‘This is a real industry’: Here's how a TikTok ban could devastate creators and small businesses — and potentially wipe out $1.3 billion in revenue in a single month

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TikTok has evolved from a social media app into a powerful tool that has changed the way marketing and commerce interact online, and has also become a major part of popular culture. However, its future in the United States is now uncertain.

On January 17, the Supreme Court agreed with the government's argument that TikTok presented a threat to national security and decided that a law requiring its parent company to either sell the app or risk a ban does not infringe on the app and its users' First Amendment rights. The app was subsequently banned for around 12 hours on January 19, before President Donald Trump indicated that he intended to put the ban on hold.

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On his first day in office, Trump signed an executive order delaying the ban for 75 days "to give my Administration time to figure out the right way to handle TikTok."

For many creators on TikTok, such as Cora Lakey, the risks associated with a potential ban are considerable.

Lakey quit a six-figure job in talent acquisition and project management after TikTok gave her financial security, allowing her to pay off some of her student loans and gain more control over her daily routine.

Lakey pushed back on critics who have branded the platform's users as "out of touch" for their concerns over the Supreme Court decision.

“Those influencers aren't out of touch for voicing their concerns about the TikTok ban,” she said. “You're out of touch for not understanding the reality of this industry.”

What impact will this have on content creators?

TikTok's potential shutdown is prompting content creators to make crucial decisions about their income sources. Over the past few years, TikTok has helped creators earn money from their content through partnerships with brands, sponsorships, and the ability to sell products through TikTok Shop. For many, it has turned their creative talents into stable careers.

National Public Radio. “Some could claim that with TikTok closing down, it might get rid of around $1.3 billion in U.S. small business and creator revenue within only one month," she said.

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Imposing a ban would severely impact the revenue of creators, forcing many to quickly reestablish their online presence elsewhere. TikTok's unique combination of discoverability and user engagement has been instrumental to its success, a trait that other platforms may find challenging to replicate.

Taylor Byrne, who goes by Queen Tay on TikTok, where she shares her thrift shopping finds, shared how this ban would affect her personally. Having recently signed a $2,000 lease, bought a 2025 car, and is getting ready for upcoming moving expenses, she's keenly aware of the financial risks.

There's going to be a significant change coming, and based on what I'm seeing, it's likely to move from TikTok to Meta platforms, and they're already implementing new monetization options to help adapt to this.

Many TikTok users are now rushing to redirect their followers to accounts on platforms such as YouTube or Instagram. Those who already have a large following on these sites may be less concerned about the ban since they already have alternative income sources. However, for influencers who rely solely on TikTok, adapting to the ban will be a major challenge.

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What about small businesses

TikTok has been a game-changer for small businesses, allowing engaging content to take center stage even when it comes to obtaining a large number of followers. The algorithm has made it possible for small businesses to reach audiences that would have been unreachable through traditional advertising or other social media platforms.

According to a report conducted by Oxford Economics, TikTok generated $14.7 billion in revenue for small- and medium-sized businesses in the U.S. in 2023. In total, TikTok says it added $24.3 billion to the country’s GDP that year. The report also points out that more than 7 million U.S. businesses are using TikTok, providing a boost for 224,000 jobs through small business activity alone.

The loss of TikTok would cause many businesses to shift to more expensive advertising channels that may be less effective, putting their operations at risk. A wedding stylist from Washington, D.C., known on TikTok as @portraitofabrideonfire, discussed the consequences for her livelihood during an interview with CBC.

I've yet to receive a single client inquiry from Instagram.

For small businesses that rely heavily on TikTok for marketing, a ban would mean losing not only income, but also the visibility and reach that was crucial for them to grow. Without affordable and effective alternatives, many such businesses may face great challenges in maintaining their growth, and in some cases, may even struggle to survive as influencers.

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Please note that the information contained in this article should not be considered as professional advice and is offered without any guarantee of its accuracy or reliability.