Instagram Monetization in 2023: A Complete Guide
Instagram continues to roll out features that make it easier for creators of all sizes to grow their audiences and make money on the platform. By staying up to date with these new features and learning how to use them, you can maximize your income potential.
It’s important to note that increasing revenue usually requires growing and fostering your audience and engagement, which takes time and lots of effort. If you focus on making good content that your followers enjoy, then it’s easier to add monetization efforts on top of that strong foundation. In this article, we'll explore the Instagram monetization methods that content creators and influencers of all kinds can use to grow with their community and make money while doing so.
What is Instagram Monetization?
Instagram monetization refers to the various ways that content creators and influencers can generate income from creating content and posting on Instagram. This includes either using Instagram-specific tools for monetization or using Instagram as a promotional tool to generate income through sponsored posts, affiliate marketing, brand deals, selling merchandise, and much more.
Many of the fastest growing creators are using Instagram’s Creator Marketplace to:
- Discover and be discovered by brands and influencer marketing agencies
- Chat directly with those businesses, through a dedicated mailbox
- Participate in special brand projects with proposed rates
In order to join this marketplace, you must also comply with Instagram’s Partner Monetization Policies and Content Monetization Policies in order to be eligible for their Creator Marketplace.
Requirements For Instagram Monetization
Even outside of the Creator Marketplace, users must adhere to certain policies and requirements to participate in any sort of monetization on Instagram. Here are some of the key requirements to keep in mind:
- Adhering to Instagram Guidelines: All content shared on the platform must adhere to Instagram's community guidelines, which outline the type of content that is allowed and prohibited on the platform. Failure to comply with these guidelines can result in account suspension or termination.
- Following Meta’s Community Standards: In order to maintain a positive and welcoming environment on the platform, Instagram forbids users from posting content that incites debates on sensitive topics like race, gender, or age. These rules are explained in Meta’s Community Standards.
- Maintaining Quality Content Production: Consistently producing high-quality Instagram posts is also a key requirement for monetization success on Instagram, as it helps to engage your audience and attract potential sponsors and brand deals.
By following these policies and meeting these requirements, creators that are Instagram users can leverage the platform's monetization tools to generate income and grow their audience.
The 4 Best Ways to Monetize Your Instagram
Here are 4 of the best ways to make money by using your Instagram account:
1. Sponsored Posts
Posting sponsored content on behalf of brands and businesses is a common way to make money as an Instagram creator. You can either do this by using Instagram’s Creator Marketplace, or by reaching out to brands yourself. To successfully post sponsored content, you must request access to the “paid partnership” label and disclose each branded post. These posts are often in the form of in-feed picture content but can also be Instagram stories or Instagram reels.
2. Affiliate Marketing
This is similar to sponsored posts, but you make money by receiving a commission for each sale made through your unique affiliate link. Using your Instagram account for promoting products or services from other companies as an affiliate is a good way to make money while also making fun, personal content for your Instagram followers.
3. Selling Your Own Products
Instagram offers in-app shopping features, which will allow you to sell your own products, from physical items to digital downloads. Creating and selling branded merchandise, such as clothing or accessories, is an easy way to make income from Instagram. Fourthwall’s Instagram integration that allows you to connect your shop directly to your Instagram account. You can learn how to set this up in this Help Center article.
4. Instagram-Specific tools
Instagram has many exclusive features within the app that allow you to make money. For example, Instagram's "Live Badges" feature allows fans to support creators by purchasing badges, earning creators a portion of the revenue. Find out more about Instagram’s tools to help you monetize below.
Best Monetization Tools For Instagram
Fortunately, Instagram’s monetization tools allow you to make money while also building your audience and community. It’s important to continue making content that your followers enjoy, rather than solely focusing on the money you’re generating. These are the top tools that can help you achieve your monetization goals while promoting your content on Instagram:
- Instagram Live Badges: This tool allows fans and followers to support their favorite creators during live streams. Viewers can purchase badges and send them to creators during the broadcast to show their support. Creators can earn revenue from the badges they receive, and badges can lead to preferential treatment, such as being highlighted in the chat or having access to exclusive content. It’s important to note that you need to have at least 10,000 followers in order to be eligible for Live Badges.
- Subscriptions: Instagram now offers a subscription option that allows creators to offer exclusive content to subscribers for a monthly fee. To be eligible for this, you must have at least 10,000 followers and meet additional qualifications determined by Instagram - you can see if this is available to you by going to your account’s professional dashboard.
- Creator Marketplace: Instagram’s Creator Marketplace connects brands with creators for sponsored content. Creators can showcase their work and set their prices, and brands can browse and compensate them for posts, stories, and Reels. Insights and data are also provided to measure performance.
How Much Money Can You Make From Instagram Monetization?
Investing time and effort in an Instagram account can lead to a profitable return, but the exact amount depends on several factors. The type of monetization option chosen, follower count, quality of content produced, and other variables can all impact earnings. While in-platform monetization tools tend to produce less income than other options, top creators can still earn considerable sums through a combination of exceptional content and loyal supporters. For instance, creators with a strong following and high engagement levels can earn significant revenues from influencer marketing, sponsored posts, and merchandise sales, rather than using Instagram Live Badges or Subscriptions.
- Influencers and creators with 1,000-10,000 followers make an average of $901 per sponsored Instagram post.
- Selena Gomez has 427M followers and makes about $1,468,000 per sponsored Instagram post.
Kim Kardashian, who has a massive following around the world, makes about $954,200 per sponsored Instagram post. She is a great example of how creators can grow their following and then create successful companies. SKIMS has just reached a valuation of $4 billion, and that number continues to rise. She grew her personal brand and then eventually promoted the launch of her company SKIMS to those loyal followers. A big part of their success was due to Kim’s social media presence, especially her Instagram following, which she was able to successfully engage to build a strong customer base.
Start Monetizing Your Instagram!
To effectively monetize your Instagram account, it’s important to start by growing a loyal following. Then, it becomes easier to start leveraging both built-in features and external monetization opportunities on Instagram. Whether you want to launch your own brand with custom apparel or any other type of products, one of the best platforms is Fourthwall. They not only power your brand’s shopping experience, but you can also create a custom memberships program to reward your most loyal Instagram followers.
Any creator can maximize their earning potential and turn their Instagram presence into a profitable business by creating a dedicated audience and a tailored monetization strategy. Don't hesitate to take advantage of the monetization opportunities on Instagram and start engaging with your audience, producing quality content, and building your brand today. We wish you the best of luck on your journey as an Instagram creator.