Is It Worth Starting a Business on TikTok for Americans in 2025?

TikTok remains one of the most popular platforms for creating and promoting content, but its future in the U.S. in 2025 is uncertain. This article explores the main risks and benefits, along with business ideas for the platform, featuring examples and numbers.

What is TikTok?

TikTok is a social network for short videos that gained popularity starting in 2018. Owned by the Chinese company ByteDance, it boasts over 1 billion monthly active users globally (as of late 2024). The platform allows users to create, edit, and promote video content targeting a wide audience. TikTok stands out for its unique algorithm that promotes even lesser-known creators.

Business Opportunities on TikTok in 2025

Despite uncertainty surrounding TikTok's future in the U.S., the platform remains a powerful tool for content promotion and monetization. Here are some key ways to earn on TikTok:

1. Brand Promotion Through Ads and Integrations

TikTok offers advertising tools like In-Feed Ads, Branded Effects (custom filters), and Hashtag Challenges.
Example:

• The brand Elf Cosmetics launched the #EyesLipsFace challenge, garnering over 4 billion views and significantly boosting sales.
• The campaign cost approximately $150,000, with an ROI exceeding 300%.

2. Building a Personal Brand

TikTok is ideal for influencers looking to grow their audience and monetize their popularity through sponsorship deals.
Example:

• Influencer Charli D’Amelio (100+ million followers) earned $17.5 million in 2024 through ads and brand deals with companies like Dunkin’ Donuts.

3. Selling Products via TikTok Shop

The TikTok Shop feature allows direct sales through the app.
Example:

• A U.S.-based company selling eco-friendly water bottles generated over $500,000 in one month through live streams.

4. Education and Consulting

Content creators and marketers use the platform to teach their audience.
Example:

• Paid access to fitness lessons in short video formats can generate $10,000+ per month with just 1,000 paying subscribers.

5. Affiliate Marketing

TikTokers earn through affiliate programs by promoting products with referral links.
Example:

• A tech reviewer earned $50,000 in one quarter by promoting gadgets on Amazon.

Risks of Doing Business on TikTok in 2025

1. Legal Uncertainty in the U.S.
   Following restrictions imposed by the U.S. government, TikTok risks losing its American audience. In the event of a ban, businesses relying on the platform may face significant losses.
2. High Competition
   Businesses must stand out among thousands of content creators.
3. Dependence on Algorithms
   Changes in TikTok's algorithms can reduce organic reach.

Is It Worth Starting a Business on TikTok?

If your audience extends beyond the U.S., TikTok remains one of the most powerful platforms for promotion. However, for businesses targeting only the U.S. market, it’s recommended to:

• Create a backup plan (e.g., work simultaneously with Instagram Reels or YouTube Shorts).
• Focus on international audiences.
• Use a cross-platform approach to diversify risks.

Conclusion

Despite the risks, TikTok remains a platform with immense business potential. A well-thought-out strategy, original content, and a smart approach to monetization can lead to success even under uncertain conditions. However, if your business is solely focused on the U.S. audience, carefully assess the risks and consider alternative platforms.