How to make money on Instagram

Key takeaways

• You don’t need a massive following to make money on Instagram. Engagement and niche matter more.
• Most creators earn through multiple income streams, not just one.
• Instagram works best as both a monetization platform and a traffic driver to your website or store.

Are you looking for side hustles or ways to earn money besides selling products or getting a regular job?

The good news is learning how to make money on Instagram is no longer limited for influencers or celebrities. Today, creators, freelancers, and small business owners use social media platforms to earn through affiliate marketing, digital products, subscriptions, services, and more. But what makes Instagram unique is flexibility. You can monetize directly on the platform or use it to drive traffic to your own website, shop, or courses.

Let’s break down the most effective ways to earn money on Instagram, and what you need to get started with each.

11 simple ways to make money on Instagram

Statista estimated 1.8 billion Instagram users by 2028 globally. Those numbers mean an increased possibility of gaining high views and earning more money. Before you can get to that part, you need to consider which monetization strategy you want to choose and how it fits your current capabilities:

Monetization strategy	Who it’s for	Potential income
Affiliate marketing	Beginners, creators, and small businesses recommending products	Ranges between $0-$1,000 per month for beginners
Sponsored posts	Creators with an engaged niche audience	Around $10-$100 per post for beginners
Selling products via Instagram Shop	E-commerce brands and creators selling physical or digital products	Varies by product price and sales volume
Paid subscriptions	Creators with loyal followers	Recurring monthly income; typically $0.99–$99.99 per subscriber
Courses or training programs	Coaches, educators, and experts	Depends on how much you charge per service
Merch sales	Creators with strong personal branding	Varies by how much you charge per merch
Instagram Live (Badges, live selling)	Creators who engage audiences in real time	$0.99–$4.99 per badge; audience-dependent
User-generated content (UGC)	Creators producing content for brands (no large following needed)	Approximately $50–$100 per content for beginners creating simple UGC (basic lighting, minimal editing)
Offering services	Freelancers, photographers, marketers, consultants	Varies by service
Instagram Reels	Creators focused on reach and discovery	No direct payout; approximately $100–$1,000+ per sponsored Reel
Instagram ads	Businesses and creators with products or services to sell	No direct payout; income depends on ad spend and ROI

You don’t need to pick just one. Most of these strategies work best when you combine them. A lot of them are related to each other anyway. But we’ll discuss that further in the next sections.

1. Join affiliate programs 

Affiliate programs give you a way to earn a commission by recommending another company’s product or service and getting paid when someone makes a purchase through your unique link.

This approach is called affiliate marketing, and it’s one of the simplest ways to make money on Instagram, especially if you’re just starting out. Instead of creating your own product, you build affiliate relationships with brands you already use and trust. By focusing on high-quality content such as reels, tutorials, or honest reviews, you can turn everyday recommendations into income without sounding overly promotional.

You don’t need a large following to join affiliate programs, but you do need:

• An active Instagram account (personal or professional)
• A clearly defined niche such as fitness, beauty, tech, or small business
• Content that naturally supports product recommendations
• Proper disclosure, like using #ad or #affiliate, to follow advertising guidelines
• A decent follower count with quality engagement and audience trust

Where you can join affiliate programs

Affiliate opportunities are available through:

• Affiliate networks like Amazon Associates, ShareASale, and Impact
• Direct brand affiliate programs run by individual companies
• Creator marketplaces and platforms that offer built-in affiliate tools

After joining, you’ll receive unique tracking links or codes to share with your audience.

How affiliate programs work and how much you can earn

When someone clicks your affiliate link and completes a purchase, you earn a commission. Most programs offer commission rates between 5% and 30%, depending on the product and industry. However, since each rate differs per program, be sure to check the commission before agreeing.

Affiliate links can be shared via:

• Your Instagram bio (using a link-in-bio tool)
• Instagram Stories with link stickers
• Reels or posts that show how a product is used

Earnings vary, but many affiliate marketers make anywhere from $50 to $5,000 or more per month, depending on their audience size, engagement rate, and how well the product fits their niche.

For best results, focus on recommending products you genuinely use and explaining how they solve a problem—authentic recommendations tend to convert better than purely promotional posts.

Real-life Instagram affiliate marketing examples

A well-known example is Huda Kattan (@hudabeauty), who frequently shares makeup products and beauty tools across her Instagram page. Many of these recommendations include affiliate links or trackable product links, allowing her to earn a commission when followers purchase featured items.

Another example is Chiara Ferragni (@chiaraferragni), a fashion influencer who regularly tags and links clothing, accessories, and beauty products on Instagram. These posts often direct Instagram users to shoppable or affiliate-enabled product pages.

These Instagram influencers don’t simply post links—they show how products fit into their daily routines, which helps build trust and drives conversions.

2. Create sponsored posts 

Sponsored posts let creators earn money on Instagram by partnering with brands to promote products or services in their content. In these collaborations, brands pay you to feature their offering in a post, Story, or Reel and share it with your audience.

Where to collaborate for sponsored posts

Creators typically find sponsored post opportunities through:

• Instagram Creator Marketplace, where brands connect directly with creators based on niche, audience, and engagement
• Influencer marketing platforms that match brands with creators for paid campaigns
• Direct outreach, either by pitching brands you already use or responding to inbound inquiries from companies

Many creators also list a contact email or media kit link in their bio to make it easier for brands to reach out.

Real-life examples of sponsored posts on Instagram

A well-known example is Kim Kardashian (@kimkardashian), who frequently posts sponsored content for beauty, fashion, and lifestyle brands. These posts are clearly labeled as paid partnerships and integrate the product naturally into her feed.

Another example is @thebalancedblonde, a wellness creator who regularly partners with lifestyle and health brands. Her sponsored posts are woven into everyday routines, which helps the promotions feel natural rather than overly polished or sales-driven.

These creators show that successful sponsored content blends naturally into existing content rather than feeling like a traditional ad.

How much can you earn from sponsored posts?

Sponsored post earnings vary widely based on follower count, engagement rate, niche, and content format. Industry benchmarks often look like this:

Influencer tier	Follower range	Typical earnings per post
Nano-influencers	1K–10K followers	$10–$100
Micro-influencers	10K–100K followers	$100–$500 (sometimes up to $1,000)
Mid-tier influencers	100K–500K followers	$500–$5,000
Macro-influencers	500K–1M followers	$5,000–$10,000
Mega-influencers	1M+ followers	$10,000+ (top celebrities can earn significantly more)

Note that creators in high-value niches like finance, business, and technology often command higher rates due to stronger conversion potential.

What affects sponsored post rates?

Several factors influence how much brands are willing to pay:

• Engagement rate (likes, comments, saves)
• Audience demographics and niche relevance
• Content quality and storytelling ability
• Usage rights (for example, if the brand can reuse your content in ads)

Sponsored posts work best when you partner with brands that align with your audience’s interests. Authentic collaborations tend to perform better—and lead to repeat brand deals over time.

3. Sell your own products via Instagram Shop 

Instagram Shop lets creators and businesses sell products directly through their profile, posts, and Reels. It makes it easier for followers to discover and buy while browsing the Instagram app. This approach works especially well for brands and creators that already have a product aligned with their audience.

Types of products you can sell

Instagram Shop supports a wide range of products, including:

• Physical products: These are tangible items you would normally find in a physical or online store, such as clothing, beauty products, accessories, or home goods. Physical products work well on Instagram because they’re easy to showcase through photos, Reels, and lifestyle content.
• Digital products: These include items like e-books, templates, guides, online resources, or downloadable tools. Digital products are popular because they don’t require inventory or shipping, and once created, they can be sold repeatedly with minimal ongoing effort.
• Limited-edition drops or bundles: These are time-limited products or curated bundles offered for a short period. Limited releases create a sense of urgency and exclusivity, which can encourage faster purchasing decisions and higher engagement from followers.
• Custom or made-to-order products: These include personalized items such as custom prints, engraved accessories, or made-to-order apparel. This model helps reduce excess inventory while offering something unique to customers.
• Print-on-demand products: Items like t-shirts, hoodies, posters, mugs, or phone cases that are printed only after a purchase is made. Print-on-demand is popular with creators because it requires little upfront cost and simplifies fulfillment.
• Licensable content or assets: Items like stock photos, video clips, design assets, or templates that buyers can reuse in their own projects. These products appeal to business and creator audiences looking for ready-made resources.

How Instagram Shop works

To sell on Instagram Shop, you’ll need an Instagram business account and a product catalog that meets Instagram’s commerce requirements. It lets businesses display a product catalog on their Instagram profile and tag products in posts, Stories, and Reels. When someone taps a product, they can see details like price, photos, and descriptions.

Buyers can place an order directly through Instagram Shop, but how the order is completed depends on how the seller has set up their shop. From there, the buying process follows one of two paths.

Option 1: In-app checkout (direct order on Instagram)

Some sellers enable Instagram Checkout, which allows buyers to:

• Select a product
• Enter shipping and payment details
• Complete the purchase without leaving Instagram

This is the most seamless experience, but it’s not available to all businesses and depends on region, eligibility, and setup.

Option 2: Checkout on the seller’s website

Other sellers use Instagram Shop solely for discovery. In this case:

• The buyer taps a product tag
• Instagram shows product details
• The buyer is redirected to the seller’s external website to complete the purchase

This setup is very common and gives businesses more control over checkout, payments, and customer data.

Use a dedicated website to grow your shop

For many small sellers and creators, an Instagram Shop is enough to start accepting orders and validating product demand. However, as your business grows, a dedicated online store offers tools and flexibility that Instagram Shop doesn’t fully provide.

What Instagram Shop can do on its own:

• Product discovery through posts, Reels, and Stories
• In-app browsing and simple purchasing
• Turning everyday content into shoppable experiences
• Reaching customers where they already spend time

For early-stage sellers, this can be a simple and low-friction way to start selling.

What a dedicated online store adds (that Instagram Shop can’t):

• Full control over branding and layout, beyond Instagram’s fixed design
• Advanced checkout options, including flexible payments, shipping rules, taxes, and promotions
• Detailed product pages, with long-form descriptions, size guides, FAQs, and reviews
• Customer relationship tools, such as email capture, newsletters, and remarketing
• Better analytics and tracking, so you can understand customer behavior and optimize sales
• Search visibility, allowing customers to find your products outside of Instagram

To connect both, many businesses link their online store in their bio using a link-in-bio setup, making it easy for followers to move from Instagram discovery to a full shopping experience.

Real-life example of Instagram Shop in action

A real-world example is Gymshark (@gymshark), a global fitness apparel brand that uses Instagram Shop to tag products directly in posts and Reels. Followers can tap on leggings, tops, or accessories in Gymshark’s content, view product details, and purchase through its integrated shopping experience.

Another example is Glossier (@glossier), which regularly features beauty products in its Instagram content and uses product tags to guide customers from inspiration to purchase seamlessly.

4. Offer exclusive content with paid subscriptions 

Instagram Subscriptions allow creators to earn recurring income by offering followers exclusive content in exchange for a monthly fee. This model works best for creators with an engaged and loyal audience who want deeper access or premium value.

How to enable Instagram Subscriptions

If your account is eligible, you can enable subscriptions by:

1. Switching to a professional (creator or business) account
2. Opening your Professional Dashboard
3. Selecting Subscriptions and completing the setup
4. Setting a monthly price and defining subscriber benefits

Once activated, subscribers receive a badge next to their username and access to exclusive content.

Requirements for Instagram Subscriptions

To qualify, creators must:

• Have a professional Instagram account
• Follow Instagram’s Partner Monetization Policies
• Publish consistent, original content
• Be located in a region where subscriptions are available

Instagram doesn’t publish a fixed minimum number of followers for this feature, but eligibility generally favors creators with established engagement.

How much can you earn with Instagram Subscriptions?

Creators set their own subscription price for their followers, so how much you earn depends on what you set. But it’s also important to set up the right range depending on how engaged your audience is.

Monthly price	Typical use case	Best for
$0.99	Low-cost supporter tier with light exclusives (extra Stories, updates)	New creators testing subscriptions
$1.99	Casual subscriber access with occasional exclusive content	Small but engaged audiences
$2.99	Regular exclusive Stories or posts	Creators with consistent posting schedules
$4.99	Premium access to exclusive Reels, Lives, or deeper content	Most creators (most common tier)
$9.99	High-value content like tutorials, Q&As, or behind-the-scenes	Educators and niche experts
$19.99	Coaching-style access, private Lives, or community perks	Creators offering hands-on value
Up to $99.99	Specialized or professional-level content	Established creators with high-trust audiences

Even a small percentage of followers subscribing can create a steady monthly income, making this a more predictable revenue stream than one-off brand deals.

Real-life example of Instagram Subscriptions

A more low-key example is a niche fitness and wellness creator like @theplantbasedrd, who focuses on practical, educational content for a specific audience. Creators in this space commonly use Instagram’s subscription features to share subscriber-only Stories, deeper tips, and more personal updates that aren’t posted publicly.

Instead of using subscriptions for promotional content, creators like this focus on added value, such as more detailed advice, behind-the-scenes insights, or closer community interaction. It makes the subscription feel like a natural extension of their existing content.

5. Offer online courses or training programs 

Selling courses or training programs is a popular way to monetize Instagram if you have expertise that others want to learn. Instead of earning per post or per view, this model lets you package your knowledge into a structured offering and sell it at scale.

What types of courses work well on Instagram

Creators on Instagram commonly sell:

• Online courses (self-paced or cohort-based)
• Workshops or masterclasses
• Coaching or training programs

Some of the popular topics include social media marketing, fitness, photography, business, personal finance, and creative skills. However, finding a niche can help you stand out from the competition.

How Instagram helps sell courses

Instagram is often used as the top-of-funnel platform, where creators:

• Share educational Reels and posts
• Teach lessons or transformations
• Promote free resources that lead to a paid course

The actual course is typically hosted on a website or learning platform, with the purchase link placed in the creator’s bio or Stories. You can create your own website to host your video courses. You can even add a blog to position yourself as an industry expert. It also improves your visibility since the right keywords can help your searchability in Google.

Real-life example of selling courses on Instagram

A well-known example is Jenna Kutcher (@jennakutcher), who uses Instagram to promote her online courses and digital programs for entrepreneurs and content creators. She regularly shares educational content and directs followers to her course offerings through her bio link.

Another example is Neil Patel (@neilpatel), who shares marketing insights on Instagram and drives traffic to paid courses, tools, and training resources hosted off-platform.

These creators demonstrate how Instagram can be used to build authority and trust—then convert that attention into course sales.

6. Create and sell merch 

Merchandise is a popular monetization option for creators with a strong personal brand or loyal fan base. While merch is technically a product, many competitors separate it because it’s driven more by brand identity and community than by traditional e-commerce.

Creators often use Instagram to launch and promote merch by posting Reels, Stories, and feed posts that highlight new designs or limited drops

Because merch is closely tied to a creator’s identity, it tends to perform best when promotions feel personal and community-driven rather than overly polished or ad-like.

What counts as merch on Instagram

Merch typically includes:

• Branded apparel (t-shirts, hoodies, hats)
• Accessories (tote bags, phone cases, stickers)
• Limited-edition or fan-exclusive items

Creators often use print-on-demand services to handle production and shipping, which keeps upfront costs low.

Merch vs. selling regular products

There’s a lot of merch that can be used as regular products, but not all products can be called merch. Let’s break down the difference.

Merch	Regular products
Built around a creator’s personal brand or identity	Built around utility, function, or problem-solving
Often limited-edition or drop-based	Usually always available
Emotion- and community-driven purchases	Need- or value-driven purchases
Best for loyal audiences and fans	Best for broader customer segments

In short, merch relies heavily on brand affinity, while regular products rely more on product-market fit. Treating merch as its own strategy helps creators understand when it makes sense to launch it.

Tips on how creators sell merch on Instagram

First, you need to create your merch. But once you have them in production and ready to sell, your next challenge is finding ways to promote and sell them. Here are some tips on selling your merchandise:

• Promote drops through Reels and Stories
• Tag products using Instagram Shop
• Link to a dedicated merch store via the bio
• Share unique promo codes
• Pin merch posts for visibility
• Use countdown stickers and reminders

How much can creators earn from merch?

Merch earnings depend on pricing, margins, and audience size. Typical profit margins range from 20% to 50% per item, with income scaling based on demand. But you’ll need to decide the percentage by yourself.

Limited drops and seasonal releases often perform better than always-available items, especially when paired with storytelling or community milestones.

When merch makes sense (and when it doesn’t)

Merch is good, but it’s not always the smart thing to do if you don’t have some the prerequisites. Merch works best if you already have:

• A recognizable personal or brand identity
• An engaged audience that feels connected to you
• Content that naturally supports branding and storytelling

If you’re still growing an audience or don’t yet have strong brand recognition, affiliate marketing or services may be easier starting points.

Real-life examples of creators selling merch on Instagram

A well-known example is MrBeast (@mrbeast), who regularly promotes his branded merchandise on Instagram through Reels and posts. His merch is closely tied to his personal brand and content style, making it feel like a natural extension rather than a generic product.

One unique spin he added was making a dedicated Instagram page for his merch to separate his content and personal account from his business account.

This shows how merch works best when it reflects the creator’s personality and resonates with their community.

7. Host livestreams 

Instagram Live allows creators and businesses to engage with audiences in real time while monetizing through Live Badges and live shopping (also known as live selling). This format works especially well for product demos, tutorials, Q&As, and launches because viewers can interact, ask questions, and make purchasing decisions instantly.

Live Badges are virtual badges that viewers can buy during an Instagram Live to support a creator and stand out in the comments. When someone purchases a badge, their name is highlighted, making it easy for fans to show appreciation in real time.

How creators and businesses make money on Instagram Live

Instagram Live can generate revenue through:

• Live Badges, where viewers support creators by purchasing badges during a stream
• Live shopping, where products are showcased, demonstrated, and sold in real time
• Indirect promotion of products, services, or upcoming launches, such as courses, merch drops, or events promoted during the Live

How much can you earn from Live Badges?

Instagram Live Badges are priced at:

Badge price	What it means	How creators usually use it
$0.99	Entry-level support badge	Viewers use this as a simple way to show appreciation during a Live without a big commitment
$1.99	Mid-level support badge	Often purchased by regular viewers who want to stand out in comments and support the creator
$4.99	Top-tier support badge	Used by highly engaged fans to give stronger support and get more visibility during the stream

Viewers can purchase badges during a livestream to support the host. Creators earn money from each badge sold (after Instagram’s fees). Earnings vary based on audience size and engagement—regular livestreams with a loyal audience tend to perform best.

Eligibility for Live Badges

To use Live Badges, you generally need:

• A professional Instagram account (creator or business)
• Compliance with Instagram Partner Monetization Policies, including content and community guidelines
• Access to monetization tools in your region, as availability varies by country
• A payout account set up, with valid bank and tax information, so Instagram can send earnings
• Original, consistent content history, as accounts with repeated violations or low activity may not qualify

Instagram does not publish a fixed follower minimum, but eligibility typically favors accounts with consistent activity, audience engagement, and a positive account standing.

However, even if your account meets all the requirements, Live Badges may not appear right away. Instagram rolls out monetization features gradually, so some eligible accounts may need to wait before the option becomes available in their dashboard.

Instagram Live shopping

Instagram Live shopping—also known as live selling—allows creators and businesses to showcase products during a livestream and guide viewers toward a purchase in real time. During a live session, hosts can demonstrate products, explain features, answer questions from viewers, and direct people to shop while they’re watching.

Live shopping is designed to mirror an in-store experience. Viewers can see how a product looks or works, hear explanations directly from the seller, and get immediate answers to common questions, which can help reduce hesitation and speed up purchase decisions.

While live shopping is more established in parts of Asia, it’s also actively used in the U.S., especially by beauty, fashion, and e-commerce brands. In these industries, brands often use Instagram Live shopping for product launches, tutorials, seasonal promotions, or limited-time offers. For example, a beauty brand might host a Live to walk through a skincare routine, tag the featured products, and encourage viewers to shop before the stream ends.

Live shopping works best when it’s interactive rather than scripted. Q&As, demos, styling sessions, and behind-the-scenes looks tend to perform better than purely promotional streams, as they keep viewers engaged while naturally leading into product sales.

Real-life examples of Instagram Live monetization

A well-known example is Sephora (@sephora), which has hosted Instagram Live shopping events featuring product demos, expert advice, and limited-time promotions. Viewers can watch tutorials, ask questions in real time, and shop featured beauty products during or after the livestream.

8. Create user-generated content (UGC) 

User-generated content (UGC) is a monetization model in whice creators are paid to produce content for brands, rather than post it to their own Instagram feed. The brand owns or licenses the content and uses it across its marketing channels, including Instagram ads and Reels.

This makes UGC a strong option for creators with solid content-creation skills but without a large following.

UGC vs. sponsored posts

UGC and sponsored posts are often confused, but they work differently:

Aspect	User-generated content (UGC)	Sponsored posts
What you’re paid for	Creating content assets (photos, videos, Reels)	Posting content to your own Instagram account
Where the content appears	Published on the brand’s account or used in ads	Published on the creator’s Instagram feed, Stories, or Reels
Role of follower count	Not a primary factor	Often a key pricing factor
Main value to the brand	Authentic, reusable content	Access to the creator’s audience
Content ownership	Brand usually owns or licenses the content	Creator typically retains ownership
How payment is determined	Based on deliverables and usage rights	Based on audience size, engagement, and reach
Typical use cases	Ads, website content, brand social feeds	Brand awareness, product promotion
Best for creators who…	Have strong content creation skills	Have an engaged and established following

Where to find UGC opportunities

Creators can find UGC work through several channels, and many use a combination rather than relying on just one.

• Direct outreach to brands they already use: Many UGC creators start by reaching out to brands they genuinely use and like. This can be as simple as sending a short email or DM explaining how you could create content the brand can use in ads or on social media, along with examples of your work.
• Brand creator programs and marketplaces: Some brands and platforms run creator programs that actively seek people to produce content. These marketplaces help match brands with creators based on content style, niche, and experience, making it easier to find paid opportunities without having to pitch from scratch.
• Dedicated UGC platforms and job boards: There are also platforms and job boards specifically for UGC and short-form content roles. These listings often include clear briefs, deliverables, and budgets, which can be helpful for creators who want predictable, project-based work.

Many UGC creators also showcase examples of their work directly on their Instagram profile or link to a portfolio in their bio. Having a visible portfolio makes it easier for brands to quickly assess your style and reach out with opportunities.

Real-life examples of brands using UGC on Instagram

A good example is Starbucks (@starbucks), which has long incorporated customer-created photos, videos, and hashtag campaigns into its Instagram content. These posts often spotlight real customers and creators rather than polished brand shoots, making them feel relatable and performing well with audiences.

9. Offer services 

Instagram can be a powerful platform for selling services by showcasing your skills and attracting clients directly through your content. Instead of monetizing through posts or views, this approach turns your profile into a living portfolio that helps potential clients understand what you do and why they should hire you.

This method works well for freelancers, consultants, and service-based businesses.

What types of services sell well on Instagram

It’s not a bad idea to explore unique ventures, but if you want to play it safe or you’re just getting started, common services promoted on Instagram include:

• Social media marketing and strategy
• Content creation or video editing
• Photography and videography
• Graphic design, branding, or web design
• Consulting, coaching, or creative services

If your service is visual or results-driven, Instagram makes it easy to showcase your work.

How to use Instagram to promote your services

Creators and businesses often use Instagram to:

• Share Reels showing behind-the-scenes work or client results
• Post before-and-after examples or case studies
• Highlight testimonials or client wins
• Direct inquiries through DMs or a booking link in their bio

Photographers or photo studio businesses, for example, can upload Reels from shoots, carousel posts of edited photos, or Stories showing the creative process.

Real-life example of offering services on Instagram

A strong example is Peter McKinnon (@petermckinnon), who built a large following by sharing photography and videography content. His Instagram presence showcases his creative expertise, helping drive demand for his professional work, brand collaborations, and creative services.

10. Create Instagram Reels 

Instagram Reels are one of the most effective ways to grow reach and indirectly make money on the platform. Because Reels are heavily prioritized in Instagram’s algorithm, they often reach people who don’t already follow you—making them a key driver of discovery and long-term growth.

While Instagram automatically doesn’t pay a fixed rate per view in most regions, Reels can still generate income by opening the door to other monetization opportunities.

How creators earn money from Instagram Reels

Creators typically monetize Reels through:

• Sponsored Reel partnerships with brands
• Affiliate links promoted in captions or bio links
• Driving traffic to products, services, or courses
• Eligibility for Instagram’s video monetization programs (availability varies)

Because Reels are prioritized in Instagram’s algorithm, they often outperform static posts in reach and discovery.

Why Reels are powerful for monetization

Reels work especially well because they:

• Reach users beyond your followers
• Support storytelling and demonstrations
• Perform well for product, tutorial, and behind-the-scenes content

How much can you earn from Instagram Reels?

Unlike some platforms, Instagram doesn’t have a consistent payout like “$X per 1,000 views.” Views and comments on Reels don’t automatically earn money. Instagram has tested and rolled out monetization programs, but they are:

• Invite-only
• Region-dependent
• Frequently changed or paused

When available, creators have reported earnings ranging roughly from:

• A few dollars to a few hundred dollars per Reel, depending on performance
• Some bonus programs previously capped earnings (for example, max payouts per month)

Real-life example of Instagram Reels in action

A well-known example is Duolingo (@duolingo), which uses Reels to post humorous, trend-driven content that consistently reaches millions of users. While Duolingo doesn’t monetize Reels directly, the format drives massive brand visibility and traffic to its app—demonstrating how Reels can fuel business growth and revenue indirectly.

For a deeper dive on using Reels strategically, see Instagram Reels for Business: 2025 Growth Guide.

11. Run Instagram ads 

Just like Instagram reels, running Instagram ads doesn’t automatically generate income on its own, but it can significantly increase earnings by helping creators and businesses reach the right audience faster. Ads are commonly used to promote products, services, courses, or content that already convert organically.

Instagram ads are best as a complement to other revenue streams rather than as a standalone monetization process.

How Instagram ads help you make money

Instagram ads allow you to:

• Promote products or services to targeted audiences
• Drive traffic to your website, shop, or landing page
• Scale offers that are already performing well organically
• Support launches, sales, or lead-generation campaigns

Instead of waiting for organic reach, ads give you control over visibility and growth.

Types of Instagram ads

Instagram offers several ad formats, each designed to appear naturally within different parts of the app and reach users in different browsing modes.

• Feed ads: Feed ads appear between regular posts as people scroll through their main Instagram feed. Because they blend in with organic content, they work well for promoting products, services, or posts that already perform well organically.
• Story ads: Story ads are displayed between users’ Stories and typically use full-screen vertical images or videos. These ads are effective for time-sensitive promotions, launches, and calls to action, since Stories feel immediate and are often viewed with sound on.
• Reels ads: Reels ads are shown between organic Reels and follow the same short-form video format. They’re especially useful for reaching new audiences, as Reels are heavily prioritized for discovery and tend to have higher engagement than static ads.
• Explore ads: Explore ads appear in the Explore feed, where Instagram users go to discover new content and accounts. These ads help introduce your brand or offer to people who may not already follow you, making them useful for awareness and top-of-funnel campaigns.

Using Instagram Insights to improve ad performance

Instagram Insights helps you track how your ads and organic content perform. You can use Insights to:

• Identify which posts or Reels drive the most engagement
• Understand audience demographics and behavior
• Spot high-performing content worth promoting with ads

Promoting posts that already perform well organically often leads to better ad results and lower costs.

Real-life example of Instagram ads in action

A real-world example is Allbirds (@allbirds), a footwear brand that uses Instagram ads to promote product launches and seasonal campaigns. Their ads often feature clean visuals and short videos that blend seamlessly into users’ feeds, driving traffic to product pages and boosting conversions.

How much should you spend on Instagram ads?

Ad costs vary, but many small businesses start with:

• $5–$20 per day to test campaigns
• Increased budgets once conversions are proven

The goal isn’t views. Instead, the focus should be on return on investment (ROI). Ads work best when paired with a clear offer and a strong landing page. Instagram ads don’t replace organic content, but they amplify it. When used strategically and guided by Instagram Insights, ads can turn high-performing content into consistent revenue growth.

Factors that affect how much you earn on Instagram

There’s no fixed amount of money

Several factors play a bigger role than follower count alone:

• Engagement rate: Likes, comments, saves, and shares signal to both Instagram and brands that your content resonates with your audience. A smaller account with high engagement is often more valuable to brands than a larger account with low interaction, because engagement is closely tied to conversions.
• Niche: Some niches tend to attract higher-paying brand deals because the audience has stronger buying intent or higher lifetime value. Business, finance, tech, and fitness brands often pay more than general lifestyle niches, since their products and services typically have higher price points.
• Content quality: High-quality visuals, clear messaging, and strong storytelling help your content stand out in crowded feeds. When content feels thoughtful and well-produced—without being overly polished—it’s more likely to capture attention and drive action.
• Audience trust: Followers are more likely to buy or click when they trust your recommendations. Authentic content, honest opinions, and long-term consistency help build credibility, which leads to higher conversion rates over time.
• Consistency: Posting regularly helps keep your account visible and signals reliability to both followers and potential partners. Consistency also gives you more data to understand what works, making it easier to refine your content and monetization strategy.
• Monetization mix: Relying on just one income stream can be risky if algorithms or programs change. Combining affiliate marketing, product sales, services, and other monetization methods creates a more stable and predictable income.

With the right niche, engaged audience, and monetization strategy, even smaller accounts can generate meaningful and scalable income.

What do you need to earn money on Instagram? 

To earn money on Instagram, you need more than just followers. Successful monetization depends on having the right account setup, complying with Instagram’s policies, maintaining strong engagement, and following a clear content strategy that aligns with Instagram’s monetization tools.

While the exact requirements vary depending on how you plan to monetize—such as brand partnerships, subscriptions, Live Badges, or selling products—there are several baseline criteria every creator and business must meet before they can earn revenue on the platform.

• Professional account
• Minimum age requirement
• Monetization policy eligibility
• Consistent engagement

Professional account

To access monetization features, you must switch your personal profile to a professional account, either a creator account or a business account. This is required for unlocking tools like Instagram Insights, branded content tags, shopping features, and monetization eligibility checks.

A professional account also signals credibility to brands and partners. It allows Instagram to assess your account’s activity, engagement, and compliance, which are all factors in determining access to monetization tools.

Minimum age requirement

Instagram requires creators to be at least 18 years old to use monetization features. This applies to earning through subscriptions, Live Badges, branded content, and other monetized tools.

This age requirement is tied to legal and financial regulations, especially around payouts and tax reporting. Accounts that do not meet the minimum age requirement will not be eligible for monetization, regardless of follower count or engagement.

Monetization policy eligibility

Your account must consistently comply with Instagram’s policies, including:

• Partner Monetization Policies
• Content Monetization Policies
• Community Guidelines

Accounts with repeated violations, such as posting restricted content, misleading promotions, or engaging in inauthentic behavior, may lose access to monetization features or be denied approval altogether. Even previously approved accounts can have monetization privileges removed if they fall out of compliance.

Payout account setup

Being approved for monetization does not automatically mean you’ll get paid. To receive earnings, you must set up a payout account and provide valid banking and tax information.

Without completing this step, Instagram cannot issue payments, even if you’re earning through subscriptions, Live Badges, or other tools. Payout setup is required before earnings can be deposited into your account.

Consistent engagement

While some monetization tools have minimum follower requirements, engagement rate is often more important than audience size, especially for brand partnerships, affiliate marketing, and UGC opportunities.

Brands frequently prioritize creators with smaller but highly engaged audiences because engagement is a stronger indicator of trust and conversion potential. A niche creator with consistent interaction often earns more than a larger account with low activity.

How to build a clear content and growth strategy for Instagram

Before you monetize, you need a solid foundation. Successful Instagram earners don’t rely on random posting—they follow a clear strategy built around their audience, goals, and the type of value they want to provide.

• Create high-quality content: High-quality content doesn’t mean perfection, instead it comes from being intentional. Focus on posts, Reels, and Stories that educate, entertain, or solve a real problem for your audience, and aim to publish consistently so followers know what to expect.
• Engage with your audience: Replying to comments and direct messages helps build trust and makes your account feel more personal. Strong engagement also signals to Instagram and potential partners that your audience is active and invested in your content.
• Define your niche: Sticking to a specific topic or theme helps attract the right followers and keeps your content focused. A clear niche also makes it easier for brands, clients, or customers to understand your value and decide whether to work with you.
• Use analytics: Instagram Insights shows which posts, Reels, and Stories perform best, as well as who your audience is. Reviewing this data regularly helps you refine your content strategy, double down on what works, and avoid guessing.

Frequently asked questions 

Turn your Instagram Audience into real income

There’s no single answer to how much money you can make on Instagram. Earnings depend on how you choose to monetize, the size and engagement of your audience, and how consistently you show up with valuable content. Some creators make a few hundred dollars a month as a side income, while others turn Instagram into a full-time business.

But the most consistent earners don’t rely on just one income stream. Instead, they combine multiple monetization methods. Some methods actually work really well together.

If you’re ready to monetize Instagram for the long term, start by building a strong foundation: clear positioning, high-quality content, real engagement, and a reliable online presence. Pairing Instagram with your own website helps you turn attention into action and followers into lasting income. You can get started by registering your own domain name.