Build Your Tribe | Grow Your Business with Social Media

Episode 805: How To Make Money With Instagram and Facebook Monetization [TUTORIAL]

Release Date: October 17, 2024
Host: Chalene Johnson

In Episode 805 of "Build Your Tribe | Grow Your Business with Social Media," host Chalene Johnson delves deep into the intricacies of monetizing content on Instagram and Facebook. This comprehensive tutorial aims to equip content creators with actionable strategies to generate income through these predominant social media platforms.

1. Introduction to Social Media Monetization

Chalene begins by drawing parallels between YouTube's long-standing revenue-sharing model and Instagram's earlier attempts to compensate creators. She states:

“For well over a decade, YouTube has had a revenue share program where they split their revenue with the creators who make their own revenue by posting content on YouTube.”
(00:31)

She highlights Instagram’s Reels Bonuses program, introduced as a counterpart to YouTube's model, allowing creators to earn based on the performance of their Reels. Despite its potential, the program was short-lived, concluding in March 2023.

2. Evolution of Instagram's Monetization Efforts

Chalene provides a brief history of Instagram's monetization journey:

• Reels Bonuses Program: Allowed creators to earn up to $35,000 per month based on Reel performance. However, due to lower pay-per-view rates compared to YouTube, the program was discontinued after a little over a year.

  “People were able to make up to $35,000 per month just from posting reels on Instagram.”
  (00:31)

• Current State: Although the primary Reels Bonuses program is no longer widely available, a select group of creators still receive payments based on their Reel views.

3. Current Monetization Options on Instagram

Chalene outlines the two existing avenues through which creators can earn money on Instagram:

a. Ads on Profile (Ads on Profile Feed)

• Functionality: Ads appear between individual posts when users scroll through a creator’s feed.

• Visibility: These ads are not visible on the overall grid but appear during the scrolling of individual posts.

  “Ads on Profile is kind of a deceptive name because really it should be called Ads on Profile Feed.”
  (02:15)

b. Ads on Reels

• Types of Ads:

  • End-of-Reel Ads: Short advertisements that play after a Reel finishes.
  • Banner Ads: Small banners at the bottom of a Reel that users can click on.

• Control: Creators can block specific companies or industries from advertising on their Reels, although targeting is limited.

  “If you do turn on ads on reels, you, as the creator, do have the control to block certain companies or certain niches or industries from promoting and running their ads on your reels.”
  (04:05)

• Earnings Example: Chalene shares her personal experience, earning $22 from 6.5 million views on Instagram, highlighting the modest financial returns of the current programs.

  “I received $8 from ads on reels and $14 from ads on profiles. So in total, I made $22 for getting 6.5 million views.”
  (05:30)

4. Facebook's Enhanced Monetization Strategies

While Instagram's options are limited, Facebook is stepping up its monetization game. Chalene emphasizes Facebook’s commitment to paying creators more:

• Facebook Funded Monetization: Since 2017, over 4 million content creators have earned money through this initiative, with payouts exceeding $2 billion last year alone.

  “Since they announced Facebook funded monetization back in 2017, more than 4 million content creators have earned money on Facebook and in just the last year, they've paid creators more than $2 billion.”
  (06:45)

a. Introduction of Facebook Content Monetization

• Definition: An umbrella program encompassing Ads on Profile, Ads on Reels, and the new Reels Bonuses.

• Beta Phase: Currently in beta, Facebook is inviting 1 million creators in October 2024, with plans to extend invitations throughout the year and open the program worldwide in 2025.

  “Facebook now wants to pay creators for any kind of content that they create on Facebook.”
  (08:10)

• Content Types Included: Reels, videos, photos, text posts, and upcoming inclusion of Stories.

b. Application Process and Eligibility

• Invitation vs. Application: Unlike previous programs, creators can now apply to join, potentially increasing their chances of acceptance.

  “Down in the link below this podcast, there's actually a form where you can ask to be invited to the program.”
  (09:25)

• Eligibility Criteria:

  • Age: Must be 18 years or older.
  • Location: Reside in a country where the program is available (primarily the U.S., Canada, Japan, U.K., Brazil, Australia, with plans to expand).
  • Content Compliance: No violations or removed posts. Adherence to monetization policies prohibiting content related to gambling, alcohol, drugs, or featuring minors.

  “Historically, there have been numerous countries where reels bonuses have been available or different Facebook monetization has been available.”
  (10:15)

• Monitoring Status: Creators can check their monetization status via Instagram settings under Creator Tools and Controls, ensuring compliance and addressing any violations.

  “If you click on that, it will show you whether or not you're in good standing.”
  (10:45)

5. Future Prospects and Insights

Chalene expresses optimism about Facebook’s broadened monetization approach, anticipating better revenue opportunities:

“I hope that new monetization opportunities are going to make it more accessible for more people and actually paying out more revenue.”
(11:00)

She also hints at potential monetization options for Threads, Meta’s text-based platform, contingent on the success of Facebook’s current initiatives.

“I have heard some insider rumors that they are working on monetization options for Threads as well.”
(11:25)

a. The Reality of Content Creation Earnings

Chalene offers a candid perspective on the financial aspects of being a content creator:

“Creators don't really make that much money. There's a reason why every one of the biggest creators on the planet... have all ventured into the world of business as well.”
(11:35)

She advises creators to focus on building a business or personal brand rather than solely relying on platform payouts for financial stability.

6. Conclusion

Chalene wraps up the episode by reiterating the importance of diversifying income streams beyond social media platforms. While monetization programs on Instagram and Facebook offer avenues for earning, the returns are modest compared to the effort and reach required. Building a sustainable business or brand remains paramount for long-term financial success.

“If you want to provide for yourself or your family financially, the best option is usually to create a business, to create some sort of brand, even a personal brand, rather than just relying on these platforms to pay you.”
(11:55)

She encourages listeners to stay informed about evolving monetization opportunities and to proactively engage with available programs to maximize their earnings potential.

Key Takeaways

• Instagram’s Current Monetization: Limited earning opportunities through Ads on Profile and Ads on Reels with modest returns.
• Facebook’s Growing Commitment: Significant investment in creator payouts with the new Facebook Content Monetization program encompassing diverse content types.
• Eligibility and Application: Creators can apply to join Facebook’s monetization program, meeting criteria related to age, location, and content compliance.
• Future Opportunities: Potential expansion of monetization to Instagram and Threads, contingent on Facebook’s ongoing efforts.
• Strategic Advice: Diversify income streams by building a business or personal brand alongside leveraging social media monetization.

Chalene Johnson’s thorough exploration of Instagram and Facebook monetization strategies offers valuable insights for content creators seeking to enhance their income through social media. By understanding the current landscape and future prospects, creators can make informed decisions to grow their online presence and financial stability.