What does it take to make money through Instagram? Millions of followers? A world-famous name? Nope. Even with only 1,000 followers, an Instagram influencer can earn money from their posts.
The chief source of income for many influencers, Instagram can also be a decent side hustle. With several avenues for monetisation, it’s about finding the right fit for your skill set and expertise.
Whether you’re planning on selling goods, promoting a lifestyle, or entertaining a curated audience, here are the most common Instagram monetisation methods and how to use them.
JUMP TO
Chay_Tee/Shutterstock
How sponsored content works
You promote a brand’s products or services in return for free gifts, exposure to their followers, or—best of all—money.
How many followers do you need to make money on Instagram through sponsored content? Here’s are the types of influencers out there:
- Nano-Influencer (1,000–10,000 followers): £8–£80 or AU$15–AU$150 per post
- Micro-Influencer (10,000–50,000 followers): £80–£390 or AU$150–AU$750 per post
- Mid-Tier Influencer (50,000–500,000 followers): £390–£3,900 or AU$500–AU$5,000 per post
- Macro-Influencer (500,000 to 1 million followers): £3,900–£8,000 or AU$7,500–AU$15,000 per post
- Mega-Influencer (Over 1 million followers): £8,000+ or AU$15,000+ per post
Engagement rates—the number of interactions content receives compared to follower counts—matter too. High engagement can make even small follower counts appealing.
How to start making sponsored content
Join Instagram's Creator Marketplace to connect with brands. You can indicate areas of interest, message potential partners, view projects, and easily share data. Before you apply, be sure to familiarise yourself with Instagram's Content Monetisation Policies.
A sponsored content success story
As a nano-influencer boasting just over 16,000 followers, Bethany Everett-Ratcliffe earned over $8,000 in one month from sponsored posts.
How affiliate marketing works
You provide trackable links that measure clicks from your content that result in purchases. If someone buys a product from promotional codes in your posts, stories, or reels, you’ll earn a commission. Sometimes, it’s a flat fee per sale, but percentages are more common. The average commission rate is between 5% and 30% of the sale, but impressive engagement rates or larger audiences can push payouts higher.
Brands tend to choose accounts likely to resonate with their intended audience. That said, high follower counts or engagement rates might allow you to negotiate a greater slice of the pie from each sale.
How to get started with affiliate marketing
Sign up to join the affiliate programmes of brands you’re interested in. A reported 80% of brands offer them, and many are free or inexpensive. You can choose from:
- Affiliate Marketing Programmes, which promote distinct brands in exchange for commission (think Shopify Affiliates and Amazon Associates).
- Affiliate Networks, where a wider range of affiliate opportunities are combined and paid out through one dashboard (like ShareASale).
How long does it take to make money on Instagram through affiliate marketing? Earnings may not be instant because you’ll need to wait for each product’s return window to close.
Affiliate marketing success story
Skinfluencer Vi Lai reportedly earned over $5,000 per month using affiliate codes.
PixieMe/Shutterstock
How selling products on Instagram works
You create a digital storefront where shoppers can browse and buy products from you directly.
It’s a great option for small businesses to expand their reach and an excellent opportunity for content creators who produce their own merchandise. You can manage your catalogue into collections, run promotions, and customise how your Instagram Shop looks.
How to start selling on Instagram
- Go to the Get Started page, then select Get Started, Create a Shop, then Get Started.
- If you’re already selling on a partner platform (such as Shopify), select it here to create your shop. If not, continue to Commerce Manager.
- Select your Instagram business account, then tap Next.
- Select the catalogue you want to use. If you don’t have one, Commerce Manager can help you put one together.
- Check all the details and agree to the Seller Agreement, then click Finish to create your shop.
There are a few additional ways to enhance your Instagram shop:
- Shoppable Posts and Stories: Add clickable product tags from your inventory to your stories, photos, and reels.
- Live Shopping: Broadcast live and tag products. They’ll appear at the bottom of the screen, where viewers can tap through to purchase.
- Ads with Shopping Tags: Take your existing shoppable content and pay to post it as an advert through the Meta Ads Manager.
Instagram seller success story
YouTuber Matthew Meagher earned around $40,000 profit in one day selling his merch through Instagram.
How badges work on Instagram
Badges are digital gifts that viewers can purchase when you’re broadcasting live. They support your content and allow the gifter a little recognition for themselves. You receive the cash value of that badge, minus applicable taxes and fees. Multiple badges can be purchased at $0.99, $1.99, and $4.99 values.
Access is invite-only outside the United States, and even US creators need 10k+ followers to be eligible.
How to set up badges on Instagram
Go to Profile, tap Professional Dashboard, then hit Set Up Badges. (This only works if you’re already eligible for monetisation. If there are no Set Up Badges buttons, tap Apply for Monetisation and keep checking for updates.)
Once added, badges will be automatically enabled for your live broadcasts. Little hearts pop up next to a viewer’s username when they give one. Be sure to recognise their kindness whenever this happens: Your followers will be grateful and incentivised to spoil you further.
Instagram badges success story
Creators aren’t typically forthcoming about such earnings, but influencer and entrepreneur Ronne Brown made over $1,000 in her first week using the feature.
wichayada suwanachun/Shutterstock
How Instagram gifts work
Gifts are to Instagram Reels what badges are to Instagram Live. Viewers can purchase virtual gifts or stars on Reels to show their appreciation. Viewers can buy anywhere from 10 to several hundred stars. Instagram takes a cut from that purchase, then viewers use these stars to buy themed virtual gifts for creators.
How to set up Instagram gifts
Head to your Profile, then tap Professional Dashboard and find Gifts under Your Tools. Tap Allow Gifts on Reels, and you’re ready to go. To qualify, you’ll need at least 500 followers as a US creator or over 1,000 if you’re anywhere else.
How Instagram subscriptions work
Offer your followers exclusive content and other bonuses for a monthly fee.
How to set up Instagram subscriptions
To qualify for Instagram subscriptions, you must live in an eligible country, have more than 10,000 followers, and be able to entice subscribers with:
- Exclusive catalogue: Express your most authentic self to your most loyal followers through posts and reels available only to subscribers.
- Exclusive lives: Exclusive chats with a cap of just 30 subscribers let you connect on a more intimate level.
- Purple subscriber badge: These sit next to subscribers’ usernames to help them stand out in comments and direct messages.
- Exclusive subscriber promotions: Entice new subscribers with lifetime promotions or offer discounts for long-time followers.
Linking to external subscription sites is also possible through Instagram. Platforms like Patreon offer tiered subscriptions that reserve more tempting rewards for higher levels. It can help you make money through Instagram by directing dedicated followers to a site set up for subscription payments.
Instagram subscription success story
Dr. Rhonda Patrick makes an estimated $17,685 per month from Subscriptions.
Chay_Tee/Shutterstock
How consulting works on Instagram
Use your Instagram expertise to consult for brands or individuals looking to better their usage of the platform.
How to start consulting via Instagram
Before marketing yourself as a consultant, you’ll want a large following and high engagement rate to prove you’ve cracked it.
With the above in place, services you can offer include:
- Creating content for a brand’s account
- Advising on content creation and ad campaigns
- Helping create a brand identity and appealing feed aesthetic
- Advising on increasing engagement on posts
- Writing captions and researching hashtags
Instagram consulting success story
Having grown her account organically from 1,000 to 200,000, meal prep queen Talia Koren charges $500 for a 60-minute consultation call.