Earn money with Instagram: Is it really that easy? | Life & Knowledge

Using Instagram privately and following your personal favorites and interests is simply fun.

But how do the luxury influencers who always give us their good tips for a super life actually work? How exactly do they manage to earn a living and sometimes even become really rich?

If you've ever wondered this, read here how to achieve financial success on Instagram.

Is it really that easy?

Making money on Instagram requires a combination of skills, including strategic content management, constant engagement with the community, and the knowledge of how to monetize your content.

Attention! The time factor should not be neglected when building an Instagram business!

A viable community is not built overnight. Until then, you will earn little or nothing with Instagram. But a few tips and tricks can help you make money from your Instagram account:

Sponsorship and paid partnerships

These are collaborations with brands at Instagram. And this is how it works:

• Companies pay influencers to promote their products or services. They then receive money for posts with pictures, videos or Instagram stories.
• Attention! Only the larger accounts with the right content are attractive for cooperation.

Earnings depend on reach and engagement. Micro-influencers (10,000 – 50,000 followers) can earn between 100 and 500 euros per post, while top influencers with millions of followers can receive several thousand euros per post.

Affiliate Marketing

Commission-based sales: Influencers promote third-party products and receive a commission for each sale generated through their special affiliate link.

Commissions vary depending on the affiliate program and product, but they typically range between 5 and 20 percent of the sales price.

Selling your own products or services

Ecommerce: Many influencers use Instagram to sell their own products, be it physical goods, digital products or services.

Instagram Shop: Setting up your own shop directly on Instagram allows you to sell directly through the platform.

Instagram advertising revenue

IGTV and Reels Advertising: Instagram offers monetized advertising for IGTV videos and Reels. Earnings are then based on the number of views and the engagement rate. More specifically, revenue from advertising on IGTV or Reels depends on the number of views and the engagement rate and varies greatly.

Live Badges: Live videos allow viewers to buy badges to show their support, and the influencer receives a portion of the revenue generated.

Fan pages and subscriptions

Exclusive content: In addition to their freely accessible content, influencers can also offer special (premium) content that is only available to paying subscribers. This works through platforms or directly via Instagram subscriptions.

The rules for Instagrammers

Transparency: Paid partnerships and sponsored content must be clearly marked to comply with Instagram and FTC (Federal Trade Commission) guidelines.

Authenticity: The key to success is always authentic content that suits the account owner. Only this ultimately leads to higher engagement and the desired relationships with followers.

Do I have to pay taxes as an influencer?

Income tax: Income from Instagram activities is subject to tax. Influencers should declare their income correctly and seek tax advice if necessary.

VAT: When products are sold, VAT may be charged, which must also be paid correctly.

By combining various sources of income mentioned here, Influencer Build up an income gradually. Legal and tax rules should be strictly observed.