Update from Instagram:
“On March 9, 2023, we stopped extending new and renewed Reels Play deals on Instagram in the US and India. We will honor the existing Instagram Reels Play deals until they expire.”
Instagram Reels is a popular short-form video feature on Instagram that allows users to create and share 15-60 second multi-clip videos on their Instagram feeds.
Many wonder if they can monetize and earn money from Instagram Reels in Canada, and the answer is yes, there are a few ways Instagram Reels pays Canadian creators.
Instagram Reels Bonuses
Instagram provides monetary bonuses and incentives to encourage adoption and usage of Reels. These bonus programs change frequently, are not guaranteed forms of payment, and availability varies by region and account status.
In the past, Instagram has offered bonuses like:
- $500-$3500 CAD bonuses for accounts that consistently post viral Reels.
- A set bonus per 1 million views on a qualifying Reel video.
However, Instagram Reels bonuses are not formally announced, standardized, or contractual. Instagram may provide direct bonuses and payouts to select Canadian accounts posting Reels at its own discretion.
Instagram Reels Ads
Instagram Reels Ads allow businesses and advertisers to promote their ads in between clips when users are watching Reels. If your Reel is eligible to show ads, you can earn a cut of the revenue from ads displayed on your content.
To be eligible for Instagram Reels Ads in Canada:
- Your account must be public.
- You must meet Instagram’s monetization policies and conditions.
- Your content must comply with Instagram’s community guidelines.
The revenue share percentage and earnings rate is not publicly disclosed by Instagram. Your Reels ad earnings will depend on factors like viewership, ad rates, and more. Top Canadian accounts likely earn the most from Instagram Reels ads.
Instagram Reels and Brand Partnerships
Popular Canadian creators can partner with brands to create sponsored Instagram Reels for payment. Brands may directly sponsor your Reels content and pay you a lump sum or production fee to produce branded video clips promoting their products or services.
The amount you can charge for branded Reels depends on your audience reach, engagement rates, niche, and negotiations with the brand. Micro and nano influencers may earn several hundred dollars for branded Reels, while top influencers can charge thousands.
To qualify for lucrative brand partnerships on Instagram Reels in Canada, focus on:
- Growing your audience and engagement numbers.
- Posting content consistently in a popular niche or topic.
- Networking with brands and advertisers interested in your audience.
Brand sponsorships represent the most lucrative and direct way for Canadian Instagrammers to monetize their Reels content.
How Much Money Can You Make on Instagram Reels in Canada?
Most regular Instagram users do not earn any revenue from Instagram Reels in Canada. Significant earnings are primarily reserved for top influencer accounts with millions of engaged followers.
For nano and micro-influencers, Instagram Reels represents a supplemental income stream, not a full-time job. Some estimated typical earnings include:
- Nano influencers (1k to 10k followers) – $10 to $50 per sponsored Reel.
- Micro influencers (10k to 50k followers) – $50 to $500 per sponsored Reel.
The top Canadian Instagrammers with millions of followers can potentially earn thousands per Reel, especially if adopting Reels early and becoming a “Reels Star.”
While challenging, it is possible for normal everyday Canadians to earn extra side income from Instagram Reels through bonuses, ads, sponsors, and more. But earnings are modest for accounts under 100k followers.
Tips to Earn Money from Instagram Reels in Canada
Here are some tips to start earning from Instagram Reels as a Canadian creator:
- Post at least 1 Reel per day consistently.
- Use popular songs and audio snippets in your Reels.
- Use relevant hashtags and captions to improve discoverability.
- Engage with your audience in comments and messages.
- Cross-promote your Reels on other social channels.
- Run contests and challenges to drive engagement.
- Contact brands relevant to your niche for sponsorship opportunities.
While Instagram Reels is not yet as lucrative in Canada as TikTok’s Creator Fund program for average users, the potential to earn exists.
Canadian influencers willing to hustle in the early adoption phase may benefit most financially long-term.
Instagram Reels Monetization Requirements for Canadians
To earn money directly from Instagram Reels as a Canadian creator, your account must meet these requirements:
- Have at least 10,000 followers.
- Accumulate at least 10,000 views in the last 30 days on your reels.
- Have an authentic, public account in good standing.
- Comply fully with Instagram’s Terms of Service and Community Guidelines.
These requirements apply to earning from bonuses, ad revenue share, badges, and more direct Instagram monetization programs.
Brand sponsorship opportunities may arise before meeting eligibility, but rates will be lower until you grow your audience and viewership.
Taxes on Instagram Reels Earnings for Canadians
Canadians must pay taxes on any income earned from Instagram Reels. This includes:
- Bonuses and direct payouts from Instagram.
- Revenue share from Reels ads.
- Sponsored content brand partnership fees.
- Gifts and Stars from Instagram Live and Badges.
You must report your total income and pay personal income tax and GST/HST as applicable. Issued T4A tax slips for income over $500.
Keep detailed records and track Instagram Reels revenue through an invoice system.
Deduct eligible business expenses and claim applicable tax credits.
Consider registering as a sole proprietorship or corporation with the CRA depending on your level of earnings.
Seek professional tax guidance when earning significant Instagram income.
How Instagram Reels Payments Work
For Canadians to receive direct Reels monetization payouts from Instagram, you must:
- Connect an eligible Instagram Professional account to a Facebook monetization account.
- Provide valid tax information such as a SIN to Facebook.
- Choose a payment method such as direct deposit or PayPal.
- Earn at least $100 USD equivalent before requesting your first payout.
Payouts are issued monthly when you meet the $100 USD threshold. Processing fees and currency conversion rates apply.
For brand sponsorship payments, each brand has their own payment process, but most ask for an invoice. Get clear upfront on payment timelines, cancellation policies, usage rights and other contractual details.
Alternatives to Earning Money from Instagram Reels in Canada
If you find limited opportunities to monetize directly on Instagram Reels itself as a Canadian user, consider these alternative Instagram monetization strategies:
- Promote your other social accounts like YouTube within your Reels and encourage traffic to monetized platforms.
- Redirect viewers to your affiliate links, online store, or other outside monetizable assets.
- Use Reels to build authority and trust to boost coaching and consulting sales.
- Repurpose Reels content into longer YouTube videos eligible for AdSense.
- View Reels as a marketing channel to boost brand awareness and paid offerings.
A crossover social media strategy with varied monetization will likely work best for Canadian influencers rather than relying solely on Instagram Reels direct earnings.
The Future of Instagram Reels Monetization in Canada
Instagram Reels is still a new and emerging feature in Canada without standardized monetization opportunities comparable to other platforms like YouTube or TikTok.
However, as Reels continues to gain popularity, Instagram is expected to expand and improve monetization offerings to attract and retain creators in Canada.
Potential features Instagram may add include:
- Higher ad revenue shares for Canadian accounts.
- Access to Instagram Star badge programs.
- More bonuses tied to top content and consistent posting.
- Paid subscription options for exclusive Reels.
- Gifting to let fans tip creators.
Canadian influencers willing to adapt early to Instagram Reels stand to gain the most once Instagram rolls out improved monetization incentives and tools.
Stay up-to-date on Instagram’s announcements and experiments to maximize earning potential as a Reels creator in Canada.