The TikTok Shop affiliate marketing program pays commissions to influencers in the US

Brandy Leigh, a 50-year-old mother of six from Indiana, was looking for a job that would allow her to work from home. After raising children for most of her adult life, her options seemed limited. Then she discovered the TikTok store.

Starting in May with about 1,000 followers, Leigh began making videos of herself testing out various products. Her videos have a raw, down-home style: she promotes a razor by shaving her armpit on camera, or sells a car for children by driving it herself. Viewers can order products directly through TikTok videos, and Leigh receives a commission from each order.

She currently has over 30,000 followers and has earned approximately $95,000 in commissions.

“I have never made (this much) in a year in my life,” Leigh said Rest of the world. “It changes lives.”

“People like me who just do it at home are relatable. (Companies) don’t have to pay as much as they pay big stars. But they gain that credibility,” she said.

Influencer marketing is already a multi-billion industry. Traditionally, companies pay fees upfront to large influencers to post about their products. Instagram creators typically need more than 90,000 followers to be paid more than $1,000 per post, according to a Statista survey.

On Instagram, creators typically earn commissions based on sales made through personalized links or promotional codes, which is called “affiliate marketing.” Although Instagram has a built-in affiliate program, it has limited in-app purchases to focus on advertising.

The TikTok Store, launched in the US in September 2023, takes affiliate marketing a step further by allowing creators to sell directly through their videos. This feature has turned a new group of amateur users into purchasing influencers. On the TikTok store, creators only need about 1,000 followers to become an “affiliate.” On the app, they can browse a list of eligible products, order free video-making samples, and earn a commission – usually between 10% and 30% – if their videos lead to actual sales.

According to an emailed statement from TikTok, the platform began testing a lower follower threshold for eligible TikTok Shop creator partners earlier this year, with the goal of providing monetization opportunities to more creators.

Compared to Instagram, TikTok Shop makes it easier for companies to engage with tens of thousands of small creators and track their sales, said Juozas Kaziukėnas, founder of e-commerce analytics firm Marketplace Pulse Rest of the world. “On a platform like Instagram, it’s highly unlikely that someone with 1,000 followers would ever be offered a similar deal because the brand tracking costs would be a nightmare,” he said. “TikTok increases the number of potential influencers to millions or more users.”

Earlier this year, Momofuku, the brand founded by food mogul David Chang, offered a 15-serving noodles package on TikTok for 50% off. Hundreds of creators have made videos of themselves buying, cooking and slurping pasta. The number of their followers ranges from several thousand to several million.

“This is absolutely crazy,” said a creator named tiredmom, who has about 3,700 followers, in a video shot in a supermarket aisle. “You can buy three five-packs and try different flavors for less than $20.”

Temeka Valentine, a 47-year-old stay-at-home mother from Virginia who has about 3,300 followers on TikTok, has been posting her own photos and exercise routines. In June, she started earning commission for selling skin care products and health supplements on TikTok Shop. Seeing others selling Momofuku noodles, Valentine also made a video of eating noodles. Ultimately, she sold 24 orders and received a commission of approximately $138.

Leigh also filmed herself buying pasta at a local grocery store and then preparing a bowl in the kitchen. “Really good, it has a kick,” she said to the camera and slurped some noodles. “I’m going to eat pasta. You go eat something too. At a commission rate of 20%, Leigh earned over $8,800 on the video alone.

Thanks to the TikTok algorithm, once a product becomes popular, more creators will post about it in hopes of receiving a commission, according to Kyle Evanko, a former employee of TikTok’s parent company, ByteDance. He currently runs a consulting company called Evanko Consulting Group dealing with TikTok. “This process creates a beautiful snowball effect that has helped dozens, if not hundreds, of businesses across the U.S. simply gain popularity on TikTok Shop,” Evanko said Rest of the world. “This social marketing provides significant influence on other platforms.”

While other larger brands, including L’Oréal and Benefit Cosmetics, have signed up to the program, the TikTok store is still far from becoming a mainstream shopping destination. ByteDance is looking to make e-commerce its next revenue source after witnessing a surge in live shopping on its Chinese video app Douyin. Over the past year, TikTok has aggressively featured videos that contain shopping links. According to the job portal, the company currently employs several hundred people in the USA to work in the e-commerce industry.

In January, Bloomberg reported that TikTok plans to increase its U.S. e-commerce revenue to $17.5 billion in 2024. Analysts estimate that TikTok is falling short of its goal. By comparison, U.S. customers spent $14.2 billion on Amazon during the two-day Prime event alone. Most of the products sold on TikTok are cheap goods from little-known brands.

“Instagram has always been about a beautifully crafted aesthetic and selling a lifestyle. Content on TikTok is much more raw, much more honest, and much more unpolished.

TikTok is also facing an existential crisis in the US after the Biden administration passed a bill that gives ByteDance until January 19 to sell or divest TikTok or face a ban. TikTok is now challenging the law in court. The platform did not respond to a request for comment Rest of the world.

Lia Haberman, a California-based influencer marketing consultant, said the real potential of a ban could keep some brands away. Rest of the world. TikTok needs more top brands to demonstrate it can sell at scale, she said, but for brands to sell successfully on TikTok Shop, they need to adapt their campaigns to the platform.

“Instagram has always been about a beautifully crafted aesthetic and selling a lifestyle. Content on TikTok is much more raw, much more honest, and much more unpolished. So you can crosspost videos, but for it to be effective, you really need to develop a content strategy that is very specific to TikTok,” Haberman said.

Despite the looming ban date, new TikTok Shop influencers are trying hard to make more money while they can. Leigh’s following continues to grow as she posts videos almost daily. Its latest products include an LED “light therapy” mask and a flocked Christmas tree.

It’s the most profitable career Leigh has ever had. “If so, then yes,” Leigh said of the TikTok ban. “I will enjoy it and make the most of what I get.”