7 Smart Ways on How to Earn Money from Instagram Reels This Year

Instagram Reels has completely flipped the game when it comes to making money online. Remember a few years ago when people thought you needed a huge YouTube channel or a blog with 100,000 monthly readers to earn online? Well, those days are long gone. Right now, short-form video is the hottest, most lucrative opportunity — and Reels is at the center of it all.

Whether you’re a college student, a stay-at-home parent, a side hustler, or an aspiring entrepreneur, learning how to earn money from Instagram Reels can open doors you probably never imagined. Brands are spending billions on influencer marketing. Instagram itself is literally paying creators. Plus, with more people shopping and learning via social media than ever before, there’s never been a better time to turn your creativity into real cash.

Contents

1. Partner with Brands for Sponsored Reels

What sponsored Reels actually involve

Sponsored Reels are probably the first thing that comes to mind when people think of making money on Instagram. And for good reason — brands are eager to pay influencers, both big and small, to talk about their products.

In a nutshell, sponsored Reels mean a company pays you to create a short video showcasing their product or service. This could be anything from styling an outfit, reviewing a gadget, using a beauty product, or simply sharing a lifestyle moment that incorporates the brand naturally.

For example, a travel app might pay you to make a Reel about planning your dream vacation using their tool. Or a protein shake brand might want a short, fun recipe Reel that features their powder.

How to set up your account so that brands will notice it

You don’t need 500,000 followers. In fact, many brands now prefer working with micro-influencers (think 3,000-30,000 followers) because their audiences tend to trust them more. Here’s how to attract brands:

Stick to a niche. If your content is all over the place, brands won’t know if you’re a good fit. Whether it’s fashion, tech, parenting, or fitness, build a consistent theme.
Show your face. People want personality. Brands do too. They need to see you’re relatable and trustworthy.
Tag and mention brands. Use their products naturally, tag them, and comment on their posts. Often brand managers scout talent this way.

How to negotiate fair deals and avoid underpricing

Here’s the deal: many creators undercharge out of fear or inexperience. But your time, creativity, and audience are valuable.

A common rule of thumb is charging $100 per 10,000 followers per post. But if your engagement is high, you can often charge more. Always ask brands about:

Usage rights (can they reuse your video in ads? Charge extra.)
Exclusivity (are you barred from working with competitors for a time? Charge extra.)
Deliverables: is it a static post, three stories, and one reel? Price accordingly.)

Never hesitate to demand what is rightfully yours.. Brands expect negotiation.

2. Join Instagram’s Reels Play Bonus Program

Full breakdown of how the program pays creators

This is one of the easiest ways to earn money from Instagram Reels — directly from Instagram itself. The Reels Play Bonus Program pays creators based on the performance of their Reels. Think of it like YouTube’s ad revenue system, but for short videos.

Instagram sets specific payout structures. Some creators see offers like “earn up to $1,200 for 1.09 million Reels plays within 30 days.” These bonuses vary by creator and engagement history.

Instagram’s hidden eligibility rules

This program is still invite-only. That means Instagram decides who gets the offer based on:

Regardless of whether you have a creative or business account (simple to set up).
How consistently you post Reels.
Your adherence to community guidelines (no sketchy or copied content).

An invitation will appear in your Professional Dashboard if you qualify. Tap it, activate bonuses, and your future Reels will start counting toward payouts.

Strategies to maximize views and keep earnings growing

Want to squeeze the most out of this?

Post 4-7 Reels a week. Instagram loves consistency.
Jump on trends early. Make it unique by utilising popular music and formats.
Encourage engagement. Ask viewers to comment, save, and share.
Mix educational and entertaining. A combo of value + fun keeps people watching.

Remember, the more plays your Reels get, the closer you get to your payout caps.

3. Promote Affiliate Products in Creative Ways

Examples of high-performing affiliate Reels

Affiliate marketing is perfect for Reels because it doesn’t require a brand to approach you — you pick products you love, recommend them, and earn a commission on sales.

Imagine filming a quick Reel like:

“3 things in my kitchen I can’t live without (all under $20!) 🥄 Link in bio to shop.”
Or a skincare before-and-after that says, “Results after 2 weeks. Linked what I used in my profile!”

These Reels are short, authentic, and drive viewers straight to buy via your affiliate link.

Why trust and authenticity matter for affiliate sales

The worst thing you can do is push random products just for a payout. Followers see right through it, and you’ll lose trust (and future earnings).

Instead:

Be picky. Only recommend stuff you actually use or believe in.
Show it in action. Don’t just hold up a product — demo it.
Use honest captions. If there are advantages and disadvantages, list them.

This keeps your audience trusting your recommendations, making them more likely to buy.

How to choose programs that won’t disappoint your followers

Start with affiliate networks like:

Amazon Associates: Almost everything under the sun.
ShareASale & Rakuten: Great for niche products.
Liketoknow.it (LTK): Perfect for fashion and home.

Seek out goods with solid evaluations and dependable delivery. Happy customers mean repeat clicks and commissions for you.

4. Sell Your Own Products or Services Using Reels

How small businesses & freelancers use Reels as mini-commercials

Whether you sell digital downloads, handmade jewelry, workout plans, or offer consulting, Reels can work as mini-ads that reach thousands — sometimes millions — of potential customers.

Examples:

An Etsy seller does a behind-the-scenes Reel showing how they make a custom mug.
A fitness coach films a 10-second exercise tip and invites viewers to join their program.
A photographer posts before-and-after edits and links to booking info.

These Reels build trust, showcase your expertise, and get people clicking.

Smart ways to turn viewers into paying customers

Always include a clear call to action, for example “Link in bio to get yours today” or “DM me ‘COACH’ for details.”
Pin your best Reels to your profile so new visitors see your top offers first.
Use Instagram’s “Product Tags” if you have a shop setup, making buying even easier.

Real-world examples to inspire your strategy

A small bakery began using Reels to display snippets of cakes. In just two months, their local orders increased 400%.
A calligrapher posted quick name-lettering videos. They sold out workshops by funneling viewers from Reels to their booking page.
A travel guide creator offered $25 eBooks on budget trips. Reels with quick travel hacks drove hundreds of purchases.

Reels isn’t just for influencers. Any business can use it as a cost-free ad platform.

5. Offer Paid Tutorials, Guides & Private Content

The growing market for expert advice on Instagram

People LOVE learning on social media — whether it’s how to make latte art, design a Canva post, or play guitar. And they’ll pay for deeper lessons.

Use free Reels to give micro-tips, then upsell with:

Private Zoom lessons
Downloadable guides
Membership groups with advanced content

How to promote premium content without feeling salesy

Try this formula:

Reel: Give a super helpful tip (“How to remove background in Canva in 5 seconds”).
Caption: “If you want my full 30-minute design workflow, check my bio!”
CTA: Drive them to your paid platform (Gumroad, Patreon, Teachable).

When you lead with genuine value, your sales pitch feels like a natural next step.

Platforms for hosting your Instagram link and sponsored content

Patreon: For memberships and recurring income.
Buy Me a Coffee: Digital downloads or one-time assistance.
Teachable or Kajabi: For full courses.
Gumroad: Super simple for guides or templates.

Use tools like Linktree or Beacons in your bio to organize everything neatly.

6. Monetize with Instagram Badges and Reels-Linked Lives

How badges actually work and what they pay

When you go live on Instagram, followers can buy badges to support you — sort of like a tip jar. Badges cost small amounts (like $0.99, $1.99, $4.99), and you keep most of it after platform fees.

Reels plays into this by helping grow your audience and hype up your live streams.

Combining Reels to hype your Lives and drive badge sales

Post Reels teasing what you’ll cover in your Live. For instance: “Going live Friday to break down exactly how I made $1,000 from Reels last month. Bring your questions!”
After the Live, slice it up into short highlight Reels. This boosts your authority and draws even more people to your next Live.

Simple ways to get viewers to buy badges repeatedly

Thank badge buyers by name on your Live. Everyone loves a shoutout.
Offer mini incentives: “Everyone who buys a badge gets a copy of my exclusive checklist. DM me a screenshot after!”
Be consistent. The more you go live, the more viewers expect to support you.

7. Earn Money from Instagram Reels by Collaborating with Creators

Cross-promotion explained: growing your audience by sharing

Working with other creators exposes you to new followers. When you both post collaborative Reels or tag each other, you’re effectively doubling your reach. More eyes = more customers, more affiliate clicks, and more brand deals.

Types of partnerships that pay off financially

Co-create tutorials or fun challenges.
Run a joint giveaway (both your audiences participate).
Offer bundle deals if you both sell digital products.

For instance, a health care professional and a fitness instructor collaborate. They create a “5-minute post-workout snack ideas” Reel together. Both audiences see it, boosting each of their followings.

Do’s and don’ts for successful collabs

✅ Do pick partners whose audiences match your ideal buyer.
✅ Do lay out clear expectations (who posts what, who edits).
🚫 Don’t partner with direct competitors who could steal your customers.
🚫 Don’t go in without a promo plan — agree on captions, tags, and cross-story shares.