2024 was full of panic over the Tiktok ban and potential sale of the platform, but Tiktok has proven it has staying power in 2025. TikTok is still a powerhouse for brand storytelling and consumer engagement. Users love Tiktok's short-form video format and interest driven algorithm which in turn offers Marketers a massive audience to capture attention and drive results. As more brands and agencies flock to sponsoring creators on Tiktok, an important question arises for teams at large companies: How can I work at the speed I need and actually pay TikTok influencers?

This guide, created for marketing leaders and their teams, will walk you through everything you need to know about compensating TikTok creators. From understanding what to sponsor and typical rate cards to navigating the complexities of payment methods and ensuring compliance, you'll gain the insights needed to build and scale a successful Tiktok influencer program.

We've leaned on our experience of supporting over $1B in creator payouts in aggregate and processing $1 million in payouts on a daily basis to creators into this comprehensive guide. Our goal is to equip you with the knowledge both execute effective TikTok campaigns and build a scalable and efficient payment infrastructure that will give you a competitive edge, or at the very least pay Tiktokers without headaches and on time.

What type of content to Sponsor on TikTok: 3 Main Options

Before you can determine compensation amount(s), you should decide on the type of content you want to sponsor. On TikTok, three primary formats stand out:

1. TikTok Videos: This is the most common and, for many, the most effective format. Short, engaging videos are perfect for brand storytelling, product demonstrations, and capturing the authentic voice of a creator. They are the bread and butter of TikTok influencer marketing.
   
   

2. Carousels: Comprising a series of static photos, carousels are an excellent tool for educational content and step-by-step guides. They often boast strong engagement rates and longer view times compared to videos, making them ideal for more detailed brand messaging.
   
   

3. TikTok Live: Reserved for creators with a proven track record of engaging their audience in real-time, TikTok Live offers a unique opportunity for interactive brand experiences, Q&A sessions, and exclusive announcements.

A strategic approach often involves a mix of these formats, tailored to your campaign goals. For maximum impact, consider having your influencer partners cross-post their TikTok content on Instagram Reels, which utilizes a similar short-form video format.

Decoding TikTok Influencer Rates: A Look at the Numbers

Pricing in the world of influencer marketing can feel opaque, with rates varying wildly based on numerous factors. As a starting point, here's a VERY rough breakdown of what you can expect to pay based on follower count. Disclaimer: These are just generic estimates (observed data to follow).

Several other factors significantly influence an influencer's rate, including:

• Average number of views: This is often a more critical metric than follower count. Ignore viral outliers and look for consistent viewership.

• Engagement rate: High engagement (likes, comments, shares) indicates a dedicated and interactive audience.

• Industry/Niche: Specialized or high-demand niches often command higher rates.

• Region: Geographic location plays a role in pricing.

• Other Channels: An influencer's presence and reach on other platforms like Instagram and YouTube will also affect their overall rate.

We looked at aggregate data of over a sample of $100M+ of payouts made via Lumanu during the first quarter of 2025 for payouts across various social platforms:

Average per Tiktok payment (Via Lumanu): $4,805
Median per Tiktok payment: $800

To benchmark, here is the data we saw for other similar formats (Instagram Reels and YT shorts):
Average per IG Reels payment (Via Lumanu): $8,018
Median: $1,200

Average per YouTube short payment (Via Lumanu): $5,826
Median: $2,000

In this sample, brands and agencies sent about 20% more payments for IG reels based partnerships as compared to TikTok but 10x the number of payments for TikTok as compared to YouTube shorts.

The Art of Negotiation: Agreeing on a Rate with TikTok Influencers

While you can always ask an influencer for their rates (and this is what MOST brands end up doing), a more effective strategy is to propose a rate you are willing to pay. This saves time and anchors the discussion initially around your budget. If you were too far apart, the partnership was never going to happen and proposing a rate first gives your partner mode room to potentially come down and meet you. Once you have a clear understanding of what has worked in the past, total budget and key performance indicators (KPIs), you can make informed offers. This approach often leads to better rates and streamlines the negotiation process.

Another powerful negotiation tool is the speed and ease of your payment process. Influencers are more likely to offer better rates to brands that pay them quickly and with minimal friction. This is where a dedicated payment solution like Lumanu can provide a significant advantage. Telling a creator you will pay once content goes live is much more attractive than net 60.

A quick note on product-for-post: While the days of getting free posts in exchange for free products are largely gone, this strategy can still be effective for seeding campaigns with micro-influencers to generate initial buzz and user-generated content.

Driving Sales: The Importance of Spark Ads

If your primary goal is to drive sales, securing the rights to use Spark Ads is non-negotiable. Spark Ads are a native ad format that allows you to boost an influencer's organic post from your own ad account and actually measure results. This means you can amplify authentic, creator-generated content to a wider, targeted audience, driving traffic and conversions while maintaining the post's original look and feel. This will give you a data driven understanding of what content performs best so you can tailor your creative brief.

Finding the Right Partner: A Guide to Vetting Influencers

The success of your TikTok campaign hinges on finding the right influencer partners. Here's what to look for:

1. Define Your Content Strategy: Are you aiming to entertain, educate, sell, or build brand awareness? Once you have a clear objective, identify creators whose content style and audience align with your goals.

2. Analyze Their Metrics: Look beyond follower count. Scrutinize their average views, engagement rate, and audience demographics to ensure they reach your target customer.

3. Review Past Partnerships: Examine their previous brand collaborations to assess the quality of their sponsored content and their ability to integrate brand messaging authentically.

The Challenges of Traditional Payment Methods

As you scale your influencer marketing efforts, the friction in your payment process will become increasingly apparent. Many brands initially turn to their existing accounts payable (AP) systems or platforms like PayPal, but these methods present significant challenges.

Manual Processes via AP Tools (Bill.com, Coupa, Zip, etc.):

• Time-Consuming Vendor Onboarding: Each influencer must be onboarded as a new vendor, a process that can be cumbersome and require significant back-and-forth with your finance department.

• Lack of Flexibility: These systems are designed for traditional vendor payments and often lack the flexibility needed for the dynamic nature of influencer marketing.

• Delayed Payments: The rigid processes of AP departments can lead to significant delays in paying creators, damaging relationships and making you a less attractive partner.

PayPal: A Risky Proposition for Businesses

While PayPal may seem like a simple solution for one-off payments, it poses several risks and limitations when used for business purposes:

• Lack of Control and Visibility: Funding payments often requires connecting a bank account, which can lack the necessary financial controls for a business. Using a credit card can result in a lack of visibility and audit trails.

• The "Friends and Family" Trap: Paying influencers via PayPal's "Friends and Family" option to avoid fees is a violation of their terms of service. PayPal is cracking down on this practice, and it can put your business at risk. For more information, you can read about their policies on their official site.

• Scalability Issues: PayPal becomes increasingly unwieldy and difficult to manage as you work with a larger volume of influencers.

More about the challenges of using PayPal for influencer and affiliate payments

Lumanu: The Enterprise-Grade Solution for Influencer Payments

Lumanu is a platform specifically designed to address the unique challenges of paying creators at scale. Here's how we streamline the process and empower brands and agencies to pay out over $1 million per day to creators and other marketing freelancers:

• Fast and Effortless Payouts: Our platform automates the entire vendor onboarding and payment process, from onboarding to payout. Lumanu is a payment network specifically built for Marketers and their creator partners and talent Managers. Creators get a mobile friendly sign up process, notifications when payouts have been created and approved and fast same day payouts. This means less administrative work and support time for your team and faster, more reliable payments for your influencer partners.

• Enterprise-Grade Financial Controls: We provide a dedicated, FDIC-insured bank account to hold your funds, ensuring they are never co-mingled. This, combined with our consolidated invoicing and support for "no PO, no pay" policies, gives your finance team the control and visibility they need.

• Simplified Compliance: Lumanu acts as a single vendor for all your creator payments, taking on the burden of compliance and tax requirements. We handle W-9 and W-8BEN collection, 1099 filing, and ensure adherence to all relevant regulations.

• Seamless Integration: Lumanu works alongside your existing influencer campaign management tools (like Airtable, Google Sheets, or Notion) and influencer platforms (such as Tagger, Sprout Social, and CreatorIQ). Our flexible interface, CSV upload capabilities, and robust API allow you to create, schedule, and manage payouts with ease.

By removing the friction from the payment process, Lumanu not only saves you time and resources but also helps you build stronger, more enduring relationships with the creators who are driving the success of your brand on TikTok and beyond.

Learn more about Lumanu with a personalized demo