Are you creating short-form videos and weighing the options between Instagram Reels Vs TikTok for monetization? If you’re uncertain about where to focus your efforts to grow your content and earn money, you’ve come to the right place. In this blog post, we’ll compare the monetization options available on Instagram Reels and TikTok. By exploring the earning opportunities on each platform, we’ll help you determine which one aligns best with your goals and go over how to maximize your earning potential. Let’s dive into the monetization features of these platforms and find the best fit for your short-form video content. Let’s get started.
Table of contents:
Instagram Monetization:
Badges on Instagram:
Instagram offers a feature called Badges, allowing eligible creators to earn money during their live videos. When enabled, viewers can purchase badges during a creator’s live stream as a way to show support and appreciation. These badges appear next to the viewer’s comments during the live stream, indicating their contribution. Creators can earn money from the sale of badges, with Instagram providing a revenue share for each badge purchased.
However, to be eligible, you need to have 10,000+ followers and reside in the US. If you meet these criteria, you can enable badges by going to your Profile and then “Professional dashboard.” Once there, you’ll see a button to “Set Up Badges.” Once Badges are enabled, they’ll automatically be available for your live videos. Simply add a title and go live!
For creators outside the US or without 10k+ followers, alternative tools like CheckYa can be used. CheckYa allows you to receive support from your fans. Simply add a link in the live stream comments, enabling viewers to support you during your live stream. CheckYa charges a mere 2% fee compared to the 30% cut by Google and Apple from in-app purchases.
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Instagram Subscriptions:
Instagram Subscriptions offer creators the opportunity to monetize their content by providing exclusive benefits and content to their most engaged followers at a monthly fee. With Subscriptions, followers can subscribe through an in-app purchase on their mobile device, and creators can manage their subscriptions directly in the Instagram app.
Creators can offer exclusive content and benefits to subscribers, including Subscriber Lives, Subscriber stories, Subscriber badges, Subscriber posts, Subscriber reels, Subscriber social channels, and Subscriber broadcast channels.
Creators can enable Subscriptions and set their monthly price through the professional dashboard. The professional dashboard also allows creators to manage their list of subscribers and edit their payout account. Earnings and invoices can be reviewed in the professional dashboard. While Instagram doesn’t take a revenue share currently, Google and Apple collect 30% in fees for in-app purchases.
To be eligible for Instagram Subscriptions, creators must have a professional account with at least 10,000 followers, and agree to the Instagram Subscriptions Terms of Use.
Brand Sponsorship on Instagram:
Brand sponsorship offers creators a great way to earn money on Instagram. Through the Creator Marketplace, creators can set up their profiles and catch the eye of brands searching for influencers. This platform makes it easy for creators to connect with brands, discuss project details, and share content, all without leaving Instagram. Brands can send project offers directly to creators, who can review the terms and rates within the app’s ‘Partnership messages’ folder.
Monetizing with Ads in Instagram Profile Feed:
Another way for monetization on Instagram is through ads that appear within the profile feed. These ads show up between pieces of content as users scroll through someone’s profile feed. Eligible accounts have the opportunity to earn money from engagement on their profiles through these ads, leveraging content that’s already been created.
Once monetization is enabled, accounts may have some control over which ads appear on their profile feed or can opt out of ads altogether. By monetizing ads in their profile feed, creators have the potential to earn a share of the revenue generated from these ads. It’s important to note that as this feature is still being refined, earnings may vary over time.
Insights about earnings from ads in the profile feed can be viewed in the professional dashboard. To be eligible for this monetization option, creators must be located in the United States, Japan, South Korea, or Canada. With ads in the Instagram profile feed, creators have yet another way to monetize their presence on the platform and earn from their engagement with their audience.
Monetizing with Ads on Instagram Reels:
Creators on Instagram have the opportunity to earn money through ads placed on their Reels. This feature allows eligible creators to monetize their content by allowing ads to be displayed within their Reels. The more monetization-eligible plays a creator’s Reels receive, the more they can earn.
Instagram optimizes the placement of ads to ensure a positive viewer experience. Ads appear at the bottom of the Reels content in the form of a single static banner. The earnings are based on the number of monetization-eligible plays a creator’s Reels receive, determined solely by Meta.
Various factors, such as the viewer’s location and when the Reel was published, may influence whether a play is monetization eligible and how much it earns. Additionally, the earnings per play may change over time. Creators can view their approximate earnings for each Reel and their account in their insights.
Creators receive monthly payouts for their earnings, and they can check their payment history and update their payout account information at any time.
Monetizing with Instagram Gifts:
Instagram Gifts presents creators with an opportunity to earn money from their audience’s appreciation. This feature allows both followers and non-followers to show their support by sending virtual gifts on creators’ Reels. The gifts are visible only to the creators, providing a personalized acknowledgment of their content.
Viewers can purchase stars and use them to send gifts to creators on Instagram. For every star received from fans, creators receive a revenue share from their Reels that garnered gifts. Instagram provides creators with a monthly payout equal to $0.01 USD for each star received.
To be eligible for Instagram Gifts, creators must have at least 500 followers. Creators can track their total and monthly approximate earnings in their professional dashboard. Payouts are made once the overall balance reaches $25, including earnings from other monetization programs.Now that you have looked at all the monetization options available on Instagram, Let’s look at TikTok’s monetization options.
TikTok Monetization:
TikTok Creator Fund:
TikTok’s Creator Fund offers financial support to creators based on their video views and engagement. To qualify for earnings, creators need at least 100,000 views in the last 30 days. Earnings for 1 million views typically range from $20 to $40, providing creators with a direct reward for their content’s popularity.
Collecting Tips or Donations on TikTok:
TikTok has a tipping feature that enables select creators to earn money directly from their fan’s generosity. This feature allows fans to express their appreciation and support for their favorite creators.
With TikTok’s tipping feature, viewers can send virtual gifts and coins to creators as a way of showing gratitude. Creators may have the option to collect these gifts during a live stream, further enhancing the interactive experience with their audience. These gifts can then be redeemed for Diamonds, which serve as TikTok’s digital currency.
As creators accumulate Diamonds, they have the opportunity to trade them for real cash. This provides creators with a tangible way to monetize their content and receive financial support from their loyal fan base.
TikTok Series:
TikTok has another monetization feature called TikTok Series, providing creators with a platform to offer exclusive content behind a paywall. Launched in June 2023, TikTok Series offers creators an opportunity to create and share premium content with their audience for a fee.
Interested creators can apply to access TikTok Series, but they must meet specific criteria to be eligible. Creators must be at least 18 years old, have an account that is at least 30 days old, and have a minimum of 10,000 followers. Additionally, they must have posted at least three public videos in the last 30 days and have garnered at least 1,000 views during that time period. Creators with fewer than 10,000 followers may still qualify if they can provide a link to premium content they have successfully sold on other platforms.
With TikTok Series, creators have the flexibility to curate up to 80 videos in total, each lasting up to 20 minutes. This feature presents an excellent opportunity for creators to deliver valuable educational content to their audience for a one-time fee. Creators have the autonomy to set the price for each TikTok Series they create, with payment options ranging from $0.99 to $189.99.
Monetizing with Virtual Gifts on TikTok:
Virtual gifts are another exciting monetization feature available to creators on TikTok. This feature allows viewers who appreciate your content to express their support by sending virtual gifts, which can later be converted into real money.
To enable virtual gifts, creators can activate the gift option, which adds a small gift box icon next to the comment box on their videos. Interested viewers can tap on this icon to access a selection of virtual gifts that they can purchase and send to their favorite creators.
TikTok offers various coin packages for users to purchase, providing them with the currency needed to buy and send virtual gifts. These coin packages come in different increments, catering to users with varying budgets. From smaller packages like 20 coins for $0.29 to larger packages like 16,500 coins for $249.99, there are options for everyone to participate and support their favorite creators.
Once viewers have acquired coins, they can use them to purchase and send virtual gifts to creators. These gifts range from 5 to 3,000 coins and serve as a way for viewers to show appreciation and engage with creators in a meaningful manner.
Hosting Live Events or Workshops on TikTok:
TikTok Live presents another lucrative opportunity for creators to monetize their content. In addition to virtual video gifts, users can also send live gifts during live streams, providing creators with an additional stream of income. These live gifts can range from just a single coin to tens of thousands of coins, offering viewers various options to support their favorite creators.
When hosting a live video on TikTok, the little gift box icon appears at the bottom of the screen, allowing viewers to tap and purchase different gifts to send to the creator. Many TikTok creators have shared their success stories of making money through live streaming. Some creators report earning between $20 to $300 every time they go live, while creators, such as Jaey Boehm have made $34,000 within a single month, solely from live streaming.
Instagram Reel Vs TikTok Comparison:
| Feature | Instagram Reels | TikTok |
| Monetization Options | – Sponsored Content – Instagram Creator Fund – Instagram Subscriptions – Ads in Profile Feed | – Creator Fund – Collect Tips or Donations – Offer Exclusive Content with TikTok Series – Virtual Gifts – Host Live Events or Workshops |
| Eligibility Criteria | – Varies for different features, generally requires a professional account with 10,000+ followers – Must meet Instagram’s Partner Monetization Policies and Community Guidelines | – Varies for different features, generally requires a minimum of 10,000 followers for Creator Fund – Additional requirements for TikTok Series and virtual gifts |
| Content Restrictions | – Must adhere to Instagram’s Community Guidelines and Content Monetization Policies | – Must comply with TikTok’s Community Guidelines and Content Monetization Policies |
| Audience Reach | – Access to Instagram’s global user base of 2 billion monthly active users, which includes a wide range of demographics | – Access to TikTok’s diverse and engaged user base of 1 billion monthly active users, particularly popular among younger audiences |
Instagram Reel Vs TikTok: Which Platform is Better for Monetizing Content?
Both Instagram Reels and TikTok offer a variety of monetization options for creators, catering to different preferences and audience demographics. The better platform for monetizing content depends on factors such as your audience demographics, content style, and monetization goals.
- Instagram Reels may be preferable for creators who already have a significant presence on Instagram or who target older demographics. The platform offers a range of monetization options, including sponsored content, subscriptions, and ads in the profile feed.
- TikTok is ideal for creators looking to tap into a younger and more diverse audience base. With features like the Creator Fund, virtual gifts, and TikTok Series, creators have multiple avenues to monetize their content and engage with their audience in unique ways.
Ultimately, the best platform for monetizing content depends on your specific audience and content strategy. Consider experimenting with both platforms to determine which one aligns best with your goals and offers the most opportunities for monetization.
How to monetize outside of Instagram and TikTok’s Eligibility Criteria?
If you haven’t met the stringent eligibility criteria for monetization on platforms like Instagram or TikTok, Checkya offers an inclusive solution to creators’ diverse needs. Checkya provides a comprehensive suite of features designed to help creators monetize their content, regardless of their follower count or engagement metrics.
One of the key advantages of CheckYa is its versatility. Creators can leverage a range of features, including unlimited link integration, digital download sales, booking capabilities, lead generation, fan support, and seamless payment processing—all managed through a single bio link. This streamlined approach ensures a hassle-free experience for creators looking to monetize their content without the constraints of platform eligibility requirements.
With CheckYa, creators can diversify their revenue streams and tap into new opportunities for monetization. Whether it’s receiving donations from supportive fans or selling digital downloads of their content, Checkya offers a no-cost solution for creators to generate income directly from their audience. Additionally, offering bookings for services through the bio link provides another avenue for creators to connect with their audience and improve their earnings.
Conclusion:
In conclusion, now that we’ve explored the different ways to make money on Instagram Reels and TikTok, it’s time to weigh your options and decide what’s best for you. Each platform offers various ways for creators to earn, from subscriptions to virtual gifts and exclusive series. Consider factors like your audience, content style, and goals as you explore these options. Whether you prefer the global reach of Instagram or the engagement of TikTok, there’s plenty of opportunity to monetize your content. Take the time to assess your options and choose the platform that aligns with your objectives.
