How to Make Money on Instagram in 2024

In 2014, making money on social media was a feat for a select few people like travel creator Gabby Beckford (@packslight), who made $2,000 for six Instagram posts in the same year. It wasn’t a viable path for most creators — and there weren’t many options in the first place.

Fast-forward a decade, and the landscape of creator monetization has changed completely. Now, it’s not only possible to supplement your regular income with content creation but to dwarf it entirely.

Gabby makes hundreds of thousands of dollars from her content, netting nearly $300,000 in 2023. Top Instagram influencers reported earning as much as $92,000 per post (on the low end) and as much as $2,000,000. 

Perhaps more importantly, though, there’s now a diverse range of options for those looking to make money on Instagram and other social media platforms — and you don’t need millions of followers to do it. 

Whether you have 3,000 or 300,000 followers, you can monetize your Instagram with the right strategy. And this might be where your next monetization idea comes from. Let’s get into it.

How to make money on Instagram

1. Partner with brands on sponsored content

There’s no way you’ve scrolled through your Instagram feed without coming across a sponsored post. Sponsored content — also known as influencer marketing — is a cornerstone of Instagram monetization — influencers and creators get the financial benefits of working with brands, and brands get access to highly engaged followers.

Partnerships come in all shapes and sizes, but the most successful ones always have some common threads. If you’re looking into a paid partnership, here are some of those things to consider:

• Alignment with your niche and values: Authenticity is key when it comes to sponsored content. Your followers trust your recommendations, so partnering with brands that resonate with your target audience is essential. Joy Ofodu has set rules for working with brands: only family-friendly stuff. This helps her keep her boundaries with brands around the type of sponsored content she’s willing to share.

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A post shared by Joy Ofodu (@joyofodu)

• Seamless, not slimy: The most effective sponsorships feels natural and non-intrusive. Instead of simply showcasing a product, create content seamlessly incorporating the brand's offerings into your usual style and aesthetic.

Career and finance creator Chloe Shih (@chloe.shih) partners with various finance-focused brands to share advice with her audience. Her existing organic content fits seamlessly with the branded content, so seeing these sponsored posts in the mix never feels jarring.

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A post shared by chloe shih ✧･ﾟ (@chloe.shih)

Creator-brand partnerships are always evolving, especially laws and standards evolve. It can be hard to keep up with all the advice out there, but here are some tips you can immediately implement in your partnership negotiations:

• Know your worth: Understanding your value as a content creator is crucial when negotiating sponsored content deals. Consider factors such as your follower count, engagement rate, and the quality of your content. Don't be afraid to set your own limits and turn down offers that don't align with your goals or compensate you fairly for your work. 
• Research industry standards: To ensure you're charging a fair price for your sponsored content, research what other influencers in your niche with similar follower counts are charging. This will give you a better understanding of industry standards and help you negotiate more effectively with brands.
• Understand your audience: Your audience is your most valuable asset as a creator. Before partnering with a brand, analyze your audience demographics, interests, and engagement patterns. This information will help you select the most relevant brand partnerships and demonstrate your value to potential collaborators.
• Seek legal advice: As sponsored content becomes more prevalent, protecting yourself legally is essential. Consider consulting with a lawyer specializing in influencer marketing to review your contracts and ensure you're not agreeing to unfavorable terms. A legal professional can also advise you on disclosing sponsored content to comply with FTC guidelines and maintain transparency with your audience.

It's important to note that all branded content must be disclosed using the paid partnership label in Feed, Stories, Live, Reels, and Instagram videos. 

2. Livestream and earn Badges from fans

Instagram Live has become an increasingly popular way for creators to connect with their audience in real time, share authentic moments, and build a stronger sense of community.

With Instagram Live Badges, creators now have the opportunity to monetize their live content and earn direct support from their most dedicated fans.

Influencer and entrepreneur Ronne Brown (@ronnebrown) told Business Insider that she made more than $1,000 in October 2020 from Badges within the first week of using the feature.

Live Badges allow viewers to purchase virtual badges during a live broadcast. These badges appear as heart icons next to their usernames in the comments. Fans can purchase badges in increments of $0.99, $1.99, or $4.99 to show their appreciation and support for their favorite creators.

To be eligible for Live Badges, you must meet the following criteria:

• Have at least 10,000 followers
• Be based in the United States.
  • Access to badges for eligible creators in the UK, France, Spain, Italy, Germany, Japan, Australia, Turkey, Brazil and Mexico is currently invitation-only. Check Settings > Creator > Badges to check your invitation status.
• Have a Business or Creator account
• Comply with Instagram's Partner Monetization Policies and Community Guidelines

If you meet these requirements, you can enable Live Badges by following these steps:

1. Go to your Instagram profile and tap the menu icon in the top right corner
2. Select "Settings" and then "Business" or "Creator"
3. Tap "Monetization" and then "Live Badges"
4. Follow the prompts to set up your payment information and agree to the terms and conditions

Once you've enabled Live Badges, they will automatically be available during live broadcasts. When a viewer purchases a badge, you'll see hearts next to their username in the comments, making it easy to acknowledge and thank them for their support.

To maximize your earnings with Live Badges, consider the following tips:

• Promote your upcoming live broadcast: Let your followers know when you'll be going live and what topics you'll discuss. Use posts, Stories, and your Instagram bio to build anticipation and encourage viewers to tune in.
• Engage with your audience: During your live broadcast, interact with your viewers by answering questions, responding to comments, and giving shout-outs to those who purchase badges. This engagement helps create a more intimate and interactive experience for your audience.
• Provide value and entertainment: To keep your viewers engaged and encourage them to purchase badges, focus on delivering valuable content and entertaining moments during your live broadcast. This could include sharing expert tips, hosting Q&A sessions, or collaborating with other creators in your niche.
• Thank your supporters: After your live broadcast, take a moment to thank your viewers who purchased badges. You can do this by creating an Instagram Story with the "thank you" sticker and tagging the usernames of your supporters. This simple gesture shows your appreciation and helps strengthen your relationship with your most loyal fans.

According to Instagram, creators receive 100% of the revenue from badges purchased during a live video, minus applicable taxes, fees, and the 30% cut Google and Apple take for in-app purchases. Payouts are made monthly, provided you meet the minimum payout threshold of $100.

3. Offer paid subscriptions

Offering paid subscriptions is an effective way to monetize your Instagram presence by providing exclusive content to your most dedicated fans. There are several ways to implement paid subscriptions for your Instagram audience:

• Instagram's native subscription program: Instagram has introduced its own subscription feature, which allows eligible creators to offer paid subscriptions directly through the platform. To be eligible, you must be based in the U.S., have a business or creator account, and meet certain follower and content requirements. With Instagram subscriptions, you can offer exclusive content such as subscriber-only posts, Stories, and Live broadcasts, as well as access to a dedicated subscriber chat.

• Third-party tools: If you're not eligible for Instagram's native subscription program or prefer more flexibility, you can use third-party tools like Patreon or Substack to manage your subscriptions. These platforms allow you to create different subscription tiers, set your own pricing, and offer a variety of exclusive content formats, such as blog posts, videos, podcasts, or downloadable resources. You can promote your subscription offerings on Instagram and direct your followers to your chosen platform to sign up.
• Gated content on your online store: If you have an existing online store or website, you can create a subscription-based model by gating certain content or products behind a paywall. This approach works well if you have a large library of content or resources to offer exclusively to your subscribers. You can promote your subscription offerings through your Instagram content and link-in-bio.

With paid subscriptions, you can create a more sustainable and predictable income stream from your Instagram presence while also building a loyal community of engaged followers.

4. Sell your own products and services

As a creator, you can monetize your Instagram presence by offering your own products or services. This approach allows you to create an additional revenue stream while providing value to your engaged audience.

Career and finance creator Lillian Zhang (@bylillianzhang) shares different digital products with her audience but only charges for a few. Her Income + Expense tracker goes for $14.99, and she indicates that she’s sold over 1,000. Even at a discounted price, she has likely made over $15,000 from leaving the link up in her bio and posting about it once in a while. 

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A post shared by Lillian Zhang (@bylillianzhang)

When considering what products or services to sell, it's essential to align them with your niche and the interests of your target audience. Here are some options to explore:

• Sell services related to your expertise: If you're a photographer, offer your services for photoshoots or editing. If you're a consultant or coach, provide one-on-one sessions or group workshops related to your area of expertise. Dre Fox offers coaching sessions to female entrepreneurs trying to grow their businesses on social media.

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A post shared by Andrea Fox- IG and Social Media Expert | Biz Coach (@timeofdre)

• Create and sell digital products: Develop ebooks, courses, presets, or templates that share your knowledge and skills with your audience. Digital products are easily scalable and can provide passive income once created. They’re so valuable that they get their own section (check Tip #6).
• Design and sell physical products: If you have a unique style or aesthetic, consider creating original physical products, such as clothing, accessories, or home decor items, to act as merch. You can handle production and fulfillment yourself or partner with a manufacturer. 

Lifestyle creator Tamsin Wong (@tamsinamy), developed an entire brand off social media called The Rhubarb Society. Through her platform, she can facilitate conversations among her audience and sell products tied to the brand.

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A post shared by 🪞🏸🍦🫧 (@therhubarbsociety)

To maximize your sales potential on Instagram, take advantage of the platform's built-in shopping features. These tools allow users to discover and purchase your products without leaving the app, creating a seamless shopping experience. Here's how you can utilize these features:

• Set up an Instagram Shop: An Instagram Shop is a virtual storefront that showcases your products directly on your profile. To create a shop, you'll need to have a business account and connect it to a Facebook catalog.
• Make your posts and Stories shoppable: Use product tags to highlight specific items in your posts and can. When users tap on a tag, they'll see product details and have the option to purchase directly within the app.
• Leverage Instagram Live: During a live broadcast, you can feature products from your shop and encourage viewers to purchase in real time. This interactive format lets you showcase your products, answer questions, and build excitement around your offerings.

In addition to selling your own unique products, you can also monetize your Instagram presence by creating branded merchandise. This approach involves designing items that feature your personal branding, such as your logo, catchphrases, or artwork. Here are some ways to create and sell branded merchandise:

• Use print-on-demand services: Platforms like Printful, Teespring, and Redbubble allow you to create custom designs and print them on various products, such as t-shirts, mugs, and phone cases. When a customer orders, the service handles production and shipping, making it a low-effort option for creators.
• White-label existing products: If you find a product that aligns with your brand, you can partner with the manufacturer to add your personal branding to the item. This approach allows you to offer a product you believe in without having to develop it from scratch.
• Create handmade merchandise: Consider hand-creating your branded merchandise for a more personal touch. This could involve silkscreening t-shirts with your designs, creating custom jewelry, or producing small-batch products that reflect your unique style.

By offering your own products and services on Instagram, you can diversify your income streams and build a stronger connection with your audience. Remember to consistently promote your offerings in your content and engage with your followers to build trust and encourage sales.

5. Take up affiliate marketing

Affiliate marketing is a popular way for Instagram creators to monetize their influence and generate passive income. You promote products or services from other brands as an affiliate and earn a commission for each sale or lead generated through your unique affiliate link or promo code. 

Lifestyle creator Janesha Moore (@janesha.moore) reportedly earned $100,378 through affiliate marketing in 2023. Her strategy involves a winning combination of sharing affiliate links and boosting engagement by getting her followers to comment on posts to receive automated messages with where to find links.

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A post shared by Janesha Moore | Philly Blogger (@janesha.moore)

To be successful in affiliate marketing on Instagram, it's essential to strategically place your affiliate links and promo codes throughout your content. Here are some ways to maximize your earnings:

• Use your Instagram bio: Your link in bio is prime real estate for promoting affiliate links. Use a clear call-to-action and a shortened, trackable link to direct your followers to your affiliate offers. If you have multiple links to share, consider using a link-in-bio tool to create a landing page that houses all your important links.

• Incorporate affiliate links in your Stories: Instagram Stories are a highly engaging format that allows you to share swipe-up links (if you have over 10,000 followers) or use the "Link" sticker. Use these features to promote your affiliate products and provide your followers with an easy way to shop through your recommendations.
• Share promo codes in your post captions: While you can't include clickable links in your post captions, you can share promo codes that your followers can use to make purchases. Be sure to clearly state the code and provide instructions on using it to ensure your audience can easily take advantage of the offer. Rita of @rita_codes shares affiliate links in her post captions.

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A post shared by Rita (@rita_codes)

Consider joining popular affiliate marketplaces to find the best affiliate partnerships for your Instagram presence. These platforms connect brands with influencers and provide various products and services to promote. Some platforms to explore include Rakuten Advertising, LTK, and Amazon Associates.

When participating in affiliate programs, it's crucial to disclose your affiliate relationships to your audience. The Federal Trade Commission (FTC) requires influencers to clearly state when they are being compensated for promoting a product or service. 

Be transparent about your partnerships and indicate them using the Paid Partnerships label as you post. Consider using hashtags like #ad, #sponsored, or #affiliate to ensure your followers know about your affiliate relationships.

6. Sell digital products

I had to give digital products their own section as they’ve become a great way to generate income quickly on Instagram.

Digital products are intangible assets that can be downloaded or accessed online, eliminating the need for physical inventory, shipping, or fulfillment. By creating and selling digital products, you can showcase your knowledge, skills, and creativity while generating passive income.

When brainstorming ideas for digital products, consider your niche, expertise, and the needs of your target audience. Here are some examples of digital products you can create:

• Ebooks or guides
• Printable planners, worksheets, or templates
• Lightroom presets or Photoshop actions
• Digital art, graphics, or fonts
• Online courses or workshops

Fashion creator Natasha Ahmed (@natashahmedx) developed a unique visual style and markets it through physical and digital products. The most interesting of her digital products is the “digital scrapbook,” which went viral enough that her audience requested the template, which she now sells for £15.

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A post shared by natasha (@natashahmedx)

Once you've created your digital product, it's essential to have a platform to host and sell it. Here are some ways to sell your digital products on Instagram:

• Create a landing page or website: Set up a dedicated website or landing page to showcase your digital products and provide more information about what's included. Use a platform like Shopify, Squarespace, or WordPress to create a professional-looking site that integrates with payment processors for seamless transactions. Natasha sells all her products on a personal website.

• Promote your products through Instagram content: Share posts and Stories that highlight your digital products and their benefits. Use high-quality visuals, engaging captions, and clear calls to action to encourage your followers to learn more and make a purchase.
• Leverage Instagram Shopping features: If you have an Instagram Shop set up, you can tag your digital products in your posts, Stories, and Reels, making it easy for your followers to purchase directly through the app. Be sure to clearly state that the product is digital and provide instructions on accessing it after purchase.
• Offer exclusive discounts or bundles: Reward your Instagram followers with special discounts or bundle deals on your digital products. This can help create a sense of exclusivity and encourage followers to purchase while the offer is available.

When promoting your digital products on Instagram, providing clear value and showcasing how your product can solve a problem or enhance your audience's lives is crucial. Use testimonials, case studies, or examples to demonstrate the benefits of your product and build trust with your followers.

In addition to promoting your digital products on Instagram, consider leveraging other marketing channels, such as email marketing, paid advertising, or collaborations with other creators in your niche. 

7. Develop and teach a course

As an Instagram creator, you have likely developed a wealth of knowledge and skills within your niche. Sharing this expertise through an online course is an excellent way to monetize your Instagram presence while providing tremendous value to your audience. 

Sophia Elise (@dreamlancing) is a six-figure freelancer sharing her knowledge with her audience. She developed a course and uses her Instagram Reels to invite her audience to sign up to be notified when it’s released. 

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A post shared by Sophia Elise | Growth Coach for Service Providers (@dreamlancing)

Once you’ve developed your course, use your Instagram presence to promote your course and attract potential students. Create posts, Stories, and Reels that highlight the benefits of your course, share student testimonials, and offer behind-the-scenes glimpses of your course content. 

Use your link-in-bio to direct followers to your course sales page, and consider running Instagram ads to reach a wider audience.

Developing and teaching an online course requires significant time and effort, but the rewards can be substantial. By sharing your knowledge and expertise, you can generate a profitable income stream and make a lasting impact on your students' lives.

8. Join Instagram’s Creator Marketplace

Instagram's Creator Marketplace is a powerful tool that helps creators connect with brands and collaborate on branded content and partnership ads. 

It’s currently in beta and available only in the United States for creators and in the U.S., Canada, New Zealand, Australia, the United Kingdom, Brazil, Japan, India, and China for brands. 

The marketplace streamlines the process of finding and working with brands, making it easier for creators to monetize their content and grow their audience.

Here are some key points about Instagram's creator marketplace:

• Eligibility requirements: To join the creator marketplace, creators must be 18 or older and follow Instagram's Partner Monetisation Policies, Community Guidelines, and Content Monetisation Policies. Creators can check their eligibility under their account settings and join the marketplace from their professional dashboard.
• Increased visibility to brands: By adding their profile to the creator marketplace, creators can be discovered by brands looking for partnership opportunities. Creators can also add their favorite brands to a list of preferred partners, signaling their interest in working together.
• Streamlined communication: When creators receive their first partnership message, they access a dedicated folder in their Instagram messages. This allows brands to reach out about potential deals, keeping all communication organized and easy to track.

• Showcase your unique style: Creators can add their branded content interests, such as skincare, sports, or food, to help brands find them and understand the type of content they create. Additionally, creators can build a portfolio to showcase their work and stand out to potential brand partners.

• Access to project opportunities: Brands can create projects on the creator marketplace, outlining the details of potential collaboration on branded content or partnership ads. Creators can browse these projects, express interest in those that align with their profile, and let brands know they're open to working together.

Instagram's creator marketplace also offers several benefits for brands:

• Discover relevant creators: Brands can search for creators and view insights to determine if they're a good fit for their campaign. This helps brands find the right partners to collaborate with and reach their target audience effectively.
• Create and manage campaigns: The creator marketplace allows brands to create branded content campaigns, share important details with creators, and invite them to work together. This streamlines the collaboration process and ensures everyone is on the same page.
• Track campaign progress: Once a campaign is created and shared with creators, brands can track the progress of each creator's project. They can see a list of creators they've shared the campaign with and the status of each project, making it easy to manage multiple collaborations simultaneously.

As Instagram's creator marketplace continues to evolve and expand to new markets, it will become an increasingly valuable tool for creators looking to monetize their content and grow their audience through brand partnerships.

Instagram monetization FAQs

Can you earn income directly from Instagram?

Yes, Instagram offers various ways for creators to earn income directly within the platform. This includes utilizing tools such as the Instagram Creator Marketplace, offering subscriptions for exclusive content, and earning through Live badges during live streams.

What is the required follower count to start earning on Instagram?

You don’t need a strict minimum number of followers to start earning on Instagram. Individuals with as few as 1,000 followers can monetize their content and engage in partnerships.

How much can you potentially earn on Instagram?

Instagram does not have a standard pay-per-follower model, and earnings can vary widely based on factors such as engagement rates, niche, content quality, and partnership deals. The focus is often on the quality of interaction rather than just the number of followers. 

Here are four factors that might influence how much you earn:

1. Follower count: The more followers you have, the higher your earnings potential. However, brands and other partners also want to see a good engagement rate. According to HypeAuditor, influencers with 1,000 to 10,000 followers earn an average of $1,400 monthly, while those with more than one million followers rake in just over $15,000.
2. Engagement rate. Engagement measures how people interact with your content through likes, comments, shares, and saves. You can earn more than a massive audience with no fan interaction if you have a small audience but great engagement. A common way to calculate engagement is to divide your total number of engagements per post by the reach (the number of people who view your content) per post and then multiply by 100.

3. Your niche. Go for gold and target one of the most profitable niches on Instagram in 2024, which includes beauty, fashion, travel, pets, health and fitness, food, lifestyle, crafts and DIY, and business.
4. Your reputation. A large following on Instagram certainly helps boost your earnings potential. However, many brands work with famous athletes, scientists, and other subject matter experts to leverage their offline reputations regardless of their online follower counts. Build your expertise by leveling up your skills and sharing your knowledge on other platforms like a newsletter or podcast.

What steps should you take to initiate earning on Instagram?

To begin making money on Instagram, enhance your profile's appeal, consistently post engaging and high-quality content, and grow an engaged audience. Then, begin contacting brands and partners to refine your rate and offering, setting up your subscription model, or developing your product/service.

Is it possible to monetize Instagram Reels directly?

No, Instagram does not currently offer direct monetization options for Reels following the discontinuation of the Reels Bonus Program. But you can still monetize Reels through brand collaborations, affiliate marketing, promoting personal merchandise, and exclusive content for subscribers. 

Watch for future updates, as Instagram may introduce new monetization opportunities for Reels.

Conclusion

Instagram offers a wealth of opportunities for creators, businesses, and individuals to monetize their presence on the platform. You can turn your Instagram account into a profitable venture by implementing these strategies and consistently creating engaging content.