What is Instagram Monetization and How Does It Work in 2023

As an Instagram influencer, earning money is a possibility. In fact, earning good money is a reality. The best part is that there are multiple ways to monetize Instagram. The fact is that Facebook announced in 2021 that it plans to invest a billion dollars plus in various programs that will empower creators, influencers, filmmakers, photographers, and entertainers to earn more money on Instagram and Facebook. The investment in the creator community is with a purpose – to boost creativity and passion across apps.

Hence, as an established creator or a newbie, you should be aware of the various Instagram monetization features for creators. Adapting early to these programs and ways means faster and more money-earning opportunities. These are tried-and-tested Instagram monetization methods that have worked wonders for others and can be for you too. Read on to know more about How to monetize Instagram with our ultimate guide.  

How to Use Instagram Monetization Feature?

Before we begin, it is essential to get acquainted with the few regulations that Instagram has for creators to earn money through the platform. These are: 

  • You need to have a Business Account or an Instagram Creator account. 
  • You should be a minimum of 18 years of age. 
  • Your followers should be between 1,000 and 10,000. 
  • You should have a PayPal account for payments from Instagram. 
  • Your location should have access to the monetization features. 
  • Your content should comply with the Content and Community guidelines of the platform. 

Every Instagram monetization feature has its own set of prerequisites for creators. Please check the criteria to assess if you are qualified to use the feature or not before using any of the features. 

Here is a List of Instagram Monetization Features for Influencers

Instagram introduced three new suites of tools last year that can help creators and influencers earn money from the social media platform. These are – Creator shops, branded content marketplace, and affiliate commerce. 

Creator Shops

In 2021, during Creator Week, Mark Zuckerberg announced the Creator Shops. Through the Creator Shops, content creators and influencers can open a new shop of their own or add an already existing shop to their personal profile on Instagram. There are basically two ways to go about this method –  

  • One method involves opening a new shop using the Instagram app. You can then link your account to a merchandise partner of Instagram like Spring, Bravado or UMG, Represent, and Fanjoy.  
  • The second method is where creators already own an online store or product line. You can now link the shop to their business and personal Instagram accounts.  

This monetization feature on Instagram helps influencers earn money easily as their followers can directly buy from the creator using the Instagram app. You can sell any physical product ranging from garments to home décor items, accessories, online courses, merchandise, etc. 

Affiliate Commerce

This is a new program introduced by Instagram for creators and influencers. Creators can now associate with brands to earn commissions from the brands. This happens whenever a product or service sale happens on the Instagram app by a creator. The commission percentage is pre-decided between the brands and the creators.
   The process involves signing up as an affiliate and then using the URL link or code in your posts. Every time the link is clicked, or the code is used for a purchase, you get the commission. 

Every time a creator earns money due to affiliate commerce, there would be a label that informs the user about the same. Creators can go about discovering newer products on Instagram that users can buy on Checkout. Influencers can then share the information with their followers and whenever their followers buy through them, they can earn a commission on the app. 

Branded Content Marketplace

The third method involves collaborations between brands and influencers. Effectively it means that companies can use the Instagram platform to discover creators that fit with their audience profiles. It is similar to Creator Marketplace on TikTok. This is the first step for the platform to venture into the brand-creator collab space. You can as an influencer created sponsored content on Insta for the brand and earn. Instagram wants all influencers to mention when the content is sponsored. 


If your following on Instagram is credibly high, you can have your followers subscribe to your content that is exclusively created for subscribers. This feature has been introduced recently and is currently being tested in the US.
 The subscribed content is exclusive content meant only for your subscribers. You can charge a price for the subscription. It can be on a monthly or a yearly basis. The payment generated is credited to your PayPal account directly through Instagram. You get to keep 100% of your earnings in this method at the moment. Taxes, of course, need to be paid on the earnings.  

Featuring Branded Videos and Ads 

This is another smart way to monetize an Instagram account. It is more like a brand-creator collab where the brand pays you to show their ads or videos on your Insta profile. This is popularly termed ‘embedded marketing.’
   Instagram allows influencers to use four different video types for promoting branded ads and videos. These include: 

  • Stories where you can use a product and show your followers the same as unedited videos from your everyday life. These videos should be very short. 
  • Reels can be used for product placements which include reviews, tutorials, unboxing, etc. 
  • Instagram Live can feature live videos for real-time engagements, Q&As, etc. 
  • Long-form videos to make videos of longer duration covering tutorials, reviews, etc. 

In this case, your earnings primarily come from the brand. Now, you can have a second source of income by using the IGTV Ads feature of Instagram. Use IG Live’s Live Badges feature for additional income. During live streaming, Badges allow you to get tips from your followers. They can buy a badge and leave a tip for you.  


To conclude, Instagram is becoming more exciting with ways to earn money and monetize your account with all the integrated monetization features on Instagram. In the process, you can turn it into a profitable business for you. 

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