How Instagram Monetizes

Uncover behind the scenes: learn how Instagram pays content creators, exploring strategies and insights to maximize earnings on the platform.

Raquel Medeiros


Raquel Medeiros


January 4, 2024

Logo used as Instagram app icon

Instagram, as part of the Facebook ecosystem, offers different forms of monetization for different types of users. Here are some of the ways Instagram enables monetization:

Instagram Ads:

Feed Ads: Companies can create paid ads that appear in users' news feeds.

Stories Ads: Businesses can create short visual ads to appear in Instagram Stories.

Ads on Explore: Businesses can promote products and services through ads on Explore, helping to increase visibility.


Companies can create a store directly on Instagram, allowing users to purchase products without leaving the platform.

Partnerships and Collaborations:

Influencers and content creators can monetize their presence on Instagram through partnerships and collaborations with brands. Brands can pay for sponsored posts, product promotions, or participation in specific campaigns.

Monetized IGTV:

Instagram allows some content creators to participate in the IGTV Partner Program, where they can earn money from ads displayed on their videos.

Instagram Live Badges:

During live streams, followers can purchase "badges" to financially support creators. This is a form of real-time donation.

Affiliate Marketing:

Content creators can participate in affiliate programs and earn commissions from sales generated through the affiliate links they share in their posts.

Paid Events:

Instagram Live allows creators to charge for access to live events.

Remember that policies and resources may evolve over time, and the availability of some of these options may depend on specific criteria, such as number of followers, engagement and compliance with platform guidelines. It's important to regularly check Instagram's policies and updates to stay informed about available monetization opportunities.

Does Instagram pay per follower?

Instagram itself does not pay directly per follower. The platform does not have a direct compensation program for users based on the number of followers they have. However, some people may use follower count as an indicator of influence, which can lead to opportunities to earn money in other ways , such as:

Partnerships and Publiposts: Brands often look to collaborate with users who have a large follower base to promote their products or services. In this case, you can get paid for promoting sponsored content.

Affiliate Programs: By participating in affiliate programs, you can earn commissions for each sale generated through the affiliate links you share. Again, having a large number of followers can increase your chances of generating sales.

Instagram Live Badges: During live streams, your followers can purchase "badges" as a way of supporting you financially. This is not directly based on the number of followers, but on how much your followers are willing to contribute during a live stream.

IGTV Partner Program: If you create content for IGTV, you may qualify for the IGTV Partner Program, which allows creators to earn money from ads displayed on their videos.

How does Instagram make money?

Instagram generates revenue primarily through advertising strategies and indirectly through e-commerce related features. Here are some of Instagram's top revenue sources:

Ads in Feed and Stories: Companies can create visual ads that appear in users' news feeds or Instagram Stories. These ads are targeted based on users' interests and behaviors.

Ads on Explore: Instagram runs sponsored ads on Explore, allowing brands to reach a wider audience.

Instagram Shopping: Companies can create a store on Instagram, allowing users to purchase products directly on the platform. Instagram may receive a percentage of sales made through these stores.

Instagram Live Badges: During live broadcasts, followers can purchase "badges" to financially support content creators. Instagram receives a portion of this revenue.

Monetized IGTV: Instagram allows some content creators to participate in the IGTV Partner Program, where they can earn money from ads displayed on their videos.

Analytics Tools for Businesses: Instagram offers analytics tools for business accounts, allowing businesses to track the performance of their activities on the platform. While these tools may be free, Instagram also offers premium features that can generate revenue.

Partnerships with Influencers: Although not a direct source of revenue for Instagram, the platform facilitates partnerships between brands and influencers. These partnerships can lead to more spending on advertising and promotion on the platform.

These strategies contribute to Instagram's total revenue and help support the platform's continued development. It's important to note that monetization practices and strategies may evolve over time as the platform responds to changes in the market and user preferences.


Successful monetization and engagement on Instagram offers a variety of significant benefits for businesses of all sizes. The platform has not only become an essential tool for building and strengthening brands, but also a lucrative source of revenue. O Global reach , diversity of content formats and advertising options provide businesses with a unique opportunity to connect directly with their target audience.

For small businesses, Instagram offers an affordable platform to build an online presence, boost brand awareness and increase sales. Influencer partnerships and targeted advertising strategies can be particularly effective, allowing these companies to reach a wider audience.

For large corporations, Instagram provides an arena for creative innovation, allowing them to craft engaging narratives and connect emotionally with consumers. Advanced data analytics options also enable a deeper understanding of audience behavior, facilitating strategic adjustments and ongoing optimization.

Ultimately, Instagram is not just a photo-sharing platform, but a dynamic and profitable business tool. Regardless of the size of the corporation, the monetization and engagement capabilities offered by the platform play a crucial role in building solid brands and maximizing business success in the digital era.

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