Reels have exploded in popularity on social media platforms like Instagram and TikTok in recent years. For creators, reels represent a massive opportunity to build an audience and generate income. But how exactly do you start earning money from reels? There are several ways to monetize reels and start making an income from your short, entertaining videos.
Get Paid by the Platform Directly
Many social platforms have introduced creator fund programs that pay creators directly for their reels. Here are some of the key platform monetization programs:
Instagram Reels Play Bonus
Instagram launched the Reels Play Bonus program as a way to incentivize creators to post more reels. If you post an original reel, you have the potential to earn bonus payouts ranging from $100 to $10,000 based on views and engagement on your reels. The bonus amount is determined by an equation that includes the number of views, accounts reached, shares, etc. To be eligible, you need at least 10,000 followers and must post consistently high-performing reels that attract above average engagement metrics.
TikTok Creator Fund
The TikTok Creator Fund provides creators with cash payments for videos posted on TikTok based on their viewership and engagement. To qualify, you need at least 10,000 authentic video views in the last 30 days and at least 1,000 followers. TikTok evaluates factors like post engagement and videos watched to determine payout amounts, which vary widely based on location and range from a few cents to a few dollars per 1,000 video views. Top creators can earn thousands per month.
Snapchat Spotlight
Snapchat Spotlight is a TikTok competitor within Snapchat that pays creators for viral Snaps. Snapchat awards creators with the most daily Snap views via Spotlight between $1000-$10,000 per day. There are no firm eligibility requirements, though Snap prioritizes new accounts with viral potential. Payout amounts are determined by a proprietary algorithm based on views and engagement relative to other Snaps that day.
YouTube Shorts Fund
YouTube launched the YouTube Shorts Fund as a $100M fund to reward creators for original and top-performing YouTube Shorts. Earnings vary based on Shorts viewership and channel engagement. To qualify, you need 1,000 subscribers and 10 million Shorts views over 90 days. YouTube calculates bonus amounts based on daily views compared to other creators. Top earners can make six figures via this fund.
Use Native Ads in Your Reels
Native advertising represents sponsored ad content directly within your reels that matches the natural form and function of the platform. Here are some effective native ad formats to monetize reels:
Brand Shoutouts and Product Placements
Call out or showcase a specific brand or product naturally within your reel. You can negotiate paid sponsorship deals with brands for this type of organic product integration.
Sponsored Hashtag Challenges
Promote a sponsored hashtag challenge relevant to your niche, where creators use a brand’s hashtag and generate branded content around a specific campaign.
Branded Lenses/Filters/Effects
Leverage ARbranded lenses, filters or effects in your Reels activated by a brand’s logo or product. Platforms make these sponsored immersive formats available to creators.
Promoted Stickers and Badges
Add sponsored stickers or badges into your Reels that link to brands and enable direct shopping capabilities for products featured.
| Native Ad Format | Platform |
|---|---|
| Brand Shoutouts | Instagram, TikTok, Snapchat, YouTube |
| Sponsored Hashtag Challenges | Instagram, TikTok, Snapchat |
| Branded Lenses/Filters/Effects | Instagram, Snapchat, TikTok |
| Promoted Stickers and Badges | Instagram, TikTok |
Sell Branded Merchandise
Promote and sell custom branded merchandise within your Reels and link to your online store in your profile. Affiliate links allow you to earn a commission from resulting sales. Useful merchandise includes:
- T-shirts with custom designs and influencer quotes
- Hoodies or sweaters with a personal logo
- Phone accessories like pop sockets or phone cases
- Custom jewelry pieces
- Stationary featuring your brand
Shorts focused on new merchandise releases tend to perform well. Convert viewers into paying customers.
Use Affiliate Links
Include affiliate links in your profile or reel captions to earn a sales commission when followers purchase products through your unique link. Reels focused on product recommendations, reviews or tutorials lend themselves well to affiliate links. Make sure disclosed affiliate partnerships follow FTC endorsement guidelines. Lead with valuable info over promotion.
Cross-Promote Sponsored Content
Cross-promote your reels in paid social posts and stories across platforms. This expands reach to new audiences and drives traffic back to your reels and profile. Boost key reels natively as ads on:
- TikTok with a Promoted Video ad
- Instagram and Facebook with a Reels ad
- YouTube with a YouTube Shorts ad
Optimizing for cross-promotion gives a better return on ad spend.
Pre-Roll and Mid-Roll Video Ads
On platforms like YouTube, monetize Shorts with direct pre-roll, mid-roll and display ads adjacent to your content:
- Pre-roll ads – 15-30s video ads before your Short starts
- Mid-roll ads – Video ads inserted in the middle of your content
- Display/overlay ads – Static image or text ads that appear overlaid on a Short
YouTube shares ad revenue with Shorts creators through its Partner Program, but you need 1,000 subscribers and 10 million Shorts views over 90 days to be eligible.
Use Your Reels to Promote Paid Content
Promote exclusive premium content, services, memberships or subscriptions within your Reels to convert viewers into paying customers on other platforms. For example:
- Promote an exclusive podcast or YouTube series
- Tease paid virtual/in-person events, classes or consulting services
- Highlight members-only content from a paid membership program
- Drive sign-ups for a paid newsletter or community
Position Reels as a way to sample your best work and prompt viewers to purchase access to more.
Crowdfund Creative Projects
Use Reels to promote crowdfunding campaigns related to creative projects or passions. Platforms like Kickstarter, Indiegogo, and Patreon allow you to raise funds directly from your audience to support your work. Showcase your project goals, funding perks, and progress updates through compelling Reels that make viewers invested in your mission.
Collaborate with Brand Partners
Partner with brands relevant to your niche to create sponsored reel content as part of an influencer marketing collaboration. Negotiate a dedicated media budget from the brand for content production. Ensure the partnership aligns with your brand identity and audience interests.
Sell Licensing Rights
You can also earn income by selling the licensing rights for brands to reuse or remix your reels. Make your reels shareable and accessible for this purpose. Creative edits, animations and trending soundbites on reels tend to be the most license-friendly.
Conclusion
Reels present a lucrative opportunity for creators in 2023 to transform entertaining short videos into a stable income source. Diversifying your monetization strategy across direct platform payouts, native ads, merchandise, affiliates, crowdfunding, brand deals and licensing maximizes your earnings potential. Treat Reels as both a creative outlet and a business. With consistency, optimization and persistence, you can build Reels into a five or even six-figure income stream.