11 Different Ways To Monetize Instagram In 2024

Nov 13, 2023 18 min read

Instagram is much more than just a fun place to post your holiday snaps. In fact, Instagram is a career for many people. Thousands of Instagram creators and influencers make millions of dollars every year on the platform (you could, too, be one of them).

All you need to know are some of the possible Instagram features that will help you monetize Instagram and meet some prerequisites.

If you have ever wondered how to monetize Instagram, you have come to the right place! This blog will walk you through the top methods used for Instagram monetization.

We have curated a list of 11 legit and trusted ways to monetize your Instagram account. Keep reading this blog to learn how to monetize your Instagram!

You can directly jump to a section of your choice or keep scrolling.

What Is Instagram Monetization?

Instagram lets creators and influencers to monetize their content on the platform. There are a lot of ways to monetize your Instagram account such as:

  • Brand partnerships
  • Ads on video content
  • Instagram subscriptions
  • Instagram shop

You don't need to have thousands and millions of followers like the influencers in the fashion, beauty, or gaming industry. As long as you provide valuable content to your audience, have expertise in something, and have a loyal audience whom you can influence, you can ride this wave and make money out of your Instagram content. Don't mistake it for a fad as influencer marketing is a lucrative industry and is expected to reach a staggering $16.4 billion by the end of this year.

How Many Followers Are Needed To Monetize Instagram?

You can try Instagram monetization at pretty much any point in your growth journey. You can even make some money when you only have a few hundred followers.

However, you are likely to be much more successful with a small but genuine following. There are a few reasons for this.

Although high levels of engagement are a plus, there are several brands that have lower engagement with a larger following.

This all comes down to what you want to achieve in your marketing campaigns. Some brands want to reach as many people as possible, & they can't do that effectively with a small following.

How Many Followers Are Needed To Monetize Instagram

Image Source: Walmart Instagram

In addition, converting engagement into sales becomes a lot easier once you hit a few thousand followers.

Earlier, Instagram allowed accounts with more than 10,000 followers to add a swipe link in their stories. However, Instagram soon removed this follower count criteria. So now, even accounts with less than 10,000 followers can add a link in their stories. This made Instagram monetization even easier for creators through Stories.

Attracting followers to your Instagram account is hard work, but you can use the tactics described in this blog to learn how to monetize Instagram.

Prerequisites For Instagram Monetization

There are many brands that only depend on Instagram for making sales, but that success doesn't happen overnight. To be able to monetize Instagram, there are certain prerequisites your account should meet first.

However, these prerequisites are not set in stone. If you want to make sales from Instagram, here's what you should have in place firstly:

You Should Have A Loyal & Engaged Audience

One of the major benefits of Instagram influencer marketing is the loyalty and trust you have built with your audience. Influencers can leverage it to reach their goals, whether to boost sales or drive brand awareness.

Loyal followers who trust you will also trust your recommendations and helps with Instagram monetization. This shows you have built up a good relationship with your followers. It also ensures that the sponsored content you create will resonate with your audience.

Prerequisites For Instagram Monetization

Image Source: Statusbrew Instagram

That's why having a loyal following is so essential for Instagram monetization. If you show that you have a loyal following, other brands will also be willing to partner with you for sponsored posts.

You will know if your audience is engaged by their questions and comments. If you have a high following but low engagement on several posts, it's quite obvious that the majority of your followers don't interact with your post actively. This will make it hard for you to monetize Instagram.

When other brands are interested in working with you, they will consider your follower count. But what's more critical to them is that your followers are loyal, and they engage with your content.

Prerequisites For Instagram Monetization

Image Source: Starbucks Instagram

You Should Have Influence Over Your Following

You should be a trendsetter and also have real power to persuade.

A loyal and engaged following is easier to influence. They do not just want to be part of your community but also – most importantly – they value what you say.

If you have mastered the art of customer engagement, you shouldn't have a problem when it comes to Instagram monetization. You will have a good idea of your followers' tastes and how they respond to different types of brands and sponsorships.

Prerequisites For Instagram Monetization

Image Source: Walmart Instagram

Paying for fake followers and taking shortcuts to growing your audience will be the wrong move in the long run. Paid followers will lead to a drop in engagement, which is quite easy to spot. This will make it harder for you to monetize Instagram.

Bonus Content: How To Spot A Fake Review? 5 Tips And Tricks

Plus, paying to buy followers can land you in deep trouble. If recognized by Instagram, they can block your account. You will also damage your brand's credibility not just on Instagram but on other social platforms as well. It will break your audience's trust in your brand and potentially face legal troubles. Instagram monetization becomes even more difficult when you buying likes and followers. Thus, it's really not worth the risk.

You Should Have An Instagram Business Account

An Instagram business account gives access to more Instagram features. It’s easy for anyone to convert their personal account to an Instagram business account.

An Instagram business account gives you access to Instagram ads and promoted posts, providing you with an extra edge to grow your reach and engagement. Below is a list of all the awesome features you will get by switching to an Instagram business account:

  1. Schedule Instagram posts
  2. Track performance with Instagram Insights
  3. Share links in Instagram Stories
  4. Grow reach with Promoted Posts and Instagram Ads
  5. Instagram Shoppable Posts

Top 11 Instagram Monetization Ideas

Whether you are working with clients or you are building a brand of your own, here are the top Instagram monetization ideas worth considering in your overall strategies:

  1. Instagram Shop
  2. Reels Shop Tags
  3. Instagram Story Shop Tags
  4. IGTV Shop Tags
  5. IG Live Rooms
  6. IGTV Ad Monetization
  7. Paid Partnership Labels
  8. Badges
  9. Brands Collab Manager
  10. Instagram Ads
  11. Instagram Gifts

1. Instagram Shop

Also abbreviated as IG Shop, Instagram Shop creates an in-app shopping experience for customers that eliminates purchase barriers and gives brands another avenue to increase sales and brand visibility.

Customers are directed to the brand's website through IG Shop. They can even have a fully immersive in-app shopping checkout experience within the Instagram app itself. Both can become highly effective ways for Instagram monetization to leverage product sales. However, it's essential to determine which one works best for you since you cannot mix these two options.

Instagram Monetization Features: Instagram Shop

Instagram has partnered with great third-party platforms, such as Euclid and Shopify, which are premier partners with IG Shop, to improve and streamline the orders and shipping processes. Brands are able to streamline their shopping experience for customers through these platforms.

Using shoppable Instagram posts is one of the best ways to advertise your business on the platform. This Instagram monetization feature is perfect for you if you already have an existing online business. Instagram shoppable posts can become a mini version of your online store!

Instagram Monetization Features: Instagram Shop

Instagram shoppable posts serve as a way to get users to know your products faster than ever. It allows followers to shop straight from the Instagram app. Here's how it works:

  • Post an eye-catching picture of your product. Tag the picture as a shoppable post.
  • When any Instagram user taps on the post, the product's name and the price will pop up.
  • When the user will tap on the pop-up box, they will be taken to the product page. They can directly purchase products from there, making it super simple for them to buy.

Thus, you are successfully monetizing your Instagram by turning your account into a tool to get more buyers!

Instagram Monetization Features: Instagram Shop

Instagram shoppable posts are a super interesting Instagram monetization topic that can significantly impact your sales.

To learn more about it, check out our informative blogs on how to set up Instagram Shopping and how to sell on Instagram without a website.

2. Reels Shop Tags

If you have an Instagram Shop already set up, you can start with promotions! Brands can curate a list of shoppable products that are directly accessible on their profile through the "View Shop" button.

You can tag the products in timeline posts through IG Reels. Instagram's focus is on building Reels on the platform. Reels organic reach and discovery are phenomenal compared to the timeline's posts.

Instagram Monetization Features: Reels Shop Tags

Image Source: The Verge

If you, as a brand, are constantly creating content on Instagram, you also should be using Reels! You should also showcase your products in Reels strategically. While doing so, you should also tag those products for additional visibility of your products and sales conversion through Reels. This Instagram monetization feature is a new way to discover and shop products through Reels on the platform.

Here's how you can tag products in Instagram Reels:

Step 1: After you have recorded your Reel, tap Tag Products.
Step 2: Add the products or collections you want to feature.
Step 3: Tap Done.

To learn more about it, check out our comprehensive guides on Instagram Reels and tips to get discovered on Instagram Reels

3. Instagram Story Shop Tags

As you share content in Instagram Stories, you can also tag products for direct checkouts for purchase. Ensure your Instagram Stories have the product noted in the image or video clearly, and add a link to encourage your audience to tap on it for purchase. This Instagram monetization feature makes it seamless for users to shop right through Instagram Stories.

Here's how you can tag products in Instagram Stories:

Step 1: Tap the sticker icon when creating a story.
Step 2: Tap the Product link sticker.
Step 3: Select the product you want to tag.
Step 4: Publish your story.

Instagram Monetization Features: Instagram Story Shop Tags

Image Source: Vamp Brands

4. IGTV Shop Tags

Shop tags for IGTV are very similar to shop tags for Reels. You can tag products to IGTV content as well. When creating long-form content on Instagram, you should be strategic with product placement in your videos. You can create a subtle call-to-action with your tags by doing so. This Instagram monetization feature allows businesses and creators to tag shoppable products directly in their IGTV.

Instagram Monetization Features: IGTV Shop Tags

Image Source: Engadget

5. IG Live Rooms

You could only go live by yourself on Instagram previously. But now you can invite your friends to join in a face-to-face conversation too.

Instagram allows Live sessions to have up to four people at a time. You can incorporate this Instagram monetization feature into your live content strategies and go live with up to three at a time and share your experiences with the rest of the participants. You can also tag products & pin them during the IG Live session experience to help your audience discover your products.

6. IGTV Ad Monetization

You might have created long-form content on Instagram with IGTV. Instagram even gives you an opportunity that allows advertisers to showcase their ads within your IGTV content. It can be made possible through this Instagram monetization feature. Such ads can appear during recommended breaks on Instagram, or they can also be customized by you. If you are thinking about how you can ensure the ads align with your brand, Instagram provides you with a way to input the types of ads shared within your IGTV content.

Instagram Monetization Features: IGTV Ad Monetization

Image Source: Instagram

Content tags are essential to a brand's alignment with advertisers. You should be intentional with your choice of tags. This is also crucial with your profile tagging. Hence, you should take a moment to review the tags associated with your profile.

Check out the requirements to get access to IGTV ad monetization.

  • You must remain compliant with Facebook's Partner Monetization Policies.
  • You must have at least 10,000 followers.
  • Your page should have at least three minutes long videos.
  • You should have at least 30,000 views in the past two months for videos combined.

Open the Instagram Partner Program dashboard & select IGTV Ads to check if your Instagram account is eligible for this Instagram monetization feature.

If your account is eligible for IGTV monetization, you will see a screen that reads, "You're Eligible to Monetize Your IGTV Videos." You haven't yet met Instagram's requirements if you don't see that screen.

Instagram Monetization Features: IGTV Ad Monetization

Image Source: Shopper

Partnerships are powerful ways to increase cross-promotional relationships and audience engagement. Brand partnerships previously required the hashtags #sponsored or #ad to ensure transparency with the audience. Instagram has now updated the platform to highlight partnerships by labeling the actual post as a paid partnership.

The label of this Instagram monetization feature creates a natural experience and a win-win scenario for audiences and brand profiles. It's ideal for showcasing transparency in a value exchange.

Instagram Monetization Features: Paid Partnership Labels

Image Source: theright.fit

8. Badges

Also known as IG Badges, Instagram Badges is an interesting Instagram monetization feature that allows users to support businesses or initiatives by buying a badge. Similar to a donation process, IG Badges has a few requirements, including having a certain threshold of followers. IG Badges are currently in beta. They are only available to US creators.

Instagram Monetization Features: Badges

9. Brands Collab Manager

You are an influencer if you can mention a product on the platform, and your audience flocks to support your brand! Facebook and Instagram influencers can include themselves in a platform database that builds partnerships, oversees content management, and helps brands discover, all in one place. It's called Brands Collab Manager.

Instagram Monetization Features: Brands Collab Manager

Image Source: Instagram

Brands can join in seeking potential influencers, and influencers can join for brand partnership opportunities.

Check out the requirements to get access to this Instagram monetization feature.

  • Comply with Facebook's Branded Content Policies

  • Meet the Facebook Partner Monetization Policies

  • Have 1,000 followers

  • Within the last 60 days, have at least:

    • 15,000 post engagements
    • 180,000 minutes viewed
    • 30,000 1-minute views for 3-minute videos
  • You should be a page admin for the page you are submitting

  • You should own a page in a Brand Collabs Manager eligible country

10. Instagram Ads

You can monetize Instagram by using ads. We have all seen ads pop up on Instagram. Usually, the ads that we see on our feed are for products that we might actually have searched for earlier. Such ads are known as retargeted ads.

Instagram ads do not necessarily provide instant success as a part of Instagram monetization; you have to be patient with them. They can even help grow your customer base over time. You will have a better chance of getting more followers, website views, and sales in exchange for paying for a limited-time ad.

Instagram Monetization Features: Instagram Ads

Image Source: ShopPop.com

There are many pros to using ads for Instagram monetization. The only downside is that it will cost you some cash to get the Instagram ad posted. However, you can set a campaign budget for your ad so you don't end up spending more than you would like to.

If you are trying to promote your business on Instagram, it is strongly recommended to give Instagram ads a try. The results may surprise you!

To learn more about Instagram ads, check out this article: The Ultimate Guide To Instagram Ads

11. Instagram Gifts

New Monetization Feature Gifts

Instagram expanded its Gifts feature to creators in the US on February 8, 2023. Gifts are another excellent feature that Instagram uses to help its users make a living out of the app and grow their community. This feature provides an easy way for creators to monetize their audience using Reels.

Within the Instagram app, followers can support their favorite creators with this feature by purchasing themed virtual gifts using Stars. This allows Instagram creators to earn money while receiving creative expressions of appreciation from their followers.

The Professional Dashboard on Instagram allows any creator to identify if they can access this feature.

Instagram Monetization Tools

One question that pops up very often among Instagram creators is "What are monetization tools on Instagram?". Creating content is fun, but what if it helps you make money too? That's exactly what Instagram Monetization Tools help you do!

Instagram Monetization Tools are a part of Meta's Facebook Monetization Tools that let creators, influencers, and certain select profiles earn money out of their content. Let's explore the key features and top Instagram monetization tools you can start using in combination with the above 10 tips to make money from your Instagram content.

Monetization Tools: Key Features

  • Easy and hassle-free onboarding with a single application to become eligible for the monetization tools suite
  • Easy tracking of pages that are eligible for monetization on Creator Studio or Meta for Creators
  • Analyze your monetization metrics from a single Monetization Overview dashboard on Creator Studio

Top Monetization Tools For Instagram

Instagram Subscriptions

Instagram Monetization Features: Instagram Subscriptions

Image Source: Instagram

As mentioned above, Instagram Subscriptions is the latest and most exciting addition to Meta's Monetization Tools suite. It was initially launched for businesses in 2020 and was later extended to creators in January this year.

Creators can leverage this feature for recurring monthly income on Instagram and offer exclusive content to their most loyal and engaged audience. This helps them foster relationships with their audiences and maintain a sustainable online income.

On the other hand, the followers get access to the gated content by subscribing to the creator's profile and enjoy the below benefits:

  • A special subscriber badge
  • Access to Subscriber-only content like stories, posts, reels, and live videos
  • Subscriber group chat with smaller subscriber groups

Reels Play Bonus Program

As of 9 March 2023, Meta has stopped Reels Play Bonus Program in the US and India. So, by the time Meta restarts the program, you can check our guide on How To Monetize Instagram Reels Without Reels Bonus.

Brand sponsorships and paid partnerships are old-school ways to earn money on Instagram Reels. The Reels Play Bonus Program launched in June this year empowers creators to monetize Instagram Reels all by themselves. Here's how!

The Reels Play Bonus is Instagram's program to incentivize creators when their Reels get a certain engagement within a given timeframe. The feature was first rolled out to select US-based creators, but the social media platform plans to release the feature worldwide slowly.

Only business and creator account profiles are eligible for the Reels Play Bonus Program. Once you sign up for the program, you shall start creating Reels within the 30-day period. By the end of this period, Instagram will pay you a bonus depending on the performance of the Reels.

Creator Marketplace

Creator Marketplace is yet another beneficial Instagram monetization tool for creators. It is a destination for businesses to find creators of their interest and connect with them. From a range of filter options for creators and their audiences, brands can find the best creators who suit their needs and add them to saved lists.

Once businesses drill down on the creators, they can use the marketplace to begin sharing the campaign and project details, like campaign objectives, deliverables, compensation, etc., with the creators. All the interactions between them on Instagram will go to the Partnerships Messages inbox.

How To Monetize Instagram With Less Followers?

  1. Affiliate Marketing
  2. Influencer Marketing
  3. Sell Your Own Products
  4. Become A Brand Ambassador

Affiliate Marketing

Affiliate marketing is a type of performance-based marketing where you earn a commission for promoting products or services from other businesses. You can affiliate with brands that align with your values and target audience and then promote their products or services to your followers. When someone purchases through your unique affiliate link, you earn a commission on the sale.

How to monetize Instagram through affiliate marketing?

  • Find affiliate programs: Identify brands and products that align with your niche and audience. Look for affiliate programs with attractive commission rates and a good reputation.

  • Become an affiliate partner: Apply to the affiliate programs of your chosen brands. Provide information about your Instagram account, audience demographics, and engagement rates to increase your chances of approval.

  • Promote affiliate products: Share product images, videos, and reviews with your followers. Create attractive content that highlights the benefits and features of the products you are promoting.

  • Use unique affiliate links: Include your unique affiliate links in your posts, stories, and bio. Clearly disclose that your posts contain affiliate links to adhere to Instagram advertising guidelines and maintain transparency with your audience.

  • Track your performance: Use affiliate program dashboards or analytics tools to monitor your sales and track your commission earnings.

Influencer Marketing

Influencer marketing is a collaboration between a brand and an influencer to promote products or services to the influencer's followers. Influencers have built a solid following and trust with their audience, which makes them helpful in influencing purchasing decisions.

How to monetize Instagram through influencer marketing?

  • Establish your niche: Identify a specific area of expertise or passion that you can focus on. Build a strong reputation and following in your niche to attract brands looking for collaborations.

  • Partner with brands: Network with brands that align with your niche and values. Reach out to brands directly or apply to influencer marketing agencies to connect with potential partners.

  • Create engaging content: Create sponsored posts, stories, or product reviews that show the brand's products or services in an authentic and engaging manner.

  • Negotiate compensation: Discuss your fee based on your follower count, engagement rates, and the scope of the collaboration. Ensure fair compensation for your influence and reach.

  • Track campaign performance: Measure your influencer marketing campaigns' reach, engagement, and conversions. Provide data-driven insights to brands to demonstrate the efficacy of your collaborations.

Sell Your Own Products

Selling your products on Instagram is not limited to just physical products. You can even sell your services, teach, coach, or consult on Instagram, or sell your own digital products.

Selling your own products on Instagram allows you to:

  1. Control your brand and messaging: You have complete ownership over the products you sell and the way you present them to your audience.

  2. Earn higher profit margins: Selling your own products eliminates the need to pay commissions to affiliate programs or intermediaries and helps you retain a greater share of the profits.

How to sell your own products on Instagram?

  • Create unique, well-made products that address target audience needs.
  • Optimize your Instagram profile for business, product offerings, and a visually appealing feed.
  • Use Instagram's shopping features for product display, website linking, and product tagging.
  • Create engaging product content with high-quality images, videos, testimonials, and reviews.
  • Run targeted ads on Instagram to reach your target audience with product promotions.

Become A Brand Ambassador

Just like affiliate programs, becoming a brand ambassador is an excellent way to supplement your income by sharing your love for the things you already enjoy. Brand ambassador opportunities are no longer exclusive to A-list celebrities!

An increasing number of brands are looking for individuals every day with dedicated followings to spread the word about their products or services. Think about it: are you more likely to purchase something recommended by a close friend or a reality TV star you barely know?

Brand ambassadors often receive complimentary products in exchange for promoting them on their social media channels. They can even earn monetary compensation for their efforts.

The key to securing a brand ambassadorship is to consistently post about the products and services you use by always tagging the respective brands. Once you have established a track record of authentic engagement, reach out to the brands you admire and inquire about their ambassador programs.

Instagram Monetization Strategy

Now when you have several ways to monetize Instagram in the best possible way, it is time to find out what strategy you need in place to monetize Instagram consistently. Follow the below steps to get started:

  1. Register your account as a business account
  2. Make your profile outstanding
  3. Choose a niche
  4. Add high-quality content to attract followers
  5. Engage with your audience
  6. Monitor your Instagram analytics

Now That You Know How To Monetize Instagram…

...In 11 different ways, you can start with your Instagram monetization process and generate more sales from the app in no time.

If you are looking for genuine tools to build your Instagram account authentically, check out Statusbrew!

Statusbrew is a social media marketing platform that will take your brand's Instagram marketing strategies to greater heights. With this amazing tool, you can get that extra edge in creating content and drawing insights that will help you get more likes, engagement, and ROI from Instagram.

Statusbrew allows you to bulk schedule Instagram posts, schedule an Instagram Story, schedule the first comment, and schedule a carousel post and a video, all within Statusbrew's environment.

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Rushali Das

Rushali is a B2B SaaS content writer who specializes in writing research-driven blog posts around marketing for B2B SaaS brands.

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