On May 26, 2020, Instagram announced that they are testing new features that makes it easier for creators to monetize their online presence. Similar to Youtube, creators will be able to take their content and create revenue through ads and IG partnerships.
Specifically, the features includes running ads before IGTV videos and viewers purchasing “badges” on IG Live, which supports the creator or influencer. Prior to these updates, creatives could only make money through paid partnerships with outside brands and deals. For many creators, this form of revenue development worked but took time to create good brand relationships. Now instead of creators asking supporters to donate to their Cash App, Venmo, or Patreon accounts, they will now get paid through Instagram directly.
“Providing a variety of monetization tools is crucial to support all creators on Instagram, from emerging digital stars to established entertainers and everything in between,” Justin Osofsky, Instagram’s COO, said in a statement. The new tools are meant to help creators “generate additional income to fuel their work.”
This benefits both parties in major ways. Creators will now have a one stop shop community where they can create, post and gain from their content. They can build their brand or business in many ways just based off the followers they already have. Instagram benefits because they will be taking a percentage of all revenue made through these features. Creators will keep 55 percent from the split.
Of course Instagram is still a business and want advertisers to feel safe. The creators will have to follow specific guidelines that are similar to the ones already put in place to protect the safety of the community.
These features could have not come at a better time with all the changes that are happening in the world today.