6 Reasons Why YouTube is Better than TikTok for Passive Income – Detailed Breakdown, Tips, & More

YouTube and TikTok are arguably among the most popular social media platforms for video-based content. Both platforms have tons of opportunities. 

However, when it comes to passive income, the difference between the two is quite prominent. 

In this post, we’ll discuss why YouTube is better than TikTok as a passive income source

Quick Summary

By the end of this post, we’ll cover the following topics:

  • Unique reasons why YouTube is better than TikTok
  • Essential tips and FAQs

Without further delay, let’s jump into it.

6 Important Reasons Why YouTube is Better than TikTok

Before we get into the details, it is important to note that all the reasons will be oriented toward passive income.

YouTube holds a monopoly position as a video-based media platform. Even though TikTok has a similar format, it has certain limitations. 

Let’s discuss why YouTube is a better option compared to TikTok. 

Overall Revenue Stream

Passive income on any social media platform is generated through three main channels. These channels include ad revenue, sponsorship, and affiliate sales. 

YouTube benefits from all these passive income channels. Whereas, TikTok is only limited to sponsorships and affiliate sales. 

Can I earn from TikTik through ads? 

The answer to this question is no, you cannot. Even though there are various advertisements on the platform, TikTok doesn’t pay the content creators for them. 

How much can I earn from YouTube ads?

On the other hand, you are directly paid for every single advertisement that is displayed on your channel. Moreover, these ads are regularly displayed on every monetized video. 

How much can I earn from YouTube ads?

There is no concrete number for how much you can earn per ad from YouTube. Some speculations suggest that YouTube pays $0.18 per ad. 

Moreover, the ad revenue goes up as your views increase. So, if a video on your channel is consistently gaining views, it’ll get higher-paying ads. 

Are YouTube ads affected by my location?

YouTube’s algorithm is designed to display ads according to your geolocation. It ensures a better conversion rate for the investors. 

On top of that, it directly impacts your channel as well. As your channel projects a progressing CVR, the algorithm will queue higher-paying ads.

Brand Presence

YouTube is a hub for many global brands. They advertise various products and services but also have individual channels for community engagement

What are some common sponsors on YouTube?

As a content creator, brand presence brings a lot of opportunities to the table. Even with a mediocre following and views, you can easily land a brand deal. 

What are some common sponsors on YouTube?

Some of the most prominent sponsors you can find on YouTube are GFuel, Ridge wallets, and SquareSpace.

They offer sponsorships and affiliate deals. You can easily earn hundreds of dollars even without ad revenue. 

Is there any brand presence on TikTok?

Even though TikTok has a massive userbase, the brand presence is scarce. The only brands that are present on the platform are startups. 

You can land a sponsorship deal but startups don’t usually pay a lot of money. 


As a business or content creator, you want every detail related to your account. When it comes to passive income, these details can help you enhance various aspects. 

One reason why content creators prefer YouTube is its detailed dashboard. You can get information regarding every single dollar you earned in a month. 

Does TikTok have a dashboard for content creators?

Does TikTok have a dashboard for content creators?

TikTok has its own version of the dashboard. Compared to YouTube, it is lackluster. You don’t get as many details. 

Moreover, you have to use third-party software to track your progress as a content creator. It puts unnecessary time and financial constraints on you. 


The data you get from your target audience is crucial whether you are a content creator or running a business. For any social media, it is arguably the most important aspect. 

YouTube’s demographics are quite versatile compared to TikTok. You have users that start from 10 years old and go all the way up to 50-60 years old. 

What is the main demographic of TikTok?

What is the main demographic of TikTok?

TikTok on the other hand has a much younger audience. The majority of the platform has users between the age of 14 and 25. 

It is much harder to create content for a younger user base. Moreover, your content has to be unique in order to grab their attention. 

How do demographic impact my earnings? 

With a wider audience, you have a better chance of selling something. It can be your merchandise, offsite service, or an affiliate product. 

Whereas, for a smaller subset, your chances drop drastically. Naturally, a brand only wants to sponsor a channel that can generate consistent sales. 

Potential for Growth

Passive income sources always have room for growth. You can easily your monthly earnings with little to no effort in most cases. 

YouTube, as a platform, leaves a lot of space for you to grow your channel and increase your overall earnings. All you have to do is be consistent with your uploads. 

How much can I grow my channel on TikTok?

How much can I grow my channel on TikTok?

TikTok, on the other hand, has very little room for growth. Many successful TikTok content creators have moved on to YouTube for the same reason. 

For example, Bella Poarch gained popularity on TikTok but moved on to YouTube as a content creator because of its growth potential. 

Return on Investments

As a content creator or a business on social media, you want a safe return on your invested resources. Otherwise, your efforts aren’t worth anything. 

How much return can I get on my investments from YouTube?

For content creators, time is their resource. On the other, for a business, it’s their time and money. Either way, your goal is to get a greater return than your investment.

How much return can I get on my investments from YouTube?

YouTube treats the investors quite well. As a business, you can generate organic reach and gain a lot of exposure. Ultimately, it helps your active and passive earnings

Important Tips to Keep in Check

Even though social media platforms are easy to operate, there are some things you should always keep in mind. They are as follows:

  • Your effort should be rewarded fairly. Any platform that doesn’t fulfill your requirements isn’t suitable for you.
  • Personal growth. You should always choose a platform that can help you grow on a personal level. 
  • Ease of transition. You should always be able to transition from one income stream to the other. 

Wrapping Things Up…

This brings us to the finish line of our post on why YouTub is a better platform for passive income compared to TikTok. 

YouTube and TikTok are quite popular among content creators as a means to earn efficiently. However, in comparison, YouTube has a lot more potential for you to grow as a content creator. 

Let us know what you think in the comments below.