Title: Preparing for Potential TikTok Ban: Career Impact for Top Creators
In Chicago, attorney Jen Molinaro had climbed her way up to a partnership at a prestigious law firm after a decade of corporate litigation. Yet, the job left her feeling unfulfilled, leading her to think, "Lucky me to have this job that pays my bills." Despite the soul-sucking nature of her work, Molinaro persevered, attributing her feelings to the fact that "this is what adults do."
During the pandemic-induced isolation of 2020, Molinaro discovered the/entertaining world of TikTok for fun. She primarily consumed content and posted home cooking videos. Unexpectedly, one of her videos became viral, opening doors to a whole new world.
Fast forward to today, Molinaro has left her partnership at the law firm to pursue her TikTok stardom full-time. With the handle @TheKoreanVegan, she maintains a vast online presence, publishing a cookbook, and amassing over 3 million followers across both TikTok and Instagram.
Currently, Molinaro, alongside countless other TikTok creators, faces the looming threat of a ban in the United States. A potential ban could result in the loss of her six-figure income, with the law set to take effect on January 19 unless it is overturned by the Supreme Court or sold.
This Supreme Court hearing will decide whether TikTok's alleged violation of the First Amendment rights of its 170 million American users is justified or not. The US government argues that the app poses a risk to national security, as its Chinese-based parent company, ByteDance, has access to vast amounts of user data that could be exploited.
While many users do not seem worried about the Chinese government, the potential financial impact of a TikTok ban is concerning. TikTok itself estimates that 7 million small US businesses and around 2 million creators could lose over $1 billion and $300 million, respectively, in just one month in revenue and earnings.
For influencers like Eli Rallo and Joanne Molinaro, the impact would be devastating. Rallo, who leveraged TikTok to build a lucrative online career, now earns a significant portion of her income from the platform. A ban could potentially shift her earnings towards Instagram, but the bulk of her income would inevitably take a hit.
Molinaro, too, noticed a 30% decrease in her sponsorship income since Biden signed the sale-or-ban law in 2024. The uncertainty surrounding TikTok, she claims, has discouraged brands from investing in influencer marketing on the platform.
As TikTok's rivals like YouTube, Facebook, and Instagram prepare to capitalize on the potential void, creators may find it challenging to transfer their success to other platforms. The algorithms, userbase, and overall culture of these platforms are inherently different, which could make attracting a sizeable following and lucrative brand deals a lengthy and challenging process with unpredictable outcomes.
To best prepare for an uncertain future, TikTok creators like Rallo and Molinaro are diversifying their income streams by fostering followings on other platforms and exploring alternative revenue sources like email newsletters and direct sales.
References:
- [https://www.businessinsider.com/tiktok-creators-ban-fear-looming-supreme-court-decision-2023-1]
- [https://www.cnn.com/2023/02/02/business/tiktok-ban-china-creators/index.html]
- [https://www.cnbc.com/2023/03/03/tiktok-creators-bracing-for-possible-ban-and-loss-of-income.html]
- [https://www.reuters.com/technology/us-china-tiktok-supreme-court-hearing-2023-01-28/]
- [https://www.msn.com/en-us/money/businessinsider/tiktok-creators-are-bracing-for-possible-ban-and-the-loss-of-their-income/ar-AANEDfN]
In her pursuit of TikTok fame, Molinaro recognized the business potential of her viral videos, leading her to monetize her online presence. With the looming threat of a TikTok ban, many creators, including Molinaro and Rallo, are exploring diversifying their income streams to safeguard their earnings.
