Instagram strives to be the number one platform for creators to monetise their content. The company aims to make their app a primary choice for creating and sharing content easily and in a very simplified manner.
After being called out for its discriminative algorithms by influencers and other content creators, which according to them interferes with how their posts are seen by the audience, Instagram is now being more pro-active than ever.
More Ways To Earn Money On Instagram
Up to the present moment, there were four main ways to earn on the platform. The most notorious one was and is to this day – brand sponsorship.
Still, not every creator is making triple figures from sponsored content. And this is why a diversified stream of income has become very popular recently, with money being earned from:
- Selling personal merchandise or services
- Content monetization through tips and ads
- Brand sponsorships
- Selling products through affiliate marketing programs
But if we were to generalize, then brand sponsorships and affiliate marketing are the preferred ways to generate revenue on the platform. This is partially because it’s relatively easy to execute and does not require any specific skills.
Instagram users can still make a living in those ways but they have to assume all the work: contact brands they want to partner with, do the e-commerce store set-up, join affiliate programs.
The intent behind Instagram’s initiatives is to streamline the above-mentioned processes by making it easy for creators to get the same results within the app. And since Instagram does not make any money when creators establish partnerships with brands on their own or sell their merchandise through their own stores, the new updates are meant to serve both, Instagram’s interests and its creators.
By keeping these transactions within the Instagram platform, the company is set to have greater financial benefits and it will also incentivize its creators to post more on the app. So it’s a double win for Instagram!
What Are The New Monetization Features For Instagram Creators?
Instagram’s last announcement has revealed their vision of a perfect marketplace that would help brands sponsor creators whose audience matches the segment they intend to reach.
This will help both parties by simplifying the process of establishing brand partnerships and makes it easier for creators to get brands’ attention, even if they were not on their radar previously.
Instagram Native Affiliate Tool
According to Adam Mosseri, the head of Instagram, the company is now in the testing phase for its native affiliate tool that gives creators the opportunity to share with their audience new products they discover on checkout.
This will allow creators to find more products to recommend, that align with their styles and values. For the purchases they drive, they will earn commissions. And it will all take place on the Instagram platform, which might offer more favourable terms for creators than the affiliate programs available on the market.
Affiliate posts promoting a product will have “eligible for commission” at the top of the post, which essentially means that the creator will be rewarded for every purchase made.
New Creator Shop Options
With its new update, Instagram is making it easier to add an existing shop or open a new one for regular accounts.
Merchandise can be sold directly on the profile by linking the account with one of the four merchandise partners available.
Still, this feature will only be available to US creators by the end of this year, and nothing was mentioned about the rest of the world so far.
Creators that have their own online store can now link their shop to their personal profile which will allow them to display and sell their merchandise directly to their followers. This feature is already available globally to all online shop owners.
More Ways To Earn On Instagram From Fans
More creators are using the Instagram Live tool to engage directly with their fans. This is now another way for creators to earn more money directly from their supporters through the platform for hitting certain milestones. The so-called milestones are in their essence goals that the creators strive to meet through their broadcasts.
This is an incentive to be more active and go live more often, and depending on their performance they become eligible for more money. Fans can support creators for their activity by purchasing badges during a live video. More recently, creators on Instagram are being rewarded when they hit certain milestones while using badges in Live, including live streaks and teaming up with other accounts.
Over the past few years, the way people see and use Instagram has changed considerably. The company has been implementing new tools with constant updates, has introduced several initiatives to help aspiring influencers such as its Creators Account and Creator Week.
With the support and guidance available for its creators today, Instagram aims to help them build their careers in social media and help earn money on the platform. It’s clear now that Instagram is moving into the e-commerce space, revolutionizing the shopping experience of its users once and for all.