It’s easy to roll our eyes at people out in public filming themselves dancing and doing bits for TikTok.
Concerns about the addictiveness of TikTok and the social risks attached to the app are very valid.
At the same time, TikTok is a significant and legitimate source of income for thousands of diverse creators and businesses around the world.
From rags to riches
While it’s rare, becoming a viral sensation is possible and life-changing. It has catalyzed many rags-to-riches stories, such as Bella Poarch’s rise to fame.
Born in poverty in the Philippines, Poarch was adopted at 3 years old by an American veteran and his wife, leaving the care of her grandmother. Poarch and her other adopted siblings lived with their new parents on a farm where they helped out before and after school.
Unfortunately, the children were abused and had limited access to food and personal hygiene, resulting in bullying at shaming at school.
When she was 13, her family moved to Fresno, California. The abuse subsided but Poarch wanted a fresh start.
She served in the Navy for a few years before achieving viral fame. In August 2020, she uploaded a video lipsyncing Millie B’s “M to the B” while making an endearing, cartoon-like expression.
It exploded and became the most-liked video on the app in less than a month. It still holds that title with 69 million likes.
In May 2021, Poarch signed a deal with Warner Records and is pursuing a pop music career. In 2023, she made $3.32 million from TikTok.
TikTok influencer earnings
The highest-paid TikTok influencer is US-based Charli D’Amelio, earning $23.50m in 2023.
With 157 million followers, she is the second most followed TikTok creator next to Senegalese-Italian influencer Khaby Lame. Lame has 162 followers and earned $20 million in 2023.
You don’t need millions of followers to make money on TikTok. Influencer status and earnings sit on a spectrum:
- Nano-influencers (1K–10K followers): $5–$50 per post.
- Micro-influencers (10K–50K followers): $50–$500 per post.
- Mid-tier influencers (50K–500K followers): $500–$5,000 per post.
- Macro-influencers (500K–1M followers): $5,000–$10,000 per post.
- Mega-influencers (1M+ followers): $10,000+ per post, with top creators earning $50,000 or more per post.
Note that these figures are estimates and vary based on engagement rates, niche, and brand partnership terms.
In light of the pending ban, TikTok worked relentlessly to prove it isn’t a threat to data security and instead stimulates US economic growth.
A stronger economy?
Last March, Oxford Economics published a consulting report called TikTok: Helping grow small and midsized businesses and deliver value for consumers across the United States.
The report asserts that the app is a “hub for a diverse array of individuals and businesses across the United States, contributing to a vibrant online community”.
TikTok’s algorithm can speed up the discoverability of small and midsize businesses (SMBs) due to its preference-matching settings.
This benefits the global economy by introducing international brands to international users and building a vibrant, diverse e-commerce community.
Based on its economic modelling, Oxford Economics suggests that SMB activity on TikTok contributed $24.2 billion to GDP in the US in 2023, while sustaining 224,000 jobs.
Leading up to the ban, signed into law by Joe Biden, TikTok issued a warning of the financial toll the ban could take.
It expressed that small businesses and social media creators would lose $1.3 billion in only one month upon enforcing the ban.
Blake Chandlee, TikTok’s president of global business solutions, asserted that nearly two million creators could miss out on $300 million in earnings.
Health & security risks
In contrast, those who support the ban are digging their heels in, weighing that the cost of national security risks are far greater than the earnings the app generates.
The US Federal Trade Commission and FBI took extensive measures to establish the risks of sharing sensitive user data with the Chinese Communist Party (CCP). And the threat of spreading misinformation — not that this isn’t already taking place across multiple apps, US and foreign.
There is a strong belief that the CPP will track the videos watched by US users and manipulate the content shown to influence American elections, serving as a tool for spying and sharing propaganda.
In addition, there are many proponents for the ban for health reasons. We live in an era of information overload and excessive content consumption.
Living in an overstimulated state can elevate cortisol levels, impacting sleep, focus, and attention. It increases the risk of developing anxiety, depression and other related mental health conditions.
Social media consumption is now also considered a form of substance abuse due to its highly addictive nature.
TikTok addiction
TikTok is also widely considered by medical and mental health professionals to be the most addictive social media app. This is due to its advanced personalized algorithm, and relentless stream of engaging short videos, creating a loop effect that ensnares users’ attention.
The rapid-fire consumption of small bursts of engaging, dynamic content releases dopamine that generates a sense of reward — however, the instant gratification wears out quickly, triggering users to want more and stay active on the app.
The amount of time and energy spent on the app can take away from pursuing other meaningful life events and from being present in the world around us.
On that note, every major social media app is designed to create a co-dependent relationship with the user.
Ultimately, the negative sentiment towards TikTok mostly stems from the fact it’s owned by a Chinese company. The US’s attitude towards TikTok has been heavily criticized for being discriminatory and xenophobic.
Trump vs Biden vs TikTok
Whether you’re for or against the ban, disabling the app could hurt the US economy.
Ironically, the ban was first introduced by the Trump Administration in 2020. At the time, Trump pressured TikTok to sell to a US company. Oracle, Microsoft and Walmart were all interested.
This fell through when Biden first took office and was shoved to the side as a lesser priority. However, it came back full circle with Biden ultimately enforcing the ban on January 19th, 2025 — the day before Trump’s inauguration.
Trump positioned himself in the favour of America’s youth by pausing the ban for 75 days. Many mistakenly believed it was eliminated entirely.
TikTok “went dark” for a 12–14 hour period over January 19th and 20th. When users went back into the app, a notification popped up letting them know that, with Donald Trump’s support, the app was available again. For now.
TikTok has received a 75-day extension period post-ban. It ends on April 5th, 2025.
What now?
The Trump Administration has resumed pressuring TikTok to sell. Trump has expressed his interest in a bidding war for the app.
Many tech companies are in a compromising position due to the ban. Companies “busted” for helping users access the app could be subject to a $5,000 fine per user.
TikTok is still unavailable in the Apple and Google app stores for this reason.
The same applies to internet hosting services like Oracle, which could be charged $5,000 for each user that accesses TikTok using their platform.
TikTok’s future in the US is gray. However, we can anticipate that the app will either create a US division or sell to a major US company.
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