PROCUREMENT

Your Guide to Instagram Monetisation in 2024

Dec 15, 2023

Social Media Platforms

Your Guide to Instagram Monetisation in 2024

If you possess any sort of creative bone in your body, there’s a high chance you can use it to earn yourself some extra cash on social media. Though YouTube remains on top when it comes to social media earnings, Instagram follows closely behind with TikTok and its newly-revamped Creativity Program. 

When it comes to specifics, Instagram monetisation is typically shrouded in secrecy, making it difficult for us to tell you exactly how much you can expect to make. Not only this, but specific numbers look different for creators and influencers compared to businesses on Instagram. 

All hope is not lost, however, as Hype Auditor surveyed 2000 influencers in the US about how much money they make per month, providing the creators among you with some expectation of what to expect when beginning your Instagram monetisation journey. They are as follows:

1-10k followers: $1,420

10k-50k followers: $2,061

50k-500k followers: $3,517

500k-1M followers: $5,847

Over 1M followers: $15,356 

Instagram has become more than just a platform for sharing photos and connecting with friends. It has evolved into a lucrative space for creators and businesses alike to monetise their content and turn their passion into a source of income. 

If Instagram monetisation is something you’re considering then read on as we teach you how to claim your share of the pie.

INSTAGRAM MONETISATION FOR CREATORS

Monetising your content on Instagram isn’t all about the money; though this does play a very big (and ideal) role in your Instagram monetisation journey. The monetisation avenue allows you to expand your reach and establish yourself within your niche due to having an involvement in the following money-earning strategies.

Sponsored posts and brand collabs

Creating sponsored content for brands is one of the most popular Instagram monetisation methods. By partnering with brands that align with your niche and audience, you can negotiate deals to promote products or services in exchange for a fee. When negotiating this fee, consider your audience size and content quality, as these will be the main factors brands take into consideration when making their offers. On the other hand, fight for your worth and don’t settle for the first sum you’re given if you feel it hasn’t been fairly thought out.

Remember, authenticity is key here. Take on sponsorships that feel authentic to you as a creator and those that will resonate with your audience. This is how you keep people engaged and attract new followers; further increasing your Instagram monetisation capabilities. 

Instagram monetisation: brand collabs

Sell products or services

Instagram provides various tools such as Instagram Shopping and shoppable posts that allow creators to sell their merchandise directly in-app. Consider creating and selling physical products, digital downloads such as eBooks, or services like consulting or coaching. Just as you would with a sponsored brand post, create engaging, high-quality promotional content for that which you wish to sell and watch the money come rolling in. 

Offer exclusive content via Subscriptions

A feature often overlooked is Instagram Subscriptions. If you are a creator with a substantial following thanks to your stylised content, consider optimising your account for subscriptions. This way you can expand your creative boundaries by inventing content for a specific group of people who clearly love what you do. This could be behind-the-scenes content, exclusive Q&As, tutorials or live streams. Whatever it is, ensure that you’re giving your subscribers a VIP experience by giving them access to a side of you not any old follower gets to see.

Instagram monetisation: Subscriptions

Enable ads on your Reels

If you’re familiar with the Reels, you’ll know that monetising them hasn’t always been a straightforward process, what with the constant discontinuation and launching of ad revenue programs. 

Meta rolled out its Reels Play Bonus Program to compete with the TikTok Creator Fund. This program would allow creators to make money from their Reels based on performance, how many Reels were created, and by participating in themed “Reels challenges”. Unfortunately as of March 2023, this program has been discontinued, meaning creators now have no way of earning by simply posting to the platform.

But this doesn’t mean that there’s no way to monetise Instagram Reels. Here are 10 other proven ways to continue with Instagram monetisation via Reels:

Partner with brands

Promote a physical product

Add shoppable product tags

Promote a digital product

Become an affiliate 

Sell a service

Build a community of subscribers

Accept donations through Patreon

Accept Instagram Gifts

Promote your other channels

Remember, you won’t get paid based on how many views your Reels get, but if you’re looking to monetise them through brand partnerships, brands are often looking for 1000+ views. 

Tap into Badges 

Instagram badges are another great addition to your Instagram monetisation journey, as they allow you to earn money when you go Live. Supporters can purchase badges throughout your Lives in exchange for standing out in the comments and unlocking additional features, such as a special heart during the Live and placement on a creator’s list of badge holders.

Creators can see their list of badge holders for up to 90 days after the Live. This allows for ample opportunity to recognise those most loyal and thank them for their support. 

Instagram’s revenue share of Badges is currently 0%, thought both Google and Apple collect 30% for these in-app purchases. 

INSTAGRAM MONETISATION FOR BUSINESSES

By implementing the following strategies, businesses can monetise their efforts, drive sales and expand their customer base effectively.

Shoppable posts

Leverage Instagram Shopping by tagging products in your Posts and Stories. This will allow users to tap on products they like the look of and shop them directly in-app, streamlining the shopping experience and encouraging repeat customers. 

Shoppable tags on ASOS

Influencer marketing campaign

As the most commonly-used Instagram monetisation strategy, Instagram simply wouldn’t be what it is today without businesses leveraging influencer marketing on here. 

Selecting influencers to be part of your campaigns whose values, aesthetic and branding align with your own is the best way to ensure you’re optimally cashing in on your marketing efforts. Also ensure you’re selecting those whose audience will be most likely to tune in to and take action with the content you create. 

Instagram monetisation: influencer marketing

Instagram Ads

Creating targeted ads are another common way for businesses to get involved with Instagram monetisation. 

At this stage, it’s impossible to scroll through Instagram without at least 10 ads popping up. Often, the ads that appear are carefully selected just for us, based on what we may have previously searched for or interacted with. When they appear on our screens, this means they’re retargeted ads. 

As a business, focus on creating high-quality, eye-catching ads that will stop any scroller. Add a CTA and a link to direct them straight to your website or other platforms, where they will explore your business and other products, and hopefully make a purchase. Though this is a more expensive form of Instagram monetisation, the rewards gained are worth every penny! Just ensure you are setting a campaign budget for your targeted ads, so you don’t overspend.

Instagram monetisation via ads

The vast potential for Instagram monetisation means both creators and businesses alike are given numerous avenues within which to transform their digital presence into revenue streams. Whatever the chosen path, be sure to approach it with authenticity and high-quality content and you’ll see the money come rolling in. 

FAQs

How much money can you make from Instagram monetisation?

The average pay outs for creators in the US are as follows:

1-10k followers: $1,420

10k-50k followers: $2,061

50k-500k followers: $3,517

500k-1M followers: $5,847

Over 1M followers: $15,356 

How do you qualify for monetisation on Instagram?

Each monetisation method has its own set of requirements:

Influencer marketing (ideal to have):
○ 500+ followers
○ An engagement rate of 2% or more
○ High quality content

Badges:
○ Be over 18
○ Be based in the United States
○ Have a Creator or Business account
○ Have at least 10,000 followers
○ Adhere to Instagram’s Partner Monetisation policies and community guidelines 

Subscriptions:
○ You must be invited to begin your subscription by Instagram and live in the US

Can I monetise Instagram Reels?

While there are no longer any monetisation schemes for Reels, you can still do the following:

Partner with brands

Promote a physical product

Add shoppable product tags

Promote a digital product

Become an affiliate 

Sell a service

Build a community of subscribers

Accept donations through Patreon

Accept Instagram Gifts

Promote your other channels

How do I monetise my Instagram account?

  1. Become an influencer
  2. Go Live and receive Badges
  3. Set up an Instagram Subscription
  4. Earn Gifts from your followers

How many views do I need on Reels to get paid?

You can no longer earn strictly through views on Reels.

When should I monetise my Instagram account?

For those wanting to make money as an influencer, monetisation should come once you have achieved an engagement rate of 1-3%. For anyone else making use of other methods, establishing yourself as high-quality content creator before looking to make money is key.

How many followers do you need to make money?

This is dependent on which feature you would like to make money through. For example, Badges require creators to have 10,000 followers minimum before using the monetisation method.

Our influencer marketing agency and social agency are located worldwide, with our agency network based in the USA, UK, UAE and China.

If you want to find industry insights, visit our influencer marketing and social media blog.

@ Socially Powerful

Author

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James Hacking

Writer

Socially Powerful, founded in 2017, stood as pioneers of the influencer marketing industry. Today we are a global social marketing agency and technology company.

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