With so many people using Instagram, it is no surprise that interest in how to monetize this social network has piqued in the last several years. After all, if you can gain new followers, increase your views, and produce engaging content, why wouldn’t you be able to make money on Instagram? All that sounds easy, right? While at first glance it may seem straightforward, it actually requires a comprehensive, well-planned strategy to get the most out of it and succeed. With intense competition for views, followers, and attention, those looking to effectively make money on Instagram need to understand the best practices around how to grow their profiles and leverage their followings and content.  

In this article, we will discuss how you can you make money on Instagram, whether you are running a business or an aspiring content creator. We will first highlight what metrics you should pay attention to when looking into how to monetize an Instagram account. We will then go through some approaches and strategies you can consider implementing based on your own goals. 

Key Metrics to Consider When Researching How to Monetize Instagram

If you are really interested in learning how to monetize Instagram, you should first consider some of the key indicators you should pay attention to when building your presence. In other words, what are important metrics to keep in mind when thinking about how to make money on Instagram? Let’s go through some of the main KPIs that you should be tracking.

First and foremost, your follower count is an important metric when looking into how to monetize your Instagram account. Follower count is important not just to show how many people follow your account, but it demonstrates the reach of your account. At the end of the day, you want to show that you can actually reach a certain audience. For this reason, understanding your target audience and the demographics of your followers is essential so that you have a better idea of what products or services you can promote. The number of views your Reels or Stories have can also be a good indicator of how many people are actually seeing your content. So, whether you are just starting out with your Instagram account or are simply looking to grow it further, it is important to find ways to boost views, increase your followers, and improve your reach.

We should make it clear that simply having a high follower or view count does not automatically make you money on Instagram. For many brands or others looking to work with influencers or sponsor posts online, it is not simply the reach of a profile that is important, but also how well a profile resonates with an audience. After all, a high engagement rate is a sign that your followers are genuinely interested in what you share, which is attractive to brands and advertisers looking to collaborate with influencers. This is why engagement rates are important since they measure the various likes, comments, shares and saves content receives, which is a good reflection of the engagement levels your audience has with your content.  

There are, of course, a number of different approaches you can take to increase your engagement on Instagram. However, when looking to improve your overall performance, it is help to constantly monitor your progress and look for ways to optimize your content’s performance. One important piece of advice in this regard is to benchmark your performance against other similar profiles in order to find out what is working and what is not, as well as to set realistic goals for your own profile. This can also help you understand how effectively you can monetize your Instagram profile since, if several other similar profiles to yours have more followers, views, and a better overall engagement rate, you may want to research what they are doing right. Therefore, it may make sense to use specialized analytic and benchmarking tools to find optimization tips.

Keep in mind that different types of monetization opportunities may place an emphasis on different metrics. However, generally we can say that having a loyal community of followers that is attentive to your content is an important aspect of any monetization effort. With this in mind, we will go through different approaches related to how to monetize an Instagram account for both businesses and content creators. 

How to Monetize on Instagram: 5 Popular Approaches

There are actually a number of approaches you can consider depending on your goals and if you are a business or content creator. Below, we will highlight 5 different approaches to consider relating to how to monetize Instagram:

1. Collaborate with Brands for Sponsored Content
2. Monetize your Recommendations with Affiliate Links
3. Offer Exclusive Content with Premium Subscriptions
4. Launch your own Digital Showcase on Instagram
5. Request Donations from your Audience

1. Collaborate with Brands for Sponsored Content

Most brands and companies are constantly looking for new ways to reach their target audience. Instagram is a popular channel for many of these businesses not only because there are a lot of people who are active on this social media network, but there are also a multitude of ways that people can actually post content (i.e. Stories, Carousels, Reels). Sponsoring content on profiles that speak right to their target audience is an effective way for brands and businesses to reach those who are most likely to be interested in their products. If you are looking for ways for how to make money on Instagram, posting sponsored content for these brands is a great place to start.

If you are looking to make money on Instagram, keep in mind that opportunities for sponsoring content come about not just because of the number of followers that you have, but also who your followers are. Brands want to make sure that they are reaching their intended potential customers, so make sure you understand your target audience and know who they are, their interests, and why they might be interested in the products of a particular brand. Of course, your follower count be an important factor here in making it attractive for brands to work with you, but even if you have a relatively small follower count in a particular niche could allow you to monetize your profile. This is because there may be small, niche brands that are looking for a target audience that you have.

In addition to your followers, you should also pay attention to the engagement rates of your post. Creating sponsored content is not just about followers and reach, but also about getting them to take some sort of action for those who are sponsoring the content (i.e. purchases, website visits, etc.). Your engagement rates are important in this regard since they show that your audience is paying attention to, and interacting with, your content. This is a good indication that you not only have followers, but your sponsored posts are going to receive attention. Along these lines, if you are looking to monetize your account, you should always be aware of the best practices associated with increase your engagement rate on Instagram.  

2. Monetize your Recommendations with Affiliate Links

Promoting products through affiliate links is another way you can make money on Instagram. This approach involves collaborating with brands or services that provide you with a unique affiliate link that you include with your posts about a product or service, and every time someone makes a purchase through that link, you get a commission. To implement this strategy, you can join affiliate programs of specialized brands or platforms, or simply build your own network with companies that have products or services that are a close match for your content. 

This approach is an ideal option for content creators who have established a loyal audience and trust your recommendations. It’s not just about sharing random products, but selecting those that really align with your audience’s interests, add value, and are consistent with your style and content. It can also be helpful to give interesting and honest insights or reviews of a product. Having established trust with your audience is essential, as they are more likely to interact with the links and make purchases, which translates into revenue.

Similar to what we discussed above with sponsored content, the number of followers and daily views you have is not the entire story when trying to make money on Instagram with affiliate marketing. It also requires that your audience is the target group for whatever company you are partnering with, as well as showing that they actually listen to your recommendations and pat attention to your account. For this reason, building a strong community and showing it with a high engagement rate is important. If you are wondering how your engagement rate and other metrics stack up against other similar profiles, it may make sense to use a benchmarking tool that allows you to analyze dozens or more profiles so that you can accurate find out what it takes to be tops in your content niche.   

3. Offer Exclusive Content with Premium Subscriptions

If you are researching ways how you can make money on Instagram, one thing you can consider is developing a community of loyal followers and then offering those followers exclusive content that is only accessible through a paid subscription. This can be an appealing option for some since it represents a recurring income source, with a constant stream of subscriptions coming in every month. 

In order for this approach to be successful, every aspect of your subscription strategy should be well-thought-out. Importantly, you need to make sure your followers feel that they are part of a privileged group with access to content that is not available to everyone. This content should make them feel like they’re getting something valuable and exclusive, whether it’s tutorials, live broadcasts, courses, behind-the-scenes content, or other benefits. The essential component of this approach that needs to be done correctly is to clearly communicate what you offer and why it’s worth subscribing.

If you want to use this approach to make money on Instagram, it is important to identify what type of content your followers value most. You can test different formats and styles of content to see which generates the most interaction, or research what works for other creators in your niche who make money on Instagram. This way, you can better create a unique offer that captures your audience’s attention and motivates them to subscribe.

4. Launch your own Digital Showcase on Instagram

If you are looking for ways for how to monetize an Instagram account, another approach you can take is to use your profile as a marketing channel by promoting your products. The key is to display your products in a way that makes them not only visible but also irresistible. You can also place links to your website with the hope that you convert those who like your content into potential customers. 

If you are employing this approach, it is important to think of your Instagram account as an extension of your brand. From your biography to featured Stories, every detail should communicate who you are and what you offer. If you are researching  how to make money off of Instagram as a business, one of the first things you consider using is Instagram Shopping to tag your products directly in your posts, making it easy for users to make a purchase with just a couple of clicks.  

You can also consider utilizing special offers and countdowns for product launches within your posts. Posting discount codes, exclusive promotions, or temporary sales not only incentivizes your followers to buy, but also makes it easier for them to share the information, expanding the reach of your content and increasing your potential sales. Using the “Countdown” or “Reminder” features for upcoming launches builds anticipation among your followers. By receiving notifications about new product availability, you increase the likelihood that they will return to your profile to make purchases, helping you monetize your Instagram account more effectively.

5. Request Donations from your Audience 

Asking your audience to donate money to your channel might not be the first thing that you would think of when considering how can you make money on Instagram. However, this can be an effective approach for some. You can ask your followers to donate to support a cause important to your them and that you are raising money for. Alternatively, you can highlight that you are producing incredible content that your audience wants to see, and emphasize that you need to raise money in order to keep producing it.

Whatever the reason why you are trying to raise donations on Instagram, it is essential that you give them a clear reason. You can always offer exclusive content, answer questions in real time, or create a more personal experience during your broadcasts while you ask for donations. 

In order to collect donations, you can use services such as Patreon or, for certain creators on Instagram, you can encourage your audience to use Badges on Instagram Live. During your live streams, your followers can purchase these Badges to show their support and gratitude, helping you to continue creating content. Keep in mind that, according to Instagram, Badges can be used by all profiles based in the U.S. as long as you are 18 years of age and have at least 10,000 followers (note: Instagram encourages you to look into your Professional Dashboard to see whether or not you are eligible). In other, select countries, you need to receive an invitation to be able to use these Badges. 

Using Analytics to Help Monetize your Instagram Account

The main question you should ask yourself is not how do people make money on Instagram generally, but rather what approach best fits to your profile and your audience. From collaborations with brands to promoting products with affiliate links to building a collection of subscriptions from your followers, there are many ways to generate revenue. However, to maximize these efforts, it’s critical to base your decisions on concrete data and leverage the right tools. Most of all, you need to create a personalized and effective strategy that will make monetizing your Instagram account into a reality.

Fanpage Karma is an all-in-one social media tool that can provide you with helpful insights so you can improve your performance on Instagram as well as other social media networks. It allows you to identify the ideal times to post, hashtags that can increase your reach, as well as other content optimization tips. You can try a free 14-day trial and see for yourself and also find out more about our community management, research, and publishing features. 

You can also sign up for one of our free weekly webinars to find out more about how Fanpage Karma works.