Instagram: 5 Tips on How to Make Money in 2020
Instagram is a very popular and effective social media platform. Instagram has millions of users and many businesses, marketers, entrepreneurs, using it to make money.
Here are a few ways that you can make money on Instagram:
You could be focusing on sponsored posts for brands that want to reach your audience.
You could become an affiliate, and earn money by selling products or services with your affiliate marketing business.
You could also be selling your products, which could be physical or digital.
5 effective tips you need to know about how to make money on Instagram.
1. Become an Influencer
An influencer is someone who has built a reputation by doing and sharing things online. They have a good following and they can convince their audiences about trends because of the level of trust they have built with their online presence.
Brands tend to partner with influencers to do sponsored posts that help spread the word about their products.
Top influencers make thousands of dollars per sponsored post. Imagine doing one sponsored post per day, you can make tens of thousands of dollars per month easily.
A typical influencer post includes the creation of content such as an Instagram post or an Instagram story, that will include the promotion of the brand or their products.
You need to understand your audience so you know which brands would best fit your audience. If you’ve switched to an Instagram business account, you can research your numbers a bit more through your Instagram Analytics report.
You can also find brands yourself that you think match your personality and values the best. You can reach out to brands yourself directly (through Instagram or their websites) to try to negotiate a deal, but you can also list yourself on an influencer marketplace to increase your chances of being found by a big brand.
2. Become an affiliate
You can sell other people’s products and make money. Many brands sell their products through affiliate programs. Many people make money from Instagram this way.
The difference between an influencer and an affiliate is that an affiliate is working towards making sales for the partnering brand in exchange for a commission. On the other hand, the influencer is mainly aiming to create awareness.
Affiliates make money on Instagram through a trackable link or a promo code to make sure that any clicks are converted to sales.
You need to create engaging posts, so you can promote the products without being pushy. You can only have one link on your Instagram bio, you might want to include a landing page to your affiliate link.
In each post, include a caption that the product can be purchased via the link on the Instagram bio.
You can expand your presence by including a website and/or other marketing or social media channels.
3. Sell photos and virtual products.
Instagram is all about visual content. Photogenic products would sell well on Instagram. You can sell poster photos, paintings, drawings, animations, videos, and other images or video-based virtual products.
If you think you take high-quality pictures, there’s a chance that you can get paid for it. But don’t limit yourself with just your photography skills, explore other possibilities that enhance your pictures such as editing and composition.
Use the best photo editing apps for phones to get the most out of the photos that you take.
You can use Instagram to promote your photography portfolio using relevant Instagram hashtags.
4. Sell your physical products.
You can sell any physical product that you produce yourself or purchase from suppliers. This conventional eCommerce retailing usually requires stocking some inventory, meaning you’d need to spend some startup capital to stock some products.
And it requires a place where you can keep the products, such a spare room at home or a rented storage place. For instance, if you purchase some inventory from a China-based supplier, you’d need a space to keep them before they’re ordered by and delivered to customers.
You can sell products directly on Instagram through Instagram Posts and Stories. By simply tagging products in your Instagram images, you can lead your Instagram followers to your product pages where they can purchase products quickly.
5. Sell dropshipped products.
Dropshipping is a very popular business model. Once you’ve made a sale your supplier will ship your products from their warehouse, straight to your customer’s doorstep. You’ll never need to worry about storing, packaging, or shipping your products.
You won’t need to store any inventory. You can easily set up a dropshipping store with Shopify’s eCommerce platform and Oberlo’s forever free plan dropshipping app.
With dropshipping, you can experiment to find the niche products that would sell well, without wasting startup capital.
Instagram Stats You Need to Know
1) 1 billion users are active every month.
2) 500 million users are active every day.
3) In 2019, 70.7 percent of US businesses use Instagram. With 30 million businesses (both large and small) in the USA, this number translates to 21 million US businesses using Instagram.
4) 80 percent of Instagram users follow at least one business account. This translates to 640 million users following at least one business account.
5) There are 2 million Instagram advertisers every month.
6) Time spent on Instagram increases by 80 percent every year.
7) 300 million Instagram accounts use Instagram Stories every day.
8) Photos with faces get 38 percent more likes.
9) User-generated content has a 4.5 percent higher conversion rate.
Choose a specific niche lifestyle and start selling products that you’re passionate about. It can be any passion, hobby, or anything that you want to share with others. Just focus on what you do best.