Instagram began its life in 2010 as a modest social platform for sharing photos — a little of last Friday’s party here, an adorable couple picture there. And, of course, a very respectable selection of cats.

Fast-forward for over a decade, and it’s almost impossible to imagine the app without ads, influencers, reels, and branded content. Instagram is more than an image-sharing app — it’s a place to make money.

From sponsored posts to subscriptions, Instagram has all the money-making tricks up its sleeve. Discover the monetization options below and transform your Instagram presence into a profitable business.

What You Should Know to Monetize Your Instagram

You might believe that an Instagram account’s power lies in numbers — the more followers, the better. However, that’s not entirely accurate.

Purchasing 20,000 bots might boost your follower count, but bots can’t engage with your content. What’s the value in sharing content if your audience can’t truly interact with it?

The true power of social media lies in engagement. When followers share your posts, comment frequently, and tag their friends, it can translate into earnings, regardless of whether you have 500 or 500,000 followers.

Each tactic we’ll discuss in this blog post thrives on active human engagement for success.

Before you start making money on Instagram, it’s a good idea to first check your engagement rate. This metric shows you how well your audience responds to your content.

To calculate the engagement rate, add your total interactions (likes, comments, shares, etc.), divide by the total number of posts, then divide by your followers, and multiply by 100.

For reference, a 2-3% engagement rate is considered average, while a 4-6% rate is considered high.

Various tools, including this one from Phlanx, can help you calculate engagement rates. You can also review your engagement in the Insights section of the Instagram app or within the Meta Business Suite.

To improve your engagement rate, you need to figure out what content resonates with your target audience. These blog posts are here to help you get started:

How the Instagram Algorithm Works (And How to Use It to Your Advantage) 10 Engaging Instagram Reels Ideas to Promote Your Business

Now that you understand that an engaged audience is your ticket to monetizing your Instagram account let’s explore your options.

Collaborate with Brands for Sponsored Content

One of the most lucrative methods to monetize Instagram is through sponsored partnerships.

Sponsored content mimics regular editorial content, but instead of featuring your favorite avocado toast, you receive a fee to promote an advertiser’s product on your profile.

Brands love this type of marketing because consumers naturally trust an unbiased third party more than traditional ads. Some influencers even mention some of the product’s drawbacks for authenticity.

There are several ways to connect with brands for partnerships:

Directly reach out to companies you believe align with your brand and offer sponsored content. Use Meta’s native Creator Marketplace. This platform connects creators with brands for sponsored content opportunities. Join influencer marketing platforms such as Tribe, AspireIQ, or Influence.co, where you can connect with brands seeking sponsored content.

When searching for a brand to team up with, choose those that align with your values and your audience’s interests.

When reaching out for partnerships, tailor your proposals to demonstrate how your profile can benefit their brand. Highlight your engagement metrics and past successful collaborations to build credibility.

Finally, always maintain transparency with your audience. Use the appropriate tags like #sponsored or #ad to disclose partnerships. This honesty fosters trust between you and your followers, enhancing your reputation and leading to more partnerships in the future.

Enable Instagram Subscriptions

Instagram Subscriptions is a feature that allows creators to earn a steady income by offering exclusive content to subscribers for a monthly fee.

You can share exclusive content for subscribers through stories, posts, reels, subscriber channels, and highlights.

To qualify for Instagram subscriptions, you must have a professional account with a minimum of 10,000 followers. (Check out other requirements and availability across countries.)

To make the most of this feature, offer unique content that your regular followers can’t access. This could include tutorials, behind-the-scenes clips, or one-on-one interactions.

For example, if you’re a makeup artist, you could offer your subscribers exclusive tutorials and personalized makeup recommendations. Or, if you create comedy skits, consider offering your subscribers bloopers or creating videos inspired by their ideas.

Here are some tips to increase your Instagram subscribers:

Promote your Instagram subscription by highlighting its value. You could even offer a discount or a free trial to attract subscribers! Share sneak peeks of the exclusive content to entice your audience to subscribe. Show your appreciation for subscribers’ support by offering personalized content and cool perks to keep them excited about staying subscribed.

Monetize Reels and Lives with Gifts and Badges

Instagram Gifts is a feature that allows you to earn money from your audience. Whether they’re followers or not, people can show their appreciation by sending virtual gifts on your reels.

To be eligible to earn from gifts, you must have at least 500 followers and live in a country where Instagram Gifts is available.

Followers can buy Stars and use them to send you gifts on Instagram. The platform will then provide you monthly with a revenue share from your reels that received gifts. Every Star you get from fans equals $0.01.

Badges are a similar tool for monetizing your Instagram. They let you earn money when you go live. Consider
using Badges if you frequently host live sessions with many followers attending.

Keep in mind that you need at least 10,000 followers to monetize your Instagram with badges (see other requirements here). Visit your Professional Dashboard to check your eligibility. A “Set Up Badges” button will be visible if you qualify for monetization.

Badges pop up next to someone’s Instagram username during live videos. When supporters buy badges in Live, they stand out in the comments and unlock extra features, like a spot on the creator’s list of badge holders and a special heart during the live video.

To get paid for Instagram gifts and badges, you need to set up a payout account.

Here are a couple of ideas to make the most of Gifts and Badges:

Promote your live sessions in advance. Use countdown stickers in stories to build anticipation. Inform your audience about the content they’ll receive during the live session. Offer valuable content during live sessions. Whether it’s a tutorial, an insider look at your business, or an interactive Q&A, providing value encourages your audience to support you financially. Encourage your viewers to purchase Gifts and Badges as a way to support your content. Give a shoutout and thank those who contribute — this builds a sense of community and appreciation. Share your gratitude through stories or posts. Gifts are one of your fans’ strongest signals about what content they love. Consider that in your content strategy and focus on reels that resonate with your audience.

Earn with Instagram Bonuses

Instagram Bonuses are incentives Instagram offers to creators who meet specific engagement criteria.

Instagram might have special bonus programs for creators, but they’re invite-only and available for a limited time in certain countries. Keep in mind that there’s a bit of randomness involved since they’re testing things out. Plus, since it’s more like a testing phase, the bonus program could wrap up at any time.

Go to your professional dashboard to see if you’ve been invited to try out a bonus program. If there’s no invitation, you’re not part of the test group.

The bonus program is still in test mode, and let’s be real — Instagram can’t pay every creator because it just doesn’t make financial sense. So, don’t count on this alone. Keep an eye out for an invite to the program, but definitely explore other ways to make money on Instagram, too.

Sell Your Merchandise

Merchandising is another powerful strategy for Instagram monetization. This method works best when your followers are heavily invested in your brand and actively support you.

Start by designing merchandise that represents your brand’s identity. Consider what your audience values and create products that align with those interests.

Perhaps you draw comics — why not create products featuring your characters? If you’re a lifestyle creator who gets many questions about your photo or video editing, consider offering photo or video presets for a small fee.

Another great option that suits all kinds of Instagrammers is branded merchandise. Just pop your logo or catchphrase on t-shirts, mugs — anything easy to print — and let your brand shine as the product!

The simplest way to create and sell your branded merch is with print-on-demand services. All you have to do is come up with a design, and the service will print it on a product you choose and ship it to the customer. No upfront costs and no need to handle orders — perfect for creators.

Consider Ecwid by Lightspeed to create your merchandise store. It seamlessly integrates with popular print-on-demand services like Printful and Printify, making it easier than ever to bring your creative ideas to life and start selling.

Plus, Ecwid supports Instagram Shopping, so you can connect your shop to your Instagram business profile, allowing followers to purchase directly from your posts. This seamless shopping experience increases conversion rates.

Sell Your Product or Service

Selling your product or service is another direct way to generate income through Instagram.

Instagram is a great place to sell anything from clothes to furniture, so with the right approach, your business can really thrive on this visually driven platform.

Selling Products on Instagram

If you sell physical products, make sure to set up an Instagram Shop. This feature lets sellers tag products in posts and stories, making it easier for followers to purchase. Plus, having an Instagram Shop gives your business more credibility and trust with potential customers.

One of the easiest ways to set up an Instagram Shop is through Ecwid by Lightspeed. This ecommerce platform provides you with an online store that you can connect with your Instagram page to tag products in your content. Learn more about requirements and setup process in the Ecwid Help Center.

To boost your selling skills on Instagram, take a look at these articles:

How to Sell on Instagram: Complete Guide for Business Owners 6 Easy Steps to Generating Sales with Instagram Stories

Selling Services on Instagram

If you’re thinking about selling services, help your audience by sharing your niche skills through courses or downloadable guides. Whether it’s new languages, healthy eating, photo editing, or whatever your expertise might be, Instagram is the perfect platform to showcase your knowledge and promote your services.

Use your Instagram bio to direct potential customers to your website. You can also use a link-in-bio tool like Linkup to showcase all your links in one place and make it easy for your followers to access them.

Since Instagram Shops don’t allow digital product sales, Linkup is a great workaround. You can use it as a handy landing page for your services and digital products right in your Instagram bio.

Promote Affiliate Products

Affiliate marketing on Instagram involves promoting other businesses’ products and earning a commission for each sale made through your referral link or promo code. The latter is better suited for Instagram, as links can only be placed in your bio.

Consider brands that might be helpful to your audience and see if they have affiliate programs. They probably do! Reach out directly or use services like ClickBank or Amazon’s Affiliate Program to get started. Instagram has its own affiliate program, too.

Choose products you genuinely believe in to maintain authenticity. Your followers will appreciate honest recommendations.

Create engaging content around these products. Use Instagram’s various formats — posts, reels, and stories — to showcase the product in action. Share personal reviews and experiences to build trust with your audience.

Include your affiliate link in your bio or stories. Encourage your followers to use your link, emphasizing the added benefits they gain, such as discounts or exclusive access.

Here’s the Recap on Monetizing Your Instagram

Next time you’re scrolling through Instagram, remember that it’s not just a platform for sharing pictures and videos. It’s also a powerful marketing tool that can help you turn your passion into profit.

Keep in mind that monetizing through Instagram may not happen overnight. It takes time, effort, and consistency to build a solid following. Then, engage with your audience by sharing content that resonates with them.

Once your Instagram account has an active following, it’s time to start monetizing it.

While some options like subscriptions, gifts, and badges work best for creators, businesses can leverage print-on-demand services, set up an Instagram Shop, or partner with influencers for sponsored content.

However, both creators and businesses can tap into a variety of Instagram monetization options to diversify their income streams. Try out different approaches to see what clicks best for you and your audience.

With these tips and tools at your disposal, you can start monetizing your Instagram account and make money doing what you love. So go ahead and give it a try — who knows, maybe one day you’ll be making a living off of those perfectly curated posts!

 

How to Sell on Instagram: Complete Guide for Beginners How to Sell on Instagram Without a Website How the Instagram Algorithm Works 10 Ideas for Creative Product Presentation How to Create a Content Plan for Instagram How to Write Engaging Instagram Captions How to Monetize Your Instagram 10 Free Ways to Get More Instagram Followers How to Change Your Instagram Name What Is The Best Time to Post on Instagram?

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