How to Earn Money from Instagram Reels?

Instagram Reels has revolutionized the way creators share content and is also a powerful tool for earning money. You can reach a global audience with short, engaging videos and monetize your creativity. Whether you’re a budding influencer or an established creator, this article provides a step-by-step guide on how to turn your Instagram Reels into a source of income.

Build and Grow Your Audience

Your earnings on Instagram largely depend on the size and engagement of your audience. Here’s how to grow your followers:

• Create Engaging Content: Focus on high-quality, visually appealing videos that resonate with your audience.
• Choose a Niche: Stick to a niche, such as fashion, fitness, comedy, tech, education, entertainment, etc. A focused niche attracts a loyal and targeted audience.
• Use Trends: Increase visibility by incorporating trending sounds, hashtags, and challenges.
• Post Consistently: Aim to post Reels regularly. Consistency helps you stay relevant and appear in more feeds.
• Engage with Followers: Respond to comments, and DMs, and actively interact with your audience to build a strong community.

Instagram’s Reels Play Bonus Program (Beta)

Instagram’s Reels Play Bonus Program was stopped around a year ago. However, the company is now testing its various models to get a long-term monetizable program. What’s great, even in its Beta phase, Instagram is paying! However, only Invitees (Instagram invites personally) can join. This program pays eligible creators based on the performance (likes, plays (no replays), shares, comments, etc.) of their Reels.

• Eligibility Requirements:
  • Must comply with Instagram’s guidelines and policies.
  • The program is currently available in South Korea, the US, and Japan.
• How It Works:
  • Instagram invites creators to participate based on account performance.
  • Payments are made based on views/plays within a set timeframe.
• Tips to Qualify:
  • Regularly post original and engaging content.
  • Avoid reposting from other platforms, as Instagram prioritizes originality.

Utilize Affiliate Marketing

Affiliate marketing allows you to earn commissions by promoting products/services and driving sales through your unique affiliate links.

• Steps to Start:
  • Sign up for affiliate programs via affiliate marketing networks like Cuelinks (easy to access), ShareASale, Rakuten Advertising, etc.
  • Share products that align with your niche and audience’s interests.
  • Include affiliate links in your bio or stories and use call-to-action in your Reels.
• Earnings Potential:
  • Earnings vary based on the product and program but can add up with consistent effort.

Partner with Brands for Sponsored Content

Brands collaborate with creators to reach their target audience and vice versa for monetization. You can earn by promoting their products or services in your Reels. Instagram has its own Creator Marketplace where brands and influencers connect for projects finalize rates, and process payouts. However, it is currently available in the US only so others have to go on their own.

• How to Get Started:
  • Build a professional media kit showcasing your analytics, audience demographics, and previous collaborations.
  • Reach out to brands directly or join influencer marketing platforms like AspireIQ, Upfluence, or Influencer.co.
• What to Charge:
  • Fees depend on your follower count, engagement rate, and niche. Influencers can charge anywhere from $50 to $10,000+ per Reel. You can get an idea of rates from influencer marketing platforms/agencies just like those mentioned above. Additionally, you can take a look at “How Much Do Instagram Influencers Earn?”

Sell Your Own Products or Services

Instagram Reels is a great platform to showcase your entrepreneurial side.

• What You Can Sell:
  • Physical Products: Merchandise like t-shirts, mugs, or handcrafted items.
  • Digital Products: E-books, online courses, templates, or presets.
  • Services: Offer coaching, consultations, or photography services.
• How to Promote:
  • Use Reels to demonstrate the value of your products.
  • Include a call-to-action and link to your shop or landing page.

Enable Instagram Subscriptions

Instagram allows creators with a minimum of 10k subscribers to offer exclusive content through a subscription model which gives you recurring monthly earnings! Subscribers also get recognition among other users with a purple crown badge. Instagram has a separate subscriber feed besides the regular posts and reels feed. It also runs subscriber promotion offers like 50% discount to the ext 5 subscribers and 1 month free subscription to those who try to cancel their subscription. 

• What to Offer:
  • Exclusive behind-the-scenes content.
  • Tutorials or advanced tips related to your niche.
  • Personalized interactions, such as shoutouts or Q&A sessions.
• How It Works:
  • Set a subscription fee.
  • Create Reels tailored (exclusive) for your subscribers.

The Instagram Subscriptions feature is live in the US, India, Australia, Brazil, Canada, France, Germany, UK, Italy, Japan, Mexico, Spain, and many more countries.

Gifts on Reels

Instagram Gifts enables your followers to send you real money in the form of virtual gifts (stars). You can check the total money received on reels as well as which reel got how much money. 

Make a note that to enable ‘Gifts’ you need to have a minimum of 500 followers. Also, 1 star = $0.01 i.e. 100 stars = $1. Followers need to buy stars first from real money to send you gifts.

Live Reel Badges

Badges are similar to Gifts, but these are available only during live reels. Here, followers/viewers can buy badges in multiples of $0.99, $1.99, and $4.99 during your live event and support you financially.   

Instagram Badges are live in the US. Besides, it is available on an invitation basis in the UK, France, Spain, Italy, Germany, Japan, Australia, Turkey, Brazil, and Mexico. Make a note that you need to have 10k+ followers to participate.

Host Sponsored Contests or Giveaways

Partner with brands to host contests or giveaways and promote them through your Reels.

• Why This Works:
  • Brands benefit from increased visibility and engagement.
  • You earn a fee for organizing and promoting the event.
• Tips for Success:
  • Ensure the prizes are relevant to your audience.
  • Clearly communicate the rules and deadlines.

Crowdfunding Through Support Platforms

Crowdfunding allows fans to support your content financially.

• Popular Platforms:
  • Patreon
  • Buy Me a Coffee
  • Ko-fi
• How to Use Insta Reels:
  • Create Reels explaining the perks of supporting you, such as exclusive content or shoutouts.

Drive Traffic to External Revenue Streams 

Use Instagram Reels to promote other income-generating platforms.

• Examples:
  • Direct followers to your YouTube channel for monetized content.
  • Promote your blog or website where you earn through ads or sponsored posts.
  • Encourage followers to check out your shop or online course.

Optimize for Success

To maximize your income potential, follow these best practices:

• Understand Instagram Insights: Analyze metrics like reach, engagement, and follower growth to refine your strategy.
• Stay Updated: Keep track of Instagram’s new features and monetization programs.
• Collaborate with Other Creators: Partnering with other influencers can expand your reach.
• Experiment: Test different formats, trends, and niches to see what works best.

Earning money through Instagram Reels requires effort, creativity, and a strategic approach. By growing your audience, leveraging monetization opportunities, and staying consistent, you can turn your passion for creating content into a sustainable income source. Start implementing these strategies today, and watch your Instagram Reels transform into a profitable venture. For other formats, feel free to check out our article, “Earn Money on Instagram: An Influencer’s Guide to Affiliate Income.”