TikTok has something new up their sleeve. As part of their ongoing push to incorporate better creator monetization options, they’re currently testing out what they call ‘Tips’. Some users report seeing what looks to be a new ‘Tips’ tab in their TikTok settings.
Based on the example posted by Jera Bean (and highlighted by Matt Navarra), certain TikTok creators now have a dedicated ‘Tips’ section in their account options, through which they can apply to receive Tips from their audience. Yes, you guessed it right, the new ‘Tips’ option is literally “tipping” TikTok creators, which can potentially drive revenues up, likened to how the same format has allowed Twitch to jump to $2.3 billion in revenue back in 2020.
The Catch
While absolutely enticing, TikTok has made it clear that there are specific eligibility requirements that must be met in order for the option to become available.For accounts to qualify, they must first have at least 100k followers. On top of this, their account must be in good standing and in line with TikTok’s rules and regulations.
TikTok states that it’ll take no cuts from creator tips (at least not initially), with approved users getting access to their new ‘Tips’ button on their profile page (credits to Loochy TV). Again, from Twitch’s example, such a monetization option is a good way to generate direct income straight from your audience. If you have “biggest fans”, then it only adds to potential profits. It’s not a form of cheating by the way, as what creators would make from this option are monetary exchanges for providing direct and immediate user-satisfaction through their content.
TikTok had this to say:
“We’re always thinking about new ways to bring value to our community and enrich the TikTok experience.”
TikTok’s been working to add more monetization options in order to keep up with its closest rivals, YouTube and Instagram, both of which offer significantly more lucrative revenue share programs. However, the success of YouTube and Instagram’s revenue systems are linked primarily to long-form video and mid and pre-roll ads, which are directly attributable to views. TikTok’s short-form video doesn’t bid too well with respect to the same format, emphasizing the need to look at other monetization avenues, including tipping, gifting, direct funding, and eCommerce integrations.
eCommerce, in particular, stands to be a key focus for the platform as it looks to replicate the success of Douyin, the Chinese version of TikTok.
The Wrap
Tipping is actually a part of a bigger monetization framework. Users are also able to purchase in-app coins which they can then allocate either to ‘Tips’, virtual gifts, or creator shoutouts. Though direct streaming is gradually becoming a popular incentive option, seeing it on TikTok is rather surprising, but not as surprising as you might have initially believed. Given TikTok’s layout, direct tipping is among the better choices that manages to really “sync” with the platform’s format and, as opposed to ads, better captures that ‘TikTok Feel’.
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