In a nutshell

  • Instagram offers various monetization methods including branded content, badges in Instagram Live, shopping features and subscriptions.
  • Active engagement with the audience, such as through Instagram Live badges and interactive content, can significantly increase your earnings.
  • Building a successful monetization strategy on Instagram requires dedication, a well-defined niche and a consistent posting schedule.

Instagram is one of the most popular social media platforms, with over 2 billion daily active users globally. The platform is not only known as a space where people can share their photos, but it has also become a hub for creators to monetize their content and turn their passion into a profession. 

The value of monetization on Instagram goes beyond just the allure of earnings. We’re talking about transforming a creative journey into a thriving and sustainable career where passion becomes paycheck. But how does monetization work on Instagram exactly? Let’s dive deeper. 

Methods of monetization on Instagram

Just like other social media platforms, Instagram has several methods of monetization. Content creators have different methods to turn their creativity into cash.

Branded content

Branded content refers to content that features or promotes a brand, product or service. It’s typically created in collaboration with advertisers. It is one of the most popular monetization tools that creators use on the platform. 

How so? Instagram offers a range of tools to simplify the process of creating and sharing branded content. Creators can use the Paid Partnership tag. This allows them to tag business partners and use the Branded Content tag to make the sponsored nature of the content clear.

Collaborating with advertisers is a common way to monetize on Instagram. Creators can partner with businesses, create engaging promotional content and reach a wider audience while earning income.

Badges in Instagram Live

Instagram Live allows creators to engage with their audience in real time. Viewers can purchase badges during a livestream to show support for the creator. Aside from adding a social element to the live tream, badges also provide a source of income for creators. How can a creator earn from badges? Creators will get a share of the revenue generated from badge sales during their livestreams. This means that the more engaging and interactive your content is, the higher the potential earnings from badges.

Shopping on Instagram

If you sell your own merch, Instagram offers a convenient way to sell it directly to your followers. All you have to do is set up a shop on Instagram, showcase your products and enable a seamless shopping experience for your audience.

Note that not all can sell on Instagram. To sell on the platform, you need to meet certain eligibility criteria, which typically include having a business or creator account, adhering to Instagram’s commerce policies and having a connected Facebook Page.


Instagram also has a subscription model, allowing creators to offer exclusive content to subscribers in exchange for a monthly fee. This can include premium posts, stories and other content not available to the general public.

The earnings from subscriptions can vary and it depends on factors such as the number of subscribers and the price you set for your exclusive content. However, in all instances, Instagram takes a small fee from the subscription revenue.

Instagram’s subscription model benefits creators by providing a stable income source, encouraging consistent, high-quality content and fostering a closer relationship with subscribers. Subscribers, in turn, gain access to exclusive content and a more direct connection with creators, enhancing their experience and sense of community. It’s a win-win for both sides.

Capitalizing on your potential earnings

Monetization on Instagram is not limited to one method; instead, creators have a range of options to choose from. Whether you prefer creating branded content, engaging with your audience through badges, selling your merchandise or offering exclusive content to subscribers, Instagram provides the tools and opportunities for you to turn your online presence into a source of income.

StageWhat Happens

1. Niche selection
Choose a specific niche or topic that interests you and has a target audience on Instagram. Popular niches include fashion, travel, fitness, food and more.
2. Create an attractive profile

Set up an Instagram Business Account, use a clear profile picture and write a compelling bio. Your profile should reflect your branding and niche.
3. Content strategy

Develop a content strategy that includes producing high-quality and engaging photos and videos. Consistency is key, so plan your content schedule.
4. Grow your follower baseIncrease your followers by using relevant hashtags, engaging with your target audience, posting shareable content and collaborating with other users.
5. Engage and build relationshipsInteract with your followers and respond to comments. This will help you build a strong, dedicated community.
6. Branded contentReach out to brands or wait for them to approach you. Collaborate on sponsored posts, product reviews, or giveaways that align with your niche.
7. Utilize Instagram shoppingIf you sell physical products, set up Instagram Shopping to tag products in your posts, making it easier for users to purchase directly from your feed.
8. Diversify revenue streams

Explore additional monetization avenues such as livestreaming, sponsored stories or exclusive content for paying subscribers.
9. Continuous growthKeep adapting to the ever-changing social media landscape. Stay updated on trends and continue to grow your Instagram presence.

Similar to other platforms, you can’t build a successful monetization strategy on Instagram overnight. It takes dedication and hard work to build a loyal following that is willing to pay for your services. Being open to new tools and strategies is crucial as the platform is always evolving. Continue to apply what works for you and improve what doesn’t.

Image asset courtesy: Instagram