Instagram is competing with TikTok and their creator marketplace by launching an affiliate program.
They’re testing the program in their shops and allowing creators to discover new products, share them with followers and earn a commission for the purchases they drive.
🚀 How it works:
When users come across an affiliate post from a creator, they’ll see a new "eligible for commission" notifier at the top of the post, so it’s clear that purchases help support that creator.
Instagram is testing it with a small group of US-based creators and businesses, including Benefit, Kopari, MAC, Pat McGrath Labs and Sephora.
The program makes it easier for users to shop directly from their favorite creators while giving brands a new way to partner with and reward creators.
🥴 The risks for brands:
Right now brands won't have any direct say in who endorses their products.
This is problematic since brands will have a more challenging time controlling their brand image.
Instagram might roll out an approval process but it’s still unclear.