How to Make Money on Instagram in 2025

‍

With over 2 billion monthly active users, Instagram remains a powerhouse for creators, entrepreneurs, and businesses looking to monetize their online presence. Whether you're an aspiring influencer, a small business owner, or a thought leader in your niche, Instagram offers diverse opportunities to turn your passion into profit.

‍

In this guide, let’s explore proven strategies on how to make money on Instagram in 2025.

‍

Without further ado, let’s dive in.

‍

Why Instagram is a Goldmine for Monetization

‍

‍

Instagram’s visual appeal, engaged user base, and evolving features make it an ideal platform for generating income. From Reels to Stories, Instagram provides creators with tools to connect authentically with audiences.

‍

The rise of nano and micro-influencers has democratized earning potential, meaning you don’t need millions of followers to start cashing in. According to industry estimates, the influencer marketing industry is set to be worth over $48 billion in 2027, with Instagram leading the charge.

‍

However, success requires strategy, consistency, and leveraging the right tools. Below, we’ll dive into eight proven methods to monetize your Instagram presence.

‍

1. Sponsored Content and Brand Partnerships

‍

‍

One of the most common ways to earn money on Instagram is through sponsored posts, where brands pay you to promote their products or services. These collaborations can range from a single post to a series of Stories or Reels.

‍

The key is authenticity. Your audience trusts you, so promote products you genuinely believe in. For example, Achieng Agutu, a body-positive fashion influencer with over 800k followers, earned over $1 million in her first year as a full-time creator through brand partnerships.

‍

Also See: How to Get Brand Deals as an Influencer

‍

‍

For inspiration, you can use Favikon’s Network Watch feature which lets you see collaborations between creators and brands. By seeing who tagged whom, you can visualize a creator's network. The feature also offers a comprehensive view of all tagged content, allowing you to easily compare how creators produce sponsored content and analyze audience reactions.

‍

How it works

‍

Brands pay influencers to create content featuring their products, often including a #sponsored hashtag to comply with FTC guidelines. Payments vary based on follower count, engagement rate, and niche. Nano-influencers (500–10,000 followers) can earn $10–$100 per post, while mega-influencers (500,000+ followers) may charge $10,000 or more.

‍

Here’s a guide on how much influencers can earn.

‍

2. Affiliate Marketing

‍

‍

Affiliate marketing allows you to earn commissions by promoting products using unique tracking links or promo codes. Unlike sponsored posts, you only earn when your followers make a purchase, making it a performance-based model.

‍

How it works

‍

Sign up for affiliate programs like Amazon Associates, ShareASale, Rakuten, or even Favikon’s affiliate offerings. Share links in your Stories, bio (using tools like Linkpop), or Reels. Commissions usually range from 5–20%.

‍

3. Selling Digital Products

‍

‍

Digital products like e-books, online courses, presets, or templates offer scalable, passive income with low overhead. They’re ideal for thought leaders who can package their expertise into valuable resources.

‍

For example, Kayla Itsines, a fitness influencer, built an empire with her Bikini Body Guide e-book and Sweat app.

‍

How it works

‍

Create products tailored to your audience’s needs. A fitness influencer can sell workout plans, while a photographer could offer Lightroom presets. Platforms like Gumroad, Teachable, or Etsy simplify the selling process.

‍

Also See: The TOP Most Followed Instagram Influencers

‍

4. Instagram Subscriptions and Exclusive Content

‍

‍

Instagram’s Subscriptions feature allows creators to offer exclusive content, such as behind-the-scenes posts or Q&A sessions, for a monthly fee. This builds loyalty and recurring revenue.

‍

Poll your audience to understand what they value most. Start with affordable tiers and expand offerings based on feedback.

‍

How it works

‍

Set up subscriptions via Instagram’s monetization tools. Offer perks like exclusive Stories, live streams, or tutorials. For example, a gaming influencer can provide subscribers with custom gameplay tips.

‍

5. Brand Ambassadorships

‍

‍

Unlike one-off sponsored posts, brand ambassadorships involve long-term collaborations where you represent a brand over months or years. These deals often include higher pay and perks like event invitations or product co-development.

‍

How it works

‍

Brands seek influencers who align with their identity. To secure these roles, engage with the brand’s content, tag them in posts, and propose creative campaign ideas.

‍

How Favikon Helps

‍

‍

You can use Google search or simply use Favikon to find and connect with potential brands. Favikon’s AI-powered storefront lets you create a personalized profile that goes beyond a basic bio. It’s a comprehensive, data-driven portfolio showing your unique niche, audience demographics, and past collaborations. ‍

‍

Plus, you can pitch proposals directly to brands through the platform. With real-time reports and insights, you can also track all your social media metrics in one place.

‍

6. Selling Physical Products or Merchandise

‍

‍

Instagram’s shopping features make it easy to sell physical goods, from branded merchandise to white-labeled products. Creators can turn their influence into a full-fledged e-commerce business. For example, Loki the Wolfdog turned his Instagram fame into Loki Naturals, a brand selling pet-related products through Instagram and their e-commerce website.

‍

How it works

‍

Set up an Instagram Shop to sell products directly on the platform. Promote items through posts, Stories, or Reels, and use Instagram’s “post, tag, sell” tools to streamline checkout.

‍

7. Instagram Live Badges

‍

Instagram’s Live Badges feature allows U.S.-based creators with over 10,000 followers to earn money directly from fans during live videos. Viewers purchase badges to show support, with creators earning a portion of the revenue.

‍

For example, beauty influencer Cande Copello uses Instagram Live to share makeup tutorials, earning badges from fans who appreciate her real-time tips.

‍

How it works

‍

Enable badges in your Instagram settings and encourage fans to purchase them during lives. Badges appear as hearts next to a viewer’s name in comments. Host engaging live sessions, such as Q&As or tutorials, to incentivize badge purchases. Álso, promote your live events in advance.

‍

Tips for Long-Term Success on Instagram

‍

1. Define Your Niche: Focus on a specific area, like fitness, fashion, or business, to attract a dedicated audience and relevant brands. Thought leaders like Gary Vaynerchuk succeed by niching down to entrepreneurship and marketing.
2. Post Consistently: Most successful influencers post at least once daily, using a mix of Reels, Stories, and feed posts. Use scheduling tools like Later to maintain a consistent cadence.
3. Engage Authentically: Respond to comments, DMs, and engage with your followers’ content to build a loyal community. Authenticity drives trust, which brands value.
4. Leverage Short-Form Video: Instagram Reels are a growth engine. Create educational, inspirational, or relatable videos with strong hooks to maximize reach.
5. Diversify Income Streams: Don’t rely on one method. Combine sponsored posts, affiliate marketing, and product sales to buffer against market changes.
6. Stay Compliant: Use #sponsored or Instagram’s paid partnership label for transparency. Non-compliance can damage trust and lead to penalties.

‍

Conclusion

‍

Making money on Instagram in 2025 is within reach for creators who combine strategy, authenticity, and the right tools. Start by creating high-quality content, and using Favikon to connect with brands and optimize your strategy. With persistence and creativity, Instagram can become a lucrative platform for building your career and financial independence.

‍

How to Make Money on Instagram: FAQ

‍

Do Instagram users get paid?

‍

Instagram doesn't pay creators based on views or followers. Instead, earnings come from using features like Shopping, Subscriptions, and Ads, or partnering with brands on sponsored content.

‍

How do beginners make money on Instagram?

‍

Beginners can earn through influencer marketing, sponsored posts, affiliate marketing, selling products, IGTV ads, brand ambassadorships, live donations, online courses, and freelancing.

‍

Does Instagram pay for reels?

‍

No, Instagram doesn't directly pay for Reels views since the Reels Play Bonus program ended. Creators can now earn through Instagram Gifts, where fans send "Stars" valued at $0.01 each. Earnings are based on Stars received, not view count.

‍

How much does Instagram pay for 1000 views?

‍

Based on gifts or stars it can range from $0.01 to $0.05 per 1000 views, highly engaged influencers can earn $5 to $6 per 1000 views. Top influencers with large followings and strong brand deals can earn significantly more.

‍

Also See 👀

‍

How to Make Money as an Influencer in 2025

‍

How To Reach Out To Brands As An Influencer

‍

How to Become a YouTuber: A Complete Guide

‍