Here’s How TikTok Actually Make Their Money

HOW DOES TIKTOK MAKE MONEY

The purpose of every entrepreneur is to make profit and that seems to be the target of the creator of the app called Tiktok. If you have come across a 15 seconds video with the trademark of TikTok on it, then you need to download the app to fully enjoy more of that. The app boasts of publicity, fun, entertainment and more to the extent that it was recognized recently as the “Most Valuable Startup Company”.

Who actually owns TikTok?

TikTok is owned by a Chinese Company, ByteDance, whose founder is a Chinese entrepreneur called Zhang Yiming. The app was created as far back as 2012 and is believed to worth about $80 million. Research shows that TikTok now has a user base of over 500 million users across the globe and in the United States alone, it is believed that there are over 100 million downloads on the app as at the time of writing this.

So how does TikTok make money? Here are some of the means by which TikTok owners make their money;

TikTok Advertisement

Just like most social media apps, TikTok allows advertisement on its platform. This is a means of promoting brands of clients who wish to advertise on its platform. This is done through in-feed video ads. So how does it really make money through this means? There are different models but they are better explained with instances.

• When you click on a specific ad
• When you perform a transaction through clicking a specific ad

TikTok In-App Purchase

This is another means by which TikTok generate revenue. When subscribers opt to buy coins in order to perform certain transactions, it raises revenue for TikTok. Research shows that in 2018 alone, TikTok users spent more than $40 million on in-app purchases alone.

TikTok Subscription

There are various subscription plans on TikTok that you can benefit from as a user. All the subscription plans cost cash and as such, when you subscribe, you increase the capital base of TikTok. Recently, TikTok launched a music streaming service which has been the rave and the platform also gives users the opportunity to share their playlists with other users.