The process works through in-app currency and digital gift-giving, which can be converted into real cash.
Although TikTokers have multiple ways of making bank — including through advertising revenue and by promoting products — gifts are a direct way for fans to show some love for creators.
Here’s how the feature works, including the price of individual gifts and TikTok coins, and the amount that creators pocket.
What is TikTok gifting?
Sometimes a like or a comment just doesn’t cut it when you can’t stop watching a TikTok video or livestream.
For times like this, TikTok has created gifts as a way for users to reward their favourite creators for their content.
These gifts are essentially virtual items that look like animated emojis which, once purchased, can be exchanged in the comments section of a clip or livestream.
By doing this, you’re essentially sending the creator of that video a tip. When you send a gift, other TikTok users can see your username and the details of the gift that you sent.
Once a TikToker has enough gifts, they can cash them in for real money or use them to buy virtual items or perks of their own.
In 2019, TikTok updated its policy to state that only people aged 18 and over can purchase, send or receive gifts. Previously, users as young as 13 could purchase gifts and give them to those aged 16 and above.
How much do gifts cost on TikTok?
TikTok offers around a dozen virtual gifts that cost between five to 3,000 coins, or 7p to £42 based on the price of TikTok coins.
The latter can be bought directly through TikTok or via your phone’s app store in bundles. Coins range from 7p for five coins to £249 for 17,500 coins.
Of course, gifts aren’t limited to a one-time purchase. You can buy as many as you wish as long as you have enough coins in your account — and you think they’re worth spending on.
How much do creators earn from gifts on TikTok?
Gifts are the key factor that TikTok uses to determine how much to compensate creators for their videos.
In addition, the company also looks at the duration and frequency of the content they share.
Based on the popularity of their videos, TikTok awards creators “diamonds” that they can cash in.
Diamonds are worth 50 per cent of the value of coins, according to social media agency the Influencer Marketing Hub.
Therefore, if one of your followers sends you a gift worth 5,000 coins, that is equivalent to 2,500 diamonds. Each diamond is reportedly worth 5p, so 100 diamonds would equate to £50. However, TikTok retains 50 per cent of what you earn, so you’d be left with half that.
TikTok lets you withdraw between $1 to $1,000 (80p to £789) per day, depending on the payment method you use.
