TikTok Houses | What is it and how do they make money?



These are the houses in which bloggers live and “brew content” without stopping. This phenomenon is relatively new, although the first houses for YouTubers appeared several years ago. But it was in the last six months that bloggers’ houses began to appear en masse and mainly for TikTok bloggers. So they even began to be called “tiktok houses”.

One of the most famous houses is The Hype House. It emerged in late 2019, when a company of 19 Tiktokers decided to rent a house in Los Angeles. They created a separate account for The Hype House in Tiktok, which now has 16.7 million followers.

Hype House was created by bloggers Chase Hudson, Daisy Keach and Thomas Petru. Once Petru was a member of a similar project for YouTubers Team 10, organized by Jake Paul (brother of the famous blogger Logan Paul). Team 10 was a commercial project – Paul took 10% of each member’s income. In less than six months, Hype House has become a real business, and now the founders are sharing it in court.

Life in tiktok houses from the outside resembles a reality show. Only all events and dramas (and they are!) Are broadcast not on TV, but in social networks. In addition to tiktok, houses have accounts on Instagram and YouTube. Many even admit that they are actively promoting their instagram and YouTube through TikTok, as they are not sure about the future of the Chinese application.

Still, tiktok houses are not Dom-2: there is no ultimate goal or prize. Bloggers create content, collaborations with each other, and advertising campaigns for brands. In March, singer Rihanna herself invited bloggers to her TikTok House and ran an advertising campaign for her brand Fenty Beauty with their help. Bloggers promote each other, thus increasing their audience, and can come out of Tiktok House as real stars.

Many people think that bloggers’ houses are a tracing of the life of musicians who often go to camps to record a new album. But they remind me more of startup incubators: after all, these are different bloggers / projects, but a common creative atmosphere and joint projects. And, of course, a lot of intrigue, hype and hate.

Not co-living, but business!

TikTok kitchen

TikTok’s audience differs from Instagram and YouTube: users of the video platform love it when several popular bloggers appear in one video at once. Such videos are more likely to go viral, which means they bring more advertising revenue, says Tatyana Vinogradova, executive director of the iMARS communications group (clients include X5 Retail Group, MediaMarkt, MasterCard). And TikTok houses, where bloggers often live and work 24/7, provide a 24/7 opportunity to record such collaborations. “When several bloggers are filmed together, they attract more viewers’ attention and exchange audiences: subscribers of one TikToker begin to wonder about the fate of other bloggers, who often appear with their favorite in the frame. The result is a synergistic effect, ”explains Vinogradova. Often with the same purpose popular artists of another generation come to visit Tiktokers – Andrey Malakhov, Nikolay Baskov, Dima Bilan, Glucose.

The first TikTok houses appeared in March this year. All of them are arranged according to a similar model: several Tiktokers (usually about 15 people), who are on average 20 years old, live and work under one roof – most often in a country house. They shoot everyday scenes from everyday life, music or dance sketches.

Investors rate TikTok 50% more expensive than Snap

For TikTokers, this scheme is beneficial: collaborative videos, according to producers Yaroslav Andreev and German Chernykh, as well as TikTokers Dani Milokhin, Eva Miler, Anna Kalashnik, bring each blogger from $ 300,000 to $ 4 million in advertising revenue per month (after deducting the commission of agents ). But the creators of TikTok houses have not yet achieved a stable plus: they earn on commissions in the amount of 10% to 50% from each advertising contract concluded by the blogger during their stay in the house and on advertising in the accounts of the house. The creator of the XO Team house, German Chernykh, for example, claims that his profit as an organizer has recently reached $ 4 million per month, but the owner of another house, who wished to remain anonymous, claims that more often the cost of renting and maintaining the site exceeds the amount raised.

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