How to Use Monetization Tools on Instagram Reels

Turning your Instagram Reels from a creative outlet into a stream of income is more achievable than ever before. With several monetization tools now available directly within the app, you have the power to earn from your content without ever leaving the platform. This guide breaks down exactly which tools are available, how you can become eligible, and the step-by-step process to start monetizing your Reels today.

First Things First: Are You Eligible for Monetization?

Before you can start earning, you need to play by Instagram's rules. This means meeting a set of baseline requirements that apply to all monetization features. Think of this as getting your account in good standing so Instagram sees you as a reliable partner.

The two most important pillars are the Partner Monetization Policies and the Community Guidelines. While the full documents are detailed, here's the gist:

• Create original content: You must own the rights to the videos you post. This means no unedited re-uploads of someone else's content, content with watermarks from other platforms, or static videos with polls.
• Be authentic: Don't buy followers, inflate your engagement metrics artificially, or mislead your audience. You need to build a real community.
• Stay out of trouble: Avoid posting content that could be considered sensitive, hateful, illegal, or sexually suggestive. You also can’t monetize content related to medical claims/products, political issues, or misleading information.
• Residence: You must live in a country where the specific monetization feature you want to use is available. These features are rolled out country by country, so availability can vary.

On a more technical level, you will also need:

• A Professional Account: You can't monetize a personal account. You must be on a Creator or Business account. You can switch for free in your settings under "Account Type and tools."
• Active Presence and Follower Minimums: While some features have a follower count minimum (e.g., typically 10,000 for Subscriptions), it's more important that you show you’re an active, established presence on the platform.

How to Check Your Eligibility Status

Instagram makes it easy to see where you stand. You can check your eligibility directly in the app:

1. Go to your profile page.
2. Tap on your Professional Dashboard at the top.
3. Scroll down and select Monetization (or a similar tool name depending on app version)

Here, you'll see a list of monetization products. If you are eligible for a tool, it will say "Set Up." If not, you can tap on it to see which criteria you still need to meet. This is the clearest way to understand what you need to work on.

Direct Monetization: Instagram's Core Earning Tools for Reels

Once you're eligible, you can activate Instagram’s built-in monetization tools. These are designed to let you earn money directly from your fans and from Instagram's advertising programs, often right on the Reels you're already creating.

1. Instagram Subscriptions

What it is: Subscriptions allow your most dedicated followers to pay a monthly fee in exchange for exclusive content and special perks. It’s a fantastic way to build a predictable, recurring revenue stream based on your most loyal community members.

How it applies to Reels: You can create "Subscriber-only" Reels. These videos will be visible only to your paying subscribers, giving them exclusive access to your best content. This could be in-depth tutorials, behind-the-scenes footage, early access to information, or just more personal, unfiltered clips.

How to set it up:

1. Navigate to your Professional Dashboard.
2. Tap on Your Tools >, Subscriptions.
3. Follow the on-screen prompts to set up your payout account and choose your monthly subscription price. Instagram offers several price tiers, letting you decide what feels right for your audience.

Best Practices:

• Promote it consistently: A lot of your followers won't even know you offer a subscription unless you tell them. Mention it in your regular Reels, your Stories, and put a permanent highlight on your profile.
• Deliver real value: Subscribers are paying for something extra. Make sure your exclusive content feels worth it. Don't just repurpose public Reels, give them something genuinely unique.
• Engage your subscribers: Foster a sense of community. Use subscriber-only Live sessions to connect, reply to their comments first, and make them feel seen. The value isn't just content, it's access.

2. Instagram Gifts

What it is: Gifts are a way for viewers to show appreciation for your Reels in real-time. They can purchase virtual "Stars" and send them to you on individual Reels they love. Each Star translates into a monetary payout for you (minus Instagram's fee).

How it applies to Reels: Once enabled, a "Send Gift" button will appear on the bottom of all your eligible Reels. When a follower taps it, they can send you gifts powered by Stars. It’s a simple, low-pressure way for your audience to support you without committing to a monthly subscription.

How to set it up:

1. Go to your Professional Dashboard.
2. Tap on Gifts.
3. Follow the instructions to set up your payout account. Once done, you just need to toggle them on for Reels.

Best Practices:

• Create "gift-worthy" content: Gifts are often an emotional response. People send them for Reels that are incredibly funny, deeply moving, extremely helpful, or visually stunning. Focus on high-impact videos that evoke a strong reaction.
• Give a subtle call-to-action: You don't have to beg for Gifts, but you can gently remind people the option is there. A simple "Every Gift helps me create more videos like this!" in your caption or pinned comment can work wonders.
• Acknowledge your supporters: When someone sends you a significant gift, thank them! A reply to their comment or a shoutout in your Stories makes them feel appreciated and shows other followers that you value their support.

3. Ads on Instagram Reels

What it is: Previously known through programs like the Reels Play Bonus Program, this feature allows Instagram to place ads on your content. The ads can appear before, during, or after your Reel, and you receive a share of the resulting ad revenue.

How it works: Unlike the other features, Ads on Reels is typically an invite-only program. Instagram identifies creators who produce consistent, high-performing, and brand-safe content. Payouts are performance-based, meaning the more views and engagement your Reels get, the more you can potentially earn.

How to get invited:

• Focus on quality and consistency: Post high-quality, original Reels on a regular basis. Having a deep catalog of successful videos tells Instagram you're a serious creator.
• Grow your viewership: Accounts with a large and engaged audience are more likely to be invited. Work on creating content that has broad appeal and is highly shareable.
• Stay squeaky clean: Adhere strictly to the Partner Monetization Policies. Brands want their ads shown on safe, reliable content, so keep your profile free of any policy violations.

If you're invited, you'll receive a notification and an invitation to set it up will appear in your Professional Dashboard. From there, it's a simple matter of accepting the terms and setting up your payout information.

Indirect Monetization: Drive Sales and Partnerships with Reels

Not all money is made through Instagram's tools. For many creators, Reels are the most powerful marketing channel for driving external business opportunities. This is where you can take full control of your earning potential.

1. Brand Partnerships & Sponsored Content

This is the classic creator monetization model. A brand pays you to create a Reel that features or promotes their product. With the reach of Reels, this has become a highly effective strategy for both creators and brands.

How to get started:

• Build a genuine audience: Brands don’t just look at follower count, they look at engagement rate and audience trust. Create a strong brand for yourself around a specific niche (e.g., sustainable fashion, kitchen hacks, small business finance).
• Create a media kit: A simple PDF summarizing who you are, what your niche is, your audience demographics (available in your Instagram Insights), your key engagement stats, and your rates.
• Use the 'Paid Partnership' label: Transparency is everything. When you create sponsored content, always use Instagram's built-in "Paid Partnership" label. It maintains trust with your audience and keeps you compliant with disclosure laws.
• Pitch to brands you love: Don't wait for brands to come to you. If there's a product you use every day, send their marketing team a thoughtful email or DM with an idea for a Reel. The most authentic partnerships come from genuine affinity.

2. Affiliate Marketing

Affiliate marketing allows you to earn a commission on sales you generate for a brand. You're given a unique tracking link, and every time someone clicks that link and makes a purchase, you get a percentage.

Reels for Affiliate Marketing:

• Product demonstration: Create a Reel showing how a product works and highlighting its best features. For example, a "3 Ways to Use Our Favorite Blender" Reel can drive sales for that blender.
• Reviews and comparisons: Honestly review a product you use. Trust is your biggest asset here, so be authentic about the pros and cons.
• The Call-to-Action: Your Reel's job is to create interest. The conversion happens when they click. Clearly direct people to your affiliate links. Since you can't put clickable links in Reels captions, the standard practice is to say, "The link to everything is in my bio!"

Tools like Linktree or Beacons allow you to create a landing page for your bio that can host multiple affiliate links cleanly.

3. Selling Your Own Products & Services

Perhaps the most powerful long-term strategy is using Reels to sell something that is 100% yours. Whether it’s merchandise, digital products, an online course, or your time as a coach or consultant, Reels can be your VIP marketing engine.

Examples:

• For a digital product (e.g., an ebook or preset pack): Create educational Reels that give a small taste of the value inside your product. If you sell Lightroom presets, show stunning before-and-after edits using the presets. Then end with a call-to-action to buy the full pack via your link in bio.
• For physical products (e.g., art prints or clothing): Show your process. Pack an order. Share a customer review. Make your audience feel connected to the love and care behind your product.
• For a service (e.g., coaching or design): Create helpful Reels that showcase your expertise and authority. If you’re a career coach, share quick tips on resume writing or interview confidence. Demonstrate your value for free, which makes potential clients eager to pay for your dedicated help.

Final Thoughts

Monetizing your Instagram Reels is a blend of leveraging Instagram's built-in features and creating your own external income streams. From direct fan support through Gifts and Subscriptions to more lucrative brand deals and sales of your personal products, the key is always to create consistent, high-value, and authentic content that your community loves.

As creators ourselves, consistency is a challenge we know all too well. To manage our content strategy for Reels and other platforms like TikTok and YouTube Shorts, our team now runs everything through Postbase. We’ve found that using its visual calendar to plan our content helps us spot gaps and stay organized, and its video-native scheduling makes publishing across multiple short-form platforms incredibly straightforward. It handles the organizational heavy lifting, freeing us up to create content that builds our community and drives monetization.