Recently, the head of Instagram, Adam Mosseri went on CNBC to talk about the 3 ways that Creators can make money on Instagram. He broke it down into 3 different options:
?. Commerce – branded content, affiliate marketing, and merchandise. For instance, if you have an Instagram Shop where you sell items, or you’re an influencer who represents products and brands, this is the bucket you fall into.
?. User paid products – which means users pay creators directly for subscription content, or tip them. For instance, if you join an IG Live and you can buy badges to show your appreciation for the Creator’s efforts, the Creator is making money from this option.
?. Revenue share – which means Instagram shares money earned from video advertising with Creators. For instance, if you see how ads work on YouTube and you want to earn money the same with with IGTV, this is the bucket you would fall into.
The point of 3 different options is to create a suite of different ways Creators can monetize, giving anyone who wants to make money a compelling reason to use Instagram to accomplish that goal (instead of TikTok or Snapchat or YouTube).
Which option for earning money on Instagram sounds most appealing to you? I think I’m going to focus on number 2 going forward – Lauren and I have been having a ton of fun on our IG Lives every Friday night at 8PM.
If all of this sounds intimidating or stressful, just think of it like a small business. Creators are the new kind of small business owner, and instead of a storefront, we make content that people want to see and are inspired by.
If you want to hear more, I cover this in-depth on my daily show in today’s episode, which you can find on Spotify, Apple Music, Amazon Alexa, “OK, Google”, and more. Use the podcast link at the top of my site to get started.