Instagram Reels has exploded in popularity over recent years. This new video format allows creators to produce entertaining 15-30 second videos set to music or audio.
With Reels being pushed heavily by Instagram algorithmically, it offers a tremendous new opportunity for creators to earn money directly from the platform.
Whether you have a small or large following, there are now several proven money-making avenues through Instagram Reels.
Here are the top 7 ways creators can start monetizing with Reels right now.
1. Sell Products Directly Through Reels
One of the most straightforward ways to earn money from Instagram Reels is by directly selling products in your videos.
You can easily link your ecommerce store or affiliate products to drive traffic and sales.
Ways to promote products directly in Reels:
- Showcase products naturally through short reviews and recommendations
- Create eye-catching product unveilings and unboxings
- Offer limited-time discounts and promo codes
- Link to your product pages and online store in the caption
- Types of physical products that tend to sell well include apparel, accessories, beauty products, gear, decor, and more
- You can also promote digital products like online courses, Lightroom presets, graphics packs, and templates
Driving your followers from Instagram to a product purchase page is the ultimate goal, allowing you to earn a commission from each sale originating from your Reels.
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2. Promote Brand Partnerships and Sponsorships
Another income avenue is working with brands to create sponsored Instagram Reels focused around their products, services, or campaigns.
Brands are highly interested in partnering with creators who can produce engaging branded video content tailored for Reels.
As an influencer, you can earn money through:
- Fixed sponsorship fees per Reel (typically $500 – $3000+ depending on follower count)
- Revenue share commissions on any sales driven
- Free products/services
Growing your followers and engagement opens up doors to negotiate ever-increasing sponsorship deals over time.
Brand partnerships should feel like a natural fit aligned with your niche, style, values, and audience’s interests.
Maintaining trust and transparency around sponsorships is key for long-term success.
3. Enable In-Stream Instagram Ads
For accounts with at least 10k followers and original content, you can start monetizing your Reels through direct Instagram in-stream ad placements.
This allows you to earn a cut of the ad revenue based on views and engagement each Reel drives.
While the revenue potential is more passive than active branded partnerships, over time across your entire account the earnings can truly scale up.
4. Cross-Promote with Other Accounts
Collaborating with complementary accounts through cross-promotions, content collaborations, and shoutouts is a great free way to align audiences and grow together:
- Give shoutouts to other creators and influences you admire to help expand their reach
- Work together on a jointly-produced Reel allowing you both to share it with your audiences
- Schedule takeovers or Instagram Live sessions on each other’s accounts
- Promote your collaborative outputs heavily across both accounts
The combined exposure and followers gained will increase the monetization potential through the other earning methods mentioned.
Support each other’s work and everyone benefits exponentially.
5. Launch Exclusive Memberships and Subscriptions
Super-serving your most engaged followers by offering exclusive members-only perks and content via Instagram Subscriptions and Badges.
Fans can pay either $0.99, $1.99 or $4.99 monthly for access to:
- Special privileges like direct messaging and behind-the-scenes updates
- Exclusive Stories and Lives only for members
- Digital assets like personalized graphics packs, Lightroom presets, templates, etc.
- Direct community access with polls, chat groups, and messaging
- Priority requests for content topics and video ideas
- Early previews, sneak peeks, and beta access
6. Share Affiliate Links to Recommended Products
Actively curating, reviewing, demoing and recommending your favorite products related to your niche allows you to organically incorporate affiliated links within your caption and bio.
These product suggestions provide helpful value-add tips for your audience while allowing you to earn affiliate commissions from resulting purchases and sign-ups.
Make sure to clearly call out your relationship as an affiliate partner wherever you share special discount codes, product links or service promotions.
Authentic recommendations that will truly benefit your audience will convert at a much higher rate over time.
7. License Your Viral Reels
Once a Reel starts gaining impressive traction and viewership, you can also consider licensing out particularly compelling Reels for brands to reuse across various advertising purposes.
Brands may license viral Reels for usage cases like:
- Social media promotions
- Digital ads
- In-store displays
- Landing pages
- Commercials
- Branded content
While licensing deals take some negotiation and active partnership, the royalties from high-performing viral Reels can become quite lucrative over time.
Treat your Reels as creative assets in your portfolio that increase in value as they gain cultural significance and engagement.
Brands will approach creators proactively once a specific Reel starts taking off, but you can also put yourself out there by sharing a media kit and actively pitching your most successful Reels through your other social profiles.
Conclusion
Instagram Reels offer an incredible channel for creators and influencers at any scale to produce fun entertaining short-form video content while also unlocking a wide diversity of passive and active money-making opportunities.
Whether you want to earn supplemental income or aspire to make content creation your full-time profession, strategically tapping into these seven revenue streams can dramatically amplify your earning power over time.
Stay creative and authentic with your niche while also actively listening to your audience’s needs and interests.
This loyalty and trust will pay dividends as you then promote relevant products and partnerships aligned with the value you provide.
The opportunities to earn and scale revenue from Instagram Reels are practically endless for those committed to consistently expanding their reach and skillset.
FAQs:
How many followers do you need to earn money on Instagram Reels?
Typically need 10k+ followers and high engagement to attract brands.
Can you make money from Instagram Reels without followers?
Very difficult; followers needed for sponsorships, subscriptions, etc.
What pays the most for Instagram Reels?
Sponsored branded content and licensing viral Reels tend to pay the most.