A millennial whose TikTok business generated $100,000 in sales said a ban on the app could doom his business. But he's developing a backup plan. (2024)

The St. Louis-based millennial told Business Insider he worked full-time as an independent artist and content creator about his polyamorous lifestyle, which is when more than two partners engage in a consensual romantic relationship. He uses his platform to educate people about polyamory and discuss the struggles of transitioning from monogamy.

Spangler said the vast majority of his income comes from selling digital art designs — primarily as apparel, stickers, and enamel pins — through his website and Etsy. In 2022, his solo business generated over $103,000 in online sales, according to a document viewed by Business Insider. His take-home earnings were $36,000 after accounting for inventory-related costs, platform subscriptions, and other expenses.

The majority of his customers find him through TikTok, Spangler said, where he has over 300,000 followers across two accounts. In 2022, over 75,000 visits to his website came from a link in his more popular TikTok profile, according to a document viewed by BI. Instagram was responsible for roughly 44,000 visits, followed by Facebook, Twitter, and Google at 2,000, 429, and 161 visits, respectively.

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Spangler started selling his designs full-time in 2021 after quitting his corporate job and said his wife was earning the majority of their household's income while the business grew. He said his goal was to get back to the annual income level he had at his old job — roughly $57,000 — but that he was worried about one thing getting in the way: a TikTok ban.

"It's not an exaggeration to say that TikTok is my livelihood," he told BI last year. "The immediate impact of a TikTok ban would be a loss of my primary income source."

@thegoodchad I don't have the followers on this account for a link in bio. It's thegoodchad.com/shoporiginals #savetiktok #tiktokban #smallbusinesstiktok ♬ original sound - TheGoodChad

Initially, Spangler said he wasn't too concerned about the app being banned. But after TikTok CEO Shou Zi Chew's appearance before Congress in March 2023, "the feeling that the ban could actually happen sunk in."

On March 13, the House of Representatives passed a bill that could effectively ban TikTok if it gets through the Senate and is signed by President Joe Biden. The legislation wouldn't entirely ban the app in the US. Instead, it would give any company owned by a "foreign adversary" 180 days to divest or sell to a US-based company in order to continue operating, BI's Madison Hall reported.

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Lawmakers have raised concerns that TikTok's Chinese parent, ByteDance, could give the Chinese government access to US user data and pressure TikTok to show or restrict certain content to American users for its own interests. A forced sale or spinoff — which would serve to isolate the company from Chinese government interests and alleviate some national security concerns — could allow the app and its users to continue business as usual. An outright ban would be bad news for the over 100 million US TikTok users, including the millions of businesses, many of them small shops, the company says use the platform to reach customers.

Some narrower restrictions have already been implemented across the country. More than half of all US states banned TikTok on government devices, which led many public colleges to block TikTok from campus WiFi networks and university-owned devices.

Why Instagram isn't the backup plan

While Spangler said he'd been on Instagram a year longer than TikTok, he has 123,000 Instagram followers — less than half the number of his combined TikTok followers — and he said it's the second-biggest driver of sales for his business.

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He said he was trying to move away from Instagram and Facebook — and that he was giving his followers the heads-up. The reason: He was no longer comfortable using Meta-owned platforms "because of their involvement with the spread of disinformation about TikTok."

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In March 2022, The Washington Post reported that Meta was paying one of the largest Republican consulting firms, Targeted Victory, to run a campaign intended to turn the US public against TikTok. Using a variety of measures — such as opinion pieces, letters to the editors, and stories about viral trends that supposedly started on the platform — the firm reportedly planted anti-TikTok content in small and large media outlets. Spangler said he believes these activities unfairly characterized TikTok and helped fuel the scrutiny that has led lawmakers to consider banning the app.

"From my view, at best this is a shady business practice, and at worse an intentional effort to influence lawmakers," Spangler said.

A TikTok spokesperson told the Post that the company was "deeply concerned" about "the stoking of local media reports on alleged trends that have not been found on the platform." When asked about the report in 2022, a Facebook spokesperson told Business Insider that all platforms should face "a level of scrutiny consistent with their growing success."

Spangler acknowledged that ditching Instagram would be a significant risk, however, and said that losing both TikTok and Instagram would "decimate" his income. That's why he's taken every step he can to ensure his business would survive without these platforms.

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"I'm preparing for this as best I can by working on my YouTube channel and letting my current followers know that's where I plan to be," he said. "I'm also establishing a direct email list to best reach those who want to continue seeing my content."

YouTube is a 'more stable, long-term place for content to be seen'

Ever before the Post story came out in 2022, Spangler said he'd been working on building up his YouTube channel for two reasons: the longevity of content and the better pay rate compared to other platforms.

He said that the content he posts on YouTube shorts — the short-form section of the platform — had "behaved mostly the same as TikTok or Instagram reels," initially getting a burst of views before leveling off fairly quickly. But contrary to TikTok and Instagram, he said, YouTube is also well suited for his long-form videos.

"YouTube is a great fit for me because any content I post can be served to people for years to come, giving my videos a much longer life span than other platforms," he said. Spangler said a video he posted about a year ago about jealousy in polyamorous relationships continued to be his top-performing video.

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When it comes to pay, Spangler said YouTube compensated him for his views at a rate much higher than TikTok or Instagram.

"YouTube's longevity of content and the much better pay rate make for a much more consistent source of views and income," he said.

Establishing his YouTube presence is still a work in progress, however. Spangler has roughly 15,000 subscribers on his most popular channel and said he was working on a system that would enable him to post content more regularly.

But ideally, Spangler said, TikTok will avoid a ban and he won't have to rely too much on a pivot to YouTube.

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Spangler said he doesn't think lawmakers realize how important the app is for many Americans.

"It feels like our government believes this app doesn't matter and is simply for funny dances and memes," he said. "The reality is it is an effective way for millions of Americans to reach each other, and in my case, a critical part of my small business."

Editor's note: This story was originally published in May 2023.

Do you make money through TikTok and are worried about a potential ban? Are you willing to share your story? If so, reach out to this reporter at jzinkula@insider.com.

A millennial whose TikTok business generated $100,000 in sales said a ban on the app could doom his business. But he's developing a backup plan. (2024)

FAQs

How will TikTok ban affect businesses? ›

Banning TikTok would send ripple effects through the economy because it's become a primary platform for emerging companies, he said. “You're probably talking about billions of dollars that would be removed from the economy,” Cutaia said. “The entire world of retail has changed completely.

How many jobs would be lost if TikTok was banned? ›

Shira describes the ban as "devastating". Beyond her own business, she says she's also concerned about potentially hundreds of thousands of jobs that will be lost – in March, TikTok reported the app provides at least 224,000 jobs in the US.

How does banning TikTok affect content creators? ›

Given the number of people who rely on TikTok for large portions of their income, a ban on the app would be an "extinction-level event" for creators because "most of them do not have sustainable followings on other platforms," James Nord, the founder of the influencer marketing platform Fohr, said to Wired.

What will happen with TikTok ban? ›

TikTok, which is used by more than 170 million Americans, most likely won't disappear from your phone even if an eventual ban does take effect. But it would disappear from Apple and Google's app stores, which means users won't be able to download it.

What are the risks of TikTok for business? ›

If TikTok is collecting personal data through complex algorithms and often without your knowledge, it is therefore able to gather information about your customers and your business too. The issue of TikTok targeting presents other concerns about under-aged consumers and digital grooming and bullying.

What company took over TikTok? ›

TikTok, whose mainland Chinese counterpart is Douyin, is a short-form video hosting service owned by Chinese internet company ByteDance.

What are the disadvantages of TikTok ban? ›

Cons of Banning TikTok

TikTok serves as a platform for creative expression, allowing individuals to share their talents, ideas, and opinions. Banning TikTok could be viewed as an infringement on freedom of speech, limiting the ability of users to express themselves and connect with a global audience.

What stocks will go up if TikTok is banned? ›

3 Stocks to Buy ASAP Before the TikTok Ban Sends Them Soaring
  • Snap (NYSE:SNAP) operates the popular social media app Snapchat. ...
  • Meta Platforms (NASDAQ:META) operates a family of social media and communication apps.
6 days ago

What happens if you are permanently banned from TikTok? ›

This one's for serious, repeated rule-breakers. A permanent ban means no more TikTok access, period. In severe cases, TikTok even blocks the user's device to stop them from creating new accounts.

Does the US make money from TikTok? ›

According to a new report from Oxford Economics, TikTok contributed $24.2 billion to the U.S. economy in 2023, a number that TikTok is hoping will be enough to get at least some senators to vote against the proposal to force the app into U.S. ownership.

Has TikTok laid off employees? ›

A spokesperson for TikTok confirmed to the Associated Press earlier this year that the company had laid off roughly 60 workers in its advertising and sales department. Related: TikTok is Getting Banned. What are the Alternatives? The social media app has over 150 million users in the U.S.

Who benefits from TikTok ban? ›

While the bill's stated aim is to protect Americans from Chinese spying and influence via the popular social media app, it's true that there's another group that stands to benefit: the U.S. tech companies that have been struggling to compete with TikTok.

What can cause a TikTok account to be banned? ›

If we learn someone is below the minimum age to have an account on TikTok, we will ban that account. Violating our rules can lead to enforcement actions on accounts. We will ban accounts or account holders if they engage in: A single severe content violation.

Does posting too much on TikTok get you banned? ›

You're engaging in spammy behavior

A shadowban on TikTok can result from spammy behavior, such as posting many videos on the same day or even at the same hour.

What effect does TikTok have on business? ›

2. Increase brand awareness. Similarly, TikTok offers opportunities for increased brand awareness. A key method for growing brand awareness on the platform is the use of hashtags, which allows content creators to jump on popular trends and gain significant traction from their posts.

What happens if I change my TikTok to business? ›

With a Business Account, you have access to advanced business tools (example: Business Creative Hub). This helps you create a comprehensive marketing strategy. Anyone whose primary goal on TikTok is to promote their business (either a product or service) should use a Business Account.

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