Instagram, which simply began as a photo-sharing app, has evolved into a powerful digital marketing tool, thanks to brands and influencers using it to reach a wider target audience. Today, Instagram has more than a billion active users per month. Approximately 80% of these users follow a brand, and nearly 60% of them turn to Instagram to discover new products.

With the right knowledge and tools, you can grow your followers and make money on this platform, even if you’re not a well-known celebrity. Here are five proven ways to make money on Instagram with a decent amount of followers. You can combine these revenue streams in order to maximize your profits:

Related: 5 Ways You Can Turn Your Instagram Account Into a Revenue-Generating Machine

1. Sponsored posts

Brands use influencer marketing to promote their products, because it’s highly effective. Instant Famous says people trust word-of-mouth recommendations and content shared by the people they know more than brands themselves. As a result, buyers look for referrals from their peers when purchasing an item.

Because of that, brands turn to influencers to promote their products rather than doing it themselves on their profiles. On the other hand, organizations that protect customers, such as the Federal Trade Commission (FTC), require influencers to disclose sponsored posts or content to create the transparency users crave.

You can make money on Instagram if you have an already-established community of engaged followers. Honestly, you don’t need a huge following to start earning as an influencer, because brands focus more on the engagement rate than on following. Therefore having in-person interactions with your followers can attract more brands — which means more offers — even if your Instagram account has less than 1,000 followers. So then, use those loyal followers who hang on each recommendation you post on your account to find great brand partnership opportunities.

2. Affiliate marketing

Sponsored posts are not the only way to make money on Instagram. Working as an affiliate can help you monetize your account. Indeed, you can publish sponsored posts on behalf of brands and their affiliate.

You make money through affiliate marketing when your follower purchases a product you recommended in your content or on your account. They can do that by clicking on the affiliate link or using a promo code when buying the item. The brand tracks the number of sales completed through your recommendation and pays a commission. This can be a percentage of the profit the company makes after these sales.

Affiliate marketing can be an easier way of making money, because you can begin with the products you’re familiar with or already use. To get started, just research whether your preferred brands are part of affiliate marketing networks, fill out a request form, and if approved, start promoting their products on your Instagram account and other channels.

Additionally, you can search for the best affiliate programs in your niche and join those. Some of those programs include Amazon Associates, Shareasale, Impact, Clickbank, Sage Financials, FragranceNet.com and BH Cosmetics. Simply insert a clickable link in your bio, or create clickable stories, and proceed to promote these affiliate links on your posts and profile.

Related: This Is What’s Driving the Next Wave of Growth in Affiliate Marketing

3. Selling your own digital and physical products

Some Instagrammers make money by selling their own digital products. The good news is that this social media platform focuses on visual things, and users visit Instagram to get inspiration and discover new products. Therefore, selling on Instagram is easier as long as your products have a strong visual appeal.

Some trending digital products on the platform are graphic design, LUTs, presets, fonts, typefaces, etc. The most trending physical products include beauty, apparel, accessories, home décor, outdoor and sporting goods. Alternatively, you can offer services such as fitness coaching, online courses, photography, recipes, etc.

Fitness enthusiast, Lucy Davis, sells eBooks on Instagram. The Instagrammer made more than $22k from her eBook, which she created and marketed on Instagram. So, if you’re struggling to build followers in order to attract sponsored posts, try creating digital products, and promote them on Instagram. You will get more followers, keep them engaged, and they will likely purchase your goods.

4. Serve as a brand ambassador

Sponsored posts are common on Instagram. However, some brands prefer establishing long-term partnerships with influencers. As a result, they use them to promote their products as their brand ambassadors.

The high level of influencer marketing on Instagram makes it an ideal place to source for brand ambassadors. Therefore, you can seek opportunities to collaborate with large brands on Instagram to promote their products. These companies will send you free products to review and promote on your account. The lifestyle blogger, Jay Alvarez, posts videos and photos on his different channels. Brands invite him to be their brand ambassador — a great opportunity to make money.

Related: 6 Immediate To-Do Items for Instagram Influencers

5. Offer social media marketing services

Brands have added social media marketing to their marketing strategy because of its strong sales potential. They use these platforms to promote their brand, products and services, because they can find their target audience on these networks.

It’s not easy for brands to run ads or post engaging content on Instagram, and the competition is growing every day. However, it’s easy to cut through it with professional assistance. For example: Instagram expert, Jenn Herman, has been offering social media marketing services to big brands. These services include training, consultations and developing social media strategies. You, too, can make money on Instagram by working with brands as a social media expert.

Active Instagram users and influencers can earn thousands of dollars per post. But some users struggle to see their follower count grow each day. Indeed, Instagrammers want to sign big, sponsored deals that can help them put in their bank account, eat the best-looking food or travel around the world. However, brands measure your account influence based on both your follower count and engagement rate.

Because of that, well-known celebrities with huge followings grab those big deals while others struggle to build their follower count, reputation, engagement and much more. But many wonder: How much money can you actually make on Instagram? And what factors affect how much can potentially earn?

Related: 5 Ways You Can Turn Your Instagram Account Into a Revenue-Generating Machine

How much money can you make on Instagram?

The first question that most Instagram users ask is how much money they can make on this platform. Frankly, there is no direct answer to this question. According to Instant Famous, several variables influence the amount of money you can get per post on Instagram. Some of these include your niche, follower count, the method of monetization, engagement rates and quality of posts.

Sponsored posts are one of the most popular ways of making money on Instagram. The industry ranks influencers based on their follower counts and sets the prices for publishing sponsored posts based on the number of followers. For instance, the nano category has influencers with less than 10,000 followers, the micro category has up to 100,000 followers, the macro category has between 100k and a million followers, and influencers in the mega category have over a million followers. The lower-level influencers, like nanos, earn $10 per 1,000 followers, micros earn $100, and macro earns $1,000.

On the other hand, influencers have the right to set their own price, and their charges are mostly outside these guidelines. For instance, less famous influencers with up to 10k followers may set their rates at $25-$50 per post, an established one with 30-80k followers may charge $ 150 or $350 a post, while a celebrity with over 100k followers can charge between $1000 and $500,000 a post. They use other factors when setting these figures.

The engagement rate is one factor that influences how much money one can make on Instagram. Based on this, lower-level influencers with a high engagement earn more when brands pay based on the number of engagements. As a result, companies use a different pricing model, which is $250 to $750 per 1,000 engagements.

Although your Instagram follower count is important, a lower-level influencer with a higher engagement rate may earn more than another with a huge following but few likes and comments on their posts. Followers that engage more are more likely to purchase in the near future, and that’s what brands are looking for.

Related: How to Build an Authentic Instagram Audience

How many followers do you need to make money on Instagram?

It depends. Many believe that follower count is the only factor brands look at when paying you on Instagram. However, that is not true. They also look at your niche, the quality of your posts, reputation and follower engagement, because these factors influence their product awareness and sales. To prove that, let’s review three big factors that can affect your earnings on Instagram, even if you have a substantial following:

1. Engagement rate

The engagement rate on Instagram is a percentage obtained by dividing the total number of likes and comments by the number of posts and multiplying that by 100. You can use a few online tools to do the calculations quickly. Instant Famous states that 4-6% is a high engagement rate, 2-3% is average, and above 10% is viral.

A high engagement rate tells brands that their followers listen to what you say or accept your recommendations. This encourages them to invest with you, because many of your followers will buy their products. Therefore, whether you have 1,000 or a million followers, you can make money on Instagram, as long as your account has a high engagement rate. The rate shows that your followers see and interact with your content. It also means your followers pay attention to what you say, and a couple of potential buyers are among them.

2. Your niche

Social media has become part of people’s daily lives. In fact, seven out of 10 people turn to social media networks when deciding what to buy. Most of them make purchase decisions based on the opinion of those they trust. Therefore, you can give your followers the reasons to follow and listen to you if you’re knowledgeable and passionate about a particular niche. Promoting brands and products in the niche you already love can earn you money even if you don’t have a ton of followers.

This leads to the question: Which are the most profitable niches on Instagram? Beauty, fashion, health, fitness, wellness, travel, business, finance, lifestyle and luxury are some of the most popular niches on Instagram. Further, there are many brands in these niches that help you create a lot of content for them and successfully monetize them. Therefore, opt for a niche with a lot of followers, so you can easily land sponsored posts. In fact, most brands work with micro-influencers with a more engaged, targeted following in these specific niches to promote them and their products.

Related: 8 Ways to Get More Engagement on Instagram

3. Your overall reputation

Some Instagram influencers are famous on Instagram and other social media platforms as well as in their industries. They include well-known athletes, scientists and other subject matter experts. These individuals have both excellent online and offline reputations. Brands want to work with such individuals even if they don’t have a huge following on Instagram.

It’s always great to have many Instagram followers, because brands are drawn to users or influencers with a huge follower base. On the other hand, the follower count is not the only factor needed to start earning on Instagram. Your niche, engagement rate and reputation also greatly affect your ability to earn on this video-sharing platform.

As a result of these factors, there is no explicit answer to the question of how many Instagram followers you really need to start making money in the future. Even so, you can start making money even with 1,000 followers by exploring various revenue streams. Social media promoters like Instant Famous encourage active users to leverage their influence on Instagram and search for opportunities to publish sponsored posts, engage in affiliate marketing, sell their own digital and physical products, serve as brand ambassadors or offer social media marketing services.

The article has mentioned a couple of influencers that make money on Instagram with or without a large following. This is clear proof that the number of Instagram followers doesn’t count, but a high engagement rate of 2,000 loyal following can earn you decent cash on this platform.

The “three Rs “concept has arisen around the idea of influence in the social media age. Brian Solis was one of the first to propose this concept as the three pillars of influence to measure the rise of the digital influence of individuals. For years, influencer marketers and agencies have recommended relevance, reach and resonance as criteria for selecting influencers for brands, but experts suggest that it could be evolving into a new way to guide brands’ digital marketing content. Hootsuite describes the three Rs of influence as:

• Relevance: The influencer shares content relevant to your business and industry

• Research: The number of people that can be researched through the influencer’s follower base

• Resonance: The level of engagement an influencer can create with an audience relevant to your brand.

These criteria are for selecting the right influencer, but what if marketers used them to shape their marketing communications? Could the brand become the influencer?

Related: 10 Factors That Will Make or Break Your Influencer Marketing Campaign

The benefits of being an influencer brand

Today, over 60% of media consumption is through fragmented digital media versus traditional mass media. In this age of voluntary engagement, it has become harder to interrupt the customer journey. It’s not enough to reach the audience through other content creators. An influencer is simply someone who can influence others by being a social content creator to build an audience. A brand with the right content and a genuine, timely response can build its own dedicated and engaged groups of followers. Some brands have already done this very well, but it has taken a shift in mindset.

Of course, brands creating content has been around for decades. Content marketing is creating and distributing valuable, relevant and consistent content to attract/retain an audience, driving profitable action. The difference is that influencer brands have shifted their entire orientation to a consumer-centric integrated marketing communications (IMC) mindset. Influencer brands go beyond blogs, infographics, eBooks, testimonials, and how-to guides that appeal to the head. They have learned to appeal to the heart of their audience.

This comes from seeing the world from the target’s perspective. A shift that can be seen following the three Rs of influence to direct brand content creation. For example, the focus of Yeti Coolers’ content and engagement isn’t selling coolers. It is selling a lifestyle that the coolers help enable. For example, they organize products so customers can shop by activity. Images and copy lead with stories of the adventures their audience can have with the gear — fishing, hunting, camping, by the coast, in the snow, on the ranch and in the rodeo arena.

The bread and butter of brand content marketing are white papers, educational eBooks, and tutorial videos. Yeti lets it audience feast on coffee table books, celebrating whitewater rapids, films documenting brand ambassadors competing in 260+ mile canoe races and fly-fishing guides hosting podcasts. Yeti Stories are not full of stats, specs and sales promos on their coolers. They are inspiring stories of their audience’s life.

But that’s not the entire plot to their marketing story. The story’s ultimate end is purchase, and to do that, they must speak to the head as well. Yeti delivers plenty of information on the built-tough construction, legendary performance, smart design and long-lasting warranty of their products. Heart alone doesn’t justify a $300-$400 cooler. They have sales, contests and promotions to urge purchase, but they lead with the stories inspired by their audience.

So, how do you become an influencer brand? Practice consumer-centric IMC that takes a story perspective. To do this, consider the three Rs as a target for brand content and engagement. Brands that take a storyteller approach through the three Rs can become an influencer, building relationships around brand communities.

Related: 5 Reasons Brand Storytelling Is Critical to Your Marketing Strategy

Relevance

Relevance becomes sharing stories relevant to your business and industry — what is pertinent to the market. This is the cost of entry for having your story recognized as on the right subject. Fitness brands like CrossFit or Life Time create verbal messages, visual messages and brand stories about working out and fitness. They don’t create stories about financial planning, vacations or electric vehicles. No company has the resources to reach everyone in a market, and broad messages tend to fail. Markets are segmented, a target is selected, and the product is positioned to them.

Reach

Reach is the number of people of a defined population exposed to the message. Reach is getting the brand story to the target audience. Life Time Fitness and Yeti Coolers place brand messages (paid, earned, shared, owned) in media frequently read and viewed by their target audience. Not everyone who receives the message responds or responds equally. A brand’s best customers are the most loyal fans and vocal advocates. Brand advocates engage and share your brand’s content, because it resonates with them, not because you paid an influencer to talk about it. The brand is the content creator and influencer in the community.

Resonance

Resonance is engagement generated through the prolonging of a message by reflection and amplification. When a message resonates with someone, they want to share it as a signal of their identity to a group, reaching others in the market. Focusing brand content on stories that resonate with your target audience adds momentum to the message. The brand’s social identity matches the buyer’s social identity, and the brand becomes the influencer in social media.

Related: How To Get Your Influencer Marketing Right

The stories you tell in the brand content you create, and the genuine interactions you have, attracts and retains an audience, creating bonded customers to drive profitable action. That’s what it means to be an influencer brand. That’s why Yeti is more than a cooler. It is #BuiltForTheWild. That’s why Life Time Fitness is more than a gym. IT is a way for you to #LoveYourLife. Think about how you can evolve your content marketing into more of an influencer brand from a consumer-centric mindset.