TikTok Ban Threatens Influencers’ Livelihoods: Who Stands to Lose?

The imminent TikTok ban in the United States, set to take effect on January 19, 2025, has thrown millions of content creators and small businesses into a state of uncertainty. As a platform that has revolutionised digital marketing and the creator economy, TikTok has provided an essential avenue for individuals and brands to grow their audiences and monetise their content. While some influencers are preparing to transition to alternative platforms like Instagram and YouTube, experts warn that the ban could have serious economic consequences, particularly for middle-class entrepreneurs who depend on TikTok for their income.

The Legal Battle Behind the Ban

The US Supreme Court has upheld the legislation that mandates ByteDance, TikTok’s Chinese parent company, to sell the app to an American entity or face a complete removal from the US market. This decision was driven by bipartisan concerns over national security. Despite efforts to delay the ban, including Senator Chuck Schumer’s appeal for more time to secure an American buyer, the deadline remains unchanged. “It’s clear that more time is needed to prevent widespread disruption to millions of Americans relying on TikTok for their livelihoods,” Schumer commented.

Content Creators Face Uncertainty

For many influencers, TikTok has been more than just a social media platform—it has been a primary source of revenue. Sarah Perl, known online as @hothighpriestess, has amassed a following of 2.5 million and built a business largely dependent on TikTok Shop. She fears she could lose substantial earnings, estimating a drop of six figures monthly.

Similarly, Christine Ly and Olivya Soth, the duo behind OG Slimes, have leveraged their 1.7 million followers to drive sales through ASMR-style slime videos. “TikTok has been our most effective tool for reaching customers. We’ve had countless products sell out overnight,” they said. In anticipation of the ban, they have started expanding their presence on Instagram and YouTube, but they acknowledge that the transition will not be seamless.

Economic Consequences Beyond Influencers

Social media researcher Jess Maddox of the University of Alabama warns that the ban could trigger economic ripple effects. Drawing comparisons to the 2023 SAG-AFTRA strikes, Maddox pointed out that while many creators do not make a full-time living from TikTok, the platform has been crucial for micro-influencers and small businesses. “A significant portion of creators earn less than $49,000 annually. These individuals and small businesses, many of whom use TikTok Shop to reach customers, will be the hardest hit,” she explained.

TikTok has been instrumental in lowering the barriers to entry for aspiring entrepreneurs, allowing them to thrive in the digital economy. The platform’s algorithm has enabled small creators to gain visibility and scale their businesses at an unprecedented rate. Maddox emphasised that the impact of the ban would be particularly severe for middle-class entrepreneurs already struggling with inflation and economic instability.

TikTok’s Lasting Influence on the Creator Economy

The rise of TikTok has reshaped the digital landscape, offering creators unparalleled opportunities to monetize their content. Sarah Perl credits the platform for its ability to propel businesses forward at an unprecedented speed. “No other time in history has made it this easy to generate $10,000 a month through digital content creation,” she remarked.

Rachel Muse, another TikTok creator with 150,000 followers, shared her perspective on how the platform has enabled her to balance work and personal life. Running a small clothing business while raising her daughter, Muse sees TikTok as a vital tool for small business owners. She plans to continue sharing content on other social platforms but acknowledges the challenge of rebuilding an audience elsewhere.

Navigating a Future Without TikTok

While the ban presents a major challenge, some creators are looking at it as an opportunity to explore new platforms. Ly and Soth are considering Xiaohongshu, a Chinese app gaining popularity among younger users. They believe that alternative apps may offer similar features, allowing them to continue reaching their audience.

Despite the looming uncertainty, Perl remains hopeful. “If this happens, I’ll pivot,” she said. “Being one of the first to establish a presence on a new platform could be exciting.”

As creators brace for the potential impact of the ban, the future of digital marketing and the influencer economy hangs in the balance. While some may successfully transition to other platforms, the economic consequences for smaller influencers and businesses reliant on TikTok Shop could be long-lasting. The next few months will reveal whether alternative platforms can fill the gap left by TikTok’s departure from the US market.