How Does Instagram Make Money?

How Does Instagram Make Money

In today’s article, I will answer the question, How Does Instagram Make Money.

To make money on Instagram, you don’t need hundreds of thousands of followers; according to buffer, influencers with 10,000 or fewer followers produce the best business results. So, if you’ve ever wondered if you could do it, you most likely can whether you wish to represent your own company or one of your partner’s companies.

Over 100 small businesses have hired me to help them grow and monetize their Instagram accounts. So keep reading to discover How Does Instagram Make Money as four of the most frequently asked questions will be addressed in this article.

Frequently Asked Questions On How Does Instagram Make Money

How Does Instagram Make Money

  • How many followers do you need to make money on Instagram?
  • How much money do influencers make?
  • What are the most effective ways to start making money on Instagram?
  • How do you decide what to charge as an influencer?

1. How Many Followers Do You Need

It’s not quite as many as you may assume.

Here are some rough estimates on how many followers do you need to make money on Instagram. According to recent research, micro-influencers, or accounts with 10,000 or fewer followers, pay roughly $88 for each post.

Influencers with a following of 10,000 to 100,000 people will charge about $200 for each post.

Influencers with 100,000 to a million followers, known as top-level influencers, can charge as much as $670 for each post, but they can demand much more.

When you get to this level, the numbers start to change. The reason these figures are not fixed in stone is that there are a few variables to consider.

The niche you choose will determine how much competition you will face and how much money you may make. Niches like beauty, fitness, health, business, and travel are lucrative and very competitive.

You can always rule a very, very niche sector of Instagram if you’re not trying to compete. Nicole McLaughlin, for example, remixes apparel and turns it into art, and she has six hundred and thirty-one(631k) followers on Instagram.

How much you charge will be determined by how engaged your audience is.

Read Also: How To Make Money On Youtube Without Monetization

This is the case because brands want to show a return on their investment. If you have 100,000 fake followers, you won’t be able to provide any real value to brands.

Keep in mind that brands are interested in more than your Instagram account’s size and reach. It’s also about your audience’s trust in you and their willingness to participate in your content.

This is because you give potential buyers access to a niche demographic. And because this is something that brands require and are prepared to pay for, let’s see how much money you can make.

2. How Much Money Do Influencers Make?

A social media influencer is someone who has sizable and often devoted social media followers. They can make money by associating themselves with brand promotion efforts and using their huge reach to influence followers.

Influencers on Instagram are the most well-known, but they may also be found on other social media platforms.

If you have a million Instagram followers and publish a photo of yourself wearing a Versace dress, your followers may be influenced to buy the same brand. What’s more, guess what? Brands are very aware of this, and many are eager to pay you to share photographs with your followers!

If you have a significant profile on Instagram, the possibilities are unlimited.

There is a variety of what you can realistically make in each business or employment. There are no hard and fast rules in my experience, but you are probably seeking one.

So, at the very least, I can say that these advertisers are willing to pay a cent for each follower.

So, if you have 5000 followers, you could be able to charge $50 for every post.

The answer is a lot if you’re wondering how much money top Instagrammers make. They can make tens of thousands of dollars from their creations. However, as you build your account, let us encourage you and give you something to strive for.

It’s no secret that the bigger your followers, the higher your rates are, but how much do top influencers charge?
According to a report, influencers can charge advertisers  $2,700 for every post if they have 100,000 followers.

When an influencer with four to twenty million followers uploads a sponsored post, they can earn anywhere from $6,000 to $17,500.

You can make up to $350 per post if you have grown your audience to 30K and have a high interaction rate of about 7%.

3. What Are The Most Effective Ways To Start Making Money On Instagram?

  • Through Sponsored Post
  • Through Affiliate Program
  • Open An Online Store

Let’s start with the most common approach.

  • Through Sponsored Post

You may charge advertisers a fee for sponsored content on your feed or in your stories.

You will agree to exclusivity, the amount of content you generate, the terminology you will use, the content itself, and the amount of money involved.
A particular call to action, such as a link in your bio that connects to the brand’s website, may be included in the contract.

  • Through Affiliate Program

Affiliates, unlike influencers, are more concerned with producing cash for their business partners than with creating brand awareness. You usually utilize a promo code or a trackable link to show that the sales are coming from you to be linked with brands searching for affiliates.

Clickbank, digistore24, and Amazon Associates are some of the affiliate marketplaces to explore. To make affiliate marketing work, the ideal form of a post is product reviews.

Only write reviews for products you believe in, and your target audience would be interested in hearing about.

So, for instance, Peter McKinnon would never review kitchenware, but he would review cameras though it sounds like a numbers game. Affiliate Marketing is an art.

It takes tact to balance sponsored content and organic content without looking like a walking advertisement.

Keep in mind that your most valuable asset is your audience. Furthermore, if you share too much promotional information, you risk losing their confidence.

You lose the backbone of your business if you lose your audience.

  • Through Online Store

Working for other brands is not the only way to make money on Instagram. You have total control over your earnings.

You can sell tangible things, services, and digital products by starting your own internet business.

Take a look at Loki, the wolf-dog, as an example. He’s one of the most well-known dog entrepreneurs on Instagram, with an online store. He sells mugs, greeting cards, and clothing, and there are other methods to establish your own Internet business.

You may print on mugs, t-shirts, and totes using a print-on-demand service.

You can also sell services like consulting, music creation, yoga classes, and photography, to mention a few. Alternatively, you can sell digital products, which are personally some of my favorites because these are infinitely scalable and allow you to make money while sleeping.

You can sell password-protected courses and fitness plans in your bio. You should include a link to whatever you are offering. I recommend using a link tree to link to numerous URLs at the same time. If you allow Instagram shopping, customers can explore your products directly in the app.


Don’t put a financial ceiling on yourself; free people have several hidden sources of income. You can and should use all of these strategies to diversify your revenue streams as long as you don’t have any direct conflicts of interest.

Begin by researching for brands that share your and your audience’s beliefs and values. You can try to work out a deal with them directly or advertise yourself on influencer markets to get discovered and start creating contacts.

You can make an influencer card with a list of all your social profiles for brands to look at when looking for collaboration opportunities. Alternatively, you can acquire a list of brands and their requirements to take the initiative and begin contacting them.

4. How Do You Decide What To Charge As An Influencer?

These influencer deals usually include developing content—an Instagram post, video, or story: and permission for the company to use that content on their website or in an ad.

The majority of these deals are negotiated. They might involve anything from a single post to an entire campaign in exchange for money, a free product, a service, a gift, the promise of visibility, or a combination of these.

When bargaining, keep in mind that you’re not just giving away content; you’re also giving away access to your audience, a potentially enormous reach on one of the most popular social platforms, and usage rights.

According to a poll of 5,000 influencers, over 42% charge $200 to $400 for each post, providing you with an idea of what some companies are willing to pay and how to negotiate based on your cards.

Finally, knowing your audience is critical as an influencer.

What is the demographic of your audience, and what is your engagement rate (total engagement divided by total followers)? If you’ve moved to a business account, you can find figures to back this up in your Instagram Analytics report. This will help you in being ready to negotiate when the time comes.

I believe you have discovered how does Instagram makes money, how much money influencers make, and other ways to make money on Instagram in this article.

If you love this article on How Does Instagram Make Money, please drop your comment and let us know the one you have chosen to start with even without 100k followers.

Thanks for reading.

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