TikTok now offers Rewards in exchange for friend referrals

Anne Freier | July 10, 2019

App Business

TikTok recently added Rewards which allow users to collect points and exchange them for prizes among retailers including Sephora, Starbucks and Uber.

App users will be able to collect points by inviting friends to use the app via a unique code.

The move underlines the company’s strategy to attract rapid user growth as it approaches one billion downloads worldwide.

Gift include a $10 Starbucks or Walmart gift card in exchange for 2,000 points as well as a $5 Target, Uber or Domino’s gift card for 1,000 points. For 3,000 points, users can check-out a $15 AMC Theaters gift card.

Referrals are often used by app companies to win new users. For example, Uber offers $5 off rides when existing users refer a friend.

TikTok has seen a rapid rise in user growth since 2018, but noted a decline in downloads in April 2019 due to Indian regulators temporarily banning the app.

So far, the company has spent around $1 billion in advertising to reach its growth targets. According to latest estimates, users spent $9 billion in in-app purchases on TikTok in 2019, marking a steep 500% rise from 2018.

It’s not entirely clear how many points users will earn from a referral. Additionally, it appears that successful referrals may unlock further options for users to earn points on the app such as liking videos.

The app also appears to be experiencing some technical issues as users have reported not being able to use the rewards system correctly.

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