Preston Arsement, Ryan Kaji, and Charli D’Amelio have earned millions for videos of themselves gaming, unboxing, and dancing, respectively. If you’ve identified your own content creation niche, the next step is deciding where to upload your work. For most, that decision comes down to the two most prominent video-sharing platforms on the internet: YouTube and TikTok. Keep reading for a full guide on everything you need to know about choosing the platform that works for you.
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Both YouTube and TikTok have their own set of built-in tools to help you make money from your content. Let’s take a look at what each platform offers.
YouTube’s monetization tools
To take advantage of any of YouTube’s income streams, you’ll need to be accepted into the YouTube Partner Program. To join, you must reside in one of the countries the program is available in, have more than 1,000 subscribers, and secure either 4,000 hours of public watch time within the last year or 10 million valid public Shorts views in the last 90 days. Your channel must follow YouTube’s content monetization policies and have no active community guidelines strikes against it.
Advertising via Google AdSense
You generate revenue when your audience watches the ads that YouTube places on your videos. As a content creator, you get to choose where the ads will appear in your videos, but you won’t have a choice of the products and services that get promoted.
If you take advantage of AdSense, YouTube will place ads on your videos and pay 51% of the ad revenue they generate back to you. Reportedly, this clocks out at somewhere between $10 and $30 per 1,000 views on average. Some ads are CPC (cost per click) rather than CPM (cost per 1,000 views), which means your audience will have to click on the ad for you to earn the commission.
Bear in mind that some locations and niches are more valuable to advertisers than others. Creators in the U.S., U.K., and Canada tend to earn more in the general creator economy than those based in other countries.
Chris Grayson, founder of InfluencerMade.com, notes, “If you have a channel about building custom caravans where your demographic was very valuable to advertisers, you’d likely make three to five times as much as someone with a channel [in a less valuable niche] for the same number of views.”
Earnings can be withdrawn upon reaching at least $100.
Watch Page ads
Creators who accept the Watch Page monetization module can earn from video ads and YouTube Premium subscriber watches.
Channel memberships
When you reach 1,000 subscribers, you can invite your followers to pay a monthly recurring fee for members-only perks such as badges, custom emojis, and exclusive content.
Super perks
Super Chat, Super Stickers, and Super Thanks allow anyone watching your livestream to pay for their messages to be highlighted or to send you gifts directly.
Shopping
The shopping feature allows you to market and sell your official branded merchandise from your YouTube videos, or products you recommend. You’ll need at least 1,000 subscribers to use this perk.
Shorts
Users who make YouTube Shorts can enter the ad revenue sharing pool. Following a four-step formula, a portion of the revenue from ads shown between Shorts videos is allocated to creators based on their share of total views in each country. Creators receive 45% of the allocated revenue.
YouTube Premium subscription revenue sharing also allocates payments based on the amount of views within a creator’s country. Creators receive 45% of the revenue from the Shorts monetizing creator fund.
How much you can earn through YouTube Shorts varies, depending on views, audience location, and the creator’s RPM (Revenue Per Mille). Creators earn between $0.03 and $0.07 per 1,000 Shorts views on average.
TikTok’s monetization tools
TikTok’s Creator Rewards Program is available to creators in the U.S., U.K., Germany, Japan, South Korea, France, and Brazil who have a personal account in good standing and at least 10,000 followers with at least 100,000 views in the last 30 days. They must post original content at least one minute long. Estimated rewards are posted within three days after a video is posted, and can be redeemed on the 15th of each month if they meet the $50 minimum.
Creator Marketplace
This feature connects you with brands that pay for the creation of branded content.
Video gifts
Got a loyal fan base? You can receive gifts directly from viewers.
Branded Mission campaigns
With this feature, brands crowdsource content they think would work well for ads. Similarly, the TikTok Creative Challenge allows users to apply to campaigns and be paid by brands for a percentage of ad revenue.
Effect House rewards
Creators who have a bent for creating effects on the platform are paid $700 if the effect gets 500,000 unique video uses within the first 90 days, as well as $140 for every 100,000 unique video subsequent uses.
Storefronts and Shop
Buyers can purchase products directly from TikTok account holders using these shopping features.
LIVE
Creators can receive LIVE gifts from viewers, as well as earn shared revenue by subscribers.
Pulse
TikTok Pulse allows brands to have their TikTok ads seen next to the top 4% of videos.
Influencer opportunities: YouTube vs. TikTok
Once you’ve gained enough followers, you can pitch yourself as an influencer to brands, opening up even more monetization opportunities. On either app, you can connect with brands via YouTube BrandConnect or TikTok’s Creator Marketplace, or use a third-party influencer matchmaker.
Paid product placements
Brands pay for you to use or display their product in your videos.
Sponsorships and endorsements
Brands sponsor you to advertise and use their products in your videos. Endorsements give the brand more control over the tone and messaging you use in your content.
Affiliate marketing
Through affiliate marketing, you’ll earn a commission every time someone uses the link you provide to buy a product or service.
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According to Forbes, in 2023 the highest-earning content creators on YouTube and TikTok were:
- Jimmy Donaldson (MrBeast), who earned $82 million from his stunt-driven philanthropy, gaming, and review channels
- Preston Arsement (PrestonPlayz), who successfully monetized his gaming videos to earn $35 million
- Rhett & Link, the creators of the entertainment powerhouse, Mythical, who went from more humble beginnings posting comedy bits to a sweet $35 million
- Ryan Kaji, whose unboxing videos and toy reviews led to the creation of toy company Ryan’s World and $35 million
- Jake Paul, who earned $34 million sharing games, challenges, lifestyle videos, Q&As, and music
- Mark Edward Fischbach (Markiplier), who amassed $30 million via his channel, where he shares over-the-top, dramatized video game commentary and reviews with his audience
- Séan McLoughlin (Jacksepticeye), an entrepreneur who earned $27 million selling clothing aimed at gamers
- Matt Rife, whose comedy videos took TikTok by storm, earning him $25 million
- Olajide Olatunji (KSI), whose over-the-top humor and reaction videos led to a career in boxing, rapping, and promotions—all to the tune of $24 million
- Charli D’Amelio, who earned $23 million from sharing videos of dances, lip-syncs, and montages
Can you make more money on YouTube or TikTok?
The income generated by the top three YouTubers is higher than that of the TikTokers, but YouTubers have been creating content for far longer. MrBeast posted his first video in 2012, whereas Charli D’Amelio only started in 2019. As TikTok expands its monetization programs and TikTokers diversify their income streams, their earnings should grow.
TikTok Fame Could Be Your Key to Getting Signed to a Major Agency 
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Pros
- An eager audience: More than 80% of Gen Z, 70% of millennials, and 33% of boomers go to YouTube to learn.
- Video length: Once verified, you can upload videos more than 15 minutes long.
- Analytics: Built-in, measurable metrics help tell you what you’re doing right and where to improve to increase your engagement rates.
- Interaction: Clear calls-to-action (CTAs) help you grow your channel. You can encourage your audience to like, comment, subscribe, watch other videos, and visit your website or social media, all from your YouTube channel.
Cons
- Music limits: YouTube’s music library doesn’t include any mainstream songs because the music you use in your videos must be free from copyright.
- Ad blockers: These plug-ins can decrease your ad revenue earnings.
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Pros
- An engaged audience: Users spend longer on TikTok than they spend on YouTube.
- Viral potential: It’s easy to go viral with TikTok’s meritocratic algorithm.
- Cheap and streamlined production: Content can be filmed, edited, and uploaded from one device, keeping production time and costs low. TikTok also has many in-app filters and video effects that you can take advantage of to help your videos stand out.
- Music and sound choices: TikTok Sounds has a much broader selection of songs and sound effects, including mainstream music.
Cons
- Restricted analytics: You’ll need a business account to view your analytics and track your metrics.
- Length: Videos can only be up to 10 minutes long.
- Legislation: TikTok has faced several legal challenges in the U.S., so it’s possible the app will be taken down just as your monetization efforts get rolling.
