Instagram is a powerful and innovative player in the world of online commerce, distinguishing itself from other social media platforms. Originally designed for sharing photos, it has evolved into a robust business tool that can benefit all types of users, including those engaged in drop shipping and e-commerce. Now the question is: can you make money on Instagram?
How do people make money on Instagram?
What sets apart selling on Instagram from other forms of e-commerce?
In this article, we will explore effective strategies that you can apply right away to generate income on Instagram. We will also highlight the most effective methods for monetizing your presence on this social media platform.
Can You Make Money on Instagram?
Yes, you can make money on Instagram. As long as the business can be expressed visually and creatively for marketing purposes, you can tap into Instagram’s millions of users.
You may be wondering how exactly you can start earning money on Instagram, even though it is a possibility.
Firstly, let’s begin by exploring several methods to make money on Instagram.
- You can focus on sponsored posts for brands that want to reach your audience, making you the perfect medium to do that.
- You could become an affiliate, and earn money by selling products that belong to other brands.
- You should also be selling your products, which could be physical or digital products, or even a service.
The enthusiasts of this social media platform are always looking out for new ways how to earn money from Instagram.
How to Make Money on Instagram?
Instagram is well-suited for marketing products that appear visually appealing. In other words, if your products are photogenic, most likely you can sell them on Instagram. Also, if you’re photogenic yourself or can take awesome photos, most likely you can have a huge following that can be capitalized to sell.
In general, there are at least 5 business models to make money on Instagram:
1. Become an influencer and make money from sponsored posts.
You have the power as an influencer to suggest to brands that you can assist in promoting them through your social media posts. An influencer is an individual who has established a strong online presence by sharing content and engaging with their followers. They have garnered a substantial following and can persuade their audience about current trends due to the trust they have earned.
Brands tend to partner with influencers to do sponsored posts that help spread the word about their products. Influencers have to manage many things at once such as the size and reach of their Instagram accounts as well as the trust and engagement that they build based on their content.
The most influential individuals earn thousands of dollars for each sponsored post they make. Just think about doing one sponsored post every day – it would be effortless to make tens of thousands of dollars every month.
A typical post by an influencer involves creating content on platforms like Instagram, either as a regular post or a story, which aims to promote a particular brand or its products. Influencers must know their audience and understand their demographics to determine which brands would be most suitable for their followers. By switching to an Instagram business account, influencers can gain access to detailed insights about their audience through the Instagram Analytics report.
As an additional suggestion, ensure that you do not betray the trust of your current audience while earning money through sponsored posts. Hence, it is recommended to use an Instagram hashtag, such as #sponsored, to indicate that the post is sponsored.
2. Become an affiliate and make money selling other people’s products.
One way to make money is by selling products from others and earning a percentage of the sales. Numerous companies utilize affiliate programs to sell their merchandise, and there are plenty of individuals who profit from this approach on Instagram.
The difference between an influencer and an affiliate is that an affiliate is working towards making sales for the partnering brand in exchange for a commission. On the other hand, the influencer is mainly aiming to create awareness.
Affiliates make money on Instagram by using a traceable link or promotional code to ensure that any clicks result in successful purchases.
Create engaging posts, so you can promote the products without being pushy. The thing is, since you can only have one link on your Instagram bio, you might want to include a landing page to your affiliate link. In each post, include a caption that the product can be purchased via the link on the Instagram bio.
Initially, affiliate marketing may appear to be a difficult game. However, it offers numerous possibilities for growth if you have a strategic plan. By incorporating a website and/or utilizing various marketing or social media platforms, you have the opportunity to expand your reach.
We have collected a compilation of captivating Instagram post concepts from thriving brands that can serve as inspiration for you.
3. Sell poster photos and other virtual products.
Instagram is all about visual content. Photogenic products would sell well on Instagram. You can sell poster photos, paintings, drawings, animations, videos, and other image or video-based virtual products. On each post, refer readers to visit the link in your bio. This is another popular way that people make money on Instagram.
If you think you take high-quality pictures, there’s a chance that you can get paid for it. But don’t limit yourself to just your photography skills, explore other possibilities that enhance your pictures such as editing and composition. Use the best photo editing apps for phones to get the most out of the photos that you take. Try to be original when you’re taking pictures.
You can use Instagram to promote your photography portfolio using relevant Instagram hashtags.
4. Sell your own physical products.
You can sell any physical product that you produce yourself or purchase from suppliers. This conventional e-commerce retailing usually requires stocking some inventory, meaning you’d need to spend some startup capital to stock some products.
And it requires a place where you can keep the products, such as a spare room at home or a rented storage place. As an example, if you buy merchandise from a supplier located in China, you will require a location to store the items until they are requested and shipped to customers.
Starting in February 2018, it became possible to sell products directly on Instagram using Instagram Posts and Stories. This is done by adding tags to your images that direct your followers to product pages where they can make quick purchases. A comprehensive guide to Instagram Shopping and selling on Instagram is provided here.
Alternatively, if you are seeking advice on effectively selling products on Instagram, consider these actionable Instagram tips that are proven to yield positive results.
5. Sell dropshipped products.
The concept of dropshipping allows you to operate your store without the need to possess any inventory. After making a sale, your supplier will handle the task of shipping products directly from their warehouse to your customer’s address. You won’t have to concern yourself with storing, packaging, or shipping the items.
This functions similarly to the previous suggestion of selling items on Instagram to make money but without the need for storing inventory. You can effortlessly establish a dropshipping store using the free 14-day trial of Shopify’s e-commerce platform, along with Oberlo’s always-free dropshipping app. Through dropshipping, you have the opportunity to test out different niche products to determine which ones sell well, without the risk of wasting initial funds.
Should I Make Money on Instagram?
For those wondering why they should make money on Instagram, we’ve compiled the top Instagram stats for you. The numbers behind Instagram are staggering, and the platform is catching up with Facebook’s growth. While Facebook has 2.07 billion monthly active users, Instagram’s growth has reached 1 billion users over 8 years in 2018 since its launch in 2010.
Given the continuous rise in popularity of Instagram, it is not astonishing that Instagram users have become an indomitable influence. They have discovered methods to monetize their Instagram presence and capitalize on the photos they capture.
For business purposes, the following figures are worthy of consideration for people who want to make money with Instagram:
1) 1 billion users are active every month. That’s almost three times the US population.
2) 500 million users are active every day. That’s almost double the US population.
3) In the year 2017, Instagram was being used by 70.7 percent of businesses in the United States. This means that out of the total 30 million businesses, approximately 21 million of them were utilizing Instagram, regardless of their size.
4) 80 percent of Instagram users follow at least one business account. In other words, there are 640 million people who follow at least one business account.
5) There are 2 million Instagram advertisers every month.
6) Time spent on Instagram increases by 80 percent every year.
7) In 2016, 48 percent of US brands used Instagram to promote their businesses.
8) 300 million Instagram accounts use Instagram Stories every day.
9) Instagram users by age:
- 18 to 29 years old: 59 percent
- 30 to 49 years old: 33 percent
- 50 to 64 years old: 18 percent
- 64+ years old: 8 percent
10) Instagram users by gender:
- Female: 38 percent
- Male: 26 percent
- Other: 36 percent
11) Instagram posts with location tags get 79 percent more engagement.
12) Photos with faces get 38 percent more likes.
13) User-generated content has a 4.5 percent higher conversion rate.
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