With over a billion users, Instagram is a great platform for businesses to make money. In this article, we will discuss 11 proven ways that you can make money on Instagram. We will also provide tips on how to implement these strategies. So, whether you are just starting out or you are looking to increase your revenue, read on for the best tips and tricks!
How much do Instagram influencers make?
Instagram influencers have been cashing in for their posts with the average influencer earning $195 per post. There are a number of factors that determine how much they make but most make anywhere from a few dollars to a million dollars per post.
The amount you make depends on a few factors:
- Number of followers
- Engagement rates
- Affiliate marketing tactics
The good news? There is room for any size account to make money on Instagram. There are generally five tiers of influencer marketing, broken down by follower count.
- Nano-influencer: 1,000–10,000 followers ($10–$100 per post)
- Micro-influencer: 10,000–50,000 followers ($100–$500 per post)
- Mid-tier influencer: 50,000–500,000 followers ($500–$5,000 per post)
- Macro-influencer: 500,000–1 million followers ($5,000–$10,000 per post)
- Mega-influencer: 1 million+ followers ($10,000–$1 million+ per post)
How to grow your social media following
The good news is that even if you're not an influencer, there are still plenty of ways for you to make money on this thriving platform.
Below we'll go over some of the proven ways entrepreneurs are utilizing Instagram.
Let's get started.
1. Sell physical products
One of the most popular ways to make money on Instagram is by selling physical products. This can include anything from clothing and accessories to home decor and food items. If you have a creative product line, Instagram is a great way to showcase your work and attract new customers.
Companies like Alo Yoga focused on building a loyal audience in the Yoga niche. The founders leveraged their following to create physical products and have been cashing in since. Last year the company brought in a mind-blowing $89.1 Million in revenue selling products for yoga enthusiasts.
You can also use Instagram Stories and ads to promote your products just like Alo Yoga. The important thing is to show candidly what your products are like and ensure that your followers trust in you and your product is well placed.
If you are selling physical products, it’s important to have a robust shipping and returns policy in place. You should also make sure that your website is optimized for mobile devices, as many Instagram users shop on their phones.
So, if you’ve got an Instagram business, selling physical products can work really well.
2. Sell digital products
Another popular way to make money on Instagram is by selling digital products. This can include things like e-books and templates. Digital products are a great option because they are easy to produce and there is no shipping involved.
To sell digital products on Instagram, you will need to create an account and post high-quality photos of your products. You should also include detailed descriptions and pricing information. To drive sales, you can offer discounts and run promotional campaigns. You can also use Instagram Stories and ads to promote your products.
If you are selling digital products, it’s important to have a trusted shopping cart system in place as people will be using their credit card details and need to feel secure in their purchase.
3. Promote Affiliate Products
If you don’t have your own products to sell, you can promote affiliate products on Instagram. This is a great way to make money if you are just starting out. When you promote affiliate products, you earn a commission for every sale that you generate.
You can either review products directly and then share an affiliate link with your audience, or you can just recommend the products that you like and use in your daily life.
The important thing here is honesty. Don’t just promote products with high affiliate commissions as your audience will realize quickly and you’ll lose the trust of your followers. By being honest, you set yourself up for long term success which far outweighs a quick buck.
4. Publish sponsored posts
Another great way to make money on Instagram is by publishing sponsored posts. Sponsored posts are basically ads that businesses pay you to post on your account. To be able to publish sponsored posts, you need to have a large following and an engaged audience.
When you publish a sponsored post, you will need to include a disclosure that it is an advertisement. This disclosure should be included in the caption of the post and it should be clear that you have been paid to promote the product or service.
If you are interested in publishing sponsored posts, you can reach out to businesses directly or use a sponsorship platform like Famebit.
5. Host contests and giveaways
Another great way to make money on Instagram is by hosting contests and giveaways. This is a great way to engage your followers and attract new ones. To host a contest or giveaway, you will need to choose a prize that is relevant to your brand.
You can also offer to host a contest on behalf of another brand or business. This would allow the business to market itself based on your following and allow you to make a direct commission.
Be sure to consult with your country’s regulations over it’s advertising standards as you can get in trouble if you don’t follow the correct processes. For example, popular instagramer Molly Mae faced a lawsuit over a giveaway as she couldn’t prove the winner was chosen anonymously.
6. Become a brand ambassador
If you have a large following on Instagram, you can become a brand ambassador. Granted, this really is for accounts with a strong following but even if you're only in the 10’s of thousands of followers, you can be successful with micro niche brands.
As a brand ambassador, you would be responsible for promoting the products or services of a business. This could involve posting photos and videos, as well as running contests and giveaways. To become a brand ambassador, you can reach out to businesses directly or use an agency like Instabrand.
7. Provide instagram/social media marketing services
If you feel like you’ve cracked Instagram for yourself, you can offer your services to businesses that want to promote their products or services on Instagram. As an Instagram marketer, you would be responsible for creating and executing marketing campaigns that generate leads and sales.
This is a great way to monetize your passion and commitment to the instagram platform and potentially expand your brand as well.
You can find clients by reaching out to businesses directly or through online marketplaces like UpWork. Or you can leverage your audience and promote your services directly to them.
8. Create a paid course
If you are an expert on a certain topic, you can create a paid course that teaches people how to do it. This could be anything from cooking to photography to marketing. You could even build a course on how to be successful on Instagram and promote directly to your audience.
To create a paid course, you will need to first create a curriculum and then film yourself teaching the content. You can then post the videos on your own website or a platform like Udemy or Skillshare.
9. Monetise your IGTV videos with ads
If you create videos on IGTV, you can monetise them with ads. This is a great way to make money if you have a large following and your videos get a lot of views.
Instagram in-stream ads allow brands to promote themselves directly through your videos and can offer a 55% revenue share. This option is currently available to select creators in the US, UK and Australia, but this number is rapidly growing.
10. Earn badges on your live videos
If you go live on Instagram, you can earn badges. These are virtual gifts that your viewers can buy and send to you while you are live. The more popular you are, the more badges you will sell.
To start earning badges, all you need to do is enable them in your settings and then promote your live videos to your followers. When someone buys a badge for you, they will be charged and the money will go into your account.
11. Get Donations from Patrons
Finally, this option is great if you have a dedicated and passionate following who love everything you do. You can quickly set up an account with Patreon and start offering special extras for your most ardent fans. This could be things like exclusive content, early access to your latest videos and even direct shoutouts on your account.
Because Patreon allows subscription donations, this is also a great form of repeatable income which allows you to better plan around it. It’s also a great way to say thank you to the followers who love you most and want to build that closer bond with you and your brand.
There are tons of ways in which you can make money on instagram. And while these 11 options that we shared today are our favorite, that certainly doesn’t mean they are the only ones. Really, you're only limited by your own creativity. So, if you can’t imagine a day without the gram, and are looking to monetize your passion, then get started now!