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, artificially inflate your engagement metrics, or mislead your audience. You need to build a genuine 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. This is a key step to becoming a content creator on Instagram.

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 great 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: Many followers won't know you offer a subscription unless you tell them. Mention it in your regular Reels, 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 truly unique content.
• 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 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 at 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 that the option is available. 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 regularly. A deep catalog of successful videos signals to Instagram that you're a serious creator.
• Grow your viewership: Accounts with a large and engaged audience are more likely to be invited. Create content with broad appeal and high shareability.
• Stay compliant: Follow the Partner Monetization Policies strictly. Brands want their ads shown on safe, reliable content, so keep your profile free of 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, simply accept the terms and set up your payout information.

Indirect Monetization: Drive Sales and Partnerships with Reels

Not all money comes directly through Instagram's tools. For many creators, Reels are a 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 traditional creator monetization model. A brand pays you to create a Reel that features or promotes their product. With Reels' reach, this has become a highly effective strategy for both creators and brands. Learn how to get brand deals on Instagram to maximize your earning potential.

How to get started:

• Build a genuine audience: Brands don’t just look at follower count, they consider engagement rate and audience trust. Develop a strong personal brand around a specific niche (e.g., sustainable fashion, kitchen hacks, small business finance).
• Create a media kit: A simple PDF summarizing who you are, your niche, audience demographics (via Instagram Insights), key engagement stats, and your rates.
• Use the 'Paid Partnership' label: Transparency is essential. Always use Instagram's "Paid Partnership" label when creating sponsored content. It maintains trust and legal compliance.
• Reach out to brands you love: Don’t wait for brands to approach you. If you use a product frequently, send their marketing team a thoughtful email or DM with an idea for a Reel. Authentic partnerships stem from genuine affinity.

2. Affiliate Marketing

Affiliate marketing enables you to earn a commission on sales you generate for a brand. You receive a unique tracking link, and every time someone clicks it and makes a purchase, you earn a percentage. Learn how to do affiliate marketing on Instagram to start earning commissions.

Reels for Affiliate Marketing:

• Product demos: Create a Reel demonstrating 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. Trustworthiness is your biggest asset, so be genuine about the pros and cons.
• The Call-to-Action: Your Reel should generate interest. Make it clear to viewers to check out your affiliate links. Since clickable links aren't allowed in Reels captions, say, "The link to everything is in my bio!"

Tools like Linktree or Beacons let you create a landing page in your bio that hosts multiple affiliate links neatly.

3. Selling Your Own Products &, Services

The most long-term and powerful approach is using Reels to promote your own products or services - whether it's merchandise, digital products, online courses, or coaching/consulting. Reels can be an effective marketing engine for your personal brand.

Examples:

• Digital products (e.g., ebooks or presets): Create short educational Reels that showcase the value of your product. If you sell Lightroom presets, show before-and-after images using the presets, then end with a call-to-action to buy via your bio link.
• Physical products (e.g., prints or clothing): Show your process, packing orders, sharing customer reviews. Connect your audience with the care behind your products. For e-commerce setup, see how to set up Instagram Shopping with Shopify.
• Services (e.g., coaching or design): Share quick tips to demonstrate your expertise. For example, a career coach might post resume tips or interview advice, which builds trust and attracts paying clients.

Final Thoughts

Monetizing your Instagram Reels involves a combination of using Instagram's built-in features and creating external income streams. From direct support via Gifts and Subscriptions to lucrative brand deals and selling your products, the key is consistent, high-quality, authentic content that resonates with your audience.

As content creators ourselves, we understand the challenges of maintaining consistency. To streamline our Reels and other platform content strategies, our team now plans everything with Postbase. Its visual content calendar helps us identify gaps and stay organized, and its native scheduling for videos makes publishing across TikTok, YouTube Shorts, and Instagram straightforward. It manages organization so we can focus on creating content that builds community and earns revenue.

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