A look at how TikTok Live is reshaping the creator economy

In a bold move to cement its dominance in the creator economy, TikTok has intensified its focus on live streaming as a major source of revenue.

At a recent event in New York City, the platform announced that TikTok Live now generates an impressive $10 million daily for its creators, while, over the past month, creators’ earnings from live streams have surged to $63 million, underscoring the platform’s growing influence in real-time content monetisation and user engagement.

Surprisingly, 80.4 per cent of that $63 million came from creators with fewer than 50,000 followers. This is proof that livestreaming isn’t just for macro-influencers; it is a genuine opportunity for even smaller creators.

Report has it that over 400,000 people go live on TikTok daily, attracting more than 30 million viewers. It’s unclear whether these stats are global or U.S.-only, though the latter seems likely.

Creators monetise TikTok Live primarily through Live Gifting. Viewers buy TikTok coins with real money, then purchase virtual gifts such as roses, hearts, among others, to gift their favourite streamers. These gifts convert into diamonds, which creators redeem for cash. TikTok keeps 50 per cent of the proceeds, and creators receive about $0.005 per diamond redeemed.

Some streamers let gifts come organically; others actively incentivise their audiences, even offering live participation in exchange for a gift. Meanwhile, creator networks and third-party agencies operate on a different split: they earn from TikTok’s share, not the creator’s. TikTok rewards higher-performing agencies with extra resources, training, one-on-one management, and introductions to advertisers.

Beyond gifting, creators are also finding success leveraging live streaming for e-commerce through TikTok Shop. Here, creators act as salespeople for both sponsored products and their product lines. Shen Gao, TikTok’s head of Live operations, stated that brands are increasingly interested in Live’s power for “creating authentic engagement moments,” particularly in e-commerce. The combination of a strong product, an on-brand creator, and the ability to engage with the audience drives conversion to purchase.

To accelerate adoption, TikTok has ramped up creator support. In April, it teamed with Beacons.ai for an in-person mixer at its NYC headquarters. It also launched a dedicated Discord server for Live creators, plus webinars and virtual training calls.

As TikTok Live cements its role in the creator economy, powered by fan gifting and e-commerce, it’s poised to become a cornerstone of integrated marketing campaigns. Its trajectory will be one to watch, especially as the platform’s U.S. regulatory future unfolds.