How to Earn Money from Instagram Reels in India in 2025? Monetize IG Reels in 17 Creative Ways!

Instagram Reels isn’t just a trend anymore; it’s a goldmine for creators in India. This vibrant platform is transforming the way we consume content, and with it, a world of earning opportunities has opened up. Now, whether you are a budding influencer or an established brand, you can earn money from Instagram Reels by tapping into the huge organic potential of this content format.

In 2025, the possibilities are even more exciting. Imagine turning your passion into profit, collaborating with your favorite brands, and engaging with a global audience. 

In this blog, we will equip you with everything you need to know to monetize your Instagram Reels like a pro. Whether you’re a seasoned creator or just starting out, elevate your Instagram game and unlock your untapped digital earnings.

What are Instagram Reels?

Instagram Reels is perhaps the most popular feature in Instagram that allows users to create and share short 15 second to 15 minute, engaging videos. Launched in 2020 as a response to the soaring popularity of TikTok, Instagram Reels did not take long to become an Internet sensation soon after its launch. Now, they account for about 20% of all user activity on the platform! 

IG Reels come packed with creative tools including AR effects, sound dubs, speed controls, and a vast music library, empowering users to create fun and inspiring content. Users can also stitch together multiple clips, add text overlays, and utilize interactive backgrounds to enhance their videos. 

instagram reels

An excellent example of IG Reels in action is that of popular creators like Jiffpom, the world’s cutest Pomeranian. This IG Reels content is about adorable antics. Simple and effective, it attracts millions of views while fostering a community of engaged followers. 

With an endless feed of short and creative video clips, this Instagram feature has rapidly become a hub for trends and viral content and has influenced cultural phenomena and marketing strategies worldwide.

Why Should You Monetize Instagram Reels in the First Place?

Before getting into why you should monetize Instagram Reels, let’s look at some statistics –

Instagram Reels have an average view rate of 1.95% which is significantly higher than view rates for other content formats like images, carousels, etc.
Nearly 200 billion Reels are viewed per day across Instagram and Facebook!
IG Reels yield the highest impression rates among content types on Instagram, especially for small accounts with 1,000 to 5,000 followers.
➝ 74% of Instagram users are engaging with Reels, surpassing TikTok’s usage among the platform’s audience.
➝ 77% of Instagram users have made a purchase of products/services after viewing brand Reels.

Looking at the above figures, there is no denying the impact that Instagram Reels can have for online businesses. Be it offering increased visibility and engagement to driving direct revenue opportunities, Instagram Reels are a powerhouse feature to take your business to the next level. By monetizing your IG Reels, you can generate a steady income stream, attract sponsorships, and open doors to collaborative opportunities, all while doing what you love! 

Also, Reels offer significant organic reach. This format can therefore help your content get in front of a wider audience quickly, leading to higher engagement rates. 

However, remember that monetizing Instagram Reels is not just about earning money—it’s about leveraging your creative skills to build a sustainable digital presence. 

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17 Creative Ways to Earn Money from Instagram Reels in India

Instagram Reels is a lucrative option for content creators in India that offers diverse methods to monetize short, engaging video clips. With its massive audience and interactive features, Reels allow creators to showcase their talents, collaborate with brands, and directly sell products or services. Whether you are looking to generate a steady side income from Instagram or simply amplying your product reach, Instagram Reels can be your best bet. From sponsored content and affiliate marketing to hosting virtual events and launching exclusive content series, the opportunities to earn money from Instagram Reels are vast. 

how to make money from instagram reels

Utilize the following monetization strategies to earn from Instagram Reels and add to your creators’ income, while also expanding your reach and influence in the digital space –

1. Brand Collaborations

Become an influencer! Partner with brands that align with your niche. Showcase their products in engaging Reels with clear calls to action. Negotiate a fee or commission based on reach and engagement. 

Pro Tip: Highlight how your audience benefits from the product.

For example, a fashion influencer creates a Reel styling different outfits featuring a clothing brand. They include a discount code in the caption and direct viewers to the brand’s page.

2. Shoppable Product Tags

Sell directly through your Reels! Instagram allows tagging products in Reels. 

  • Partner with e-commerce businesses or create your own online store. 
  • Feature tagged products in your Reels and let viewers seamlessly purchase with a tap.

Example: A food blogger creates a Reel showcasing a delicious recipe. They tag the ingredients and kitchen gadgets used, allowing viewers to buy them directly within the app.

3. Affiliate Marketing

Promote and earn! Find affiliate programs for products relevant to your content. Include affiliate links in your Reels or use trackable discount codes. Earn a commission every time someone buys through your link.

Example: A fitness influencer creates a workout Reel featuring a brand of protein powder. They include their affiliate link in the caption, earning a commission for every purchase made using that link.

Pro Tip: Always disclose that you’re using affiliate links to maintain transparency with your audience.

4. Instagram Reels Ads 

Leverage Instagram’s ad platform! Create engaging Reels ads to promote your brand, products, or services. Target specific demographics and interests to reach your ideal audience. Pay per view or per click, depending on your campaign goals.

Example: A small business creates a Reel ad showcasing their latest product. They target their local audience and offer a limited-time discount to drive sales.

Know more about getting paid promotion on Instagram by running ads!

5. Sponsored Content

Get paid to promote! Brands will pay you to create Reels featuring their products or services. Negotiate your rates based on your follower count, engagement rate, and the brand’s budget.

Example: A tech reviewer is sponsored by a smartphone brand to create a Reel showcasing the phone’s features. They receive a fee for the sponsored content.

6. Sell Digital Products and Services 

Offer your expertise! Create and sell digital products like e-books, online courses, or templates. Promote them through engaging Reels and direct viewers to your sales page.

Example: A fitness trainer creates a Reel demonstrating a quick home workout. They offer a paid online course with detailed workout plans and nutrition advice.

7. Crowdfunding Campaigns

Fund your projects! Launch crowdfunding campaigns on platforms like Kickstarter or Indiegogo. Create Reels to generate excitement and attract potential backers. Offer exclusive rewards to incentivize donations.

Example: A filmmaker creates a Reel showcasing a short film project. They launch a crowdfunding campaign to raise funds for production costs and offer perks like exclusive behind-the-scenes content and credits in the film.

8. Virtual Coaching and Consulting

Share your knowledge! Offer one-on-one coaching or consulting services. Create Reels showcasing your expertise and attract potential clients. You can offer virtual sessions or personalized advice through direct messages.

Example: A life coach creates Reels providing valuable tips on stress management and productivity. They offer one-on-one coaching sessions to help clients achieve their goals.

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9. Create and Sell Your Own Merchandise

Brand yourself! Design and sell merchandise like t-shirts, mugs, and phone cases featuring your brand or logo. Promote your merchandise through your Reels and direct viewers to your online store.

Example: A gaming influencer creates Reels showcasing their gaming skills and promotes their own branded gaming merchandise.

10. Offer Online Workshops and Courses 

Share your knowledge! If you have expertise in a specific area, create and sell online courses or workshops. Promote your offerings through Reels and direct viewers to your sales page.

Example: A photographer creates Reels showcasing their photography skills and offers online photography courses for beginners.

Also read – How to Take Career Development Workshops Online?

11. Participate in Brand Challenges 

Join the fun! Participating in brand challenges is one of the easiest ways to earn money from Instagram Reels without being a Creator or business. All you need to do is to create unique Reels that stand out. This can increase your visibility and attract new followers. Some brands may even offer prizes or incentives for the best entries.

Example: A dancer participates in a dance challenge hosted by a popular music artist. They create a creative and engaging Reel that goes viral, increasing their follower count.

12. Become a Social Media Management Consultant 

Leverage your expertise! If you have a strong understanding of social media, offer social media management services to businesses. Create Reels showcasing your skills and attract potential clients.

Example: A social media marketing expert can create Reels demonstrating their ability to create engaging content for businesses. They offer services like content creation, community management, and ad campaigns.

13. Accept Virtual Gifts

Instagram allows viewers to send virtual gifts like “Roses” or “Fireworks” during live streams. These gifts can be redeemed for “diamonds” which eventually convert to cash.

Pro Tip: Create engaging live Reels with clear calls to action, encouraging viewers to “show their love” with gifts. Offer exclusive content or sneak peeks for high-value gifts to directly earn from Instagram Reels.

Example: A musician performs a live acoustic set on Reels and encourages viewers to send gifts to unlock a full song performance later.

14. Educational Content

Share valuable knowledge through Reels! Create tutorials for DIY projects, cooking demonstrations, or language lessons.

Pro Tip: Focus on a specific niche and offer actionable tips. Partner with relevant brands (cooking supplies, language learning apps) for sponsored tutorials.

Example: A hair stylist creates Reels showcasing various braiding techniques. They partner with a haircare brand for sponsored content featuring their products.

Are you a course creator looking to boost your online course sales? Find out How to Sell Courses Using Instagram to sell and promote your course!

15. Influencer Marketing 

Collaborate with other influencers in your niche for cross-promotion. Create joint Reels featuring your combined expertise or participate in challenges together.

Pro Tip: Choose collaborators with complementary audiences to expand your reach. Negotiate barter deals or revenue sharing based on engagement.

Example: A travel blogger teams up with a fashion influencer for a “Travel Style” series, showcasing outfit ideas for different destinations.

Find out who are the Best Education Infleuncers on Instagram in India!

16. Promote Podcasts 

Leverage Reels to promote your podcast and attract new listeners. Share audio snippets from your show, create teasers for upcoming episodes, or host interactive Q&A sessions.

monetizing instagram reels

Pro Tip: Offer exclusive podcast content previews through Reels or incentivize viewers to subscribe with discount codes for merchandise.

Example: A comedy podcast creates Reels featuring funny moments from their episodes, encouraging viewers to subscribe for the full experience.

17. Charity Partnerships 

Partner with a charity you care about and create Reels to raise awareness for their cause. You may even host live donation drives or organize challenges where viewers contribute based on engagement.

Pro Tip: Involve your audience! Encourage them to participate in fundraising efforts through Reels challenges or user-generated content initiatives.

Example: An animal rescue organization teams up with a pet influencer for Reels showcasing adoptable animals. Viewers can donate through a link in the caption.

Monetizing IG Reels – Eligibility & Payouts

Creators on Instagram can effectively monetize their Instagram Reels and generate a steady income stream from their content.

how to monetize instagram reels

If you are looking to earn from your IG Reels content, here’s what you should know –

  • To qualify for monetization, creators must adhere to Instagram’s Partner Monetization Policies. This includes maintaining authentic engagement and adhering to community guidelines.
  • Creators need to set up a payout account through Instagram’s professional dashboard. This account will be used to receive payments.
  • There is a minimum earnings threshold of $100 before payouts are issued. This means creators must accumulate at least $100 in earnings before they can withdraw funds.
  • Payouts are typically processed around the 21st of each month for earnings accumulated in the previous month. The funds may take 1-7 business days to appear in the linked bank account.
  • Instagram supports various payment methods, including direct bank transfer and PayPal, providing flexibility in how creators receive their earnings.

Instagram Reels Play Bonus Programme

The Instagram Reels Play Bonus Programme was an initiative designed to financially reward creators based on the performance of their Reels. However, this program has been discontinued as of March, 2023. Originally, it provided creators with the opportunity to earn bonuses by meeting specific view thresholds on their content. This incentivized content creation and engagement on the platform, aligning with Instagram’s push to compete with similar short-form video services. Creators who were part of this invite-only program could track their progress and potential earnings directly through the app. 

Know How to Advertise on Instagram for Free to minimize ad spends and earn money from Instagram Reels!

Tips to Create Thumb Stopping IG Reels & Make Money

Standing out from the crowd in the Instagram landscape will require more than just posting content consistently! To top it, if you’re on the hunt for ways to get paid for making Instagram Reels, your first task is to put a stop to your audiences’ endless Instagram scroll. Creating thumb-stopping Reels is more about creativity. So, put on your thinking hat and get creative with your content to grab attention and leverage it for brand promotion. 

how to create thumb stopping instagram reels

Here are few ways to get creative on Instagram Reels –

Leverage Augmented Reality (AR) – Use AR filters to create visually stunning effects that are hard to scroll past. This could be transforming everyday scenarios into magical visuals or enhancing simple tutorials with interactive elements.

Incorporate Stop-Motion Techniques – Create a stop-motion Reel using your products or educational content. This time-consuming but eye-catching method can highlight processes or results in a fun, digestible way.

Create a Custom Audio – Create or commission catchy jingles or unique sound effects that can become synonymous with your brand. Custom audio helps in establishing brand recall and enhances the uniqueness of your Reels.

Use Reverse Video Tricks – Play around with reverse video effects to showcase before-and-after transformations, setup builds, or recipes. This not only captivates but also encourages viewers to watch till the end to understand the process.

Tell a Story – Craft a story that unfolds over several Reels, encouraging viewers to follow your account to catch the next part of the story. This builds a continued engagement loop.

How to Earn Money from Instagram Reels as an Online Course Creator?

As an online course creator, you can leverage Instagram Reels to significantly boost your visibility and engagement, and then convert views into enrollments. Here are some strategic ways to use Reels for promoting your courses –

#1 – Teaser Content

Create short, engaging previews of your course modules to spark curiosity and interest. For example, you may share a 30-second tip from a course lesson as a sneak peek into your content. This will entice viewers to learn more by signing up.

#2 – Student Testimonials

Share video snippets of satisfied students or case studies. These testimonials will act as organic brand ambassadors to build credibility and showcase the real-world benefits of your courses.

#3 – Behind-the-Scenes

Give potential students a glimpse into the creation process of your online courses to increase transparency and trust. Show your studio setup or a day in your life as an educator.

#4 – Answer FAQs With Live Q&A Sessions

Use Reels to address frequently asked questions about your courses. This not only provides value but also reduces barriers for potential students by clarifying doubts directly.

#5 – Limited Time Offers

Announce discounts and special offers through dynamic Reels. Time-sensitive promotions can create urgency and boost course sign-ups.

#6 – Collaborations With Other Educators

Partner with other educators or influencers in your field to create joint Reels. This can expand your reach to their followers and bring fresh perspectives to your content.

#7 – Interactive Challenges

Host challenges or mini-contests related to your course content. You can also engage with participants in the comments to foster a community feeling and encourage course enrollments.

How to Earn Money from Instagram Reels? FAQs

  1. How much do you get paid for 1,000 views on Instagram Reels?

The payment for 1,000 views can vary based on engagement as well as the advertiser’s budget. The average pay for 1000 views on IG Reels ranges from $0.01 to $0.05. However, influencers with high engagement and a large follower base can earn $5 to $6 per 1000 views. Top influencers, especially those with large followings and strong brand partnerships, can earn upwards of this. Payouts are not publicly disclosed and can range from a few cents to several dollars.

  1. Does Instagram pay per Reel?

Instagram does not typically pay creators per Reel unless through specific programs like the Reels Play Bonus. Earnings are more commonly derived from brand partnerships and sponsorships.

  1. What is the best time to post Reels to maximize earnings?

The best time to post IG Reels will depend on your industry and your audience behavior on the platform. Posting IG Reels during peak hours when your audience is most active will lead to higher engagement. As per statistics, posting IG Reels between 6:00 pm to 8:00 pm has proven to provide maximum engagement.

  1. Can small accounts earn money from Instagram Reels content?

Yes, small accounts can monetize Instagram reels through direct brand partnerships and affiliate marketing, even if they don’t qualify for Instagram’s own monetization programs.

  1. How can I increase my Reels’ visibility?

Use relevant hashtags, engage with followers through comments, and collaborate with other creators to reach a broader audience.