How to Monetize Instagram in 2024: Eight Profitable Strategies

In this comprehensive guide, we present eight effective strategies for monetizing your Instagram account.

Reflecting back to 2014, making a living through social media was a rare accomplishment, achieved by a select few like travel influencer Gabby Beckford (@packslight), who managed to secure $2,000 from just six posts that year. Back then, options for monetization for most creators were limited and often felt out of reach.

Flash forward a decade, and the creator economy has transformed dramatically. It is now not only feasible to augment your regular income through content creation; it is possible to surpass it significantly. Gabby, for instance, amassed close to $300,000 in earnings from her content in 2023, while elite Instagram influencers shared that they earned anywhere from $92,000 to an astounding $2 million per sponsored post.

What’s more, there has never been a broader variety of monetization avenues available for those eager to earn on Instagram and other social platforms—and you need not have millions of followers to succeed. Regardless of whether your following is 3,000 or 300,000, there are strategic ways to monetize your Instagram account. The key is understanding that the number of followers, as well as engagement rates, often influence your earnings, particularly from sponsored content. This understanding could inspire your very next monetization endeavor. Let’s explore the possibilities.

1. Collaborate with Brands on Sponsored Content

Chances are, you’ve encountered sponsored posts while scrolling through Instagram. This form of marketing, also referred to as influencer marketing, has become a fundamental aspect of earning on Instagram. It allows creators and brands to benefit mutually, with creators receiving financial compensation, and brands gaining access to focused, engaged audiences.

Successful partnerships often share certain characteristics. If you’re considering a paid collaboration, having a dedicated Instagram profile featuring your work is essential. Consider these elements for successful partnerships:

• Alignment with Your Niche and Values: Maintaining authenticity is vital for sponsored content. Your audience trusts your recommendations, so it’s crucial to align with brands that resonate with your demographic. For instance, influencer Joy Ofodu has established guidelines for brand partnerships, favoring only family-friendly options to uphold her values.

• Natural Integration: The most effective sponsorships feel organic and unobtrusive. Instead of merely promoting a product, weave the brand’s offerings into your established content style.

Creative influencer Chloe Shih (@chloe.shih) effectively collaborates with finance brands, seamlessly mixing sponsored posts with her existing valuable content.

Brand partnerships continue to evolve, particularly with changing laws and standards. Navigating these negotiations can be perplexing; however, here are several tips to facilitate your agreement discussions:

• Know Your Worth: Recognizing your value as a creator is crucial during negotiations. Factors such as follower count, engagement rates, and content quality play significant roles. Do not hesitate to decline offers that don’t meet your standards or adequately compensate your efforts.

• Research Industry Standards: To ensure you are charging a fair rate, investigate what comparable influencers in your niche with similar follower counts are earning. This insight will better equip you for negotiations.

• Understand Your Audience: Your audience is your greatest asset. Prior to aligning with a brand, analyze your audience demographics and engagement patterns to select relevant partnerships and demonstrate your worth to potential collaborators.

• Seek Legal Advice: As sponsored content continues to grow, it’s essential to protect yourself legally. Consult with a lawyer who specializes in influencer marketing to review contracts and ensure you’re not agreeing to unfavorable terms. They can also provide necessary guidance on complying with FTC regulations regarding sponsorship disclosures.

All branded content must be disclosed with the paid partnership label in posts, Stories, Lives, Reels, and Instagram videos.

2. Livestream and Earn Badges from Fans

Instagram Live presents a growing avenue for creators to engage with their audience in real-time, share genuine moments, and foster community spirit.

With Instagram Live Badges, creators can now monetize their live sessions and receive acknowledgment from their most ardent fans. The Instagram app is necessary for accessing features related to Live Badges.

Influencer and entrepreneur Ronne Brown (@ronnebrown) mentioned in an interview that she earned over $1,000 in her first week of using Live Badges back in October 2020.

With Live Badges, viewers can purchase virtual badges during broadcasts, displayed as heart icons beside their usernames in the comment section. Badges can be bought for $0.99, $1.99, or $4.99 as a way for fans to express appreciation for their favorite creators.

To qualify for Live Badges, creators must meet these criteria:

• Maintain a minimum of 10,000 followers.
• Reside in the United States.
• Access for creators in locations such as the UK, France, Spain, Italy, Germany, Japan, Australia, Turkey, Brazil, and Mexico is primarily invitation-only.
• Possess a Business or Creator account.
• Adhere to Instagram’s Partner Monetization Policies and Community Guidelines.

To enable Live Badges, follow these steps:

1. Go to your profile and tap the menu in the top right corner.
2. Select “Settings,” followed by either “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 of Service.

Once activated, Live Badges will automatically appear during your live sessions. When someone purchases a badge, hearts will appear next to their username in comments, allowing you to thank them personally.

To enhance your earnings through Live Badges:

• Promote your upcoming live event: Share your schedule and topics with followers via posts, Stories, and your Instagram bio to generate excitement.

• Engage your audience: Make an effort to interact with your viewers during the live session by responding to comments, answering questions, and acknowledging badge purchases.

• Deliver value: Focus on providing substantive content and entertainment, whether it’s expert advice, Q&A sessions, or collaborations with other creators.

• Express gratitude: After your broadcast, thank your badge-buying supporters through an Instagram Story using the “thank you” sticker, creating a stronger connection with your audience.

Instagram assures creators retain 100% of the revenue from badges purchased during a live stream, excluding taxes and applicable fees, with payouts made monthly once you reach a $100 threshold.

3. Offer Paid Subscriptions

Creating a paid subscription model can be an excellent way to capitalize on your Instagram audience through exclusive content. Various methods can achieve this:

• Native Instagram Subscriptions: Instagram now provides the option for eligible creators to offer paid subscriptions directly. Eligibility requires a business or creator account, a U.S. base, and specific follower or content standards. With this feature, you can post subscriber-only content, stream exclusive Lives, and facilitate a subscriber chat.

We’ve elaborated on Instagram Subscriptions—learn more here.

• Third-Party Platforms: If you are not eligible for Instagram’s subscription capability or seek more flexibility, platforms like Patreon or Substack can be valuable for managing subscriptions. These services allow tiered subscriptions with various exclusive content forms, all promoted through Instagram.

• Gated Content on Your Website: If you own an online store, you can create subscription-based offerings, restricting access to particular content or products. This model is effective if you possess a library of unique resources for subscribers.

Through paid subscriptions, you can establish a sustainable income from your Instagram activity while cultivating a devoted community.

4. Sell Your Own Products and Services

Another route to monetization is by offering your own products or services on Instagram. This approach enables you to diversify income streams while providing value to your audience.

For example, creator Lillian Zhang (@bylillianzhang) shares various digital products, pricing her Income + Expense tracker at $14.99, reportedly selling over 1,000 units—yielding over $15,000 in income merely from sharing the link in her bio occasionally.

To determine what products or services to sell, ensure they align with your niche and customer interests, exploring options such as:

• Service offering based on expertise: Whether you’re a photographer, consultant, or coach, leverage your skills by providing sessions for hire.

• Creation and sale of digital products: Develop ebooks, online courses, presets, or templates to share your knowledge. Digital products are easily scalable, with potential for creating passive income.

• Designing and selling physical products: If you have a specific style or aesthetic, consider creating original merchandise like clothing or accessories.

Lifestyle creator Tamsin Wong (@tamsinamy) built her brand, The Rhubarb Society, on social media, engaging discussions and selling products tied to her concept.

To optimize product sales on Instagram, utilize the platform’s built-in shopping features to allow users to discover products without leaving the app:

• Establish an Instagram Shop: An Instagram Shop acts as a storefront visible directly on your profile. Set it up by having a business account connected to a Facebook catalog.

• Make posts and Stories shoppable: Tag products in your content, allowing followers to view product details and purchase without leaving Instagram.

• Leverage Instagram Live for sales: Showcase products in real-time during live streams, interacting with viewers and building excitement for your products.

In addition to unique products, consider creating branded merchandise featuring logos and catchphrases. Ways to approach including:

• Using print-on-demand services: Platforms like Printful or Teespring allow custom designs with production and shipping managed by the service.

• White-label existing products: Collaborate with manufacturers to add personal branding to established products.

• Handmade merchandise options: Tailor-make your branded merchandise, such as custom jewelry or silk-screened shirts for a personal touch.

By offering personal products and services on Instagram, you create new income paths while deepening the relationship with your audience. Remember to consistently engage your followers to build trust and drive sales.

5. Engage in Affiliate Marketing

A hallmark of monetization for Instagram users is through affiliate marketing, where you promote products or services of other brands via unique links or promo codes, earning commissions for sales generated.

For example, lifestyle creator Janesha Moore (@janesha.moore) reportedly earned $100,378 in 2023 through affiliate marketing by sharing links and boosting engagement to guide her audience.

To efficiently execute affiliate marketing on Instagram, strategically position links and codes. Here’s how to optimize your approach:

• Utilize Your Bio: The link in your bio is valuable real estate for promoting affiliate links. Leverage a call-to-action and shorten links for tracking efficiency. For multiple links, consider using a link-in-bio tool to create a landing page with essential links.

Make use of Start Page to conveniently showcase your recommended products.

• Incorporate links in Stories: Share swipe-up links (if applicable) or use the “Link” sticker on Instagram Stories for easy navigation to promoted products.

• Share promo codes in captions: While captions cannot contain clickable links, sharing clear instructions for using promo codes can drive followers to purchase.

Joining affiliate marketplaces like Rakuten Advertising, LTK, and Amazon Associates can also provide lucrative affiliate relationships.

Remember to disclose affiliate partnerships to your audience, following FTC requirements stating that you must inform followers when compensated for promoting products.

6. Sell Digital Products

Digital products deserve a dedicated section, as they have rapidly become a prime source for income generation on Instagram. These intangible assets can be downloaded over the internet, expediting the income process by eliminating physical inventory or shipping hassles.

When conceiving ideas for digital products, consider your audience’s needs. Examples include:

• Ebooks or guides
• Printable templates or planners
• Lightroom presets
• Digital artwork or graphics
• Online courses

Fashion creator Natasha Ahmed (@natashahmedx) has successfully marketed both physical and digital goods, particularly her “digital scrapbook” template, which experienced viral demand, leading her to sell it for £15.

To sell digital products on Instagram, consider the following strategies:

• Create a dedicated website: Build a landing page to feature products and include payment functionality via platforms like Shopify or WordPress.

• Promote through content: Utilize posts or Stories highlighting digital product benefits with attractive visuals and effective calls-to-action.

• Leverage Instagram Shopping functions: With an Instagram Shop, tag your digital products in posts for seamless purchases, clearly specifying any access instructions.

• Offer exclusive discounts: Create a sense of urgency through follower-exclusive discounts or bundles to incentivize purchasing.

When promoting your products, showcase their value by explaining how they solve specific problems or enhance their lives. Testimonials and case studies can amplify trust and interest.

Consider diversifying your marketing through channels like email, paid advertising, and creator partnerships.

7. Develop and Teach a Course

Sharing your extensive knowledge and skills through an online course is a profitable opportunity for monetization. Sophia Elise (@dreamlancing), a successful freelancer, has successfully developed a course while using Instagram Reels to attract followers interested in signing up.

After creating your course, employ your Instagram platform to promote its benefits, share testimonials, and offer unique insights into the content.

Use your bio link to navigate followers to your sales page and consider running Instagram ads to reach wider audiences.

While developing a course may require substantial time and commitment, the rewards can be significant, leading to profitable income while making a meaningful impact on learners.

8. Join Instagram’s Creator Marketplace

Instagram’s Creator Marketplace serves as an innovative platform designed to connect creators with brands for collaboration on branded content.

Currently in beta, the marketplace is accessible to creators in the U.S., Canada, Australia, New Zealand, the UK, Brazil, Japan, India, and China.

The following are noteworthy features of the Creator Marketplace:

• Eligibility Requirements: Creators must be 18 or older, comply with Instagram’s Partner Monetization Policies, Community Guidelines, and relevant content policies. Eligibility information can be checked under account settings.

• Increased Discovery for Brands: Adding your profile to the marketplace enables brands to easily find you, as they search for suitable partnership opportunities aligned with your content.

• Organized Communication: Advent of dedicated folders for partnership messages keeps all collaboration inquiries streamlined, making communication easily manageable.

• Showcasing Style: Creators can indicate content interests to align their profile with brands looking to partner.

• Project Opportunities: Brands can list projects, allowing creators to express their interest, facilitating tailored collaborations.

The marketplace enhances brand and creator connections, streamlining monetization avenues.