Instagram introduces a native affiliate tool – meaning YouTubers will soon be able to earn commission payments on the purchases they encourage in the app.
Creators can only use the affiliate tool for products available for purchase through Instagram checkout, Instagram’s in-app payment tool.
This not only opens up new avenues for Creators and influencers too earn on InstagramBut it also means that brands are of a completely sales-based form of business affect marketing.
Ready to find out more? We share all the important details in this blog post:
This is how Instagram’s affiliate tool for creators works
So far, selected creators and influencers have been able to mark products of the brands they work with on Instagram.
However, there was little monetary incentive for YouTubers to promote products on behalf of brands – unless the promotion was part of one paid partnership.
Affiliate commerce is changing that.
“In the coming months, we’ll start testing a native affiliate tool that will allow YouTubers to discover new products available at checkout, share them with their followers, and earn commissions on purchases they make – all within Instagram App, ”shared Instagram.
Instagram will test the tool with a small group of US developers and companies, including Benefit, Kopari, MAC, Pat McGrath Labs, and Sephora.
How Much Can Creators Earn Using The Instagram Affiliate Tool?
As with all affiliate programs, the more you invest, the more you get out of it.
The more regularly you promote affiliate products on your channel, the more likely it is that you will encourage your community to sell.
TIP: Check out this blog post for 5 Tips On How To Increase Your Affiliate Income as a creator!
What is the commission rate for the Instagram Affiliate Tool?
Exactly how Instagram’s affiliate payment model will work has yet to be announced, but this is typically between 5% and 25% of the final sales value depending on the product type.
Likewise, it is not yet known how long the end-to-end payment process will take.
Most Affiliate marketing programs require a sale to be completed in full before a commission payment is released, meaning the return or exchange window has expired in full. This usually takes 60-90 days but can vary depending on the individual brand partner.
How does disclosure work for the Instagram affiliate tool?
In terms of Disclosure, Instagram will display a label above all posts that contain affiliate links to branded products.
“[People] is shown at the top of the post “eligible for commission”, so it’s clear that your purchases support this creator, “said Instagram.
However, it is FTC advises creative people does not assume that a platform’s built-in disclosure tool is good enough and recommends using these tools alongside clear and accurate disclosure.
New to the world of disclosure? Check out this blog post: How to Properly Disclose Sponsored (and Affiliated) Instagram Posts According to the FTC.
What does Instagram’s affiliate tool mean for brands?
For starters, Instagram’s affiliate tool will only be available to a limited number of brands and YouTubers.
However, Instagram has confirmed that the tool will be “extended to other partners in the future”.
This opens up a great opportunity for brands looking to increase sales on the platform, with affiliate marketing often viewed as a much safer return on investment.
Affiliate payments are usually only made based on completed sales, which makes it a more guaranteed form of influencer marketing.
Instagram’s move into affiliate marketing comes as no big surprise – it’s the final piece of a successful 3-sided one Social commerce marketplace:
This makes buying inspiration easier than ever for people using Instagram, with endless opportunities for growth.
Despite these obvious advantages, brands should note that Instagram charges a 5% per-shipment transaction fee or a flat fee of $ 0.40 for shipments of $ 8.00 or less.
Brands also lose valuable customer data (such as emails) as all communication is handled by Instagram and not directly by the brand for checkout transactions.
With that in mind, it’s worth using Instagram’s native e-commerce tools with a Strategy for driving traffic to your own domain.
One of the best ways to do this is by using a free link in the Bio Optimizer – How Linkin.bio by Later.
Linkin.bio turns your entire Instagram feed into a clickable landing page that is updated with every new post you share.
And when you’re on one Later growth or expanded plan, you can connect your Shopify account to Linkin.bio and start shopping right away.
With a fully streamlined link to your organic traffic to your website and Instagram’s native ecommerce tools, you have all the makings of selling through the app.
Are you ready to generate more traffic and sales from your link in the bio? Start using it Linkin.bio by Later today!
Jillian is the editor of Later. As an expert in social media strategy and content marketing, she has worked in both London and New York. Next up? Lisbon and Paris! You can reach her on Instagram here: @jillwrren.