TikTok’s trying out another new creator monetization option, with some users seeing a new ‘Tips’ tab in their TikTok settings.
As you can see in this example, posted by Jera Bean (and highlighted by Matt Navarra), some creators now have a Tips section in their account options, through which they can apply to receive tips from their audience.
As per TikTok’s description, to be eligible for Tips, users need to have at least 100k followers and their account needs to be in good standing, in line with TikTok’s platform rules and regulations.
TikTok will take no cut from creator tips, at least initially, with users who are approved then getting this new Tips button on their profile page (via Loochy TV)
Which could be a handy way to drive generate direct income from your biggest fans – we asked TikTok about the new option and it provided this statement:
“We’re always thinking about new ways to bring value to our community and enrich the TikTok experience.”
TikTok’s been working to add in more monetization options to incentivize users to keep posting, and remain competitive with YouTube and Instagram, which offer far more lucrative revenue share programs.
But those options, of course, are more aligned with long-form video, where they can insert mid and pre-roll ads, which can then be directly attributed to video views. Short-from video doesn’t provide the same potential in this respect, which means that TikTok needs to look at additional avenues to monetization, like tipping, direct funding, virtual gifts and eCommerce integrations.
TikTok’s also looking to help facilitate brand partnership deals as another revenue stream for creators, but eCommerce integration looks set to be the key focus, which it’s seen significant success with in the Chinese version of TikTok Douyin.
Tipping is another part of the bigger monetization framework, with users able to purchase in-app coins that they can then allocate either to tips, virtual gifts, or even creator shoutouts, which it also added earlier this year.
Given the breadth of options available, it’s little surprise to see TikTok also testing out direct tipping as another option, though it is fairly limited at the moment, and TikTok’s provided no specifics on the actual roll-out and availability as yet.
But you may notice it in testing, with TikTok also working to build in more in-app spending options, like virtual gifts and rewards, in order to establish new habitual behaviors, and help guide the next stage for the app.