Table of Contents
- What Is Instagram Business?
- How to Make Money from Instagram?
- Key Takeaways
While Instagram got its start as a photo-sharing app, today it’s transformed into a hub for business activity. Millions of brands and creators are taking advantage of this powerful social media platform for growing their online presence and making profits. Everyone from your local corner shop up to top influencers like the Kardashians has harnessed the power of making money from this social media giant.
But, how do they make money on Instagram? Can you make money on Instagram too? There are five primary ways to make money on Instagram.
- Become an influencer
- Sell your own products
- Get sponsored
- Become an affiliate
- Monetize your videos
In this guide, we’ll look at how to earn from Instagram along with some helpful tips for success. That way, you can join the ranks of successful influencers and entrepreneurs who make money on Instagram too.
However, before we look into how to get paid on Instagram, let’s understand what Instagram business is all about.
You might be wondering if Instagram for business is as valuable and beneficial for your company as everyone says. Is learning how to make money on Instagram even worth your time? Yes, Instagram can absolutely serve as a valuable marketing tool for your business.
One of the biggest advantages of using Instagram for business is to sell your products and services to a more engaged and targeted audience. Moreover, it’s much more affordable than traditional forms of marketing.
Today, Instagram is the most popular and powerful social media platform to drive more sales and increase overall revenue. In fact, 83% of people use Instagram to discover new products or services, and over 90% of Instagram users follow at least one business account on the platform. These numbers solidify the power Instagram Business can have for your company.
Now that you’re aware that Instagram is a great social media platform to make money, let’s look at the 5 best ways to make money on Instagram.
1. Become an Influencer and earn from sponsored posts
The terms “Influencer Marketing” and “Instagram Influencer” get thrown out a lot these days.
An Instagram Influencer is an individual who’s built themselves an online reputation by promoting brands to their audience on Instagram. To the audience, influencers are trusted experts whose opinions are respected.
Brands tend to partner with these influencers through sponsored posts that help promote their products or services. To become an influencer, you don’t need to have thousands of followers to start making money from sponsored posts. If you can regularly share content that generates strong engagement from your followers, you may get an offer to partner with a brand to do a sponsored post.
Keep in mind that reaching a coveted Influencer status takes a long time and a lot of hard work and talent. So, make sure you manage your expectations. Once you create your online presence, chances are most brands will want to team up with you. Also, if you find any brand that matches your personality, you can reach out to them and try to negotiate a deal. You can list yourself on an Influencer Marketplace to be spotted easily by big brands.
2. Become an affiliate
In contrast to an influencer, an affiliate influencer is someone who generates sales and not just promotes a brand’s products or services through sponsored posts. Simply put, as an affiliate influencer you only get paid when people buy the product or service you promote rather than receive guaranteed income for your sponsored posts. Now more than ever, Instagram influencers choose to promote affiliate offers to earn money outside of sponsored posts.
In recent years, Instagram has also made it simpler for influencers to add affiliate links to their stories and IGTV descriptions.
For instance, you can now add a unique promo code or a trackable link that translates into sales. When a sale is made through an affiliate promo code or link, the affiliate influencer earns a commission payment on the total sales. Typically, the commission is between 10%-20% of the total sales value.
If you choose to become an affiliate influencer, make sure you reach out to as many online brands as possible that offer affiliate programs. Alternatively, you can explore popular marketplaces like Amazon Affiliate Program, ClickBank, and RewardStyle.
3. Open your own Instagram shop
Making money on Instagram is not all about promoting products of other brands. With the Instagram shopping feature, you can grow your brand and promote your own products by linking your e-commerce site with your Instagram profile. You can sell your products directly to your followers through posts, stories, and the Explore tab. The Instagram shop can prove to be highly beneficial to amplify exposure or reach and drive sales as a new brand. It can skyrocket your ROI and provide more opportunities to expand your business.
Before you can create an Instagram shop, you need to make sure your business is eligible for selling on Instagram.
For instance, your business must be located in a supported market where this is available. There should be an e-commerce website along with an Instagram business profile. Lastly, you must sell physical products and your business must comply with Instagram’s commerce policies and merchants’ agreement. With the Instagram shop, you can customise your shop by creating curated products or collections presented in themes like seasonal trends or new arrivals.
4. Go live and earn money
Instagram Live badges are a new monetization concept on Instagram. They’re monetary tips that viewers can buy during a real-time Instagram broadcast to show their support to creators. However, this feature is currently only available in limited regions such as the US, the UK, Italy, France, Spain, Brazil, Australia, Japan, Turkey, and Mexico.
If you’re from these regions, you’ll see badges automatically turned on next to the comment box when you go live on Instagram. These badges come in the shape of a heart and range between $0.99 – $4.99. To be eligible to earn through Live badges, you must be 18 years or older, have a minimum of 10,000 followers, and have an Instagram business account. Moreover, you need to comply with community guidelines and platform rules and regulations.
5. Allow in-stream video ads
This latest Instagram feature is aimed at helping creators grow their personal brands and monetize their content on the platform.
The amount you earn from these in-stream video ads depends completely on how many views your video gets in the feed. According to the Instagram for Business website, creators earn 55% of the revenue generated per view. However, to get paid for your videos you need to meet some requirements. Instagram recommends having a minimum video length of at least two minutes to be eligible to earn money. Videos shorter than that length can affect monetization.
Today, Instagram is more than a social networking platform for people to connect with others. When used in the right way, it can also be a powerful marketing tool to earn money. From affiliate influencers to Instagram shop services, there are many creative advantages to make money on Instagram. You can also take advantage of Pepper Content’s various services to up your social media engagement.
- Instagram has evolved as a powerful marketing platform for businesses and creators to earn money.
- Creators earn money through sponsored content and selling brand products.
- Instagram shops allow brands to sell products directly to their target audience and make money on the platform.
- You need a minimum of 10,000 followers to be eligible to earn through Instagram Live badges.
- Your videos need to be over two minutes long to be eligible for in-stream video ad monetization.
While the minimum number of followers needed is 1,000, the key to making money is having a good engagement rate.
Start with increasing your number of followers. Then, get in touch with brands whose values are more aligned to yours. Make sure you post consistently and have an engaged audience to get sponsorship on Instagram.
You can make money on Instagram through sponsored ads, selling products on the app, promoting affiliate offers, etc.
They can make around $100 per post depending on the level of engagement.
It is reported that Kim Kardashian charges up to $889,000 per Instagram post.