Can you make money on Instagram?
You can make a lot of money on Instagram. Instagram is possibly the platform most associated with influencer sponsorships This is for good reason, Instagram has a very high engagement rate meaning that people on Instagram are more likely to interact with content than on other platforms. Brands like this high engagement rate because it means that sponsorship ads are more likely to be clicked by potential customers.
How much can you make on Instagram?
The amount you can make on Instagram depends on three factors.
1: Your follower count.
2: Your engagement rate.
3: Your Niche.
Your follower count is obviously the amount of people that follow your account and your engagement rate is the percent of your followers that interact with your content in the forms of likes and clicks.
Your Niche is the subject of your account, for example a travel bloggers niche is travel and an athletes niche is sports. The niche that your content focuses on can determine the kinds of brands that want to work with you. If your audience is more likely to be interested in a certain brand they are going to want to work with you.
Your Niche affects the profitability of your Instagram account because some niches are more profitable to advertisers and therefore the amount they will pay for an advertisement is higher.
If the audience of a certain niche, say cars, is more likely to purchase a high value product (like a car) advertisers will pay more money for a sponsorship. However if your niche is in something that is not highly monetizable, say rock stacking, it might be harder to find a brand to partner with because there is no product to sell.
Thats not to say that if you are first starting an account on Instagram just for the sake of turning a profit that you should center it around the most high paying niches like travel or cars. These niches are highly saturated with content creators for the very reason that they are highly profitable. Because of this it is very difficult to gain traction in the community if you decide to focus on one of these niches.
Instead it's better to find a lesser know but still profitable niche even if the niche isn't as profitable as some of the other more mainstream ones. To find profitable niches you can use the google adwords tool which will tell you the value and competitiveness of certain keywords and therefore of certain niches.
The general rule for Instagram sponsorship prices is 100 dollars per 10000 followers. However your engagement rate can change this average a significant amount. If you have a very high engagement rate (more than 7%) advertisers will likely pay you a lot more for a sponsorship deal on your Instagram page because they know your content will get more clicks and therefore their ads will get more clicks.
Some accounts on Instagram can make thousands of dollars per sponsorship with only a couple hundred thousand followers. The biggest accounts on Instagram can easily earn over 1 million dollars per sponsored post.
How do I make money on Instagram?
In order to make money on Instagram you will need to negotiate sponsorship deals with brands. A sponsorship is where a brand pays a creator to post an ad for the brand on their account. It can be difficult to find brands to partner with at first if you are a small creator so it might be helpful to sign up for a service that connects small creators to advertisers in their niche.
You can also sell shoutouts to other account or products directly through your Instagram bio. List your prices on your bio or tell people to contact you through DMs to get the cost of a shoutout.
How much should I pay for an Instagram shoutout?
Shoutouts typically go for around 30 to 100 dollars, the prices for a shoutout are lower than the prices for a sponsorship because shoutouts are typically done by smaller accounts. Some shoutouts however can cost thousands of dollars if they are from a large account. The shoutout price also largely depends on the accounts engagement rate. A shoutout from an account with 100,000 followers but a very high engagement rate is going to be worth more than a shoutout by an account with 1,000,000 followers and a very low engagement rate.
Before you pay for a shoutout find an account with a good engagement rate. If the account that shouts you out has a good engagement rate it means that the followers they send over to your account will be more likely to interact with your content. To find an accounts engagement rate divide their average likes on a post by the number of followers they have then multiply that number by 100. If the number that comes out is more than 3 they have an above average engagement rate.
How do I get an Instagram sponsorship?
To get a sponsorship on Instagram you will need a follower count of at least a couple thousand. We recommend that before you seek out sponsorships you gain a following of around 5,000 and an average like count of around 500 per post. At this point you can begin to reach out to brands through DMs and ask if they would like to buy a sponsored post on your page, make sure you leave your contact info in your bio if you don't check your DMs often. As your account grows you will find that brands will begin to reach out to you looking to make deals, this is when you should use our Instagram money calculator to make sure you are getting a fair price for your sponsored post.