Monetize a TikTok-Like App: 8 Proven Business Models 2025

Last Updated on May 9, 2025

Have you ever noticed how ads and brand challenges are seamlessly integrated into your TikTok feed? It’s not by chance—it’s part of a carefully crafted strategy to monetize content while keeping users engaged.

Since its launch in 2016, TikTok has evolved from a platform for viral videos to a global leader in social media, generating billions in revenue. But how does it turn user-generated content and trending videos into profit? In this blog, we’ll explore 8 proven business models that power TikTok’s success. If you’re looking to launch your own short video platform, keep reading to learn the key strategies that can help you turn your app into a revenue-generating machine.

Top Business Models

1. In-App Advertising

In-app advertising remains one of the most dependable monetization strategies for free social media platforms. It allows you to capitalize on your user base by displaying targeted ads—earning revenue per impression (CPM) or click (CPC). Popular ad formats include in-feed ads that blend into the content feed, TopView ads that take over the screen upon launch, branded hashtag challenges that encourage user participation, and brand takeovers that appear before any interaction.

This model works well because users are already used to seeing ads on social media. With high engagement rates, advertisers are often willing to pay a premium for exposure. According to Statista, global in-app advertising revenue reached $315 billion in 2023, and it’s expected to enjoy a double-digit growth rate until 2027, showing just how powerful and scalable this model is.

To execute this model without annoying users, make the ad experience feel as seamless and native as possible. You can partner with established networks like Google AdMob or Meta Audience Network, or build a custom ad-serving infrastructure for greater control.

2. Creator Monetization (Revenue Sharing Models)

If you’re looking to attract and retain top-tier creators, revenue sharing is essential. TikTok’s rapid growth was significantly influenced by this model, which rewards creators for their content and keeps them actively engaged. Popular tools include creator funds, in-feed ad revenue sharing, and live gifts, which creators can exchange for real money.

This approach benefits everyone—creators are motivated to produce more, users enjoy high-quality content, and the platform becomes more attractive to advertisers. It’s an effective way to create a sustainable content ecosystem.

To implement this model, you’ll need a reliable system to track performance, manage payouts, and prevent abuse. Starting with milestone-based rewards is a smart way to test the model before scaling.

3. In-App Purchases and Virtual Gifts

Microtransactions work especially well in platforms with live-streaming or fan engagement features. Users purchase digital coins or tokens, which can be spent on virtual gifts such as stickers, animations, and badges during live sessions. Creators can then convert those gifts into real currency.

This method builds on emotional connections between users and creators, turning support into a gamified and interactive experience. It’s particularly effective in markets where live video and fan culture are deeply integrated.

Offering a diverse range of gifts—from simple to premium—helps maximize revenue. Additionally, a strong anti-fraud system is essential to maintain trust and platform integrity.

4. Subscription Plans

A freemium model that offers extra functionality through monthly or yearly subscriptions is a powerful way to generate recurring income. Common features offered through subscriptions include ad-free viewing, advanced editing tools, profile boosting, and creator analytics dashboards.

Subscriptions appeal to power users—especially influencers—who are focused on growing their audience and monetizing their content. It also helps segment your user base by engagement level, allowing for more personalized experiences.

To succeed, premium features need to provide clear value. Avoid locking essential tools behind a paywall, and focus instead on enhancing the experience for users who want more. Loyalty rewards and early access features can help retain subscribers.

5. Brand Partnerships and Sponsored Content

Brand collaborations are a natural and profitable way to monetize content. These include branded hashtag challenges, sponsored creator content, and co-hosted livestreams with influencers. Brands benefit from tapping into highly engaged audiences, and creators enjoy a direct path to revenue.

This model works best when sponsored content feels organic. Authenticity is key—audiences respond better when promotions are well-aligned with the creator’s voice and content style.

To scale effectively, consider creating a brand portal that connects advertisers with suitable creators. Clear guidelines and transparency help maintain trust while ensuring legal and ethical compliance.

Also Read: Essential Features for a Short Video Platform

6. Data Licensing and Analytics Solutions

Platforms with a large and active user base generate a significant amount of behavioral data. This anonymized data can be monetized by offering analytics dashboards or insights-as-a-service to marketers, brands, and media agencies. These stakeholders are always looking for better ways to understand audience behavior, content trends, and engagement patterns.

For example, agencies might pay for access to real-time data on what kind of content is trending, which demographics are most active, or which influencers are gaining traction. The platform benefits from an additional revenue stream without impacting the user experience.

It’s important to ensure full compliance with data privacy laws like GDPR and CCPA. Transparent user consent and clear privacy policies are a must.

7. Merchandise and Creator Commerce

As creators build loyal communities, many explore merchandise and digital product sales. Your platform can enable this by offering built-in tools for creator storefronts, product tagging, and affiliate marketing integrations.

By facilitating commerce directly within the app, you allow creators to sell branded merchandise, e-books, presets, or courses without redirecting users elsewhere. The platform can take a commission on each sale or charge a subscription fee for store access.

This model deepens creator loyalty and opens up monetization for mid-tier influencers who may not have large enough audiences for ad revenue alone.

8. Pay-Per-View or Premium Content Access

Some creators or events warrant direct payment. A pay-per-view or paywall model allows users to unlock exclusive content—like behind-the-scenes footage, tutorials, or private livestreams—for a one-time fee or microtransaction.

This approach works especially well in niches such as fitness, education, music, or entertainment. It gives creators more ways to monetize, and offers fans intimate access to content they can’t get for free.

Platforms that support premium content access must ensure smooth payment flows, DRM protection, and user-friendly access controls to make the experience worthwhile for both creators and fans.

Launch and Monetize Your TikTok-Like App With Oyelabs

At Oyelabs, we specialize in helping entrepreneurs launch their own short-form video platforms—complete with powerful monetization strategies. From idea validation to full-scale development, we offer end-to-end services tailored for on-demand social media apps. Our team has successfully delivered TikTok clone platforms designed to drive engagement, scale efficiently, and generate revenue from day one. Whether your focus is on creators, brands, or both, we build around your goals with features that convert attention into income. If you’re ready to disrupt the short-form content market with a creator-first or brand-led strategy, Oyelabs is your trusted tech partner. Contact us today to bring your vision to life and create the next standout short video app.

Conclusion

Building a TikTok-like short-form video platform is only half the equation. The real challenge—and opportunity—lies in monetizing it effectively. Whether through in-app advertising, creator revenue sharing, virtual gifting, subscriptions, or brand partnerships, each model can drive meaningful revenue if implemented strategically.

Choosing the right combination depends on your audience, growth phase, and long-term vision. The most successful platforms blend multiple models to create a flexible and sustainable monetization engine.