New generation of millionaires born from TikTok: Not old enough to drink, but make money no less than adults

A job report on 4/12 said that millions of Americans are still unemployed. But still many people continue to get rich despite the impact of the epidemic.

According to statistics, 1 out of 3 Americans who own a smartphone use TikTok. With nearly 690 million monthly users worldwide, it is clear that this is an “unmatched” application in terms of viral ability, number of followers and career development opportunities of the user, regardless of the has been criticized for issues related to data security. This foundation has created a whole new generation of young millionaires, including those who are not even old enough to drink.

From hobby to making money

Michael Le (20 years old) is a choreographer that posts healthy, entertaining dance videos on TikTok. His account has 42.5 million followers and 1.2 billion likes for his uploaded videos. Recently, Le bought a home in Los Angeles after moving from Florida.

Michael Le has 42.5 million followers on TikTok.

Le currently lives and works with 7 other people, including her mother and brothers. The young millionaire shared: “I see my finances are very good thanks to smart steps. My fortune is at 7 digits”.

Le’s main source of income is through partnerships with multiple brands on TikTok, with income between $ 20,000 and $ 50,000 per post. He has worked with brands such as Amazon Prime Video, Bliss Skincare, Bang Energy, Postmate, Safeguard Soap and Tums.

Like Le, Loren Gray’s journey to star on TikTok is similar. The 18-year-old singer just bought a house in Los Angeles with 49.8 million followers on TikTok. For one-time promotional posts, she charges between $ 20,000 and $ 40,000.

In addition, Gray has been an artist signed to Capitol Records since 2018. Some of her songs, including “Queen”, “Alone” and “Cake” are popular melodies in TikTok videos.

Loren Gray.

TikTok stars mostly post entertainment content, starting with the app’s “predecessor” musical.ly, which was acquired by TikTok’s parent company ByteDance in 2017. Le posted the content on musical. ly since 2015 but not as charismatic as TikTok.

“Creators on TikTok are getting more and more professional at creating engaging content. I used to just use TikTok to repost videos from Instagram and YouTube for cross-promotion,” Le said. self-made TikTok content at home, the number of followers has increased from 600,000 to 1 million. That changed everything and I decided to produce the content seriously.

Development potentials and challenges

Earlier this year, TikTok identified at least a third of its users aged 14 and under. This past July, the platform established a $ 200 million fund that allows content creators 18 and older to monetize advertising on the platform.

Le said he and a number of other TikTok stars have been given early access to the newly established creative fund. Subjects under the age of 18 can still make money through personal transactions but do not have access to TikTok’s support fund.

Like rivals Facebook and YouTube, TikTok’s business model relies heavily on advertising. According to The Information, in 2019, TikTok has a revenue of 200 million – 300 million USD worldwide and is expected to earn 500 million USD from the US this year. However, this is still a modest number compared to ByteDance. The company is expected to make $ 27 billion in advertising this year.

Currently, the most successful character on TikTok is Charli D’Amelio, a 16-year-old girl who owns 100 million followers. Some sources revealed she charges $ 100,000 per post.

Charli D’Amelio.

However, not everyone achieves such achievements and receives lucrative advertising contracts. To get more income, many people have diversified platforms to create content such as Triller, Likee and post on YouTube, Instagram.

This desire to diversify may stem from the recent threat to TikTok’s existence. The Trump administration calls TikTok a national security threat and has even threatened to ban the app in the US. For its part, TikTok thinks the ban is unfair. Although TikTok is under strict scrutiny, representatives and content creators are still optimistic about the platform’s future.