How to Make Money On Instagram in 2025: Top 8 Methods

Instagram’s got 2 billion monthly active users, and a big part, like 65%, of its influencers are nano-influencers. These are mainly with between 1,000 and 10,000 followers.

What’s really good is that Instagram’s engagement is way up there, averaging about 3.5% per post across the board. That beats Facebook, X, and TikTok. Even nano-influencers can earn an income of about $10 to $100 per sponsored post.

So, let’s talk about making money on Instagram if you’re just starting. We will go through the steps to hit that $1,000-a-month mark. Ready?

Can You Really Make Money on Instagram in 2025?

You can absolutely make money on Instagram in 2025 as a creator of any size. Unlike other platforms that require huge followings, Instagram features several ways to monetize your work regardless of following size.

Let’s discuss what you actually need to start making money. 

How Many Followers Do You Need to Start Earning?

Considering that you do not need to have a large follower count to start monetizing on Instagram.

You can begin making money selling digital products from your website with as few as 50-100 active followers. Many content creators falsely believe they need tens of thousands of followers, but the truth is much better than you think.

Although some monetization features on Instagram do have requirements, the entry point is not that high.

Research suggests that there are influencers making 1,000-10,000 followers earn about $1,400 a month, which means making money from even small accounts is possible if done correctly.

Does Instagram Pay Creators Directly?

Instagram does not provide direct payment to creators based on views or followers. Rather, it provides a range of monetization tools to pair creators with income-generating opportunities that we mention in this article. 

If you’re eligible, Instagram has some monetization features that pay creators directly. Even those opportunities have specific requirements, including:

• A Professional Account (business or creator)
• At least 18 years old
• Residence in an eligible country
• Following Instagram’s policies and guidelines

To receive payment, you’ll need a properly set up payout account. If you don’t have one, you’ll earn a capped amount of $500 per monetization tool and a maximum of $1,500 total for three monetization tools.

What is Important: Followers or Engagement?

When it comes down to monetization opportunities, engagement is definitely more valuable than follower count. A small, highly-engaged audience will always have a higher conversion than a large one that doesn’t engage.

On Instagram, the average engagement rate is around 3%, with engagement rates between 2-3% being average and 4-6% being considered high.

Engagement matters because: 

• Brands find engagement more important than follower count.
• More engagement means more organic followers.
• Social media algorithms want to see engagement before promoting your content.
• Potential buying customers find accounts with engagement and an active audience more trustworthy.

As one marketing manager always says, “It’s way more valuable to have 1,000 engaged followers than 10,000 zombie followers”, and this is especially true in brand partnerships since your audience’s authenticity usually dictates your value.

8 Proven Ways to Make Money on Instagram

Want to monetize your Instagram account in 2025? We tested out several strategies to figure out what the best proven methods to be successful are, and here are 8 ways that we have discovered to make money on Instagram regardless of your follower count.

1. Partner With Brands for Sponsored Posts

Brand partnerships are still one of the easiest ways to earn on Instagram. With sponsored posts, companies pay you to share their products with your audience.

Even for micro-influencers with 1,000-10,000 followers, sponsored posts can earn you between $10-$100. Here are some ways to attract brand partnerships:

• Create a professional media kit highlighting your engagement rate
• Use Instagram’s branded content tools to tag partners
• Focus on showcasing products authentically in your content

Remember that 44% of Gen Z follow and find product information on Instagram, making it a prime platform for brand collaborations.

2. Use Affiliate Marketing to Earn Commissions

Affiliate marketing allows you to earn passive income through commissions whenever the audience you share with buys products that you mention. This works even if you are a creator with a smaller audience:

• Place trackable affiliate links in your bio
• Create engaging Reels to demonstrate the products
• Include clear calls-to-action in your captions

With almost 50% of Instagram users purchasing products from an account on the platform, affiliate marketing has found a happy home.

The platform’s visual-first experience lends itself perfectly to detailed product demonstrations that build trust with potential buyers. 

3. Sell Your Own Products Through an Instagram Shop

By creating an Instagram Shop, you can sell products directly to followers without them leaving the app.

Businesses that tag products in their feed posts sell an average of 37% more. Here are the steps to help you set up your shop:

• Connect your product catalog through Commerce Manager
• Tag products in posts, Reels, and Stories
• Create shoppable posts that seamlessly integrate with your content

The process involves creating a shop in Commerce Manager, adding your product catalog, setting up shipping profiles, and adding checkout URLs.

4. Offer Exclusive Content via Subscriptions

With Instagram Subscriptions, you can make money by providing premium content to your most engaged followers for a monthly fee. The subscription price can range from $0.99 to $99.99 per month.

Subscribers will receive:

• Purple subscriber badges that make them stand out
• Access to exclusive Stories, Posts, and Reels
• Subscriber-only Live streams and broadcast channels

Enabling Subscriptions allows your followers to see notifications in their activity feed and on your profile. They can then subscribe through an in-app purchase. 

5. Monetize Instagram Reels & Lives with Badges & Gifts

Reels monetization converts your short-form video content into income through:

• Gifts from viewers during or after watching your Reels
• Badges during Instagram Lives that followers can purchase
• Reels Bonus program for eligible creators based on views

People who watch Reels are 179% more likely to purchase products after viewing this content, making it a powerful monetization tool.

6. Sell Digital Products Like Templates or Courses

Digital products offer an excellent profit margin and can be sold repeatedly without additional production costs. Popular options include:

• Online courses and educational content
• Design templates and presets
• E-books and downloadable guides

You can promote digital products by creating teaser Reels, using link-in-bio tools, and leveraging Instagram’s visual nature to showcase the value of your offerings.

7. Provide Coaching or Freelance Services

Instagram is a great platform to showcase your authority and land coaching or freelance clients.

Life coaches love the platform, as organic reach is much easier than on other platforms.

Here are some ideas for monetization if you offer a service:

• Share valuable tips that establish credibility
• Use Reels to demonstrate your skills and knowledge
• Create slideshows breaking down complex topics
• Post Stories giving behind-the-scenes looks into your process

8. Launch a Print-on-Demand or Dropshipping Store

Print-on-demand allows you to sell custom merchandise without inventory management. This model works well on Instagram because:

• No upfront investment is required
• Products are created only after a sale
• Orders ship directly to customers

With print-on-demand, your average profit can be $5-$8 per sale. Social media sales are expected to reach $1.2 trillion by 2025, with Instagram being a key driver of this growth.

How to Determine a Suitable Monetization Strategy for You

Determining the most suitable Instagram monetization strategy comes down to recognizing your strengths and aligning them with your audience’s point of need.

Now that you have identified a number of ways to monetize on Instagram, let’s look into what strategies may fit your current scenario.

Assess your Skills & Content Style

Your natural talents should guide how you monetize Instagram. Consider what you genuinely excel at before choosing a strategy. Consequently, if you’re skilled at photography, sponsored posts might be your strength, whereas strong writing abilities could make affiliate marketing more suitable.

Examine your content creation process carefully. Do you prefer short-form video or still images? Can you consistently produce certain content types? Your comfort with various formats directly impacts which monetization methods will be sustainable.

Remember that your unique skills have monetary value – price your work accordingly. As one creator explains, “I had to create a pricing structure” by breaking it down: “making a physical object… my ideas… and sharing with the world on social media”.

Understand Your Audience Needs

Monetizing Instagram successfully: excessive trust based on engagement compared to following. The world could be; a couple of hundred others could easily make a profit, assuming the connection with your group is strong.

Express yourself near the people you’re following who use, wear, eat, or engage in the relevant day in order to find products that may be of interest to you.

In the meantime, look at the posts that set up the main participation, as that will tell you what your listeners really care about.

Research shows that 80% of consumers buy something based on a lifestyle recommendation from an influencer, so your pleasure and donations are focused on staying focused.

Match Monetization Methods to Your Niche

Different industries naturally align with specific Instagram monetization strategies. The table below shows which approaches typically work best by niche:

To select the best Instagram monetization method, take the easy route and look at what successful competitors in your niche are doing. However, don’t just replicate others; your own monetization should coincide with your own values.

On the whole, the highest earners on Instagram build a variety of income streams. This strategy not only increases income potential, but it also provides security if one concept fails.

You should think of making money on Instagram as a diversified business instead of only monetizing a single model.

Tools & Features That Help You Earn Faster

Accelerating your Instagram earnings requires the right tools. I’ve discovered several key features that help creators make money on Instagram more efficiently in 2025.

Instagram Creator & Business accounts

The foundation of monetization success begins with choosing the right account type. Creator accounts work best for influencers and artists, while Business accounts suit brands and established entrepreneurs.

Key differences that affect how you make money on Instagram:

• Business accounts allow third-party content scheduling, essential for consistent monetization
• Creator accounts provide daily follows/unfollows tracking to measure content performance
• Both offer Instagram Insights and professional dashboards

Notably, only Business accounts can set up Instagram Shopping, giving them an advantage for product sellers.

Using Instagram Insights to Track Performance

Instagram’s analytics tools provide crucial data to optimize your monetization strategy. Insights reveal:

• Audience demographics and active hours
• Post performance metrics and engagement rates
• Content that drives the most conversions

Indeed, successful monetization depends on understanding what content performs best with your audience. This information helps align your content with revenue opportunities and maximize earnings potential.

Link in Bio Tools & Storefront Integrations

Link in bio tools transform your single Instagram bio link into a powerful monetization hub:

The features make it easy to track affiliate link performance, build your own landing pages, and send your followers to multiple monetization solutions at one time.

For product sellers, integrating storefront solutions opens the door to directly selling through Instagram, enabling seamless shopping experiences and increasing conversions.

Common Mistakes to Avoid When Monetizing

When you’re learning how to make money on Instagram, it’s important to avoid major mistakes.

Sometimes even the most talented godheads catch unavoidable events that may jeopardize their profits, and that’s a mistake to beware of.

Promoting Irrelevant or Low-Quality Products

When monetizing Instagram, authenticity is of paramount importance. Your integrity can be permanently damaged by stimuli that are not related to your field of expertise or public interest.

Rather than a huge but passive supporter base, a highly committed, smaller group is often more profitable.

Despite tempting offers, promoting low-quality items ultimately backfires since:

• Your audience trusts your recommendations
• Poor product experiences reflect directly on your reputation
• Future brand partnerships depend on maintaining credibility

Remember, before you encourage anything, your Instagram account must be attractive and distinctive.

Otherwise, customers will not enter, regardless of how many people see your promotion.

Overloading Your Feed with Ads

Finding a balance between promotional and value-giving content is crucial for Instagram monetization. Posting only discounts and promotions leads to follower fatigue and declining engagement.

Instead of constantly selling:

• Diversify content with behind-the-scenes glimpses
• Share educational material related to your products
• Feature customer testimonials as a subtle promotion

The most successful creators maintain an even marketing message mix rather than endless sales pitches. Your audience will disengage from someone constantly pushing promotional content.

Ignoring Your Audience’s Feedback

Silence about negative feedback damages your reputation. Yet many creators make this mistake when trying to make money on Instagram.

Avoid these response patterns:

• Being defensive or making excuses
• Using generic template responses
• Failing to implement suggested improvements

The tailored answer shows genuine care and helps maintain the association of listeners necessary to monetize.

Eventually, in the midst of Instagram’s algorithm changes, multi-faceted sources of income, ranging from brand membership to sponsor posts, provide stability.

Make money on Instagram eventually

Making money on Instagram in 2025 will be a process, not just a matter of gaining several followers.

Engagement is the most important thing to do; build a genuine connection first, then choose a monetization method that fits your field (sponsored posts, affiliate promotion, etc).

Also consider using Creator tools and data analysis, and preventing the promotion of unrelated goods by alternatively overloading the audience with advertising.

Start with one idea, maestro, then diversify your sources of income. You’ve got a monetization pass, and then you’ve got to put that rung into practice.

Instagram FAQs: Top Niches, Engagement & Formats

1. What Instagram niches make the most money?

The high-paying niches include beauty, fashion, travel, pets, exercise and health, food, lifestyle, and crafts/DIY.

2. Does Instagram pay for likes?

Instagram doesn’t pay for likes, that’s true. However, the more engagement (likes, comments, saves) a post gets, the more visible it becomes, which leads to a real opportunity for monetization.

3. Is it better to post Reels or regular videos?

The greatest benefit of Reels is reach and discovery since Instagram puts them in the Explore section, so use Reels to grow and regular/longer videos and to build a loyal audience, use deeper storytelling.