Tying into its Creator Week showcase event, Instagram has announced some new monetization options for creators, including a new affiliate marketing program, which will make it easier for creators to earn money from product promotions, and new additions to its Stars creator donations process.
First off, on its new affiliate program - Instagram says that in the coming months, it'll begin testing a new 'native affiliate tool', which will enable creators to discover new products available for purchase in the app, then share them with their followers and earn commissions for any subsequent purchases that they drive.
As you can see here, the new process will enable creators to sign up for the new Affiliate program, which will then enable them to choose from products available in the app to add to their posts. And if users tap through on their post, and go on to make a purchase, the creator will get a commission - so it's essentially an influencer marketing process without the creator having to do any of the negotiation or leg-work to put the incentive deal in place.
It's an interesting idea, and it'll certainly open up new pathways for monetization, a key focus for every social platform amid the rise of eCommerce and the increasing push to provide more incentive to keep their top creators posting more often.
But it also seems potentially risky. Through this process, it seems like the brands themselves won't have any direct say in who endorses their products, which could be problematic in many ways. Would you want to allow a creator with a checkered history to promote your brand?
It's likely that Instagram has an approval process of some kind in place for this, and if it does, it could be a big step forward in helping creators make money from their Instagram posts quickly and easily, which could be significant. But the details seem a little thin at this stage.
Instagram says that it will test the option "with a small group of US-based creators and businesses" first, including Benefit, Kopari, MAC, Pat McGrath Labs and Sephora. The program will be expanded to more partners and regions in future.
Instagram's also adding a new option that will enable users to attach their existing shop to their personal profile, along with their business or Creator account.
