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TikTok ban threatens US content creators’ revenue

"Revenue Threat"
“Revenue Threat”

Brandon Hurst, a renowned social media entrepreneur, prints money with a thriving online business through TikTok. Boasting of a 186,000 strong following and selling over 57,000 plants in 2023 alone, Hurst stands deeply concerned about the looming US prohibition of the platform.

The source of this anxiety is a recent bill introduced by the Biden administration. This legislation could ban TikTok, the Chinese-owned app, unless the platform charts compliance with certain requirements. The potential ban has sent shivers down the spine of many content creators who heavily rely on this platform for their income.

TikTok’s unique algorithm, characterized by an informal persona and short video duration, offers small businesses an unrivalled platform to project engaging content and grow their brand. Businesses harness the app’s vibrant aura to appeal to a younger demographic. The use of trending hashtags and music can significantly increment visibility and traction. Brands collaborate with influencers and other businesses, using TikTok’s features like Duet and Stitch, for amplifying their impact. However, they need to persistently create innovative content to stay relevant.

In the city of Los Angeles, a potential TikTok ban promises to disrupt many content creators and influencers.

TikTok ban’s impact on creators’ earnings

Such a shift could stifle plans for audience expansion and affect their revenue streams from brand deals and promotions. It has forced creators to veer their followers towards other platforms such as Instagram and YouTube. Platforms like Facebook and Instagram are reportedly innovating to compensate for the potential void.

Around 7 million small-business owners and 1 million influencers, substantially reliant on TikTok for their livelihood, could face an unpleasant scenario if a ban transpires. Rory Cutaia, a TikTok Shop partner, has warned about the devastating economic impact such a ban could evoke.

Adam Sommers, co-owner of Willow Boutique, lauds TikTok for facilitating an exponential growth for small businesses. His boutique records a considerable rise in its customer base through TikTok’s user-friendly shop, a feature that has notably increased online sales. Sommers believes that the app has not only revolutionized the marketing strategies but also has helped in transforming their revenue streams. He finally rests his case ruminating on how small businesses can leverage the app’s global outreach and user-friendly features for their growth.

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