By With over a billion active users globally, Instagram (IG) has evolved from a mere social app to a revenue-generation platform for millions of creators across the globe. The potential is vast, and the opportunities are endless.
However, despite the platform’s abounding possibilities, creators still face several challenges with revenue generation. For one, there’s so much competition across niches that finding one that stands out can be a difficult task. Another problem is the lack of information on tools that can help automate processes, especially as the generative AI (GenAI) wave continues to blow on.
This article will offer expert-led insights to newbie IG creators looking to start generating revenue and also help already established IG creators who are struggling to ramp up profits.
How Much Can You Earn on Instagram?
First, let’s talk about how much you can make on IG.
Earning rights on IG are based on analytical data, including engagements, likes, quality of posts, and more. But a common misconception that many have is that only creators with a large following can earn money on IG. While followership can indeed influence how much you earn on the platform, even creators with small audiences can generate revenue.
There are several categories for earnings on IG and the table below illustrates this:
| Followers | Earnings per post |
| Nano Influencer (1,000–10,000) | $10–$100 |
| Micro-Influencer (10,000–50,000) | $100–$500 |
| Mid-tier Influencer (50,000–500,000) | $500–$5,000 |
| Macro Influencer (500,000–1 million) | $5,000–$10,000 |
| Mega Influencer (1 million+) | $10,000–$1 million |
While there are several factors that could contribute to the earnings above, the figures offer a glimpse of the possibilities that IG offers to creators (especially newbies) today. For example, Jalyn Baiden, a nano influencer with only 4,000 IG followers, charged $350 for a three-frame IG story as her starting rate in 2023.
What Opportunities Does Instagram Offer Creators?
Jordan Bown, millionaire Youtuber and dropshipping influencer, notes that IG is one of the best platforms for short form content today. The ability to go viral is very high right now as IG is trying to compete with Tik Tok, Bown adds.
“Instagram is also very strong because all the data of your viewers and followers can be directly plugged into meta advertisements to use for scaling paid offers, which is incredibly powerful and cost efficient to test content on organic and then scale the video on ads.”
While it’s clear that there are vast opportunities to make money on Instagram, it goes beyond posting pictures. Instagram monetization is an art that needs to be mastered. Here are opportunities you can exploit to get a piece of the IG pie:
1. Affiliate Marketing
This method of marketing involves affiliates promoting products and services from businesses on Instagram. Affiliates are compensated when their audience clicks and purchases through their affiliate links.
Creators can make use of these various methods to get rewards by attaching affiliate links to articles, directing followers to brand websites via their bios, and providing personal discount coupons.
If you’re thinking of getting started with your affiliate marketing on Instagram right away, you need to keep these in mind to see the desired results.
a. Get a Creator Account
If you already have an account on Instagram, you can switch your personal account to a creator or business account. Follow these simple steps:
- Open your account
- Tap the hamburger menu
- Select settings
- Tap account types
- Select creator account
b. Discover Your Niche
Finding your niche is one of the most challenging things for newbie creators, especially when the goal is revenue generation. This is particularly essential for dropshippers who are looking to drive traffic to their digital shops using IG. Ofir Bokobza, CMO at AutoDS, advises people who fall in that category to first identify their niche.
“While it’s tempting to cast a wide net, focusing on a specific demographic or product category can help you build a loyal following. Once you’ve defined your target audience, curate high-quality, visually appealing content. Instagram is a platform for storytelling; use it to showcase your products in a lifestyle context,” Bokobza notes.
If you’re worried about the niche to choose, don’t be. As Bown notes, there are many profitable niches to make money on IG today. “Niches like beauty and skincare, travel and adventure, health and well, personal finance and investing are particularly some of the niches that drive the most revenue for creators,” he says.
Data also points to these niches, with a report by BloggerPassion placing the beauty, travel, fitness, and lifestyle niches on top of the table. Building an identity in a boundless digital world will define you and give you a voice. Once your audience knows what you represent, it becomes easy to relate to your content and improve engagement as well.
2. Influencer Marketing
To become an influencer, you must first establish a solid personal brand by growing a loyal fan base online— and that’s why it’s important to choose an area of interest or passion.
Your audience rewards you with loyalty— in the form of post engagements— when they’re inspired or find solutions from your posts. The good news is that many brands are willing to pay for such engagements.
Take Stacy Kim for example. Kim is an IG influencer who had only 3,400 IG followers in 2023 but managed to secure paid deals with many brands in the same year, including deals with major beauty brands like Clinique and Sephora, as well as tech giant SamSung.
Like Kim, you can get to work with brands further along the line. Of course, this isn’t going to happen from day 1, as Kim also notes. But by collaborating with other influencers, using relevant hashtags, and participating in IG challenges, you can increase your visibility.
You can also take advantage of IG stories, reels, and IGTV, which will help you to reach broader audiences and diversify your content.
Please note that it’s crucial to ensure your collaborations are authentic and align with your values. This isn’t just about making money, but also about maintaining the trust and respect of your audience.
3. Offer Services
Massy Arias is a fitness trainer who offers fitness training services to a global audience. Over the years, Arias has built her public image by following some of the steps already discussed above and she’s become a go-to authority in her niche. Her story is an example of how you can build out your account, become an authority, and offer your services to the people who need them.
These days, IG is essentially like an online resume where people can see the trajectory of your work and get a hold on your expertise— a sentiment that Bown also shares. “Instagram is also essentially an online resume nowadays, so it’s definitely the platform we focus on the most other than YouTube,” he says.
To build a public IG image that positions you as an expert, follow the steps below:
- Display your portfolio
- Post your work samples
- Share client testimonials or reviews
- Engage with your audience or potential clients
- Share your the behind-the-scenes (BTS) of your work process
- Keep sharing value through insights and tips
- Create posts on FAQS and use of IG’s call-to-action button so potential clients can easily connect with you
- Collaborate with other professionals for more reach or join different live sessions and relevant groups
- Engage with other creators in your niche to build relationships and leverage their network
As long as you offer valuable services, you’ll always have an audience that needs what you offer.
4. Create and Sell Digital Products
Bown says “almost anything can sell on social media nowadays. You just need to master content and back end structures to provide amazing offers to the viewer” and I agree. Although there are other platforms where you can create and sell digital products, IG has proven to be one of the top marketing platforms where you can sell digital products.
You can create digital products like online courses, ebooks, printables, and live webinars. They are highly profitable. But how can you do this in the most profitable way?
First, identify your audience’s needs and create valuable content or products that meet them. For example, a fitness coach can generate content on a meal prep guide or the correct posture for some exercises.
But it doesn’t end there. The pro tips below will help you level up your game.
a. Advertise Your Products
Promote your products with your IG profile by adding a link that will take your audience to where they can make payments and get a copy of the product. In addition, use IG stories and IGTV to get your products in the faces of the people that need them.
b. Use Email Marketing
Use exclusive offers or lead magnets to get their email addresses. With email marketing, you can improve your relationship with your audience, promote your products, drive sales, and retain customers.
5. Brand Partnerships
Two good heads are undoubtedly better than one! Building relevant partnerships can be the game changer you need for your business on IG.
Juhi Godambe Jain is a fashion influencer and entrepreneur who teams up with Giorgio Armani in a paid partnership. That’s an example of how building and consolidating relationships with brands can help you make money on IG.
In fact, long-term brand partnerships can be more lucrative than one-off sponsored posts. Focus on building relationships with brands that align with your values and audience. Engage with their content, attend their events, and demonstrate genuine interest in their products.
6. Reel in the Reels (and IGTV)
One way to bag those dollars on IG is by monetizing your IGTV and reels. While many are sleeping on this, that shouldn’t be you. IGTV and Reels offer opportunities to create engaging video content that resonates with your audience. This could be tutorials, BTS footage, entertainment, and even challenges.
You know the best thing? You can monetize your reels and IGTV through ads!
All you need to do is ensure your videos meet IG’s guidelines and maintain high engagement rates to increase your chances of earning ad revenue.
And just like Jain, you can also partner with brands to create sponsored IGTV and reel content. Brands are now increasingly interested in video content due to its high engagement rates.
7. Leverage IG Subscription
Creators can now use the subscription feature on IG to offer exclusive content to their subscribers for a monthly fee. The subscribers get badges, exclusive posts, stories, live stream offers etc.
However, you must ensure your subscribers get value for their money, and create unique content that’s worth their money.
8. Host Paid Workshops or Webinars
As an expert in your niche, consider hosting paid webinars or workshops. These can be live on IG or through other platforms. You can promote these events using IG posts, stories, or ads. To attract more people or encourage sign-up, you can also offer early bird discounts or bundle deals.
You Need the Right Tools
For Bokobza, the IG landscape has evolved dramatically, and automation is no longer just a luxury but a necessity. “To truly monetize your Instagram, you need tools that not only streamline your workflow but also deepen engagement,” he adds.
“First and foremost, you need a robust social media management platform. Tools like Simplified, Hootsuite, Sprout Social, or Buffer can be game-changers. They allow you to schedule posts, track analytics, and engage with your audience efficiently. But it’s not just about scheduling. These platforms often offer advanced features like AI-powered content suggestions, audience insights, and even automated messaging.”
Beyond the basics, you must consider specialized tools that cater to specific needs. For instance, if you’re heavily into visual content, a tool like Canva can be a goldmine. It’s not just for design; it can be a content creation powerhouse. And let’s not forget about analytics tools. While IG Insights provides some data, dedicated analytics platforms can offer deeper dives into audience behavior, helping you tailor your content accordingly.
It’s All in Your Hands Now
For all it’s worth, leveraging IG to generate income requires a strategic approach and consistency. Whether you’re a content creator, a dropshipper, an online vendor, an aspiring influencer, or a budding entrepreneur, you’d always benefit from building your online audiences through consistent posting and innovative partnerships.
But more importantly, using AI-powered tools like Simplified for content creation and marketing can be all you need to elevate your revenue generation on IG to the next level.
“Instagram is a treasure trove for online creators, entrepreneurs, e-commerce vendors, dropshippers, and anyone looking to generate income on the digital space. Its visual focus aligns perfectly with product-centric businesses. The key is to create a compelling brand identity and showcase products in an appealing way, and that’s where content creation, analytics, and marketing tools come into play,” says Bokobza.
