Instagram, the new passive income stream for creative professionals?

Instagram is rolling out a native affiliate tool — which means creative professionals (e.g. freelancers, creators, influencers) will soon be able to earn commission payments for the purchases they inspire on the app. The affiliate tool will be only allowed to be used for products available to buy through Instagram Checkout. 

This is an opportunity for creators, influencers, professionals to add Instagram as a source of another passive income stream, and brands can benefit from an array of creators promoting their products and earn revenue. 

How does the affiliate tool work?

Before, only selected creators and influencers could use this feature on Instagram and tag products and brands they work with on Instagram. However, that was not beneficial or monetary incentivised, unless it was part of a paid partnership between the brand and the creator. 

This affiliate program changes that.

“In the coming months, we’ll begin testing a native affiliate tool that will allow creators to discover new products available on checkout, share them with their followers, and earn commissions for the purchases they drive — all within the Instagram app,” shared Instagram.

What is the commission rate? 

This is still TBC from Instagram on how the affiliate payment model will work, but this typically ranges between 5% to 25% of the final sale value.  

Similarly, it’s still unknown how long the end-to-end payment process will take.

Most affiliate marketing programs require a sale to be fully closed before any commission payment is released, which means the return or exchange window has completely ended. This usually takes 60-90 days, but can vary depending on the individual brand partner.