People have asked can they make money on Instagram. In fact, helping creators make a living on the platform is a top priority for Instagram, especially as competition heats up from TikTok, Snapchat, and YouTube. There are four primary ways to make money on Instagram:
- Work as an influencer to post content sponsored by brands
- Be an affiliate marketer selling other people’s products
- Earn money for your content through tips and ads
- Become an entrepreneur and sell your own products
Sponsored content and affiliated marketing remain the top ways for creators to earn on the platform. Now Instagram is kicking efforts into high gear on the direct monetization front, where the company lags behind competitors.
Introduced in 2020, Live Badges allow followers to support creators during broadcasts by purchasing hearts, which range from $.99 to $4.99. Creators in select markets can also earn revenue share from IGTV ads. During Creator Week, the company unveiled a native affiliate tool, new creator shop options, and bonuses for hitting milestones with badges and Live sessions. Instagram head Adam Mosseri also teased subscriptions, gated content, merch initiatives, and even NFTs. Tests on an incentive that would give creators bonuses for posting Reels are also currently underway.
Creator funds are not off the table, either. But it’s unlikely that Instagram will hand out cash as freely as YouTube (which plans to dole out $100 million over the next year to Shorts creators) or come anywhere near Snapchat’s payout rate of $1 million per day.