How to Make Money with an App Like TikTok?

How to Make Money with an App Like TikTok – With the change in era, decentralization has made a significant place, and apps like TikTok have initially changed everyone’s life, whether it is for a user or businesses. 

Helping users showcase their talent through a short video, TikTok has taken the business world by storm. But have you ever stressed if developing such apps is beneficiary for the artist, is it even making it a way to generate revenue for startups in bulk? Let’s find out! 

Below in this post, we have shared a proper discussion about how TikTok generates huge revenue.  If you want to develop an app like TikTok, this blog will be a helpful guide to encourage your startup thoughts. 

Marketing Stats Of TikTok

Let’s start with the marketing trends that will give us an overview of how the TikTok app is being considered successful. 

• An estimated $16.1 billion was made by TikTok in 2023, a 67% increase over the previous year.
• By the end of 2024, TikTok should have 1.8 billion monthly active users, up from 1.5 billion in 2023.
• In China, more than 750 million people use TikTok every day.
• Over four billion downloads have been made to TikTok.

Source: Business Of Apps

TikTok’s Revenue Generation Ways-

Basically, the revenue streams of TikTok depend on these 4 main sections, as including:

Advertisements

Talking about the revenue generation method, this highly famous app generates great revenue from advertisements. It provides such ads:

• Users can like, comment on, and share in-feed advertisements with their followers when they see them in the news feed section.
• Top-view advertisements are automatically playing full-screen, audio-accompanied advertisements. 
• Full-screen advertisements known as “brand takeovers” appear in the app’s Discover or For You sections.
• Advertisers can post and promote fresh material as well as naturally curated content from other artists using spark advertisements.
• Playable advertising enables viewers to interact with the advertisement through games that fill the screen.
• Collection advertisements and carousel ads are some well-liked choices.

Branded hashtags and effects also aid in expanding a brand’s consumer base and aid in viral marketing.

The TikTok Pulse program helps creators (with over 100,000 followers) by allowing them to split the ad money with the platform. This has boosted TikTok’s CPM (cost-per-mile). Advertisers have the option to show their adverts with the top 4% of the platform’s content at the same time.

Commissions from Online Shops

Through TikTok’s Shop feature, users can immediately purchase the things displayed on the seller’s profile product showcase tab, live broadcasts, and in-feed movies. TikTok charges its merchants a commission based on a percentage of each sale made on the platform.

Active Subscription

On May 23, 2022, TikTok launched LIVE Subscription to provide its creators with more ways to be paid. This subscription can be purchased for $4.99, $24.99, or any other amount each month. TikTok also makes money from LIVE presents, a feature where creators get virtual presents from their fans and have to share the proceeds with the platform.

Royalties

With TikTok’s SoundOn, upcoming musicians can market, distribute, and own 100% of their music worldwide. For the first year, artists receive 100% of all royalties, however, later on, TikTok starts charging 10% of that overall royalties. 

While these are 4 categories TikTok uses to generate its revenue don’t analyze it’s all you need to know to generate revenue in bulk.

Let us tell you apart from these sections you must have some features that will ensure a high revenue generation in bulk. 

Must Have Feature to Build An App Like TikTok

Below we have discussed some features that TikTok uses to generate its revenue. Having these features is necessary in the development of app like TikTok if you want to stand out in the marketplace. 

• In-App Purchases

Strategy: TikTok offers users the ability to purchase virtual goods, such as stickers, filters, or premium effects, to enhance their content creation and interaction experience.

Revenue Generation: By providing a marketplace for users to buy these virtual items, TikTok accumulates revenue from microtransactions, especially if there’s a wide variety of appealing options, leading to bulk revenue from a high volume of purchases.

• Sponsored Content Creation

Strategy: TikTok partners with brands to create sponsored content in the form of challenges, trends, or branded videos, where influencers and users incorporate the brand into their content.

Revenue Generation: TikTok charges brands for these partnerships, leveraging its platform’s reach and engagement to create effective advertising campaigns. With multiple sponsored campaigns running concurrently, TikTok generates substantial revenue in bulk.

• Data Monetization

Strategy: TikTok anonymizes and aggregates user data to provide valuable insights to marketers and advertisers, helping them better target their campaigns.

Revenue Generation: By offering data analytics and advertising targeting services, TikTok charges fees to advertisers seeking to optimize their campaigns, leading to bulk revenue from data monetization services.

• Premium Creator Tools

Strategy: TikTok introduces advanced tools and features specifically designed for content creators, such as analytics dashboards, enhanced editing capabilities, or exclusive music libraries.

Revenue Generation: By offering these premium tools through subscription packages or one-time purchases, TikTok monetizes its creator ecosystem, attracting serious creators willing to pay for enhanced resources, and resulting in bulk revenue from subscriptions and purchases.

• Live Events and Ticket Sales

Strategy: TikTok hosts virtual live events, concerts, or meet-and-greets featuring popular creators and artists, and sells tickets for exclusive access.

Revenue Generation: By charging admission fees for these events and offering premium packages with exclusive perks, TikTok generates significant revenue from ticket sales, especially for highly anticipated events, resulting in bulk revenue from large-scale participation.

• Brand Partnerships and Integration

Strategy: TikTok integrates sponsored content seamlessly into the user experience through branded effects, filters, and stickers, providing value to both users and advertisers.

Revenue Generation: By partnering with brands for these integrated campaigns and charging for access to exclusive branded features, TikTok generates revenue in bulk while maintaining a cohesive user experience that resonates with its audience.

• Subscription-Based Content Channels

Strategy: TikTok introduces subscription-based content channels, where users pay a monthly fee for access to premium content from their favorite creators or exclusive channels curated by TikTok.

Revenue Generation: By offering a diverse range of subscription channels and enticing users with exclusive content and perks, TikTok establishes a recurring revenue stream, resulting in bulk revenue from subscriptions across the platform.

So, after reading these seven revenue generation strategies, you might have understood how TikTok has established its reputable name in the digital world. Once you include these features we assure you can diversify your income streams, capitalize on your engaged user base, and drive revenue in bulk through various monetization channels. 

But wait, you can enjoy these benefits only if you have your app developed by a highly expertise team of developers, like Richest Soft. 

Your Only Way To Develop TikTok Like App & Make Money 

But why choose Richestsoft? This is probably due to our commitment to work with great quality. With years of experience, we ensure that we provide effective results. We have the best and most dedicated team of mobile app developers who work for their clients and live for them. Without a doubt, Richestsoft has huge expertise in app development like TikTok. 

We distinguish ourselves by providing innovative solutions that offer a competitive business edge and flawless integration with the wide world of entertainment apps such as TikTok. We are committed to providing infinite results, and one way that sets us apart from the competition is that we include: 

• Our committed team of developers sets themselves apart by offering customers superior services.
• Our clients may always rely on our software development and project-based techniques.
• By selecting us, you may work with committed Android app developers who offer a range of engagement strategies to create premium custom mobile app development.
• Customers who wish to add more employees with the necessary talents for their company can benefit from our team expansion service.
• Because of their wealth of knowledge and experience, our app development team followed several procedures to guarantee a top-notch result.

Wrap up

Lastly, all we think about is developing an entertainment app like TikTok, which does not have to be more complicated after reading our post. However, remember, if you have decided to invest in building an app like TikTok, you must understand the importance of hiring the best mobile app development company in US. 

And getting in touch with Richestsoft you get the chance to develop a clone app with more efficiency and accuracy. We have a dedicated and responsible team of mobile app developers who are always ready to help you. So, contact us now if you want hundreds or millions of individuals to use your social app.