Module 8
MONETIZATION
WAYS TO MONETISE INSTAGRAM
This segment of the monetization module dives into various methods of
monetizing as an Instagram content creator. Further insights into the
strategies employed by Brand Warikoo and the resulting outcomes will
facilitate a better understanding of brand-creator collaborations.
Monetisation for Instagram refers to the process of generating revenue or
making money from your presence on the Instagram platform.
What are the different ways to monetise on Instagram?
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Brand collaborations for reels, stories and static posts:
Inserting a brand message in the communication via reels, stories or static
posts. The collaboration could be direct or integrated.
Example of direct collaboration:
“This reel is brought to you by X”
Example of integrated collaboration: Here, you don’t explicitly call out the
brand sponsorship but seamlessly integrate it into your content while
maintaining that transparency with your audience.
Ankur did a collaboration with an e-Bike brand that he integrated into a reel
that spoke about “3 things Ankur does every day to stay fit.”
Affiliate marketing on stories with a link:
Inserting a link in your Instagram stories and driving the audience to a
particular destination.
The only way to do this is to add a link in your bio or to insert a link in your
stories.
This is usually for brands that are ROI driven, i.e. website clicks, number
of downloads or sales.
2
Here, you, as a creator, can strike a partnership with a brand, wherein you
don’t charge a lump sum upfront but a commission for every conversion
that takes place via your unique affiliate link.
The first link takes you to zerodha.com where “c=ZMPHCY” is Ankur’s
unique client ID. So if viewers click on this link, create a DEMAT account
and transact on Zerodha, Ankur receives affiliate income on the same.
This becomes a passive income for Brand warikoo.
This is definitely easier to do on YouTube vs Instagram, as there are more
avenues for adding affiliate links.
3
Link in Bio:
A creator can use this link to promote services or products of a brand or
their own. “Link in Bio” is shown as a link on their profile page.
For example, Brand warikoo advertises its newsletter, books and mobile
wallpapers via Link in Bio.
Setting up an Instagram store/business:
Setting up an Instagram store/business will allow you to sell your products
like merchandise, artwork or services.
4
Speaking Gigs:
It’s essential to elevate your personal brand to a position where people
respect you and lend authority to your voice and experience in a particular
niche. This can be monetised via thought leadership, event appearances,
corporate talks and consulting.
Above Figure shows brands where Ankur has shared his experiences via
event appearances, corporate talks and consulting. This is possible since
his experience as an entrepreneur, content creator, best-selling author and
motivational speaker.
The per-hour monetisation of these engagements is usually higher since
more value is attached to your time than your distribution. The respect and
personal branding via these events are much higher than an online
presence.
5
Getting started on monetisation
When to monetise?
Monetise only after you reach 100K or another specific follower
threshold. If you monetise before you reach 100K, you will start at a
low price, which will remain the benchmark for a long time.
Create scarcity for yourself. Allow clients and advertisers to
automatically want to sponsor or work with you.
Timeline of monetisation for Brand warikoo
2015: Free speaking engagements
Nov 2019: Paid speaking engagements
Sep 2020: Brand collaborations on YT/IG/LI
Jan 2021: Ads for courses
Mar 2021: Affiliate Marketing
Dec 2021: Book launch
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Evolution of the monetisation
In Jan - Dec 2019, Brand warikoo monetised via speaking engagements.
In Jan - Dec 2020 and 2021, we started selling courses and as our
audience grew, so did the brand collaborations.
In Jan - Dec 2022, we launched our first book, while continuing with
courses, speaking engagements and brand collaborations.
Rs/Followers means how much you monetise at a brand level per follower
you have.
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Stages of Monetisation
Let’s have a look at the stages of monetisation.
Don’t unlock monetisation till you get to the follower threshold
(here, 100K)
Until you reach 100K, create your own brand, use “Link in Bio” for your
agenda, and create scarcity by remaining exclusive to your audience.
After you surpass 100K, brand collaborations, sponsored posts, and
stories help you monetise your content. Allow agencies and brands to
reach out to you.
At 500K, “Link in Bio” can be monetised via exclusive brand
partnerships.
Over 1 million, create your own store to sell your audience
merchandise, products, services or courses directly.
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ETHICAL CONSIDERATION
You need to consider three tests before you work with any brand.
“Skin-in-the-game” Test
Ask yourself, “If my recommendation/words somehow fail, will I be
affected by it?”
Stay true to the advice you want to give to your audience.
Value Test
Ask yourself, “Am I adding value to my user persona?”
Out of all the brands that approach you for promotions, make a wise
choice and work with the brands whose products or services add value to
your user persona.
User Test
Ask yourself, “Have I used the brand/product/service as an end user?”
The user test might not be possible if the product or service isn’t meant for
your use. In such cases, look for alternative ways to help you trust the
brand enough to promote this. One way could be working with the brands
whose founders you already know and trust.
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Approaching brands
If you wait until 100K followers, brands will contact you directly.
Create a brand deck from the beginning. Here is Brand warikoo's brand
deck for your reference.
Go through influencer marketing agencies. They will get you brands
and manage monetisation.
Pricing Approach
Ballpark: Followers/2: The ballpark pricing approach is half your followers.
This stabilises as your follower count gets bigger.
For example, if you have 40,000 followers, you can charge around INR
20,000.
Have a “no regret” price: “No regret” price is, if you don’t get the deal at
this price, you will have no regrets. It’s a price below which you do not
work, you will set a benchmark for yourself.
Do not negotiate: Do not negotiate, as the minute you negotiate your price
will be brought down.
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MEET OUR GUEST: VIRAJ SHETH
Q) What will be your few pieces of advice to someone who is just getting started
with monetisation?
A) On your Instagram, have at least 3 foundational or core genres you create
content in, i.e. dance, music, fashion, motivation or fitness.
Understand what you want to do, rather than plainly chasing trends or numbers.
Add depth to your content to increase recall value.
This gives agencies and brands an idea of the niche your content operates in and
it opens different avenues for monetisation.
Q) What will be your guide to determining the pricing on Instagram?
A) The cost per view should be less than INR 1.
For example, if you are averaging 100,000 views, your price should be anywhere
between 0.3-0.5 of the views, that is INR 30,000 - INR 50,000.
If you want the brand to be working with you again, the pricing should be fair so
that they get the ROI they are looking for.
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To summarise, build your personal brand, and start monetising after a certain
follower threshold so you can command a “no regret” price to monetise your
content effectively.
KEEP CREATING!
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