“Crazy Rich Teens” – The Secret to Teenagers’ Financial Success on TikTok
We seem to be living in strange times. In their youth, millennials filled their wallets with part-time jobs like delivering the newspaper, walking the neighbour’s dog or checking out the cash register at the local supermarket. Today’s teenagers no longer have to mow the family lawn during the summer vacation, they become millionaires, posting creative content, and shaping their careers as TikTok influencers.
But what’s the magic behind making TikTok the number one source of income for Gen Z? Why do young people and brands use this platform so much for their marketing purposes?
Let’s dig into the secret of the crazy rich teens on TikTok.
The formula behind TikTok’s wealthy teenagers
Charli D’Amelio, Addison Rae, Loren Gray – teenagers who got rich overnight are the hottest topic in the social media and influencer world. In 2020, Forbes covered the salaries of the most successful influencers and estimated that Addison Rae made about $ 5 million on TikTok. Charli, the second-tallest TikTok star, made around $ 4 million from 2019 to 2020, and Loren made about $ 2.6 million in just one year.
What looks like a wizard’s job becoming a millionaire on TikTok is simply part of a long-term trend that is forming on the platform. More and more young teenagers and Gen Z-lers are using the platform to earn additional income. They sell products, collaborate with brands or give their followers helpful lifestyle tips. Additionally, with the growing interest from brands and platforms like Shopify to buy directly from the application, TikTok is slowly becoming the number one social media platform for YouTubers.
While some fear the TikTok bubble may burst anytime soon, its nature will make it not just a fad, but the next big digital marketplace of the world’s youngest generation.
Popularity of TikTok influencers with brands and sponsors
In 2014, TikTok was still called Musical.ly, a lip-sync video platform, and most of its users were super young teenagers. Young teenagers built their audience on this app, and when the app launched as TikTok, they already knew how to take advantage of the algorithm.
Today, more than 41% of the platform’s users are between 16 and 24 years old. The demographic composition of the audience makes TikTok particularly attractive as a marketing tool. Where else can brands reach an all-Gen Z audience?
Dunkin ‘Donuts is one of the most iconic brand examples of harnessing the power of Gen Z influencers. The coffee and donut shop teamed up with 17-year-old Charli D’Amelio to increase brand awareness and sales among her younger audiences. Charli D’Amelio fans would get a drink called “The Charli” in America’s hip coffee shop for some time.
Invisalign uses the same strategy. The orthodontic company reported a 35% sales boom, driven by social media influencers on TikTok. In the end, they simply advertise their products to the age group most interested in correcting their crooked teeth, of course, and make notable profits.
Brands like Dunkin ‘Donuts and Invisalign have understood the four fundamentals of TikTok:
1. An algorithm that enables users to go viral with engaging content in hours
2. Gen Z is the largest user group and will advance the global economy
3. The power of video content for marketing and self-marketing,
4. Growing digital eCommerce opportunities
How influencers can use TikTok as a self-marketing tool
The great thing about TikTok is that there isn’t just one way to get loyal followers.
First, users can use sponsorships and brand deals to generate revenue. Since the TikTok algorithm rates engagement, companies can benefit tremendously from investing lots of small budgets in micro-influencers. Brands like HiSmileTeeth and NerdyNuts transformed themselves from small businesses to multimillion dollar businesses by relying on the power of micro-influencer marketing.
Additionally, some influencers turn their followers into paying customers by selling them goods. Examples are teenagers with their beauty product line, a jewelry store or reading tips. The collaboration between TikTok and Shopify will allow content creators to monetize their content even further.
The platform also serves as a marketing channel for premium service descriptions behind a paywall on other platforms such as Patreon. It allows anyone to sell their content behind a paywall, e.g. For example, creating videos, performing music artists or giving tips on game development. Many influencers use TikTok to get attention and followers on Patreon.
Influencers can still use TikTok to generate buzz for their main sources of income. For example, many Twitch users attract followers on TikTok and encourage them to join their gaming streams. Finally, TikTok enables users to send out direct rewards if they like the content.
Earn money with TikTok as a content creator
TikTok is a great platform for building a loyal audience. The algorithm encourages individuals to build a community of dedicated followers.
The platform relies heavily on active community management. Most users respond to content with a video and post customized video content from others in their feed. The more interaction influencers use, the higher their engagement rates and the more likely it is to generate attention from brands and sponsors.
When jumping on TikTok, it’s important to know your target audience and see if they can provide the content that will primarily interest their audience. Content creators can easily talk about political issues, life hacks, lifestyle products, or even medical advice if they have authenticity in topics. However, you need to keep in mind that TikTok content works when it’s inspired and creative.
When it comes to brand relationships, you need to know that brands are looking for influencers who are a perfect fit. These fits vary depending on the industry and brand values. Let’s say an influencer wants to target beauty brands. It will be beneficial for this influencer to have a clear line of content, e.g. B. the support of natural and animal-free products. Only then can they speak authentically about these values and win sponsors.
After all, influencers need to price sponsored products well. When setting a price, two factors determine how much creators can charge a brand for sponsored content. First, the industry niche heavily dictates the cost of content collaborations. Prices can rise quickly, especially for rare finds such as technology and the financial industry.
Second, the price depends on the engagement rates of each piece of content. Users with loyal audiences and high average engagement rates may charge higher fees. After user Usim posted comedy content that was well received, it went from $ 150 per TikTok video to $ 750 after going viral overnight. To understand what different influencers from different industries are asking for cooperation, something like an influencer price calculator can help to gain insights.
Monetizing content creation: a growing trend
It is neither a coincidence nor a fad that more and more young people are using TikTok as a source of income. Even if not everyone has the ambition to become a millionaire, TikTok is one of the most promising social media platforms for monetizing content.
Both TikToker and brands can use the platform’s great potential to generate buzz taking into account a few tips. First, the platform is based on engagement, so it’s important to share content that encourages others to respond to content or promote it on a large scale. Second, it is important to take into account the values and interests of Generation Z and to share tailor-made content with this segment group. After all, it’s an excellent strategy for testing and seeing which audience arrives with what type of content and the type of video they prefer.
Those who use this knowledge to their advantage could soon be one of the new richest and most prominent TikTok stars. We wish you the best of luck at TikTok either way.