Debunked: This is how TikTok gifts actually work and where your money goes to

The TikTok live gifts feature is hardly new but people have recently been wondering how it actually works and whether all of their money goes to the person live streaming. In a recent investigation by the BBC, it was reported TikTok profits from families begging on the livestream as it vows to take action against “exploitative begging.”

The BBC also reported TikTok said this type of content was now allowed on its platform, and its said its commission from digital gifts was significantly less than 70 per cent. However the BBC declined to confirm the exact amount.

On the whole, though, it has been reported by the Influencer Marketing Hub that TikTok claims up to 50 per cent commission on the standard lives you see people on the app. So here’s a rundown of how TikTok gifts actually work and how much money people can make from the app.

How do TikTok live gifts work?

Okay so earning money through TikTok live gifts is only possible if you have at least 1,000 followers. Each gift people send has a different value, for example a panda is worth five coins however a drama queen is worth a massive 5,000. Users on the app watching lives have to purchase these gifts using real money.

These gifts are then converted into diamonds which creators can then cash in. Diamonds are worth 50 per cent of the value of coins, so if you are sent a drama queen that’s 2,500 diamonds. Each diamond you get is worth 5p. If you have 100 diamonds you can cash it in for £50 however TikTok also take a commission of 50 per cent meaning you are left with half.

Once you reach £100, you can start to withdraw money if you have a verified PayPal account linked to your TikTok. There is a daily cap for creators though, meaning you cannot withdraw more than £1,000 per day.

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