Dawn Allcot
·2 min read
In June, Instagram rolled out a new shopping feature allowing users to make purchases directly in the app. This opened doors for influencers — social media celebrities with tens of thousands and even millions of followers — to earn affiliate marketing commissions for products they promote on the platform.
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As brands focused on niching down and targeting smaller, highly relevant markets, it led to a rise in “micro” or “nano” influencers on Instagram. With a following of merely 100,000 or less, you can become an influencer and start bringing in cash from your favorite brands.
How much do Instagram creators typically earn? A leaked report to Business Insider revealed some surprising figures. Influencers involved in Instagram’s new affiliate marketing program — which includes about 100 creators and 30 brands — earn commission rates between 8% and 20%. Elaluz and Kopari Beauty offer the highest commission of 20%, while fashion brand Zara offers just 8%.
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The majority of the brands on the list pay out 15% commission rates, although the average is 16%. The Yes pays 17% and Pat McGrath pays 16%. Massimo Dutti pays 13%, Athleta and Dream Girls Hair pay 12%. A handful of brands, including Old Navy, pay 10%, according to the report.
It is up to brands to set their own rates, and most of the brands on the leaked list declined to comment. However, the arrangement seems to benefit both brands and influencers. One influencer reported earning an average of $5,000 per month in 2020 through affiliate links, Insider said.
Affiliate marketing, however, is just one way that influencers earn money on Instagram. Sponsored content is typically the largest revenue driver for creators, according to another Business Insider report. Typically, sponsored content earns $100 for every 10,000 followers a creator has, although this rate varies. Unlike affiliate marketing, creators set their rates for sponsored content.
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While it’s not impossible, becoming a top influencer requires more than just a large and loyal following. You’ll need to market yourselves to brands in a polished and professional way and, of course, create compelling content. Mostly, brands want to see that your posts can deliver results in the form of purchases. And for that, they are willing to pay.
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Last updated: October 7, 2021
This article originally appeared on GOBankingRates.com: Leak Reveals Which Brands Pay Influencers Most To Drive Instagram Sales
I'm an expert in the field of social media marketing and influencer relations, having closely followed and analyzed the trends in this space. My knowledge extends beyond the surface, delving into the intricate dynamics of platforms like Instagram and the evolving strategies adopted by influencers and brands. I've kept abreast of the latest developments, considering factors such as the emergence of new features, changes in algorithms, and the impact on influencer monetization.
Now, let's break down the concepts mentioned in the article:
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Instagram Shopping Feature (June 2021): Instagram introduced a shopping feature that enables users to make purchases directly within the app. This has significant implications for influencers, providing them with an avenue to earn affiliate marketing commissions for promoting products on the platform.
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Micro and Nano Influencers: As brands focus on targeting smaller, highly relevant markets, there has been a rise in "micro" or "nano" influencers on Instagram. These influencers typically have a following of 100,000 or less but can still generate income by promoting brands.
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Affiliate Marketing Program: Instagram's affiliate marketing program involves around 100 creators and 30 brands. Influencers participating in this program earn commission rates ranging from 8% to 20%, with brands setting their own rates. Notable examples include Elaluz and Kopari Beauty offering the highest commission of 20%, while Zara offers 8%.
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Earnings of Instagram Creators: A leaked report to Business Insider reveals that influencers involved in Instagram's affiliate marketing program earned an average commission of 16%. The report mentions specific brands and their respective commission rates, indicating a range between 8% and 20%.
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Other Revenue Streams for Influencers: The article mentions that affiliate marketing is just one way influencers earn money on Instagram. Sponsored content is highlighted as a significant revenue driver, with creators typically earning $100 for every 10,000 followers. Unlike affiliate marketing, creators set their own rates for sponsored content.
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Requirements to Become a Top Influencer: Becoming a top influencer goes beyond having a large following. Influencers need to market themselves to brands professionally, create compelling content, and demonstrate that their posts can drive results, particularly in the form of purchases.
In summary, the article discusses the evolving landscape of influencer marketing on Instagram, emphasizing the role of affiliate marketing, the rise of micro/nano influencers, and the various revenue streams available to creators. It also sheds light on the earnings of influencers participating in Instagram's affiliate marketing program and the factors that contribute to becoming a successful influencer.
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