Currently, Instagram is one of the highest-rated and most used mobile apps available with a huge user base. Smartphone users utilize it as a photo-sharing app mainly; however, businesses are using it for brand exposure as well.
Plus, many entrepreneurs are employing Instagram as a business platform and increasing their revenue through it. Instagram has high sales potential since it opens up brands to a wide audience.
There are approximately 1.7 billion users of this application globally. A lot of this count is drop-shipping eCommerce brand owners, non-profits, and service providers. It is expected that the CAGR of this application would rise over 35.7% between 2020-2027.
Overall, there are multiple techniques available for brand owners and entrepreneurs to expand their capital. In this article, 11 of them are detailed for 2021.
Requirements for Earning Money on Instagram
In order to use Instagram for capital growth, users need to keep particular factors in mind. Following are the important things to consider before one starts using the monetization tactics.
- Instagram brand development: It is important to set a brand page on Instagram accurately first. For this, entrepreneurs need to consider the brand style, tone, theme, and look. Each Instagram brand page is different in layout, based on the theme of the brand, like lifestyle, sports, fashion, gaming, or electronics. Taking guidance via reviewing other pre-existing accounts is effective.
- Page description: This portion is what the viewers would look at when they visit the brand page the first time. It is important to keep the tone brief and catchy.
- Follower count: Entrepreneurs need to focus on growing the follower count of their brand page to ensure that the capital growth potential is high. Multiple tactics like contests or giveaways, powerful copy-writing, and follower engagement can increase the follower count. Adding at least nine hashtags and posting regularly also increases follower count.
Best Methods to Earn Money on Instagram
Multiple users open and utilize their Instagram accounts daily, with a demographic statistic showing 49% male users and 51% female users.
Entrepreneurs can utilize monetization strategies to target particular user groups or the general consumer audience.
The following are some of the best tactics for earning money via Instagram in 2021.
Sponsored Posts as an Influencer
Multiple entrepreneurs at the beginning stages or Instagram users planning to earn money try to become influencers.
With this status, entrepreneurs can promote different products for brands on their profile.
Essentially, influencers share their posts regularly and gain followers who are interested in said content. This allows them to build trust with their audience, and later, promote trends to the users.
Businesses partner with influencers to post sponsored posts for the brands' products. Influencers need to increase engagement with the followers with frequent posts to improve sales for the brand.
In return, the businesses pay them high amounts for each sponsored post. Statistically, influencers need to have to 2-3% engagement rate to gain a brand's interest.
For an influencer, it is important to understand the values and interests of their audience to promote the right kind of products that would get engagement.
Through the businesses account on Instagram, you can check the Instagram Insights feature to note the audience stats.
Plus, you can list your profile in the Instagram influencer marketplace to find brand partnership deals.
Approximately 30% of the businesses spend 20% of their overall budget for marketing on influencer partnership deals.
As per FTC rules, it is important to note that entrepreneurs with ‘influencer’ status should mention #ad on these posts.
Entrepreneurs can partner with the best affiliate programs to sell the products of the affiliate. Unlike sponsored posts, one would get a commission or cut for the sales. This is effective through promo codes or trackable links; you can track which posts generated the sale.
Connecting the landing page to the affiliate link on the Instagram bio page is useful; the platform allows one link at a time. Here, it is important to develop engaging promotional captions with interactive wording. Prompting viewers to the affiliate link on your page is crucial in this post.
This technique is useful for growing revenue over a longer duration.
Selling Physical Products on Instagram
Entrepreneurs can sell their brand products on Instagram and earn profits. After creating your business account on Instagram, you can display the physical products with information and cost details for promotion. Particular brand owners provide product details via private message on Instagram upon enquiry.
Approximately 90% of Instagram users follow business accounts on the platform. Thus, it is an effective technique for increasing sales and customer reach.
Utilize a print-on-demand service for customizable products like pillows, coffee mugs, and t-shirts. After receiving an order, one can ship their products to customers directly in partnership with a third-party delivery service provider.
Selling Digital Products on Instagram
Similar to physical products, you can sell your digital products on Instagram as well. These include multiple types of products like online courses, eBooks, digital music playlists, or design templates.
Multiple features for selling are available on the Instagram business accounts, like in-app checkout, shop button, and product tags.
Bigger brands can sell their products on Instagram through ad promotion as well. Adding hashtag promotion or partnering with another influencer is effective here for direct sales on Instagram.
Statistically, Instagram ads brought an ad revenue of nearly $20 million in 2019. The expected ad revenue in 2021 is high as well.
Offer Help With Social Media Marketing
Startup brands and bigger brands both utilize social media platforms like Instagram to increase brand promotion. The cost of social media marketing is not high and the ROI potential is strong.
However, a lot of companies do not utilize social media marketing tactics. Many of them have high social media visibility but do not possess the resources to create a usable social media marketing campaign.
Particular Instagram users are offering such services to other brands to increase their brand value. In return, the business provides a fee percentage for their expert assistance.
Here, it is important for you to have a proper idea of how Instagram marketing operates first. These include factors like the accurate image size and pixel resolution, frequency of posts, and hashtag usage.
Particular entrepreneurs opt for brand ambassador roles on Instagram to earn profit. Essentially, the purpose of a brand ambassador is to promote and sell a particular brand and its services only. They increase the brand awareness of their partner businesses and improve their overall sales potential.
Unlike sponsored posts, this is not a one-time deal. As a brand ambassador, the account holder needs to regularly promote the brand in a positive manner. Businesses pay high amounts to brand ambassadors for long-term contracts.
Visual Content Generation
Instagram is essentially a photo-sharing app; thus, multiple brand owners hire visual content creation services.
On a daily basis, approximately 100 million videos and pictures are posted on this platform globally. Visual content for brand promotion among these has an authentic and professional look, which interests multiple consumers.
Here, it is important for entrepreneurs using this tactic to post high-resolution visual content frequently. Plus, you should also post user-generated content with them.
UGC is generally created by end-users instead of brands. These appear less professionally produced; multiple consumers find this more authentic and invest in the products. Overall, this tactic is useful for content creators to earn money through Instagram.
Instagram Stories, Photo Filters
A wide range of Instagram users utilize the Stories regularly; approximately 500 million active users view or upload stories on Instagram daily.
The stories on Instagram are available for a short period; thus, more followers of influencers view them quickly for quick updates.
The content engagement potential in this manner is instantaneous and effective.
In this context, you can operate as masks and photo filter creators for stories and earn money.
Virtual Assistant to Instagram Influencers
Multiple Instagram users become assistants to prominent influencers and earn money for their aid.
They handle the background tasks on behalf of the influencers like filtering fake followers, running ads, and filtering sponsorship deals.
As a virtual assistant to Instagram influencers, you can charge hourly rates for your service.
These professionals handle multiple tasks like managing the DMs on the account, replying to the comments, and scheduling posts. Moreover, they are responsible for offering stories or content ideas to the influencer for brand improvement.
Multiple entrepreneurs or professionals offer freelance services to clients through Instagram. This platform offers high networking potential and many professionals use Instagram to get in touch with potential customers. These include specialists like authors, photographers, or makeup artists.
Indeed, they can display their work in their Instagram account as a digital portfolio of their experience.
Here, the account holder needs to mention that they provide freelance services. Mentioning the specification of your service is also crucial.
To work with particular brands, you can contact them through DMs or get in touch directly with consumers.
Entrepreneurs can sell dropshipped products to consumers and earn revenue in return. In this business model, one can create and operate online stores without having an inventory.
To elaborate, you can promote your products online and a consumer can select one.
After completing the transaction procedure, the supplier working with you would directly ship the product to the buyer from their warehouse.
This would reduce your overall cost as well, since the supplier would handle the shipping, packaging, and storing tasks.
I hope now you know how to make money on Instagram.
Overall, the strategies covered in this article are useful for new brands, beginner-level entrepreneurs as well as big businesses to earn money through Instagram.
Growing engagement with the audience is important to ensure high sales and brand growth potential.
Also, it is important for you to learn about Instagram marketing and business features in general before choosing one of these strategies.
I hope the above mentioned strategies will help you make money on Instagram.
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