How to Make Money on Instagram: 5 Proven Ways for 2023

If you are wondering about making money on Instagram, then you are at the right place. An individual can use Instagram to make money in a lot of ways. Businesses come to social media in search of customers and users go there for different reasons. While individuals discover their own way of earning through Instagram such as influencer marketing, sponsored ads, posting reels, affiliate marketing, etc.

In this article, you will get to know about five key ways to make money on Instagram. Before we skip to that, let’s be aware of some basic information about how Instagram works.

How much Instagram influencers earn?

It’s probably one of the first questions that come to our mind when we hear the term influencer. Along with social media, a new concept of influence emerged where an individual earns enough followers to follow him through everything. Users fancy them and that’s why brands collaborate with influencers to target a new audience who could engage with their products on the persuasion of their idol. 

You would be shocked to know that the top five Instagram influencers who have over 200 million followers each earn in Million dollars. Even many influencers earn their living through social media. As the amount celebrities get from Instagram is vast, normal people might feel a distinction. 

Influencers with millions of followers can make around $670 per post, according to reliable marketing websites. Someone with around 100000 Instagram followers can make $200 per post while someone with 10000 followers can make up to $88. So,.the trick is quite simple, the more followers and engaging audience you have, the more you make money. 

How many Instagram Followers do you need to Earn?

Just because we mentioned the income of celebrities with millions and lakhs of followers, it doesn’t mean that you need millions of followers to make money on Instagram. Practically speaking, you can even earn money with just 1000 followers. All you need is an engaged audience. The follower count is important but engagement rate is more significant than that. So if you have 1000 followers who like, comment and share, you can make dollars. 

5 Top Ways to Make money on Instagram

1. Sponsored Posts

Anyone can become an influencer by building a great online reputation by doing or sharing some extraordinary content that interests people. This is how influencers attract their audience and for them, they are trendsetters, tastemakers and someone whose opinions affect them and their mindset. Once you become an influencer, people start to follow your advices, recommendations and this is how you make money by persuading them to make purchases or convince them to consider a particular brand. 

It’s never easy for brands to compete with influencers, so they partner with them to achieve success. They partner on sponsored content, paid partnership content like posts, reels, carousels, etc and make a call for action. 

But as I mentioned above, social media popularity can never be measured by the count of followers only. It matters but what brands focus most on is your Engagement rate- how much your content engages your audience and how much they trust you. As an influencer, you have the freedom to choose which brand you want to work with. You can always be selective about the brands and once you build an online reputation, you can negotiate the charges as well. 

2. Open your own business

Sponsored Posts might be the most popular way to make money but not the only one. Starting your own business on Instagram can get you a different kind of fame and money. You can set up a business account on Instagram providing an introduction in your bio. Promote your business, collaborate with other brands or influencers and extend your reach. 

A business could be about anything from clothes to food. You can create a separate website for it and link it to your profile. Use a professional dashboard to make it look more professional. Tag your own brand and promote your business directly.

3. Sell assets

You may wonder what assets you have to sell on Instagram. Think about the clothes which are new but you don’t like to wear. The bunch of photographs you clicked and edited but never got out of your phone library. What about the sketches that you draw whenever you are surrounded by a peaceful environment? You can make money by selling all of these commodities on Instagram.

Remember to present it in an appealing way and include as much information as you can in the caption. Always keep one product link in your bio and use lots of relevant Hashtags to make your profile more discoverable. 

4. Sell badges through live videos

One of the most interesting and kind of latest methods to make money on Instagram is selling badges through live videos. You can share your live video through Instagram live feature and showcase your products, services, talents and so on. While you entertain viewers, they can buy badges which cost $0.99, $$1.99 and $4.99. 

Through Live videos, you can make people interact with you, promote your business, products, upcoming content, next live video sessions, etc. in order to boost your engagement. 

5. Monetize your videos

Another way of making money on Instagram is simply monetising your video content with ads. Advertisements are one of the most important things on social media, everyone makes money from. So can you. Allow brands to run their ads through your video. Don’t worry, you don’t need to reach out to them for this personally.

You can simply go to your creator account settings and enable the monetization option. Then, as you post more video, you will automatically get 55% of the revenue generated on your video based on views count in your account. But you won’t get paid if your video doesn’t fulfil the requirement. For instance, video should be 2 minutes long to run ads and make money.