Instagram’s Bold New Strategy: Paying Creators Up to $20,000 to Bring in New Users

Posted: by Alvin Palmejar

image ofInstagram

Instagram is upping the stakes in the creator economy with a fresh initiative aimed at growing its user base — and it’s putting real money behind it. In a move that highlights just how competitive the social media landscape has become, the Meta-owned platform has quietly launched a test program called “Referrals” that pays creators for driving app traffic and new sign-ups.

The initiative is currently invite-only and limited to U.S.-based creators, with a potential payout of up to $20,000. It’s part of Instagram’s broader efforts to remain relevant and appealing to creators as rivals like TikTok and YouTube continue to attract more eyeballs and content.

How the Program Works

Under the Referrals program, there are two ways for invited creators to earn:

  • $100 for every eligible new user who signs up for Instagram using a creator’s unique referral link.

  • $100 for every 1,000 eligible visits to the app generated through those links.

The program runs for six weeks, between May and June 2025, and uses a third-party partner called Glimmer to manage the payments, according to details found on Instagram’s help center page.

One of the participating creators, Courtney Canfield, who runs an account for her dog Rambo, was offered the second type of payout — earning based on app visits.

What sets this program apart is that Instagram is encouraging creators to share their referral links outside of Instagram — a notable shift for a platform that has historically preferred to keep traffic within its own walls. That means creators are now being incentivized to promote Instagram across TikTok, YouTube, Substack, Discord, and other external platforms.

A Sign of the Times

Instagram’s referral program is not just a growth tactic — it’s a clear response to the rapidly evolving dynamics of the creator economy. As platforms compete for content and audiences, creators have become a critical asset.

Instagram’s latest move also aligns with Meta’s ongoing legal battles. The Federal Trade Commission’s antitrust case against Meta has thrown a spotlight on how aggressively the company tries to outpace competitors — and initiatives like Referrals are further evidence of that strategy.

This is not the first time Instagram has shelled out big money to lure creators. Earlier this year, it offered a “Breakthrough Bonus” to creators migrating from TikTok, especially during the period when a U.S. ban on TikTok seemed imminent. The company has also been paying creators between $2,500 and $50,000 per month for exclusive Reels content.

Over the past few years, Instagram has tested a wide variety of monetization tools, from direct payouts and subscriptions to merchandise integrations and affiliate marketing. But the Referrals program may be one of the clearest signs yet that Instagram is willing to reward creators not just for content — but for playing the role of marketer and recruiter.

What It Means for Creators

For creators, this is a rare chance to earn meaningful income simply by driving traffic. Unlike brand deals or sponsored posts, where performance metrics are often ambiguous, Referrals offers a straightforward payout model.

Still, it’s important to note that this is just a test. Only a small number of creators are currently participating, and there’s no word yet on whether the program will expand more broadly. That said, if the pilot proves successful, it could open the door to a larger affiliate-style system for Instagram — one where creators of all sizes are rewarded for helping the platform grow.

Final Thoughts

Instagram’s Referrals program shows just how high the stakes are in today’s social media wars. Platforms aren’t just competing for content — they’re competing for loyalty, attention, and ultimately, users. With cash incentives now in the mix, the power of creators has never been clearer.

As creators continue to navigate a crowded landscape of monetization options, Instagram’s new offer could be hard to ignore — especially with $20,000 on the table.

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