How does T-Tok make money? T-Tok business and revenue model

12-19 2022

If you want to make money through T-Tok, an emerging and popular platform, you must first understand the platform's business and revenue model!

Whether you are an individual or a brand side, if you want to bring a substantial income to your individual or your business through the overseas T-Tok platform, then first you must want to know "T-Tok." How do you make money?", here is a complete, in-depth breakdown of its three revenue streams and the different products and services it offers, as well as T-Tok's business model, year-over-year revenue, and how T-Tok works.

What is T-Tok and how does T-Tok work?

T-Tok, also known in China as D voice, is a video-sharing social networking app for creating personalized short videos known for dance, comedy, and lip-synced dubbing skits. It is owned by ByteDance, and the company is also owned by ByteDance In November 2017, it acquired lip-synced music app for up to $1 billion.

T-Tok since it was developed in 2016 and merged with in 2017 It caused a sensation in a viral way and achieved great success in the years that followed with its dance videos, comedy, and lip-synced voice over skits.

How does T-Tok make money?

With all the viral success and downloads of T-Tok, how does this translate into revenue for the company?

Put it in the context of the success of the past few years – the T-Tok app has been downloaded more than 2 billion times on the App Store and Google Play, and 8 worldwide Billion active users.

Here are three ways T-Tok can make money (2022):

T-Tok's revenue model makes money in three ways – in-app purchases, commissions, and T-Tok ads.

#1 in-app purchase

T-Tok Coins is an in-app virtual currency purchased with real money.

coins can be used to purchase virtual items, which T-Tok users refer to as "gifts" and "diamonds," which can then be sent to the T-Tok platform, T-Tok Live Stream The content creator on the Program, as a representation of appreciating their content.

As of January 2021, the dollar cost of the coin is


65 coins: $0.99 330 coins: 4.99 dollars 1321 coins: 19.99 dollars 3303 coins: 49.99 USD 6607 Coin : $99.99

Over the past few years, their revenue through in-app purchases has skyrocketed. According to Sensor Tower, in-app purchases increased from $1.5 million in May 2018 to 2019 $7.4 million in April, then increased tenfold to $78 million in May 2020.

Note: Between June 2018 and May 2020, T-Tok's in-app purchase revenue grew by 4,233%.

#2 50% commission from content creators

After a user purchases coins and gives them to the content creator virtually through the app, the content creator has the option to withdraw all virtual gifts given to them in exchange for actual earnings.

When a user withdraws funds, T-Tok takes a 50% cut of every dollar withdrawn from the app.

Note: T-Tok makes money on the front-end when users buy T-Tok coins, and on the backend when content creators go to withdraw money.

#3 T-Tok ad

In June 2020, TikTik released a project called T-Tok for Business's new advertising capabilities allow brands to advertise on the platform using In-feed ads, brand acquisition, and brand hashtag challenges.

There are already some big brands advertising on T-Tok's advertising platform, including Calvin Klein, Guess, NBA, Chipotle and other brands.

Although pricing is not shown on the T-Tok website, it has been reported that

: Prices start at $10 per CPM (cost per 1000 views) and require at least $500 per campaign partnerships, licensing deals, and royalties

In addition to understanding how T-Tok makes money—how do licensing deals and royalty spending cut into their revenue?

On November 2, 2020, T-Tok announced a licensing agreement with Sony Music. In recent months, they have also struck short-term deals with Universal Music Group and Warner Music Group.

Although T-Tok has not released details about these agreements, Rolling Stone reports that they allow T-Tok in some of their licensing agreements and the legal rights of its creators to use the aforementioned songs owned by artists and record labels in their short videos.

T-Tok royalty payment amount: (as of June 2019)

$0.030 per view

T-Tok's profit and revenue

With these three revenue streams: in-app purchases, 50% commissions, and T-Tok ads. This makes overseas T-Tok how much money in a fiscal year?

ByteDance reportedly made a profit of $3 billion from $17 billion in revenue in 2019. According to Bloomberg, their revenue increased from $7.4 billion in 2018 to 2019 $17 billion a year, more than doubled. – CNBC

In 2018, the global average revenue per user (ARPU) was $9.28.

What is T-Tok's business and revenue model?

T-Tok makes money through several revenue models that they combine within the company, which are

: an advertising-based business model

>  Business model for selling digital goods

commission-based business model

Obviously, the development trend and prospects of T-Tok overseas are very impressive. At present, this platform is a platform that cannot be ignored for personal overseas business and corporate overseas marketing.

If you want to quickly build and promote your brand overseas to get more revenue, overseas T-Tok is a good choice.

The above is the sharing of how the overseas T-Tok platform makes money and its business model.

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