TikTok is introducing new ways for pages to monetize their presence on the platform via digital “gifts” and tips.
Notably, these tools are exclusive to individual creators or entrepreneurs through the Creator Next monetization suite, which is not available to brands on the platform.
In a way, this makes sense as the new monetization features are designed to be direct ways for other users to reward creators for sharing great content. Let’s talk about exactly what these new features are.
TikTok now allows users to send money directly to creators as a “tip”.
The feature is managed through Swipe and requires an account with that service to be eligible to receive tips.
Although creators will receive 100% of the value of the initial tip, TikTok will apply a service fee to generate revenue from this feature.
Signed-up profiles will include a new icon on their profile, which will allow users to send $5, $10, $15, or custom tips up to $100.
By default, others will be able to see when you send or receive a tip, unless you specifically choose to make your tip anonymous.
To prevent misuse, TikTok limits users to $500 total or up to 100 transactions per day.
TikTok Video Gifts
TikTok’s new Video Gifts blur the line between Reddit awards and its tipping system. It allows users to pay to reward content they love with specific gifts, which are shown to other viewers.
The big difference between this and something like “Reddit Gold” is that recipients can then exchange their rewards for actual money via a virtual currency called “diamonds”.
Interestingly, gifts come with some very unique benefits, including a boost in the platform’s algorithm:
As the announcement says:
“… a key metric that TikTok uses to assess the popularity of a video is the number of Gifts sent to a creator’s content.”
Are You Eligible?
Users interested in utilizing these monetization features must:
- Be 18+ years old
- Have at least 1,000 video views in the past 30 days
- Have at least 3 posts in the past 30 days
- Be in good standing regarding TikTok’s community guidelines
- Reside in the US, UK, Germany, France, Italy, or Spain
If your account meets these requirements, you will be able to opt-in to the Creator Next suite.