Instagram Announces New Features for Creators to Make Money
Instagram is working on a new suite of tools to help influencers and creators make money on the platform.
The company announced it is developing three major new monetization features for creators: Creator Shops, affiliate commerce, and a “branded content marketplace.”
Here’s everything you need to know:
What Are the New Instagram Creator Monetization Features?
In a recent Instagram Live broadcast, Facebook CEO Mark Zuckerberg and Head of Instagram Adam Mosseri shared how the platform is evolving to “help creators make a living over the long run.”
As part of these plans, Instagram will launch Creator Shops, affiliate commerce (i.e commission payments for product sales), and a new “branded content marketplace” to connect influencers and brands.
These features will financially reward influencers and creators that drive sales for brands by using Instagram’s shopping features.
Creator Monetization Feature #1: Creator Shops
During the broadcast, Zuckerberg shared that Instagram has plans to launch Creator Shops.
Creators will likely be able to curate shoppable products from brands into their own “Creator Shop,” which will be available from their profile page. However, the exact details for this feature have not yet been shared.
“We see a lot of creators setting up shops and one part of being a content creator business model is you create great content, and then you can sell stuff, and so having Creator Shops is awesome,” said Zuckerberg.
Creator Monetization Feature #2: Affiliate Commerce
Alongside Creator Shops, Instagram will also introduce a new affiliate commerce program for influencers and creators.
This means that creators will earn a commission payment (usually a percentage cut of the total sale amount) when they generate a product sale for a brand on the app — completing the 3-sided marketplace of social commerce.
In the Live broadcast, Zuckerberg said: “[creators] should be able to get a cut of the sales that they’re building.”
It’s still unclear exactly how Instagram’s affiliate commerce program will work — but it will likely require sales to be completed entirely within the Instagram platform, using Instagram Checkout, for end-to-end tracking purposes.
Affiliate commission rates typically range from 5-30%, depending on the brand and product, but it is currently unknown what model Instagram will adopt for their program.
Creator Monetization Feature #3: Branded Content Marketplace
Finally, Instagram announced plans to help brands match and discover emerging influencers whose reach would be an ideal fit for their audience.
Similar to TikTok’s Creator Marketplace, this would be the first move by Instagram to step into the influencer-brand collaboration space.
“We should be able to help brands find creators that are uniquely aligned with the work they’re trying to do and vice versa,” shared Mosseri. “If we can help with matchmaking, we can help drive more dollars to the smaller creators who can do amazing work for brands.”
No exact details were shared on how deals might be structured, but Zuckerberg said they offer “very favorable terms” to creators.
Neither Zuckerberg nor Mosseri confirmed exactly when the new creator monetization features would be available in the app, or how widely they would be available.
However, given how fast Instagram is moving in the e-commerce space, this could be in the not-so-distant future.