investing in tiktok

Investing in TikTok Channels, Is It Worth It?

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Our ‘in and out’ summary of whether investing in TikTok channels is worth it:

  • Making money on TikTok is easier than ever, you just need to know how to create content that pulls in the views.
  • There are many different ways to monetise a TikTok following, so you can pick one (or more) that makes sense for you and your audience.
  • Our pros of investing into TikTok channels are: unlimited earning potential, make money doing what you love & it’s easy to outsource when the money comes in.
  • Our cons of investing into TikTok channels are: can take some time to earn significant money, a lot of work goes into starting it & you have to constantly adapt.
  • Overall, TikTok is a good investment in this day and age. Spend your money wisely and you can get returns akin to a small to medium sized business.

TikTok, in 2024 specifically, is earning a lot of people a lot of money. But after all the work that goes into doing it, is it worth investing in this for another income stream?

We’ll go through the different ways you can make money on TikTok, the pros and cons to using TikTok as passive income and our overall thoughts on the topic.

After helping a lot of clients increase their revenue through TikTok through our TikTok growth services, and teaching people to grow their own revenue through TikTok with our text stories course, we have a unique insight on how it all really works.

What does ‘investing in TikTok channels’ really mean?

‘Investing’ into TikTok can mean different things depending on who you are and what your focus is.

If you’re a business, it means creating video content, then investing in TikTok means either paying a company to manage and grow your account (cough cough, we offer organic TikTok growth services), or hire someone internally to do this for you. Or, if you’re a small company, investing your own time to this cause.

If you’re a creator, it can mean getting someone to cut down your content on YouTube, for example, and edit clips into TikTok worthy videos and growing your channel. We find that quite a lot of creators are going down this route at the moment.

Finally, if you’re just someone looking to create a portfolio of profitable channels as another income stream, then it means investing money up front for someone to completely create and run the account.

However you put it, you’re either sacrificing your money or your time with the intent of generating even more money (and the highest ROI possible), in a reasonably short time frame.

Who do we suggest invests in TikTok?

As a business who profits by helping others profit on TikTok, you’d think that we’d say everyone should invest in it. But that definitely isn’t the case.

You need views to generate significant money on TikTok. So, if you’re a company operating in a really niche industry, or a creator that sees great success on slow, long form content, then TikTok probably isn’t for you.

How can you turn your views into money in your pocket?

There are quite a few ways you can make money on TikTok. However, the main way is to join TikToks creator fund.

This is TikToks way of rewarding people who make a real effort on the platform, and pay them a certain dollar amount based on how many views their account generates.

Apart from this, TikTok allows you to sell products in the TikTok shop (earning a commission every time you do), which is great for creators who make content in an industry with a lot of products.

Outside of TikTok’s own tools, you can monetise your views like you would on other platforms, by promoting products and services and providing your audience clear instructions on how to navigate to them from your videos.

How much can you actually make?

Yes I know, this question is basically ‘how longs a piece of string?’, as the earning potential is theoretically limitless on the platform.

However, I think it’s important to discuss, because if you’re reading this article you’re probably thinking about putting money into TikTok and you want to feel reassured that you’re going to make your money back, along with plenty of profit.

If we’re looking at views alone, for an account getting 10million views a month, you can expect to earn anything from £1,000 to £5,000 through the creator fund. This is entirely dependant on your rpm (revenue per 1,000 views, a figure TikTok assigns to your channel).

The 10 million mark is definitely something to aim for, as that’s when you start seeing significant returns.

With a lot of clients we work with, who monetise their channels in different ways, a realistic figure is that you can expect to earn £5,000-£8,000 per month consistently after the first year if you’re really doing the whole thing correctly.

For businesses, this really depends on how much you’re charging for your products and services. Think about that 10 million view a month figure (we have a case study showing how we did that ourselves). Even if the conversion rate is tiny, that can bring in a LOT of business.

Our pros to investing into TikTok

There are a couple of very attractive pros to TikTok that has lead to a lot of people investing their time and money in it. Here are a few of our favourites.

Unlimited earning potential

Okay, when I say unlimited I obviously don’t mean a channel is going to make you a billion pounds a year. However, it really is unlimited in a realistic sense.

These days it’s absolutely achievable to get an account up to £10k a month and beyond, and if you’re in a broad niche you can create a portfolio of channels also doing that. If you re-invest what you earn it can be a real money machine.

Make money doing what you love

If you’re a creator, or a business owner, there’s a pretty good chance you got into what you’re doing because you love it.

TikTok provides such an easy way to turn that into profit, which you can use to do more of what you love, which can turn into more profit! It’s a wonderful cycle of wholesomeness and dollar signs.

Outsourcing is easy

Everything you need to manage a channel: the editing, the uploading, the engagement, is simple to outsource. There are companies like us, and others, who know TikTok in and out and have a team of kick ass editors ready to make you go viral.

Also, TikTok makes outsourcing easy to justify, as when it’s up and running, the monthly revenue coming from covers the outsourcing costs and more, making it a bit of a no-brainer decision.

Want to grow fast on TikTok to make more money from it?

We offer TikTok growth and marketing services to creators, brands and businesses! We handle all the strategy, editing and engagement and you reap all the rewards.

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But what are the cons?

If it’s so easy, why isn’t everyone doing it? We usually find it’s down to a handful of cons that we speak to clients about quite a bit.

It takes time to earn significant money

To earn money on TikTok you need a lot of views and you need to meet certain criteria for the creator fund (certain amount of views, 10k followers and videos need to be over a minute).

To generate enough views to create significant income it can take quite a while, and you’re definitely not going to see success overnight. Our internal rule is that that posting 2-3 times a day, every day for 90 days should be enough for a new channel to really see growth.

Realistically, you can expect money to start coming in in the the 3-12 month mark, depending on how popular your niche is.

With businesses, this is just down to views. If views are going to bring in leads and conversions, then it just takes the time for the views to increase enough to bring in significant amounts of leads.

It requires a lot of work

We’ve written quite a few articles on the work that goes into growing an account, and even fixing issues and dodging roadblocks along the way. People end up getting in touch with us because they rightly realise that it takes a lot of work.

To edit enough videos for consistent daily posting and sitting down to engage with other profiles can take several hours a week at a bare minimum.

The people doing the best on the platform are spending a lot of time working on it, or outsourcing it to someone who does it for them.

You have to constantly adapt

TikToks algorithm is not a constant entity. It gets updated pretty frequently which will directly impact the amount of views you can get and, ultimately, how much your channel earns.

This means that being successful on the platform means constantly reading about algorithm changes, analysing your analytics, theorising what you should change and experimenting with new approaches to editing and engagement.

What works for TikTok today might not be the best strategy in 12 months time. It’s the same with TikTok as it is for most businesses: adapt or fall behind.

Summary & our final thoughts

We’ve waffled on a lot throughout this post, trying to put a lot of what we’ve learned down on the page.

With pros and cons considered, we absolutely think that TikTok is a brilliant way to generate money in this day and age. However, people need to be aware about what goes into being successful on the platform and what it takes to be really successful.

Give it a try, and if you have any questions, don’t hesitate to reach out.

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Author

Cal McCormick

Cal is a co-owner of ACE Growth (the 'C' in ACE'), and has been in Digital Marketing for the majority of his career. Currently working for Type A media whilst working on ACE Growth on the side, Cal writes about all things SEO, TikTok, Digital PR and the wider Digital Marketing world.

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