TikTok has become very popular over the past two years . What you may not know, however, is that it can be very profitable for creators who have a strong audience. Some TikTok stars make more money than the CEOs of American companies . Charli D'Amelio , who started posting videos of herself dancing on TikTok, earned $17.5 million last year, according to Forbes . With 133 million followers on TikTok, she has managed to become famous and wealthy, while increasing her earnings constantly thanks to a clothing line and product endorsements in videos on TikTok and elsewhere.
By comparison, the average pay for CEOs at S&P 500 companies was $13.4 million in 2020, according to a Wall Street Journal data analysis.
TikTok star D'Amelio's earnings were higher than those of several CEOs of large publicly traded companies, including Darren Woods of Exxon Mobil Corp. ($15.6 million in 2020), Kevin Johnson of Starbucks Corp. ($14.7 million), Ed Bastian of Delta Air Lines Inc. ($13.1 million) and Chris Kempczinski of McDonald's Corp. ($10.8 million).
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Dixie D'Amelio, Charli's older sister, has about half the TikTok the second- TikTokerfollowers Charli has. But she was highest-earning last year, according to Forbes, earning $10 million. That rivals the pay of Southwest Airlines Co. CEO Gary Kelly .
“They are truly building business empires,” said Mae Karwowski, CEO and founder of influencer marketing agency, Obviously. She noted that many TikTok stars are running new companies, launching their own brands and more.
“The numbers we are seeing now are constantly increasing,” he said.
Some CEOs of big companies earn much more, of course. Robert Kotick, who leads video game giant Activision-Blizzard Inc., earned nearly $155 million in 2020. Apple Inc. CEO Tim Cookearned nearly $99 million.
TikTok stars' high earnings are also due to the app's rapid growth. Seven of the top TikTokers earned a combined $55.5 million last year, a 200% increase over the previous year.
See also: TikTok surpasses Google as the most popular online destination
TikTok, owned by Chinese company ByteDance Ltd., has managed to attract a huge number of users during the lockdown. The app said last year that it had more than a billion monthly users.
According to analysts, brands are aware of TikTok's appeal and are turning to the most successful creators to advertise their products. The people who make the most money are doing so from advertising, product lines and other deals outside the app.
One analyst reported that some TikTokers may have more and more fanatical followers than even some Hollywood stars.
Social media stars give followers a daily glimpse into their lives, updating them on their breakups, successes, or failures.
Followers feel “closer” to someone when they know a lot about their life. For this reason, they are more influenced by social media and are more likely to buy a product they recommend.
Charli D'Amelio can also be seen on television. She and her family star in "The D'Amelio Show," a reality show on the streaming platform Hulu.
See also: TikTok Kitchens brings viral culinary creations to users
Another well-known creator who rose to fame on TikTok is Addison Rae. She earned $8.5 million last year, according to Forbes. Her earnings put her slightly ahead of W. Craig Jelinek, the CEO of Costco Wholesale Corp.
Last year, Rae starred in the Netflix Inc. film “He’s All That,” expanded her makeup line, Item Beauty, and appeared in commercials for clothing brand American Eagle Outfitters Inc.
An expert says TikTok stars will continue to grow their earnings for years to come, starting new businesses and building their own brands. According to him, TikTok is simply what gives them a boost.
Source: The Wall Street Journal
