Instagram Subscriptions: Profitable for Whom?

An app that changed the concept of free time for people, Instagram is now a big money-making medium for many. Users with large followers on their Instagram accounts are now called influencers as they provide information about a certain sector using reels, posts, IGTV, or stories. This popularity of the social media platform launched in 2010 became so eminent that its parent company, Meta, decided to monetise it. Today, I will take you on a tour of what Instagram's new feature, "Subscriptions", entails and how it will affect you.

Yes, popular Instagram account handlers were still making money with collaborations, affiliate marketing and sponsorships from businesses. But, Instagram on its own was not identified as a direct source of income. It merely played the role of a medium for businesses to promote their products & services and for influencers to earn money by promoting on their page.
Seeing the potential the platform has in the upcoming time, Meta is testing a new (Cough....Copied..Cough) approach to earn more revenue from their popular social media platform. Yes, we are talking about the brand-new Instagram Paid Subscription plan.

In this article, I have included answers to the most common and unusual queries you might come across about this development. From basic ones like:

• What do these Instagram subscriptions entail? How are they beneficial for creators and subscribers?
• What are the eligibility requirements?
• What’s the price range for subscriptions?  
• Are they available in India?

To the queries, no one talks about;

• What would one get by subscribing to a creator’s account?
• Is the subscription feature really needed? And more!

Keep your Instagram scrolling aside for a few minutes (Just 5-7 minutes, I promise! 😇) and scroll through this article to know A-Z of Instagram Subscriptions.

What Do Instagram Paid Subscriptions Entail?

Subscriptions, the word which is today known to even 10-year-olds, is now a part of Instagram as well. Just like Elon Musk’s Twitter, Instagram has also decided to try the funda, which is a direct line for even more revenue generation than the $51.4 billion they achieved in 2023. With an estimated mark of 37 million global influencers, this strategy may work surprisingly well for the platform.

So, for all the creators reading this article, the Instagram subscription is a new method to earn more money using the social media platform. All one needs to do is add the “Subscribe” option for their profile from their “professional dashboard” and select an amount of money that users would need to pay to subscribe to your exclusive content. Then, those subscribers would receive a purple badge next to their Instagram profile, which is a white crown in a purple patch, showcasing their status as a subscriber.

Along with the badge, the subscribers would also receive other perks by subscribing to their desired creators. From exclusive content to a quick peek inside the influencer's minds via subscriber-only group chats. It would be like having a groupies’ chat room with frequent replies from the influential figure for whom the groupies gather. Imagine getting the chance to interact with your favourite actor/actress or any influencer you admire. Instagram grasped this hidden desire of fans and turned it into a reality. 

This new program is still in its testing stage, so it is available for creators to initiate the subscriber program in the USA only. But Instagram users from different countries, like India, can still subscribe to any influencer they want. All one needs to do is click on the subscribe option on the particular influencer’s page and pay for it. There is no specific amount for an influencer’s subscription. Every influencer has the freedom to choose the amount they feel their content is worth. The usual criteria Instagram gives to the creators is the range of $0.99 to $99.99 monthly. 

Instagram & its Creator-Brand Parallel

Fame in 2023 is not limited to just celebrities and sports stars. The influencers on social media platforms such as Instagram are also considered celebs now. Their followers recognise them and follow them to get more content in the areas they are interested in. Many of these influencers often get cast on shows and advertisements or are also invited to award shows.

“The Quickstyle” (Instagram Handle: thequickstyle) earned popularity by choreographing and performing group dances on well-known songs around the world. Yes, I am talking about the group of foreigners who grooved on the 90s song “Chura Ke Dil Mera” and did a good job as well. So, these young creators from Instagram were given the invite to the IIFA Awards 2023 in Abu Dhabi.

As evident in the above example, influencers are no less influential than actors and actresses from movies and TV shows. These influencers also earn a good amount of money from the sponsorships they receive and paid partnerships they advertise. In fact, the advertisements or marketing of products and brands by influencers on social media platforms (especially done on Instagram) performs way better than other methods. Don’t believe me? You must be a Gen X or a boomer, then! But, my dear friend! The data speaks for itself, and so does this graph, as it portrays the brands' preference in choosing Instagram as a marketing platform.

Many people in the modern world purchase items that are advertised or suggested by influencers on Instagram. One benefit of doing so is the notion that one common citizen gets an inside tip from another citizen about what the product is actually like. Though less popular than movie stars, these influencers give the impression of being a neighbour next door and are thus more relatable to viewers. That’s why the products and services marketised by them have a higher potential of selling among customers.
The influencers try those products and showcase them through reels or posts, along with information about the basic things one needs to know while purchasing an item online. This is a very effective tactic, especially for the FMCG sector, where an item has the chance of looking completely different and turning out to be absolutely different in terms of quality.

I know, guys; we all have been there! Ordered a pretty floral dress with fluffs and flairs, and what came out was a hybrid version of a nightie. 🥹

So, honest reviews from influencers many times save customers from getting looted out of their precious money. But wait up! This does not mean that you go ahead and believe everything and every word an influencer tells you about, especially if the influencer excels in finance or business news. Always research well from your end without blindly investing by listening to what your favourite creator on Instagram says. After all, to bear the burden of losses, no one is going to offer you anything apart from maybe a crying shoulder. So, do your own research, and for that, Insider is present at your service.

Ways To Earn Money From Instagram

Before the launch of the subscription plan, Instagram worked as a source for creators to earn a little more money. Based on the number of followers, posts or reels, reach, likes, comments, and many other factors as per the algorithm, creators were able to score sponsorships and make money. 
Here are other ways through which creators earn on Instagram:

Badges

Introduced in 2020, Instagram Badges were one of the first initiatives of the platform to help creators make a living. Whenever a creator goes Live on Instagram, the viewers can purchase to boost their spirits or to express gratitude for providing valuable content.

In the price range of $0.99 (around ₹82), $1.99 (around ₹164), and $4.99 (around ₹411), badges are available to purchase as a show of support for the creator. This badge is shown beside the user’s handle name, which are accessible to creators in a list till 90 days after the live session took place. The list also includes the comments made by those badge purchasers so that the creator could reply or connect with them at leisure.

Bonuses

Reels are the main source of entertainment on Instagram for many of us. We are often found scrolling through the reels in our free time and liking, sharing or commenting on them as per our desire. This popularity of reels progressed Instagram to introduce the Bonus program, aka the Reels Play Bonus program, in 2021. Based on the number of views and reach, a creator will receive a certain amount from Instagram on their reels. This amount is not fixed and depends upon the data generated by Instagram’s algorithm. There are 3-4 checkpoints given to the creator via the notification they receive from the platform. Each checkpoint includes the amount they will earn if their reel touches the number of viewers mentioned.

Creators can select their particular reels for the Bonus feature upon which they will try to reach the highest checkpoint to earn the maximum amount. But, as of March 9, 2023, Instagram ended this program. The old contracts with Instagram as part of the Bonus program will exist till their expiry date, but no new contracts or invites are being sent.

Branded Content

Ever noticed the influencer you follow put posts or reels about a certain brand? They do this by tagging that brand and promoting its products or services. This is known as a branded content tool on Instagram, and the creator opting for it gets a certain amount or a business partnership in return.

Gifts

A very commonly found tool on Instagram is the gifts option. Creators can earn some revenue on their reels from viewers through the gifts tool. Viewers purchase stars which are then calculated on a monthly basis by the platform and then forwarded to the creator in the value of $0.1 for each star.

These were some of the ways through which influencers/creators were making money using Instagram. With the addition of a Subscription plan, it would be interesting to see whether all these plans would still exist or they would be discontinued like the Bonus program.

Instagram Subscriptions: Pros & Cons

In an official statement posted by Instagram, the brand-new Subscription plan was introduced to the public with a flattering sentence. Here’s how it goes, “At Meta, we strongly believe in enabling creators to make a living through our platforms and have built a suite of tools to allow them to do that- helping them get support from their audience, partner with brands, and earn money from advertising or bonuses directly from Instagram and Facebook. We’re excited to introduce our newest monetization feature: Instagram Subscriptions.”

The subscription program has been welcomed by the creators chosen to do the testing rounds in the US. One of the testers, Bunny Michael, said, “Having subscriptions on Instagram makes building a more intimate relationship with my followers and fans possible. I am so excited to nurture those connections and make a lasting impact that will help keep my work sustainable.”

It is evident from the enthusiasm of the tester creators that the new monetisation plan by Instagram is going to be a success. But what about the other users on the social media platform? What would they be getting? After all, they are the ones from whose wallets the amounts would be paid.

People might argue that the inside peek users get into their favourite influencer’s life would be worth the cost they need to pay. This statement would be especially directed at the fans of the actors/actresses who have or will partake in the big “Subscription” plan of Instagram. 
A great example would be the speed at which The Vampire Diaries' famed actor, Ian Somerhalder, saw a burst of subscribers within hours of adding the option to his profile page. Getting exclusive content, a peek from live sessions, as well as a chat room to talk with favourite stars would give the subscribers an illusion of becoming closer to them.

Let’s discuss certain aspects of getting into Instagram’s Subscription Feature:

Pros of Instagram’s Subscription Feature

Let’s start with the positive side of this feature. Here is a list of the benefits creators and subscribers would receive by indulging in this option.

• The first advantage is quite evident and is already mentioned in bits and pieces previously in the article. Yes, I am talking about the recurring capital creators would generate from this feature. Between the pricing range of $0.99 to $99.9, an influencer can choose a particular amount for users to subscribe to their account. This would help creators earn a fixed amount every month instead of the uneven payouts they usually receive based on the engagements and views of their content.
• This approach would give a chance to small businesses to shine in the limelight. Marketing done on social media platforms, especially Instagram, as discussed above, gets positive results from the targeted audience, and it’s far less costly than other mediums like billboards, TV ads and other “popular sources” of marketing. This way, small businesses can advertise their products to people from all regions and ages and increase their distribution areas effectively. 
• As social media users, we are very nosy when it comes to the personal lives of people we admire. So, this new feature would fuel our desire to view even more exclusive footage from their lives. It would also work as a medium of information and content for many.

Cons of Instagram’s Subscription Feature

Now, let’s jump on to the disadvantages of this feature and how it would affect our lives.

Fruition to the Parasocial Relationships

Many of us end up fangirling/fanboying the artists we like on the big screen. It can be an attractive actor from a romantic movie, or it can be a terrific action sequence done by an actor. The next step is googling about that character and the person playing the role and following them on social sites. If they are on Instagram, then there is no better place to know about their lives and be in the cosy circle of fandom.

When humans start to create interest, spend time, and generate emotions for a fictional character or a popular personality, then that type of relationship is called a parasocial relationship. And Instagram’s Subscription Feature is a great way for fans to continue that relationship smoothly. With the greed of gaining insights into their loving character’s/personality’s personal life, many fans are willing to pay hefty amounts.
And the creators on Instagram would be banking on this sentiment to get more revenue from the platform.

Revenue Generation for Instagram

Since the subscription plan is still in its testing phase, the revenue share Instagram earns from these subscriptions is at 0%. But, it won’t be wrong to predict that with good success, the platform would start charging creators a certain share and will thus notice a boost in their revenue charts.

The subscription plan is available for US citizens only (if they meet the eligibility criteria mentioned on Instagram’s official website) as well as invite-only creators from Canada, Australia, and UK. This proves that the plan is in its early stage, and thus it won’t be a surprise to find certain developments and further changes in the policies and terms of use. After all, a huge part of Instagram’s revenue comes from its advertising section. With an annual revenue of $51 billion, more than 80% of revenue comes from ad marketing itself. This amount is bound to increase with the new  “Subscription plan.”

This strategy has been in the market for a long time, and it has been successful every single damn time. Just take Jio’s 4G free sim distributing plan in India, for example. Today, on average, every 1 out of 3 citizens in India has a Jio sim making it the third largest network operator in the country.
So, I would like the creators to expect certain fees charged on adding the Subscribe feature to their profile in the near future.

The Bottom Line

In conclusion, if you have a popular Instagram handle with over 10K followers, then you are eligible to add that quirky subscription button to your account. Soon, this feature would be accessible to Indian creators as well. This approach is a good method for creators to earn money, but it would depend upon the quality of the content and the usefulness of the information one gets by paying a certain price.

The concept of subscribing to entertainment and education is now established within the world. So, the success of this program is guaranteed. Let’s hope that the creators invited for this feature actually deserve the privilege of gaining revenue from hardworking citizens.
 

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