Influencers and content creators rejoice! Instagram has announced that they are working on a new suite of tools that will make it easier than ever to make money off of the platform.

The new monetisation features are aimed at making it possible for influencers to ‘make a living in the long run’ according to Facebook CEO Mark Zuckerberg. Plans are underway for Creator Shops, affiliate commerce programs and a new branded content marketplace, all of which will reward users financially for driving sales through the platform's shopping features. The features come on the heels of Instagram’s recently introduced shopping features and increased focus on social e-commerce.

So, how are each of these new features expected to work exactly, and what does it mean for users on the platform? Take a look at our breakdown below.

Creator shops

One of the most exciting new concepts revealed by Zuckerberg himself in a recent broadcast, was ‘Creator Shops’. Whilst he has yet to reveal a lot of detail about how this feature will work, it’s understood that creators will be able to curate their own collections of shoppable products from brands into ‘Creator Shops’ which will be accessible from their profile pages. For influencers that regularly promote brands, this feature has great potential benefits, allowing users to shop products from their favourite creators without leaving the platform. This could potentially be a much more seamless experience than the current approach of creators tagging brands or providing information in their bios and descriptions.

Affiliate commerce

Alongside with the new Creator Shops feature, Instagram has also announced plans to introduce affiliate marketing programs to the platform. This will mean that influencers are able to earn a commission from any product sales that they generate. Of the decision, Zuckerberg said;

‘Creators should be able to get a cut of the sales that they’re building.’

It’s not yet clear how affiliate programs on the platform will work, but it’s already raising a few eyebrows. It’s likely that sales will need to be completed entirely on the platform in order for influencers to benefit, and it’s not yet known what commission rates will be- although the typical range for affiliate marketing is usually around 5% to 30% depending on the product.

For many users the move has deepened an all-too-familiar concern about authenticity on the platform. Influencers are already often criticised for being disingenuous with their content, with some motivated to promote sub-par products purely for financial gain. With affiliate marketing on the way, it seems like the logical conclusion to draw that influencers and models may be even further incentivised to push products, even if they have not properly vetted their quality. How Instagram plans to combat this potential issue remains to be seen.

Branded content marketplace

Finally, Instagram is working on a branded content marketplace which Zuckerberg says will add a ‘creator middle class’ to the platform. There’s not yet a lot of information on how the tool is supposed to work, but its main purpose is going to be about connecting brands with relevant influencers and up-and-coming talent. It’s not known how sponsorship deals will be structured but Zuckerberg has stated that they will be highly favourable deals for influencers. The platform has said that it is not developing the tools with the view of generating profit, instead its goal seems aimed at allowing them to gain more control over their content creator ecosystem, bringing more of it in-house.

Whilst the new features are still in development and a date for their release is yet to be announced, it’s anticipated that they won’t be too far away. Instagram has made no secret of its plans to increase its e-commerce capabilities; working towards an increasingly engaging – and harmonious – user journey that will allow users to more easily discover new products and shop the brands they love. It’s expected that new AR features to enhance the shopping experience will soon be on the way. With Creator Shops, affiliate marketing and the branded content marketplace now on their way, we can’t wait to see where they go from here!

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