TikTok Aims to Turn Millions of Americans into Paid Shopping Influencers

TikTok Aims to Turn Millions of Americans into Paid Shopping Influencers

Empowering Small Influencers on TikTok Shop

TikTok Shop has made it easier for businesses to collaborate with a large number of small influencers. Creators only need about 1,000 followers to start earning commissions from selling various products such as toys, food items, and Christmas trees. Despite challenges like a potential TikTok ban in the U.S. and a lack of big brands on the platform, TikTok continues to push toward becoming a key shopping destination.

The Story of Brandi Lee

Brandi Lee, a 50-year-old mother from Indiana, is a prime example of this success. After searching for a work-from-home job, she discovered TikTok Shop. In May, with around 1,000 followers, she began creating simple promotional videos, showcasing products like razors and children's toys in a straightforward manner. Over time, her follower count grew to 30,000, and her earnings reached nearly $95,000.

“This is life-changing,” Lee told Rest of World. She believes that small influencers like her resonate more with audiences, and companies benefit from working with relatable figures at a lower cost than with major celebrities.

The Rise of Influencer Marketing

Influencer marketing has already become a billion-dollar industry, where companies traditionally pay large influencers upfront fees to promote their products. On platforms like Instagram, creators often need more than 90,000 followers to earn over $1,000 per post. In contrast, TikTok Shop allows creators with just 1,000 followers to earn commissions, offering a more accessible path to becoming an influencer.

TikTok Shop’s Commission-Based Model

Launched in the U.S. in September 2023, TikTok Shop takes affiliate marketing a step further by enabling creators to sell products directly through their videos. On TikTok Shop, creators can browse eligible products, request free samples to create content, and earn commissions—typically ranging from 10% to 30%—if their videos drive actual sales.

According to Marketplace Pulse founder Juozas Kaziukėnas, TikTok makes it easier for companies to work with thousands of small creators and track their sales compared to Instagram. On TikTok, the process is streamlined, allowing brands to tap into millions of potential influencers.

Momofuku’s Success Story

Earlier this year, Momofuku, a food brand founded by David Chang, offered a 15-pack of noodles at a 50% discount on TikTok. Hundreds of small creators filmed themselves purchasing, cooking, and eating the noodles, with follower counts ranging from a few thousand to several million.

For instance, a creator named "tiredmama" with around 3,700 followers posted a video promoting the noodles, expressing her excitement about the discounted offer. Another creator, Tamika Valentine, a 47-year-old mother from Virginia, began earning commissions by promoting skincare products and supplements on TikTok Shop. She eventually filmed a video of herself eating Momofuku noodles and earned about $138 from selling 24 orders.

The Algorithm’s Power

Brandi Lee also jumped on the trend, filming herself purchasing the noodles from a local grocery store and preparing a dish in her kitchen. Her video earned her over $8,800 in commissions with a 20% rate.

According to Kyle Evanko, a former ByteDance employee and now a consultant, TikTok’s algorithm creates a snowball effect. As a product gains popularity, more creators promote it, hoping to earn commissions, which helps small businesses reach wider audiences.

Challenges Ahead for TikTok Shop

Despite the involvement of larger brands like L’Oréal and Benefit Cosmetics, TikTok Shop still faces significant challenges in becoming a major shopping destination. ByteDance is pushing to make e-commerce its next revenue driver, following the success of live shopping on its Chinese app, Douyin. However, TikTok's growth in the U.S. market remains uncertain, especially with ongoing legal threats.

Earlier this year, Bloomberg reported that TikTok aimed to boost its U.S. e-commerce revenue to $17.5 billion by 2024, a goal analysts believe is still far from being met. In comparison, Amazon generated $14.2 billion in just two days during its Prime event. Most products sold on TikTok are still low-priced items from lesser-known brands.

Legal Threats in the U.S. Market

TikTok also faces an existential crisis in the U.S. following a law passed by the Biden administration requiring ByteDance to either sell or divest from TikTok by January 19 or face a potential ban. TikTok is currently challenging this law in court.

Leah Haberman, a California-based influencer marketing consultant, told Rest of World that the potential for a TikTok ban has deterred some major brands from investing in the platform. She added that TikTok needs more significant brand support to prove its capability to sell on a larger scale, but brands need to tailor their campaigns to fit the platform’s unique environment.

In conclusion, while TikTok Shop presents a lucrative opportunity for small creators, it must overcome significant legal and market challenges to solidify its place as a major player in the e-commerce space.