How to Make Money on TikTok and Snapchat, for Creators

Social media users are a fickle bunch. One minute you’re popular, and the next you’re not. This is especially true if your userbase is of the younger set. And that’s the story of TikTok and Snapchat. Right now, TikTok is hot; Snapchat not so much. But both platforms pay creators and help creators be paid. They want the creators to continue creating the videos that keep users on their platforms. So, as a creator, it’s worth your time to understand both how to make money on TikTok and how to make money on Snapchat.

This article is a part of our How to Run a Creator Business series. Be sure to check out our article on the other content distribution platforms to see where else you can upload your short videos.

But let’s start with TikTok.

How to Make Money on TikTok

TikTok is probably the hottest social media platform right now. It attracts the younger crowd, which advertisers prize. And advertisers pay, both to the platform for running traditional ads and to creators for tailored, targeted advertising. So, a lot of creators are joining the platform.

TikTok specializes on short to mid-length videos. The maximum video limit is 10 minutes. So, like YouTube, its format is well-suited for videographers, gamers, and musicians. Writers and photographers probably have less use for TikTok.

There are many ways creators can make money on TikTok. Of course, TikTok creators are free to enter into deals with advertisers off the platform. We’ll discuss these deals in later articles in our How to Run a Creator Business series. For this article, we’ll go over how creators can make money from TikTok itself.

But, before you can make money on TikTok, you have to be in the Creator Next Program.

The TikTok Creator Next Program

The first step to making money on TikTok is to be in their Creator Next Program. Once you’re in, you can join money-making opportunities like the TikTok Creator Fund and the Creator Marketplace. You can also earn money from your viewers through Tips and Gifts. TikTok awards creators Diamonds based on the number of Gifts you have. Then, you can redeem Diamonds for cash.

To qualify for the Creator Next Program, you have to be 18 or older, meet minimum follower thresholds (which is different by region), have at least 1,000 video views in the last 30 days, and make at least 3 posts in the last 30 days.

The Creator Next Program is only for personal accounts. And the program is only available in the US, UK, France, Germany, Spain, or Italy. Canadian and Australian creators will soon be able to join.

Creators Can Make Money from TikTok Through Gifts

TikTok users can award Virtual Gifts to TikTok creators for making videos that they enjoyed watching. To receive a Gift, a creator must be 18 or older, have 100,000 followers, and have published a video in the last 30 days. The creator’s account also has to be over 30 days old.

TikTok uses the Gifts to evaluate the popularity of a particular video. Based on the Gifts, TikTok awards the creator Diamonds.

Creators can redeem Diamonds for cash. Rate varies by country, but it seems that the US rate is $0.05/Diamond. After you convert, TikTok takes a 50% commission.

You can’t withdraw the cash you earned from TikTok until you reach a threshold amount. The amount is different for every country, but it seems to be $100 if you’re in the US. You’re also limited to withdrawing $1,000 per day.

TikTok sends the money in USD to your PayPal account. If you wish to convert to another currency, PayPal can handle that for you.

Creators Can Also Make Money on TikTok from Tips

In addition to Virtual Gifts, you can also make money on TikTok from viewer Tips. A Tip can be $5, $10, $15, or a custom amount. The maximum tip a user can give at one time is $100. They can give up to $500 and up to 100 Tips a day.

To qualify for Tips, you have to apply. You have to have 100,000 followers, be 18 or older, and be in the US. Your account also can’t be a business account (Presumably, a Creator account would be OK).

You have to set up a Stripe account to handle payment processing. You get 100% of the Tips, minus Stripe’s payment processing fees. The money you earn goes directly from Stripe to you. TikTok isn’t involved.

You Can Make Money on TikTok Through the Creator Fund

In March of 2021, TikTok established the TikTok Creator Fund. The fund has $300M to be distributed to TikTok creators in 3 years.

To be eligible for the fund, you have to have at least 10,000 followers, have 100,000 views of your videos in the last 30 days, and be at least 18. Once you’re eligible, you have to apply and be approved before you can receive money.

TikTok awards creators based on views of your videos and user engagement. Funds are released daily.

The Creator Fund is only available in the US, UK, France, Germany, Spain, and Italy. But TikTok is working on adding more countries.

TikTok Connects Creators with Advertisers Through the Creator Marketplace

As of this writing, TikTok is probably the hottest platform for marketers to advertise their products or services. And TikTok is helping advertisers and creators find each other through its Creator Marketplace.

To join the Creator Marketplace, you have to have a Personal or Creator account. There are eligibility requirements based on age, number of followers, video content, and engagement. Once you meet the eligibility requirements, you can apply or TikTok might invite you to apply.

The Creator Marketplace is supposed to be a place that helps advertisers and creators meet each other. So, advertisers who have a campaign in mind can invite creators to do work, and creators who are willing to do work can look through open campaigns and apply.

The details of each marketing campaign depend on the project. You might be asked to create a new video or repurpose an existing video for the advertiser. You negotiate and agree to a price. Once you make the video and the advertiser approves it, you’ll be paid.

How to Make Money on Snapchat

TikTok and Snapchat share the same userbase—users between 13-34. In the race for viewers between the two, TikTok seems to be winning for now. Still, we understand Snapchat is fighting back. So, we think creators should keep their options open on both platforms. At the very least, creators should understand how to make money on Snapchat as well as TikTok.

Other than making deals off platform, there are three ways for creators to make money on Snapchat. With two of these ways, the money comes from Snapchat. With the third way, Snapchat acts as a go-between and introduces you to advertisers.

Having a Creator Account Can Help You See Your Snapchat User Analytics

When you set up your Snapchat account, be sure to upgrade it to a Creator Account when you qualify. Creator Accounts give you more analytics information about your viewer engagement. You can use this information to understand which of your videos are trending. Then, you can make more of the same type.

To qualify for a Creator Account, your account has to be at least 1 week old, have 100 subscribers, and have at least 1 friend that you’ve friended back.

Anyone Can Make Money on Snapchat Through Spotlight Challenges

The most direct way to make money on Snapchat is to submit videos to Spotlight Challenges.

Spotlight is the forum on Snapchat where users can view short videos. Anyone can share a video on Spotlight, but the video can’t contain affiliated marketing or endorsements.

A Spotlight Challenge is a competition of sorts. You can win prizes that usually range from $1,000-$25,000. A minimum prize is $250. You have to be 16 or older to enter, and challenges are not available in every country. Most of our readers are from the US, and Spotlight Challenges are definitely available here.

To find a Spotlight Challenge, you first go to the Spotlight Trending Page. There, you’ll find a link to the Spotlight Challenge Page. Each challenge has its own #topic, lens, sound, or Snap Tool requirements. You can make 3 entries per challenge. There’s also an entry time period, calculated based on the US Pacific Time Zone.

At the end of the challenge period, the top 50 entries based on views will be judged by a panel. The winners will be chosen based on originality and creativity, innovative use of Snap Tools, unique point of view, and entertainment value. Different challenges have different prize amounts. Each challenge will usually have 3-5 winners.

Snapchat Stars can Make Money on Snapchat by Earning Crystals

Snapchat creators can also make money on Snapchat through Crystals. But, to get Crystals, you first have to be a Snapchat Star.

A Snapchat Star is someone with a verified account on Snapchat. Snapchat decides when/if they’ll give you the Star status. Some of the criteria include:

• Size of your audience
• Whether you’ve created Stories for a public audience
• You are a real person or the account is of a group of people with a unique view
• Account is highly searched or culturally relevant
• You provide original, safe, and appropriate content

You can lose your Star status if you violate Snapchat’s rules.

Once you’re a Star, your viewers can send you Gifts for the Snaps that they like. Gifts are bought with Tokens, and Tokens are bought with money. You have to be 16 or older to receive Gifts.

You can convert Gifts to Crystals, and you can redeem Crystals for money. We couldn’t find the Crystals-to-USD conversion rate on Snapchat, but an internet search reveals that 1 Crystal is worth about $0.10.

Snapchat Connects Creators with Advertisers Through the Creator Marketplace

The Creator Marketplace on Snapchat works like creator marketplaces on other platforms. Snapchat acts as a go-between. They introduce Snapchat creators and advertisers to each other. You get to set your own rate for each project.

Right now, the Creator Marketplace is invite-only and only for top Snapchat creators. As Snapchat adds more advertisers to the forum, they’ll add more creators too.

How to Transfer Money You Earned to Your Outside Account

To get a payout from Snapchat, you have to have at least $100 USD in your account. When you transfer out, you can transfer to a bank account or a PayPal/Venmo account. The money may take 14 days or more to arrive.

You’ll have to pay a transfer fee, depending on the country where you live. In the US, the fee is $0.50. In other countries, it’s typically higher. The exact amount depends on the country you’re in. Here’s a list of the transaction fees.

Short Form Videos are Popular Now but Maybe Not Forever

These days, TikTok and Snapchat are the platforms most people think of when they want to view short videos. The short format is so popular that other big social media platforms like Instagram and YouTube are playing catch-up by playing copycat.

But you don’t have to look too far to see a cautionary tale of sudden success and quick decline. There used to be a platform called Vine. It went live in 2013, with endlessly looping 6-second-long videos. By the end of 2015, it had 200 million users. Less than a year later, it stopped all uploads and began a slow death. It was completely shut down in 2019.

So, if you’re a creator who focuses on the short format, don’t put all your eggs in one basket. Explore newer short video platforms like Triller and Huddles. Or make some longer content too.

Diversify.

That’s the secret to a longer lasting business.

Interested in starting and running a small business? Here’s the beginning of our step-by-step guide: What to do right after getting that great business idea.