The earning system on TikTok is complex and works in multiple stages.
Users first buy coins which can be used as currency to buy gifts for their favourite creators. These gifts can only be presented during Live streams, making TikTok Lives both an engaging and a lucrative business for high profile creators and influencers – but it doesn’t end there.
Gifts which are received during a live stream are then converted into diamonds, which can be cashed in by the creator for real money.
Perhaps most important to note is that, through every stage of this journey, TikTok takes its own income as commission.
In this article, we’re discussing the value and worth of these diamonds – and how creators can maximise their income on the app.
The Value of a TikTok Diamond
Diamonds are collected after a TikTok Live, in exchange for the gifts received by the creator.
Typically, diamonds are worth about 50% of the cost price in TikTok coins. So, if a user or follower spends 1,000 coins on a gift for their favourite creator, the creator will receive half of that amount in diamonds – 500 diamonds in this example.
Each diamond is then worth 5 cents – of which TikTok takes half in commission.
So, ultimately a 1,000 coin gift will earn the creator $12.50 once the gift has been converted into diamonds, then cash, then TikTok has taken its half in commission.
For creators interested in the end value of a TikTok diamond, creators actually receive and take home $0.025 per diamond earned through the platform. And it’s also important to note that in order to make a withdrawal, you need to have earned at least $100 – and not withdraw any more than $1,000 in a single day.
Maximise Your Income Through TikTok
Suffice to say, earning money through diamonds and TikTok gifts alone is going to take a while.
Which is why most TikTok creators combine lives and the receipt of gifts with other forms of income through TikTok – including collaborations, brand partnerships, and more.
For more advice on earning money through TikTok, and for a deep dive into the different income streams and ways to earn through the platform, browse our other articles on making money through TikTok.
