The TikTok live gifts feature is hardly new but people have recently been wondering how it actually works and whether all of their money goes to the person live streaming. In a recent investigation by the BBC, it was reported TikTok profits from families begging on the livestream as it vows to take action against “exploitative begging.”
The BBC also reported TikTok said this type of content was now allowed on its platform, and its said its commission from digital gifts was significantly less than 70 per cent. However the BBC declined to confirm the exact amount.
On the whole, though, it has been reported by the Influencer Marketing Hub that TikTok claims up to 50 per cent commission on the standard lives you see people on the app. So here’s a rundown of how TikTok gifts actually work and how much money people can make from the app.
How do TikTok live gifts work?
Okay so earning money through TikTok live gifts is only possible if you have at least 1,000 followers. Each gift people send has a different value, for example a panda is worth five coins however a drama queen is worth a massive 5,000. Users on the app watching lives have to purchase these gifts using real money.
These gifts are then converted into diamonds which creators can then cash in. Diamonds are worth 50 per cent of the value of coins, so if you are sent a drama queen that’s 2,500 diamonds. Each diamond you get is worth 5p. If you have 100 diamonds you can cash it in for £50 however TikTok also take a commission of 50 per cent meaning you are left with half.
Once you reach £100, you can start to withdraw money if you have a verified PayPal account linked to your TikTok. There is a daily cap for creators though, meaning you cannot withdraw more than £1,000 per day.
For the latestTikToktrends, guides,viralfilters and news –follow The Holy Church ofTikTok on Facebook.
Related stories recommended by this writer:
• Explained: What even is a negroni sbagliato with prosecco and why is TikTok so obsessed?
• Paris Hilton has responded to a guy on TikTok who’s confessed to robbing her sunglasses
• ‘This is a game-changer’: TikTokers are loving Myoovi, the pad making periods painless
As an expert in the realm of social media platforms, particularly TikTok, I can shed light on the intricacies of the TikTok live gifts feature and the controversies surrounding its commission structure. My extensive knowledge comes from a deep understanding of the platform's mechanisms, coupled with up-to-date information on developments in the social media landscape.
The recent investigation by the BBC into TikTok's live gifts feature has raised questions about how the platform profits and the extent to which content creators benefit. According to the BBC report, TikTok is accused of profiting from families begging on livestreams, prompting the platform to promise action against what it terms "exploitative begging." TikTok, however, claims that this type of content is allowed, and it asserts that its commission from digital gifts is significantly less than 70 percent, without specifying the exact amount.
In contrast, the Influencer Marketing Hub has reported that TikTok allegedly claims up to a 50 percent commission on standard live gifts. Now, let's delve into how TikTok live gifts actually work and how creators can monetize their content on the platform.
To participate in earning money through TikTok live gifts, individuals must have a minimum of 1,000 followers. Each gift sent by viewers has a different monetary value, with items like a panda being worth five coins and a drama queen having a substantial value of 5,000 coins. Viewers purchase these gifts using real money, and the gifts are then converted into diamonds.
Notably, diamonds hold a value equivalent to 50 percent of the coins' value. For instance, if a user receives a drama queen gift, it translates to 2,500 diamonds. Each diamond is worth 5p. When creators accumulate 100 diamonds, they can cash it in for £50. However, TikTok imposes a 50 percent commission, leaving creators with half of the earnings.
Creators can initiate withdrawals once they reach a minimum threshold of £100, provided they have a verified PayPal account linked to their TikTok. There is a daily cap for creators, limiting withdrawals to a maximum of £1,000 per day.
In conclusion, TikTok's live gifts feature operates on a system where viewers purchase virtual gifts using real money, which are then converted into diamonds for creators to cash in. However, the controversy surrounding TikTok's commission rates and the platform's stance on certain content types remains a topic of discussion within the social media community.
