which is the most common, and think about this as leaving a tip to the creator Two you can send GIFs in the comment section of videos that that creator has posted So this isn during the live stream but it works exactly the same as live gifts You can go into

[02:09] the creator's comment section and donate them a gift. And three, you can buy a TikTok promotion. So this is going to be for your own content and promotions are useful if you want to boost one of

[02:21] your TikTok videos for a few days. The video will be promoted to a certain audience to get more engagement. Think like Instagram boosts or Facebook boosts, things like that. As a regular user, you

[02:33] also can't convert your coins to money. So if you buy them, you can't go and re-exchange them for money. TikTok coins are non-refundable. So once you buy them, they are in your account. They cannot be transferred for other users to use and they don't expire. Now the thing with TikTok coins that

[02:51] makes it a little tricky is they don't have a fixed value. Their value fluctuates based on the fluctuation of real currency. At the time of filming this video, one TikTok coin should be

[03:05] worth a little more than one cent. So 100 coins should be worth a little bit more than a dollar and a thousand coins should be worth a little bit more than ten dollars. Now all of these conversions are done in the U.S. dollar. I'm not positive on the exchange rate in other countries or regions,

[03:23] so I apologize for that. So all of that information, that's not too bad, not too confusing, right? But okay, unfortunately from here, it does get a little bit complicated, but speak with me,

[03:35] I got you. Whenever you buy gifts for a content creator on TikTok, they'll receive 50% of the total coin value of the gift in diamonds. Let me break this down for you. Let's say you send a gift

[03:50] of a thousand coins. If the gift is worth around 10 US dollars, the creator doesn't actually receive the thousand coins that you bought but in some magical shit show of a transformation they receive half the gift amount in diamonds which in this case would be worth about five dollars Whoever came up with

[04:10] this system was clearly high. So now let's talk about this from the creator side. Someone has sent you some gifts. So let's stick with our example here that we were using. A viewer has

[04:22] sent you a gift of 1,000 coins. Yay! You've received $5. No, wrong. You did receive $5 worth of diamonds, but when you go to turn those diamonds into real money that you can use in the real world,

[04:38] another 50% fee is applied to do all those conversions. So in reality, from a 1,000 coin gift, You're making like $2.50. Yikes, TikTok.

[04:51] Another way you can look at it as a creator is you'll earn about $1 for every 200 diamonds you receive. And let's review creators. When someone sends you a gift, you're going to receive half of that coin amount in diamonds.

[05:06] Just for kicks and giggles, let's look at the most expensive gift you can send to a creator on TikTok. Now, they do change now and then, but the current most expensive gift is the Holiday Universe for 41,999 coins.

[05:25] So, basically 42,000 coins. Jeez! To buy 42,000 coins, I'm going to go here into Customs because I can just type it in. 42,000 coins.

[05:39] You can see as a viewer, the person sending the gift, it's going to cost me $445 to purchase that amount of coins.

[05:51] Now, if we do math here and we split that in half, which is what the creator is going to receive, that is $222 for the creator. But then when we take out the other 50 to transform all of those diamonds into real money the creator is really only getting like from this Nice Once you received that money as a creator

[06:18] there are a few rules to withdraw that money. Number one, the minimum payout is $100. So you cannot withdraw anything less than $100, period. TikTok is putting their foot down. TikTok accepts

[06:32] your withdrawal request only if you have more than $100 in your TikTok account. If your content doesn't generate much revenue, you might want to wait a few days slash weeks or, you know, in some

[06:44] cases months until the money accumulates before making a withdrawal. And number two, the maximum daily limit is $1,000. You can only withdraw up to $1,000 from your TikTok account to your PayPal

[06:58] account per day. So if you have say $3,400 in your TikTok account, you have to withdraw the money over four days by withdrawing $1,000 each day for the first three, then withdraw the rest on the

[07:13] fourth day. That might be a little bit inconvenient, but those are the rules. You will connect your PayPal account to TikTok and that is where you will receive your money and note it may take the app up to 15 days to process your withdrawal request. Wow, I'm really selling this here,

[07:32] aren't I? So there you guys go. If you have any questions, please drop them down in the comment section. If you enjoyed the video, I want to see you destroy that like button and if you're new here, please consider subscribing. We have a lot of fun over here and if you guys are curious what

[07:48] trends TikTok predicts will absolutely blow up on the platform in 2023 then check out this video here it's awesome I did it myself thank you guys so much for watching I appreciate it and I will

[08:02] catch you on the next video bye dudes