6 Reasons Why Instagram isn’t Suitable for Passive Income – Everything You Need to Know & More

It is no surprise that Instagram is at the forefront of social media platforms. Many people use this platform as the main source of their income. 

Even though it is a viable source of active income, Instagram doesn’t really shine as a passive source of income. 

In this post, we’ll discuss the reasons behind it. 

Quick Summary

This post will mainly focus on the following topics:

Without further delay, let’s get started.

6 Reasons Why Instagram isn’t Suitable for Passive Income

Instagram is arguably one of the most complete social platforms for content creators to thrive. You can earn in various active and passive ways

Even with all the advantages, Instagram has its own flaws. These flaws can prove troublesome in certain situations. Let’s discuss them in detail. 

Ad Revenue

Just like every other media platform, Instagram’s main source of income is through advertisements. Content creators are also paid through this revenue. 

However, there is a catch. Unlike YouTube or Facebook, Instagram’s advertisement system is very limited. 

How is Instagram’s ad system different?

There are two flaws in Instagram’s ad system. First, Instagram doesn’t roll ads on your posts. It doesn’t matter if it’s a picture or a video. 

How is Instagram’s ad system different?

Second, ads that pay are only linked to live video streams. There is no other way to earn from Instagram’s advertisement system. 

How much can I earn from Instagram’s ad revenue?

It is hard to say. The revenue earned from Instagram ads is quite volatile. It can change based on the number of viewers and your geographical location. 

On average, you can only earn $100 to $500 from ads in a month. For a passive income source, it is almost negligible. 

Lack of Content Creator Programs

Even though you can easily create a following on Instagram as a content creator, there aren’t any official programs to back you up. 

For example, TikTok has a well-established content creator program that acts as direct support from the platform. You don’t have access to such programs on Instagram. 

How do I earn from Instagram?

Without a content creator program, you are only left with two options. Either you can find sponsors or start a personal brand

Both options are quite hard to execute if you are just starting as a content creator. 

How do famous influencers earn on Instagram?

How do famous influencers earn on Instagram?

Influencers like Logan Paul and Amanda Cerny earn thousands of dollars from sponsored posts. Moreover, they also have a long line of merchandise. 

The majority of the high-earning content creators do not rely on Instagram as a direct source. They have multiple indirect sources that they promote on Instagram. 

Terms of Service

The terms of service are an essential part of any media platform. It governs how content creators produce content and sets a boundary to keep things organized. 

YouTube uses its terms of service to ensure fair use and keep its content creators safe from copyright infringements. Instagram’s terms of service are vague and confusing. 

What are the drawbacks of Instagram’s terms of service?

To begin with, Instagram’s lack of explanation about various rules is quite unprofessional. The rules are present but there’s no example of how they work. 

Most of the time, you just have to experiment and work around the rules. 

What are the drawbacks of Instagram’s terms of service?

Many content creators have stated their frustration over their posts being removed due to violation of community guidelines. 

How does that impact me as a content creator?

As a content creator, you need clear guidelines. This helps you understand what works on a platform and what does not. 

If there is gray area, you cannot create content confidently. This will ultimately impact your ability to grow and earn on the platform. 

Content Creation

When it comes to Instagram, you have two ways to create and post content. You can either post images or videos. 

Both of these methods are quite common in other platforms as well. However, there is an issue with each of them. 

What are the issues with posting content on Instagram?

What are the issues with posting content on Instagram?

Firstly, you can upload a complete picture on Instagram. Under the Instagram guidelines, you have to crop the image to a certain size before it is ready for upload. 

Secondly, Instagram doesn’t allow long videos on its platform. It is designed to keep the attention span of the users but it ultimately impacts the content creators. 

Conversion Rate

Another thing that many content creators suffer from is the conversion rate of Instagram. Compared to other social media platforms, the CVR of Instagram is quite low. 

Moreover, the methods to utilize this CVR are limited. You can either use it through promotions or sponsors. Instagram has introduced a Shop feature but it’s still in the testing phase. 

Why is conversion rate so important?

Why is conversion rate so important?

The conversion rate on any platform is a way to track your progress. You can determine how much reach you are getting along with the number of clicks and sales. 

If you can’t get a certain level of conversion rate, it’ll be hard for your account to attract sponsors. Without a sponsor, you can’t earn passively from Instagram. 


As you already know that Instagram is mainly used on smartphones. Even though it has a desktop version but anyone hardly ever uses it. 

The majority of the passive income sources are managed through a laptop or a PC. Instagram being a smartphone-oriented app put multiple limitations on you. 

How am I limited by Instagram?

How am I limited by Instagram?

First of all, you need a smartphone that can create content of high quality. It includes the processing of high-quality images and videos. 

The second limitation of Instagram is management. The lack of collective data forces you to use third-party apps to manage your finances. 

Important Tips to Keep in Check

There are certain things that you should always keep in mind while using a platform for passive income. Let’s see what they are:

  • Organic reach. Sponsors always prefer a channel with authentic reach. You should use a platform that offers such potential. 
  • Keep yourself updated. There are always better options in the market. Just because a platform is popular, it doesn’t mean that it is suitable for earning. 

Wrapping Things Up…

With this, we come to the finish line of our post on why Instagram isn’t suitable for passive income. We hope you can use this information to make a wise decision. 

Instagram is quite popular for influencers around the world. However, with the lack of some key elements, it can prove to be difficult to make passive income

Let us know what you think in the comments below.