Set up Your Instagram Affiliate Program to Become a Social Selling Powerhouse

Influencer Marketing

When you think about Instagram, the first thing that comes to mind is probably not affiliate marketing. But Instagram is full of influencers promoting products and services to their followers in stories, reels, and posts.

This started when instagram first began and has continued to this day. The benefit for the influencers is they get a commission on any sales they make. They might also charge the brand an upfront fee for creating the post in the first place.

The commission rate paid out to the influencer is up to the brand and can be a percentage of the sale value, a set amount per sale, or pay per click. 

Instagram themselves experimented with affiliate marketing for creators, but canceled the trial after feedback from brands and creators in the space. However, 61.4% of influencers that use affiliate marketing use Instagram to promote brands.

Example of an Instagram affiliate post in stories.
Image source: Instagram

What is Instagram?

Instagram is a photo and video sharing social media platform that has been around since 2010. Initially started by Kevin Systrom as a photo sharing app,  Facebook (now Meta) acquired them in 2012, and since then there have been many changes including adding reels (video content), stories, filters and more.

The Role of Affiliate Marketing on Instagram for Brands

Affiliate marketing has been around since the 90s, and affiliates have been advertising on instagram since its inception. Now, more and more influencers are posting about their favorite products and services. In 2021 3.8 million posts were tagged with #ad on Instagram worldwide, which is a 27% increase from 2020.

Instagram plays a pivotal role for brands interested in affiliate marketing. Let’s look at why.

Large User Base

Instagram has a massive user base. In 2021 over 28% of the whole world’s internet users were using Instagram every month. By 2025 that is set to grow to 31.2% or 1.44 billion users per month. 

Statistics on the number of Instagram users around the world.
Image source: Statista

Instagram is also the fourth most popular social media platform in the world as of January 2023. So what does this mean for brands? Access to potential customers who are looking to purchase. 

Access to Influencers

Instagram has approximately 1.35 billion users per month (see the image above). Of those users, more than 64 million are influencers worldwide, though finding exact influencer numbers is difficult. 

Plus, 54% of the influencers on Instagram are nano-influencers, and 33% are micro influencers, according to SocialPilot.

What this means is there is endless potential for you as a brand to find influencers to promote your brand, even if you have a very niche product.

Visual Appeal

The clean design of Instagram means that photographs and reels are the focus point and the grid layout makes it look organized. Brands and influencers can use this to create themes or color coordinated posts on their pages.

Example of a themed feed from snugglehunnykids on Instagram.
Image source: Instagram

Filters and editing tools have enabled Instagram users to create professional-looking images and videos and improve the visual quality, and people strive to create high quality images.

It uses the idea of storytelling with images which are engaging and relatable which is why influencers endorsing products can drive revenue for your brand.

Why Instagram is an Ideal Channel for Your Brand’s Affiliate Program

Instagram is a great place to find influencers to promote your brand. Remember, every affiliate you collaborate with brings along not just their content creation skills, but also a specific audience demographic. These audiences have interests, behaviors, and preferences that can be harnessed for targeted advertising. Let’s uncover the benefits this combination offers:

Targeted Ads, Better ROI and Increased Sales

One size doesn’t fit all, especially on social media like Instagram. Affiliates have unique audience insights, and can tailor their ads to resonate with their followers on a personal level because they have built trust. This not only boosts engagement but also improves the overall user experience. When these affiliates promote a product, their endorsements often carry more weight than traditional advertisements, leading to higher conversion rates.

It’s all about reaching the right people. With affiliates who cater to niche markets, brands can tap into highly specific audience segments. For instance, a vegan skincare brand might collaborate with a vegan lifestyle influencer, ensuring their ads reach an audience genuinely interested in vegan products.

Additionally, affiliates often have a concentrated follower base from specific regions. Brands can leverage this to run region-specific campaigns, enhancing the relevance of their promotions.

Targeted advertising reduces the chances of your ad dollars being spent on disinterested audiences. This efficiency is essential to achieving a better return on ad spends.

Example of an instagram affiliate using stories.
Image source: Instagram

Increased Credibility

Today, users are often bombarded with endless promotions and advertisements, so credibility and trust have become the linchpins of effective online marketing. Especially on platforms like Instagram, where personal stories and genuine moments are intertwined with brand promotions, the authenticity of a message can be the decisive factor in its impact. 

When multiple influencers, especially those known for their authenticity, showcase a brand, it lends credibility. Followers often think, “If so many influencers I trust are vouching for this brand, it must be worth my attention.”

Increased Reach

Influencers on Instagram can amplify a brand’s reach in ways that traditional marketing methods often can’t. Every influencer, no matter how big or small, has cultivated an audience unique to their niche and style. By collaborating with a mix of influencers, brands can engage with varied demographic groups, ensuring their products resonate with a broad spectrum of potential customers. 

An overlooked advantage is the interconnectedness of influencers. They follow, engage with, and often collaborate with each other. A product promoted by one influencer might catch the eye of another, leading to additional, unplanned promotions.

Increased Engagement Rates

Engagement is more than just likes and comments; it’s about creating a vibrant, interactive community around your brand. Go deeper, and you’ll understand why increased engagement rates, especially through affiliate partnerships, are a coveted prize for brands.  

Higher engagement means audiences aren’t just passively scrolling past content; they’re actively participating, asking questions, tagging friends, and creating buzz. It can help to boost visibility, cultivate loyalty, and help to increase sales.

Steps to Create Your Brand’s Affiliate Program on Instagram

If you’ve decided you want to start an affiliate program and use Instagram to promote your brand, there are a few things you need to do before you can get started.

1. Find a Tracking Software

Finding a tracking software to keep on top of sales that are referred by influencers is essential. Without it, tracking sales becomes a manual task which takes time out of your day when you could be focused on other aspects of your business which drives ROI.

You can track influencer sales via coupon code or tracking link, and all affiliate tracking software will be able to tell you how much commission you need to pay to your influencer, and which influencers were responsible for driving sales.

Tapfiliate’s influencer tracking software helps you to track influencer-driven sales in real-time. Start your 👉 free 14-day trial now!

2. Get Integrated

Once you have chosen a software, the next step is to get integrated. You’ll need to check which integrations are available – you can use shopping cart integrations, payment gateways, SaaS solutions and more. At Tapfiliate we have 36 integrations including Shopify, PayPal, Stripe, JavaScript and REST API to name a few.

3. Choose a Commission Rate

One of the essential steps in setting up an affiliate marketing program on Instagram is deciding on a commission rate that is both attractive to affiliates and sustainable for your business. The commission rate is the percentage of the sale price that you’ll pay to your affiliates for each sale generated through their unique referral link.

4. Find the Right Influencers

Finding the right influencers is crucial for the success of your affiliate marketing program on Instagram. Start by defining your ideal influencer based on factors like industry relevance, niche, audience, and engagement. Authentic engagement and high-quality content are key indicators of a good influencer.

Initiate a trial collaboration to gauge their performance and if successful, ensure that you try to create a long-term partnership. 

Continuous monitoring and evaluation of influencer partnerships are essential to ensure they align with your brand values and contribute effectively towards achieving your marketing goals. 

Establishing long-term relationships with high-performing influencers can lead to better brand loyalty and sustained growth in affiliate sales on Instagram.

5. Set Up a Campaign

Setting up a successful affiliate marketing campaign on Instagram needs a structured approach. Begin by defining the campaign goals, whether it’s increasing brand awareness, generating leads, or driving sales. 

Outline the campaign structure including increased commission rates (if you choose), and select the right influencers who resonate with your brand and target audience. Work with your influencer so they can develop creative, engaging content that both showcases your products or services but also creates a compelling narrative to encourage audience interaction. 

Instagram has various features like Stories, and Reels which you can use to diversify the content and reach a broader audience. Make sure your influencers comply with Instagram’s promotional guidelines and ensure that your influencers disclose the sponsored nature of their posts. 

Lastly, use the insights gained from your campaign to optimize future affiliate marketing initiatives, adjusting strategies to achieve better results in subsequent campaigns.

6. Track The Results

Your chosen software will automatically track vital metrics which are crucial for evaluating the performance and ROI of your campaign. Monitor the analytics provided by the software to understand how your audience is interacting with the affiliate content.

Encourage open communication with your influencers to discuss performance and gather their insights on campaign engagement and audience feedback. Tapfiliate provides all of your affiliates with their own login so that they can see their campaign results independently which can open the door to a more collaborative partnership to optimize the campaign for better performance. 

The insights from your tracking software will not only provide a clear picture of your campaign’s success but also help in refining your strategies for future affiliate marketing endeavors on Instagram.

Tapfiliate reporting dashboard.
Image source: Tapfiliate

9 Strategies for Engaging Instagram Affiliates and Audiences

Engaging both your Instagram affiliates and their audiences is a dual task that, when executed adeptly, can significantly boost the success of your affiliate marketing program. A cohesive approach that encapsulates visually captivating content, smart hashtag usage, and leveraging Instagram’s native features can create a fantastic environment for affiliate marketing success. 

Here are some measures to achieve this:

1. Creating Visually Appealing Content:

Instagram is a visually-centric platform, so creating high-quality, aesthetically pleasing content is paramount. Provide your affiliates with a range of visually appealing images and videos of your products or free samples so they can create their own images. 

2. Using Relevant Hashtags:

Employing the right hashtags can exponentially increase the visibility of your posts. Encourage affiliates to use relevant, trending, and branded hashtags to reach a broader audience. Additionally, creating a unique branded hashtag for your affiliate program can help in tracking the campaign and fostering community engagement.

An example of an instagram influencer using hashtags
Image source: Instagram

3. Leveraging Instagram Stories:

Instagram Stories is a powerful tool for real-time engagement. Affiliates can use Stories to share time-sensitive offers, give followers a behind-the-scenes look at your brand, or share testimonials and reviews. The swipe-up feature in Stories can also drive traffic to your website or a specific product page.

4. Engaging in Authentic Interactions:

Encourage your affiliates to engage authentically with their followers by responding to comments, answering queries, and creating interactive content such as polls or Q&A sessions. Authentic interactions build trust and foster a loyal community around your brand.

6. Utilizing Instagram Reels

Instagram Reels offers a platform for sharing longer-form content. Engage with affiliates to create informative, entertaining, or tutorial-based content to showcase the features and benefits of your products.

Example of an influencer using reels to promote something.
Image source: Instagram

7. Offering Exclusive Discounts:

Collaborate with your affiliates to offer exclusive discounts to their followers. Exclusive offers create a sense of value and urgency which can significantly boost conversions.

8. Providing Continuous Support and Education:

Offer ongoing support and training to your affiliates to help them understand your products better and stay updated on any new features or offerings. This will enable them to promote your brand more effectively and build a stronger rapport with their audience.

9. Analyzing and Sharing Performance Metrics:

Regularly review and share performance metrics with your affiliates to help them understand what’s working and what isn’t. This open feedback loop will empower them to optimize their strategies for better engagement and higher conversions.

In a nutshell, a thoughtful strategy encompassing visually stimulating content, smart usage of Instagram features, and an ongoing supportive relationship with your affiliates, is instrumental in engaging and converting the Instagram audience effectively. By adhering to these best practices, you set a solid foundation for a thriving affiliate marketing ecosystem on Instagram.

Navigating The Challenges of Instagram Affiliate Marketing

Engaging in affiliate marketing on Instagram can be a lucrative venture, but like any other marketing channel, it comes with its set of challenges. Navigating these challenges requires a strategic approach, a thorough understanding of the platform, and a willingness to adapt to its ever-evolving nature. Here are some common challenges and actionable strategies to overcome them:

1. Algorithm Changes:

Instagram regularly updates its algorithm, which can affect the visibility of posts. To navigate this, stay updated on the latest algorithm changes, adapt your strategies accordingly, and encourage your affiliates to maintain high engagement rates through quality content and active interaction with their followers.

2. Disclosure Compliance:

The FTC mandates that influencers disclose affiliate relationships in their posts. Ensure that your affiliates are educated on the correct way to disclose these relationships in their Instagram posts and stories to maintain compliance and transparency.

Image source: Instagram

3. Tracking Performance:

Tracking the performance of your affiliate marketing campaign on Instagram can be challenging due to limitations in analytics. Utilize robust affiliate tracking software that integrates well with Instagram to monitor metrics like engagement rates, click-through rates, and conversion rates accurately.

4. Audience Overwhelm:

Audiences can become overwhelmed with too many promotional posts. It’s crucial to strike a balance between promotional and organic content. Advise your affiliates to maintain this balance to keep their audience engaged and receptive.

5. Finding the Right Affiliates:

Identifying the right influencers who align with your brand values and have an engaged following is a challenge. Conduct thorough research, use influencer discovery platforms, and consider starting with a small group of affiliates to test and learn before scaling up.

6. Product Misrepresentation:

There’s a risk of your products being misrepresented by affiliates. Provide clear guidelines, training, and resources to your affiliates to ensure they represent your brand accurately.

7. Competitive Landscape:

The competitive landscape on Instagram can be fierce. Stay ahead by continuously analyzing your competitors’ strategies, optimizing your campaigns, and providing unique value propositions through your affiliate program.

8. Maintaining Long-term Affiliate Relationships:

Building and maintaining long-term relationships with affiliates can be challenging. Offering competitive commission rates, providing ongoing support, and recognizing the efforts of your affiliates can help in retaining them for the long term.

9. Consumer Trust:

Building consumer trust is vital. Encourage your affiliates to share honest reviews, testimonials, and transparently disclose affiliate relationships to foster trust with their audience.

By proactively addressing these challenges and continuously optimizing your strategies, you can navigate the complex landscape of Instagram affiliate marketing. A solid plan coupled with a flexible approach will position you well to leverage Instagram as a powerful channel for affiliate marketing success.

Strategies for Monitoring and Optimizing Your Instagram Affiliate Program

A successful Instagram affiliate program is not a set-and-forget endeavor; it requires vigilant monitoring and ongoing optimization to ensure it continues to meet and exceed your marketing objectives. Here’s how you can approach the monitoring and optimization process to keep your Instagram affiliate program performing at its peak:

1. Utilize Robust Tracking Software:

Employ affiliate tracking software to keep a real-time tab on critical metrics such as click-through rates, conversions, engagement rates, and ROI. This will provide you with a granular understanding of how your affiliate program is performing. Tapfiliate offers a free 14-day trial.

2. Analyze Performance Metrics:

Regularly review the data collected through tracking software to identify trends, pinpoint successful strategies, and spot areas that require improvement. It’s essential to understand what’s driving results and what’s not.

3. Adjust Commission Structures:

If necessary, adjust your commission structures to better motivate your affiliates. A competitive commission rate will not only incentivize existing affiliates but can also attract new, high-performing influencers to your program.

4. Optimize Content Strategies:

Work closely with your affiliates to optimize content strategies. Test different types of content, posting frequencies, and posting times to discover what resonates best with the audience and drives engagement.

5. Leverage Instagram Features:

Encourage your affiliates to leverage various Instagram features like Stories, Reels, and in-feed posts to keep the audience engaged and drive traffic to your site or product pages.

6. Maintain Open Communication:

Foster a culture of open communication with your affiliates. Provide them with regular updates, feedback, and support to help them perform better. Listening to their experiences and insights can also provide valuable information for optimization.

7. Educate and Train Your Affiliates:

Ensure your affiliates are well-versed with your products or services and the latest marketing strategies. Offering training and resources will empower them to represent your brand accurately and effectively.

8. Test, Learn, and Adapt:

Conduct A/B tests to compare different strategies and learn from the results. Continuously adapt your program based on data-driven insights to improve performance over time.

9. Competitor Benchmarking:

Keep an eye on the strategies employed by competitors and benchmark your program against industry standards to ensure you stay ahead in the game.

10. Celebrate and Share Success:

Celebrate and share the successes of your affiliate program with your affiliates and stakeholders. Recognizing achievements and learning from successes will foster a positive and motivated affiliate community.

Monitoring and optimizing your Instagram affiliate program is a dynamic, ongoing process. With a structured approach towards analysis, communication, education, and adaptation based on data-driven insights, you can significantly enhance the performance and success of your affiliate program on Instagram.

Get Started With Affiliate Marketing on Instagram

While Instagram might not scream ‘affiliate marketing’ at first glance, the platform is teeming with opportunities for brands that know where to look. Combining the authenticity of affiliates with the precision of targeted ads can elevate your brand from just another name on the platform to a social selling juggernaut. Tapfiliate offers tracking software to help you see which influencers bring real ROI so you can grow your business. Get started with our 14-day free trial.

Ashley Howe

Ashley Howe

I’m the content strategist here at Tapfiliate. I like reading books, travel and ramen. You can find me on LinkedIn or Twitter.

Table of contents