TikTok is nothing without the millions of creative online creators and influencers who rely on the social media platform to make a living. If TikTok is outlawed nationwide, where does that leave the folks who depend on it financially?

“A TikTok ban would be detrimental to so many people’s well-being,” said Maria Watkins, also known as @livingplanetfriendly, a creator with over 256,000 followers who posts about living a low-waste lifestyle. “Many small businesses have launched their business on the app, and you don’t get this level of engagement on other platforms,” Watkins said.

Citing national security concerns, the US government is moving to force a sale or shutdown of the popular social media platform, but it’s facing a number of legal challenges, including from TikTok’s Chinese-based parent company ByteDance. Several content creators filed a separate lawsuit this week, arguing that prohibiting the app would violate the First Amendment right to freedom of expression. 

Alongside the debate around free speech and censorship, a potential ban has also raised concerns over the impact on TikTok creators’ economic livelihoods -- and it’s not an easy pill to swallow.

How people make money on TikTok

The influencer and creator economy is massive. There are currently 10 times more paid content creators in the US than the total number of police officers, doctors and lawyers combined, according to research reported on Linkedin. 

Some people start on TikTok to monetize their hobby, share their life stories or leverage audience engagement as small business owners. Once a creator has at least 10,000 followers and 100,000 authentic video views over the last 30 days, they’re eligible for TikTok’s creator fund, which allows them to earn money based on how well a video performs. 

Some creators make content on a part-time basis to supplement their regular income, pay their bills, gain brand recognition and develop production skills. Others become full-time creators, earning around $179,000 a year, and bigger influencers make an average of $344,000. 

Here are some of the ways people boost their revenue stream or get compensation on TikTok:

Score brand partnerships: Product brands and services are increasingly partnering with creators who have a following because it connects them directly to customers. 

Sell with TikTok shop: TikTok has a built-in e-commerce platform that allows small business owners to promote and sell their merchandise all in one place. 

Participate in affiliate marketing: Influencers who promote a brand’s product or service through affiliate marketing make a commission any time a viewer buys the product directly via the online content. 

Publish sponsored posts: Influencers and content creators can collaborate with brands to create sponsored posts promoting a product or service in exchange for a flat commission. 

The fall of TikTok could devastate small business owners

What started out as a hobby of decorating wide-brim hats is now the single largest revenue stream for Jenna Zapata. And it’s all thanks to TikTok. 

Zapata opened Zig Zag Galleries, aka @zigzaggalleries, a contemporary multi-use gallery space in Denison, Texas, in May 2020. It was a tumultuous time for mom-and-pop shops, as COVID-19 lockdowns shuttered over 700,000 businesses in just a few months. Zapata had to quickly pivot and find new ways to sell products online for her business to survive. 

When she saw someone selling customized drinking tumblers during a TikTok livestream to over 15,000 viewers, Zapata had an idea. Why not sell her specialty hats -- decked out with vintage matchbooks, dried florals, scarves and feathers -- on TikTok live? 

“I hear a lot of talk about how you need thousands, if not millions, of followers to be successful on apps like TikTok,” said Zapata. “But that means nothing in the grand scheme of things.” 

In Zapata’s case, she would only need 1,000 followers to be eligible to livestream on the platform. Eventually, she started doing live “hat builds” two nights a week, customizing hats for clients and interacting with her viewers. 

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