TikTok Affiliate is becoming an attractive platform for creators to make money from promoting products through videos. In particular, the Tiktok Affiliate Commission is the most important information that creators need to understand. In this article, join Ecomobi to learn details about Affiliate commissions on TikTok, including the calculation formula and factors that affect your income when participating as an affiliate.
What is Tiktok affiliate marketing commission?
TikTok affiliate marketing commission or TikTok Affiliate commission is the money that creators receive when helping sellers sell products through livestreams and videos. Every time a customer clicks on a product link in a video and makes a successful purchase, TikTok will pay a commission to the creators.
TikTok Affiliate commission calculation formula
The commission level depends on the agreement between the seller and the creator. The commission calculation formula on TikTok depends on the qualified transaction value (qualified GMV) generated through the creator’s video.
>>> GMV (Gross Merchandise Value) is the total value of orders purchased through the creator’s product link. However, to calculate the commission, only qualified orders are considered, meaning orders that have been paid and have not been refunded or canceled.
Commission calculation formula
Commission = Customer’s actual payment price * commission rate
In which: Actual payment price = product price – platform discount – Seller discount – product tax.
Note: The actual payment price may be lower than the product price displayed in the store because the original product price does not include discounts such as platform discounts and Seller discounts.
A specific example of how to calculate commission:
Let’s say the creator promotes a beauty product with the following information:
- Selling price: 100 USD
- Promotion applies: 10 USD
- Commission rate: 10%
The commission level = (100 – 10) × 10% = 90 × 10% = 9 USD
So for each order of this product, you will receive 9 USD in commission.
How to withdraw commission on TikTok
Currently, TikTok has 2 forms of withdrawal: Manual Withdrawal and Automatic Withdrawal. For Automatic Withdrawal, money will be transferred to the registered bank account every Wednesday.
Withdrawing money from TikTok is quite simple. It is important that you fill in the information correctly, including your full name and bank account/e-wallet to receive money.
Some notes when withdrawing money from TikTok:
- The maximum amount to withdraw is: Unlimited
- After submitting a money transfer request and being approved, the money will be transferred to your account within a maximum of 5 days.
- If the transfer is not successful, the amount will automatically return to the “Available Balance” section of your TikTok Shop account. You need to update your bank account information.
Commission situations for qualifying transactions
When an order is confirmed to be delivered successfully, but you still do not receive a commission. Where is the reason? In fact, Tiktok Affiliate commissions are very strictly regulated based on “Last Click”.
Here are different situations to help you understand the problem clearly:
Scenario 1: 1 customer – 2 creators ⮕ In this situation, the order is attributed to the Creator.
Scenario 2: 1 customer – 2 creators with the same product ⮕ The order is attributed to Creator B because the product link from Creator B’s content was the customer’s last click
What is the estimated commission and actual commission?
Estimated commission: After the customer completes payment for the order, the system will automatically calculate the initial commission. Estimated commission = actual payout price * commission rate
Actual commission: may vary depending on situations that arise during the post-sale period (after the transaction)
- If there is no refund request, actual commission = estimated commission
- In case of partial refund, actual commission = (actual price paid – refund amount) * commission rate
- If the entire order is refunded, the creator will not receive any commission (commission = 0).
Distinguishing TikTok Affiliate commissions versus commission items (Virtual Gifts)
Affiliate TikTok commissions (commissions received from doing affiliate marketing and selling products) with commission gifts – virtual gifts (Virtual Gifts) given by viewers through livestream. Each of these gifts shows the audience’s love for your content, helps increase interaction during the livestream, and especially helps your channel become more prominent on the TikTok platform.
These virtual gifts are purchased with coins (virtual currency on TikTok) and each type of virtual gift has a certain value. For example, viewers can donate items such as:
- Commission: 1 coin (cent)
- Diamonds: 1 coin
- Ice cream cone: 1 coin
- Birthday cake: 1 coin
- Heart shot: 5 coins
- Rosa: 10 coins
- Four-leaf clover: 10 coins
- Donut: 30 coins
- …. And other virtual gifts worth up to thousands of coins.
How much does 1 TikTok rose cost?
Roses are the most popular virtual gift. Each rose you receive during a livestream session is usually exchanged for about 5 US cents.
Can I earn money from item giveaways?
The answer is yes! You can absolutely have another source of income from receiving virtual gifts. In addition, when many people send gifts, the popularity of the livestream will increase, and TikTok will give you Diamonds based on the amount of gifts received. This not only provides a direct source of income but also creates an opportunity for you to expand your audience community.
After the livestream session ends, you can immediately check the total number of Diamonds received in TikTok’s summary report.
How to redeem virtual gifts on TikTok?
Conversion formula for TikTok coins
- 1 coin is worth about 5 cents.
- 100 coins can be exchanged for about 5 USD. That means if in a LIVE session, you are given 100 roses, you will receive 5 USD.
TikTok also stipulates that when you withdraw money to your account, you will need to pay TikTok as well as related operating systems a percentage of the corresponding money. According to the latest update, you will need to spend 50% of the value of the proceeds to pay commissions to this platform. Thus, if you withdraw 50 USD in cash, your actual receipt will be ~ 25 USD.
How to withdraw coins from TikTok
You can withdraw TikTok coins according to the following instructions:
- Step 1: Open the TikTok app and go to Profile ⮕ Select “Settings and privacy”.
- Step 2: At the interface ⮕ Select “Balance” ⮕ Select “Gift revenue”.
- Step 3: Select “Withdraw money” ⮕ Enter your PayPal account or bank account and wait for the money to arrive.
Conditions to receive commissions on TikTok
- Your account must have at least 10,000 followers
- The account owner must be 18 years old or older (this is an important condition to participate in monetization activities on this platform).
- Have an account that has been active for at least 30 days
- Accounts must comply with TikTok’s community guidelines, ensuring content does not violate copyright or contain inappropriate elements.
Making money from TikTok Affiliate has become a potential source of income for content creators, especially for those who make good use of both livestream giveaways and affiliate marketing. Through the above article, Ecomobi has helped you better understand Tiktok Affiliate commissions. To quickly update the latest news about Affiliate Marketing as well as current trends, please regularly follow Ecomobi Blog!
