Earn money with Instagram

After you've created your Instagram account, you need to find a niche in which you can compete with other accounts. A niche is a topic or a specific area your account focuses on. The best way to start on Instagram.

Potential of Instagram for making money

Instagram has many users and therefore many potential customers for you or an advertising company Instagram is one of the largest social platforms and gives influencers the opportunity to make money with their accounts. If you have an Instagram account and are trying to get more followers or build up your account, you can consider whether you want sponsored posts or share affiliate links. These methods are popular ways for influencers to earn money and introduce their followers to useful products.

When it comes to making money, there are three main methods:

Publish sponsored posts, share affiliate links or sell your own products Publishing sponsored posts and product placement are the most popular methods used by influencers and large Instagram accounts.

Running advertising:

You can sell a post on your Instagram account to companies so they can run advertising on your account. This is a popular method for large companies and brands that are trying to reach more customers and engage in the social media world. Most larger Instagram accounts have thousands of followers or more and therefore offer brands a large audience.

Sharing affiliate links:

Affiliate links are links to products that you publish on your Instagram account. When a follower clicks the link and buys the product, you receive a commission. This is a good way for influencers to earn money while giving them the chance to present useful products to their followers.

Selling your own products

If you have your own product, you can promote it on your Instagram account. This is a great way to reach more customers and generate more sales. You should try to regularly publish posts about your product and show people how they can use it. If possible, you should also make videos about it. No advertising label is required here either, since technically it is not advertising. Advertising would require payment for the placement. However, if it is not clearly apparent that the account belongs to the company being shown, you may still wrongly receive a cease-and-desist letter. Legally you don't have to pay it, but it still causes trouble. This topic is also very extensive. If you want to learn more about it, you can read our article on Winning customers on Instagram .

What options do I have?

If the goal is to earn money not through affiliate links but through advertising placements, a certain reach, or rather a follower base, is a prerequisite.

How many followers are needed to make money with Instagram?

If you want to sell advertising placements, you need at least 10.000 followers. This is a common requirement for companies and brands that work with influencers. Here, too, it depends heavily on your niche how many followers are necessary. With a personal profile, you can already find interested parties for placements with fewer followers; with impersonal accounts with a very unspecific audience, it becomes increasingly difficult. Generally, however, Instagrammers earn more money per post the more followers they have. As already mentioned, you can also consider sharing affiliate links and marketing products to your followers to earn money. Fewer followers are already sufficient here.

Why affiliate marketing is possible with just a few followers

The requirements here are usually either absent or very low. Some companies require you to have at least 1.000 followers before they will work with you. Other companies have no requirements and like to work with influencers of all sizes. When it comes to affiliate links, you don't necessarily need many followers. You can still earn money and market products to your fans even if you only have a few hundred followers.

Why it might not be worth it

If you have a large audience, however, you will be able to find more people who actually want to buy the promoted products. Here you need to consider how relevant your marketed product is to your followers. If you have a very specific niche, it is easier to find many interested people; the more general the niche, the harder it becomes, and accordingly conversions and earnings fall. Increase your reach and try to get onto the Explore page. The more people you reach, the more opportunities open up for you.

Making money with fewer than 1.000 followers

It is theoretically possible, but hardly worthwhile given the amount of work involved. Try to post actively on Instagram and grow your audience, as your potential earnings will rise along with it. When and how often you should post. If you have only just started with Instagram, you should not think about how to earn money at first, but focus on building up your account. How to get the best start on Instagram.

How much money can you make with Instagram?

How much money you can earn with your Instagram account depends on a number of factors. First of all, it is important to note that there is no fixed amount. If you share sponsored posts or affiliate links, the respective provider or advertiser decides how much you receive per post. The more followers you have and the bigger your audience, the more money you can earn. There are a number of companies and brands that target sponsored posts for Instagram accounts. The average fee for a sponsored post is between 300 euros and 1.500 euros. So if you have 10-20 sponsored posts per month, you can earn between 3.000 euros and 30.000 euros. This is of course only a rough guide, but it should help you see the possibilities if you have a successful Instagram account.

How do you find companies for sponsored posts?

There are many different types of companies and brands looking for influencers or people with large audiences on their Instagram accounts. The companies you should look for depend on the niche your account is in. If it concerns a specific niche such as sportswear or cosmetics, you can search for companies that market what you share on your Instagram account. However, it is not such a big deal for you to find out yourself which companies might be interested. Many companies and brands will contact you directly if they are interested in a sponsored post.

How to contact companies directly

If no brand approaches you, you always have the option of searching yourself and getting in touch with companies. Here are a few ways you can get in touch with companies:

Contact the companies via their website

Search the company's website for a "Contact" link or similar and send them a message for more information. This is the best way to get in touch with the company and find out whether they are interested in sponsored posts. Write an email to the company and introduce yourself. This can help establish the first contact and see whether they are interested in sponsored posts. You can also try to search the website of the company or brand for an advertising agency or marketing firm. Many of these agencies work with influencers like you and are always looking for new platforms to reach new clients.

Contact the companies via their Instagram accounts

Search hashtags or the Explore page for suitable companies, or enter the name of a brand you know directly into the search. Via direct message you can make a request to the company and at the same time show which account you are advertising on. This way no verification is needed that the account belongs to you, and the company can see immediately whether you fit their Instagram advertising strategy.

What should I write to the company?

When you contact a company, it is important that you introduce yourself and ask whether they are interested in sponsored posts. You should also state a price expectation or tell them what amount you would consider for creating a post. It is important to note that not all companies will be willing to pay for sponsored posts. Do not let a rejection get you down, but keep searching. With enough outreach you will certainly find a company that suits you and wants to enter into a collaboration with you. Here it is important to send a short, professional message and not to bother the company with a long-winded story or anything else.

This is what your message could look like

Your first message could look something like this: "Hello [Name des Unternehmens], I'm [dein Name] from [deinem Instagram-Konto]. I've noticed your brand and think it fits my audience perfectly. I'd like to ask whether you're interested in a sponsored post. I can help you reach more customers and make your brand better known on Instagram. If you're interested or have any questions, let me know! Thank you for your time and I look forward to talking with you!" Your first message should be professional and contain only a few sentences. Introduce yourself and explain why you think your Instagram account is perfect for promoting their brand. Once you've made contact with the company and they're interested in a sponsored post, you can plan the next steps. They will either ask you or tell you what kind of content they want. They may also give you some guidelines to follow. It's important that you know exactly what they expect from you and what kind of content they want. Try to give them accurate information about your Instagram account and make sure it suits their brand. If you're unsure or have questions, ask!

How do I become an affiliate?

If you want your followers to buy products, you can use affiliate links. This basically means you work with the company and tell them: "I'd like to share product X. If my followers buy it, I get a commission from you." The exact type of compensation varies depending on the company and product. Always follow the guidelines they give you to make sure you don't make a mistake and get your account into trouble. When using affiliate links, be careful! Don't simply beg your followers to buy products. Tell them why you think it's a great product and how it has helped you or what benefits it offers. If you shout "Buy my affiliate link!" you won't convince any followers and you certainly won't earn money. Always try to give the company accurate information about your Instagram account and your audience. This helps them determine whether you have the right audience to market their products. You can also try to get in touch with the company and ask about affiliate programmes. In general, never forget to mark your posts as advertising too. If it later turns out you only recommended a product because you were paid, that damages your image and will harm other brands' interest in advertising on your channel in the future.

What matters for companies that want to advertise

There are a few basic criteria companies look for, and they should always be met. If you meet them, your chances of getting a sponsorship are significantly higher!

Your Instagram profile should be active

For companies to notice your profile, you should be active. This means posting regularly and also commenting on and liking other accounts. Interacting with others will not only get you more attention but also win you new followers. If your account is inactive, shows little growth and rarely posts new content, it will be difficult to find companies interested in an advertising placement.

Your followers should interact with your posts

If you have many followers but hardly any likes and comments, it doesn't look trustworthy to companies. This suggests your account either has bought followers or very old, inactive followers who effectively add no value. It certainly suggests your content isn't interesting to your followers, which makes a sponsored post with you unattractive. Instagram likes are the most important visible metric for most companies.

You should be authentic

This isn't essential in itself, but you'll quickly notice you earn little money if your followers don't trust you. It's important to make clear to your audience when something is an advertisement. If you aren't open and honest, it can damage your image and people will no longer trust you in the future. In the worst case, advertisers may also notice, and you'll face increasing difficulty finding sponsors in the future.

You need to register a business

Before you start earning money, you need to register a business. This is important to ensure you can pay all the taxes due on your income. If you don't know where to start, you can contact your tax office or a tax adviser. You also need to make sure you meet all legal requirements. For example, in Germany influencers must disclose the prices of their products and services. Affiliate links must also be labelled as advertising. If you have a business, you also need to take care of bookkeeping. This means recording all your income and expenses. At the end of the year you should inform your tax authority how much money you earned and what expenses you had. That way you always know exactly how much money you have left and what taxes you have to pay.

No business registration below 700€ per year

There is one exception, however: private individuals can also invoice up to 700€ per year tax-free. The best way to find out more is to check online or ask a tax advisor. You should also calculate carefully, since 700€ in revenue is reached quickly.