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  • Meerelle Cruz

TikTok's Testing a New 'Tips' Option for Selected Creators

TikTok is experimenting with a new monetization option for creators, with some users noticing a new ‘Tips' page in their TikTok settings. Some creators now have a Tips area in their account choices, as seen in this example from Jera Bean (and noted by Matt Navarra), where they can apply to collect tips from their audience.


Users must have at least 100k followers and their accounts must be in good standing, according to TikTok's platform laws and regulations, to be eligible for Tips.


At least initially, TikTok will not receive a percentage from creator tips, with users who are approved receiving this new Tips button on their profile page (via Loochy TV) Which might be a useful approach to make direct revenue from your best followers — we enquired about the new option and received the following response from TikTok that they are constantly brainstorming new ways to add value to their community and improve the TikTok experience.


TikTok has been attempting to expand its monetization options to keep consumers motivated to keep posting and compete with YouTube and Instagram, which have significantly more lucrative revenue split systems. However, those choices are more aligned with long-form video, where they can include mid- and pre-roll advertisements that can then be directly ascribed to video views. Short-form video doesn't have the same monetization possibilities, so TikTok will have to look into other options such as tipping, direct funding, virtual gifts, and eCommerce interfaces.


TikTok is also seeking to help creators enable brand partnerships as a new revenue stream, although eCommerce integration appears to be the main focus, as it has been with the Chinese version of TikTok Douyin. Tipping is a component of the larger monetization system, with users being able to buy in-app coins that can be used for tips, virtual gifts, or even creator shoutouts, which it launched earlier this year.


Given the variety of alternatives available, it's no surprise that TikTok is also experimenting with direct tipping as a new option, though it's still in its early stages and TikTok hasn't released any details on when it will be accessible. However, you may see it in testing, as TikTok is looking to add more in-app purchasing alternatives, such as virtual gifts and awards, to help generate new habitual behaviors and drive the app's next stage.


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