TikTok is doling out cold, hard cash as part of an effort to build up its creator base.
The popular video app appears to have established several referral programs that reward users who invite their friends to open their own TikTok accounts. One set of incentives, as discussed in a report published by The Information, revolves around TikTok Shop. Other creators have been promised credit on TikTok’s Promote hub or Amazon if they bring other creators onto the app.
Evidence of that referral system comes from creator economy expert Lia Haberman, who posted a TikTok screenshot on Threads. The image shows two reward options — either a $300 Promote credit or a $100 Amazon gift card — for users who successfully bring their buddies into the 1 Minute+ Growth Program.
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TikTok isn’t dishing out these rewards for any old referrals. To get credit, referrers must onboard a creator with at least 10,000 YouTube subscribers or 100,000 Instagram followers. Those benchmarks resemble the barriers for entry to TikTok’s Creator Rewards Program, which functions as a prominent monetization option for TikTokers who upload clips that are at least one minute long.
By incentivizing more activity from long-form videomakers, TikTok is drawing creators to a format that has received a lot of attention from the app itself. Since the Promote credit has three times more value than the Amazon card, the nature of the referral reward also supports TikTok’s own investments. The ByteDance-owned app has spent resources to diversify its inventory and improve premium ad products like Pulse Premiere.
The TikTok Shop referral program seems to be harnessing a similar strategy. TikTok is hoping to capitalize on its ecommerce hub’s encouraging U.S. growth by offering discounts to new and existing users. These deals, which can be found in the Rewards section of the app, allow goods like apparel, electronics, and makeup to be purchased for just one cent.
There are only two catches: Buyers must refer a friend to TikTok Shop, and they still have to pay for shipping. According to The Information, that offer went live “last month” and will be available through September 27.
These types of referral programs can bring more shine to TikTok’s most ballyhooed products, but on a simpler level, the incentivizes are trying to up the user count on an app that has seen its growth stall. Per Sensor Tower, the number of monthly active TikTok users above the age of 18 increased just 2% year-over-year during the first half of 2024. For comparison, that figure jumped 34% in 2021.
Apps like Flip have catalyzed growth through referral programs, but TikTok’s attempt to launch a similar service could draw the eyes of regulators. A gamified, rewards-oriented app called TikTok Lite got so much scrutiny in Europe that it was eventually discontinued in the region. The U.S.-based referral program seems much less likely to stir up drama, but these days, the American government will use any excuse to investigate TikTok.
