The Rise of Tipping on TikTok

# The Rise of Tipping on TikTok: A Growing Trend for Content Creators

Tipping fatigue may be a common sentiment during the holiday season, with many people hesitant to give gratuities. However, there is one group of individuals who may deserve a tip this year - your favorite TikTokers.

According to a recent TikTok consumer report by data.ai, consumers are now spending a staggering $11 million per day on tipping their beloved content creators. This sudden surge in tipping has positioned TikTok to potentially become the highest-earning mobile app ever, with projections of reaching the $15 billion milestone by 2024.

The $11 million in daily TikTok revenue is generated through the app's in-app coins currency, which allows users to both tip and gift their favorite creators. Gifting is primarily done during live videos, where users can send virtual gifts such as roses and hearts, purchased with coins.

This milestone represents a 22% increase from the previous year, with TikTok's average daily revenue reaching $9 million in 2022. Data.ai, an analytics and consumer insights brand, provided these figures.

TikTok initially tested its tipping feature in 2021, rolling it out to a select group of users. Approved creators can receive tips from their supporters as long as they fulfill specific criteria: being over 17 years old, having at least 100,000 followers, and residing in the United States, Great Britain, France, Germany, Italy, or Spain.

To facilitate tipping, TikTok incorporates a "Tips" icon on each creator's profile page. Users have the option to tip $5, $10, $15, or a custom amount. Additionally, they can view what amounts others have tipped. According to TikTok's terms of service, the creator retains the entirety of the tip (excluding transaction fees charged by payment provider Stripe), which may vary based on the user's location.

With TikTok's tipping feature, users now have an opportunity to directly support their cherished content creators. This significant increase in tipping emphasizes the platform's potential and the valuable connection between creators and their loyal fans.

## Tipping on TikTok: A New Revenue Stream for Creators

Tipping on TikTok has emerged as one of the many ways TikTokers can earn money. Apart from brand deals, creators can also make money through the TikTok creator fund, where they receive payment based on the number of views their posts generate.

While TikTok did not respond to inquiries about this topic, the question remains: should you tip your favorite TikToker? And if so, how much should you tip?

According to etiquette expert Diane Gottsman, tipping your favorite creator is discretionary and subjective. Unlike giving gratuities to waitstaff or cab drivers, tipping content creators is not an expectation. For a comprehensive guide on when and how much to tip in various situations, you can refer to our modern-day tipping guide.

"If you enjoy their content and want to support their platform, by all means, go ahead," says Gottsman. However, she emphasizes that tipping is not obligatory and individuals should not be shamed for their decision to tip or not.

Some people may choose to focus their support on smaller creators, similar to how they might prefer tipping their local mom-and-pop coffee shop over a large chain. Supporting creators is a personal choice with no one-size-fits-all approach.

Gottsman also highlights that unlike other service providers such as waiters or delivery drivers who rely on tips for their livelihood, there should be no pressure to tip content creators.

As online tipping practices for content creators are not widely covered in existing tipping guides, the decision of how much, if any, to tip is left to the individual. While Gottsman avoids specifying a dollar amount, she likens tipping on TikTok to leaving a donation in a tip jar—anything from spare change to five dollars.

Read on: Here’s how much to tip everyone — and a list of people you should never tip