Top 10 Best Business Ideas to Make Money on Instagram

Niclas Schlopsna
Nov 28, 2023
000
min read
Innovation and Technology

Instagram has become a bustling hub for businesses, with over 25 million businesses now using the platform to connect with their audiences. Finding the best Instagram business categories is essential for standing out in the sea of profiles. With over 1,500 categories, businesses across industries can easily find their niche.

Key Takeaways:

  • Choose a clear Instagram category to reflect your business, avoid clutter, and boost engagement.
  • Top Instagram business categories include fashion, beauty, food, industrial, creative, and personal care sectors.
  • Choosing the right Instagram category aligns with passion, meets audience needs, and boosts engagement and monetization.

Let's explore some of the top categories and their benefits.

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What is Instagram Business Category?

An Instagram Business Category is a simple way to describe what your business is all about. Think of it as a label that sums up the core of your business in just one or two words. Instagram offers 1,500+ categories, so you can choose from general to very specific business categories.

"An Instagram business category defines what your business does and helps users understand your offerings at a glance, making it essential for branding."

Mike Gunter, a social media consultant

When you switch to an Instagram business account, you get to choose a category that best matches your business. This is important because it shows up right below your name on your profile. It saves you precious space in your bio to share more about your brand’s story. Without this, you might struggle to fit everything into 150 characters.

Choosing the right category helps people understand what you offer instantly. Whether you're a restaurant, fashion boutique, or photographer, it’s key to avoid being vague or too broad. Like how your personal account reflects who you are, your business profile should do the same.

How to Set an Instagram Category for Your Business Page

You first need a professional or creator account to set up an Instagram category for your business page. Categories aren’t available for personal accounts, so it’s time to switch if you haven’t already!

Here’s how you can set or change your category in a few simple steps:

  1. Open Instagram Account on your phone.
  2. Go to your profile and tap the three horizontal lines in the top right corner.
  3. Select "Settings."
  4. Tap “Business.”
  5. Choose “Edit Profile.”
  6. Under the “Categories” option, start typing to get suggestions.
  7. Pick the new category that fits your business best.
  8. Don’t forget to tap the tick icon to save!

Want to show the category to your potential customers? Just toggle on “Display on Profile” during selection.

It’s as easy as pie! By selecting the right category, you’re not only giving Instagram users a better understanding of your brand but also increasing the chances of your Instagram posts reaching the right audience.

The Best Instagram Business Categories List

Regarding popular Instagram business categories, industries like fashion, beauty, and food reign supreme. Categories such as "Clothing Store" and "Beauty, Cosmetic & Personal Care," "Education," "Engineering Service," "Entertainment" top the list with high engagement. 80% of Instagram users follow at least one business, with fashion-related posts seeing average engagement rates of 0.51%.

Similarly, restaurants like "Cafe," "Cafeteria," "Camera Store" and "Japanese Restaurant" are ideal Instagram categories for food-related businesses. Food posts on Instagram receive higher interaction, with the hashtag #food used in over 250 million posts. Selecting the correct category in this space will help capture attention instantly.

Infographic: Instagram Business Categories Statistics

Engineering, Industrial, and Commercial Categories

For more specialized businesses, categories like "Industrial Commercial Engineering Service," "Commercial Industrial Equipment Supplier," and "Commercial Real Estate Agency" fit the bill.

On average, businesses in this very specific business category of engineering shopping gains around 3-5% follower growth per month when using Instagram effectively.

Instagram may seem less obvious for these sectors, but a growing number of industrial brands are finding success in reaching potential clients through Instagram Business accounts.

Brands like industrial equipment supplier commercial have found that posting about innovative tools and services helps gain the trust of their niche audience.

Engagement might be lower in these fields, but the precision targeting Instagram allows makes it worth every post.

Creative and Educational Categories

For creative professionals like "Graphic Designers" or "Writers," Instagram can be a fantastic platform for showcasing portfolios. Using categories like "Graphic Designer" or "Office Writer Writing Service," you can show off your creativity while building a loyal following.

"Music Video" and "Music Lessons" categories see average engagement rates of 1.29%, with users enjoying behind-the-scenes clips, performances, and creative content.

Similarly, educational businesses like "Music Lessons & Instruction School" or "Engineering" can use Instagram to offer tutorials, tips, and resources.

Personal Care and Beauty Categories

The "Personal Care" and "Beauty, Cosmetic & Personal Care" categories are some of the most popular on Instagram, with a high potential for engagement. Whether you're a laser hair removal service or a hair removal service selling personal care products, Instagram is your playground.

Beauty-related accounts enjoy an average engagement rate of 0.66%, making it one of the highest across industries.

Businesses in these sectors find higher audience interaction, as beauty posts are some of the most widely shared and commented on.

Food and Entertainment Categories

Food and entertainment businesses thrive on Instagram, with food-related posts consistently being some of the most shared. Categories like "Japanese Restaurant Jazz," and "Blues Club" attract massive engagement, especially with visually stunning food images and videos.

The entertainment category pulls in an average engagement of 1.31%, making it a popular choice for content creators.

For those in the entertainment sector, categories like "Karaoke," "Music Video," and "Entertainment" are ideal.

Infographic: The Best Instagram Business Categories - Food & Restaurants

Real Estate and Tour Agencies

Suppose you’re in the tourism or real estate industry. In that case, categories like "Sightseeing Tour Agency," "Vacation Home Rental," and "Commercial Real Estate Agency" can help you connect with travelers and home buyers alike.

Travel and tourism-related posts perform well, as 67% of Instagram users use the platform for travel inspiration.

Other popular categories are "air balloon tour agency", "hot air balloon tour". In particular, real estate company profiles thrive when they post high-quality visuals of properties and real estate tips.

Infographic: The Best Instagram Business Categories - Real Estate & Tourism Agencies

Business and Nonprofit Categories

For those in more formal business sectors like "Non Governmental Organization NGO," or nonprofit organization," "Public Relations Agencies," and "Telemarketing Service," selecting an appropriate category ensures potential clients know exactly what you offer. Nonprofits like business nursing agency in particular, benefit from a strong Instagram presence, as visual storytelling can drive donations and awareness.

Instagram has seen 40% growth in nonprofit engagement over the past year, showing the platform's effectiveness for charitable organizations.

Choosing the right Instagram category for your business is like putting the icing on the cake — giving potential followers a clear snapshot of your offer. Whether you're a blues club jewelry company, a tire dealer repair shop, or a tour agency, there’s a category that fits your needs.

Remember, picking the wrong one is like showing up to a party in the wrong outfit — you won't make the impact you're aiming for.

Infographic: The Best Instagram Business Categories - Nonprofit Organizations & NGOs

Cinema & Acting

Instagram's Cinema & Acting category is perfect for actors, directors, and filmmakers. With over 130 million Instagram users tapping into entertainment content daily, this is a goldmine for engagement. Behind-the-scenes footage, movie stills, and cast announcements can quickly attract a crowd.

Engagement rates in this category typically hover around 1.9%, higher than most other business categories.

Whether you’re showcasing indie films or blockbuster projects, Instagram gives your work the spotlight. So, if you're in the film industry, this category helps connect with fans and potential collaborators effortlessly.

Makeup

Instagram is a haven for beauty lovers, and the Makeup category is among the most popular.

Over 500 million beauty-related posts are posted on Instagram daily, and makeup artists often see engagement rates of 0.66% on average. From tutorials to before-and-after shots, makeup accounts thrive with eye-catching visuals.

Beauty influencers and brands in this category build strong followings by sharing tips, new looks, and product launches. If you’re in the beauty biz, this category is like striking gold, helping you reach beauty enthusiasts and potential customers in no time.

Infographic: The Best Instagram Business Categories - Makeup & Beauty Influencers

Photography

The Photography category on Instagram is where creativity truly comes to life.

With over 800 million posts tagged with #photography, this is one of the most visually captivating spaces on the platform. Photographers enjoy engagement rates of around 2%, especially when sharing stunning images, tutorials, or camera tips.

Whether you run a camera store or work as a freelance photographer, Instagram offers a stage to showcase your portfolio and attract new clients. This category lets your art do the talking, helping you build a loyal following that appreciates your work.

Infographic: The Best Insagram Business Categories - Photography & Cinematography

Fitness & Wellness

The Fitness & Wellness category is booming, with millions of Instagram users flocking to fitness pages for workout ideas, health tips, and inspiration. It is one of the top Instagram categories.

Fitness influencers and brands can enjoy engagement rates as high as 3.57% thanks to highly motivating content that keeps followers hooked.

This category appeals to everyone aiming for a healthier lifestyle, from gym routines to nutritious meals. Personal trainers, gyms, and wellness coaches can connect directly with fitness enthusiasts, turning followers into clients. It's a great space for sharing transformation stories, workout routines, and tips to help others on their fitness journey.

Why Is Choosing the Right Instagram Business Category Important?

Choosing the right Instagram business category is like picking the perfect outfit—it helps showcase your brand in the best light.

"Choosing the right Instagram business category helps your audience find you and understand what you offer at a glance."

Holly Homer, Coach and Consultant for Social Media Monetization

Alignment with Personal Passion and Expertise

Your Instagram business category should align with your passion and expertise. It’s like driving in the fast lane—when you're passionate and skilled, the content flows naturally, and your followers can feel the authenticity. Whether it’s fitness, fashion, or photography, the right category gives you a solid direction, so you're not wandering on the platform.

Meeting Audience Needs and Preferences

Think of your audience as guests at a party. They'll be confused if they come expecting cake and you serve preneed clarification. Choosing the right Instagram category ensures your content matches what your audience craves. For instance, a makeup page should focus on tutorials and product reviews, meeting your followers’ expectations and keeping them hooked.

Maximizing Monetization Opportunities

The right business category can be a game changer for making money on Instagram. It can unlock sponsored posts, collaborations, and brand deals, like opening the right door at the right time. Being in the right niche makes it easier for brands and potential customers to find you, maximizing monetization opportunities.

Adapting to Platform Dynamics

Instagram constantly evolves, just like trends in fashion. Choosing the right business category makes you more likely to adapt to the platform’s updates and features, ensuring your brand stays relevant.

Building a Sustainable and Scalable Model

Picking the right category also means building a business model that can grow over time. It’s like planting a tree that bears fruit season after season. A well-chosen category supports sustainable growth, giving you room to scale your business.

Ensuring Authentic Engagement

Engagement comes naturally when your business category aligns with your brand and audience. It’s like having a conversation that flows effortlessly, keeping your audience connected and invested in your content.

How to Choose the Right Instagram Business Category

Choosing the right Instagram business category is like picking a sign for your storefront—it tells people exactly what you offer.

Take a Closer Look

Start by taking a closer look at your business. Think of it like a puzzle—each represents your niche, skills, and audience.

What makes your business unique?

Whether running a baby clothing store or offering graphic design services, choosing a category that fits your brand identity helps you stand out. Knowing who you are and what you provide enables you to find the perfect category representing your business.

No Clutter

Nobody likes a messy room; the same goes for your Instagram bio. Avoid clutter by selecting a specific category that tells people what you do. Whether in fitness, music lessons, or social media, choosing a category stops you from stuffing too much information into your bio. It keeps things clean, helping potential followers know at a glance what your business is about.

Adding Category

Adding the right category is as easy as following a recipe. Go into your Instagram professional account, hit “Edit Profile,” and then select “Categories.” Start typing, and Instagram will suggest a category that matches your business.

From a jewelry store to a tire repair shop, pick the one that suits you best. Remember to turn on the “Display on Profile” option so people can see your category immediately. It’s a simple step that gives your business an instant identity boost.

What are the Advantages of Choosing the Right Instagram Category for Your Business?

Choosing the right Instagram category for your business offers several key advantages.

Boosts Discoverability

Choosing the right category is like creating a bright neon sign—it grabs attention.

  • When your Instagram business has the right category, you become easier to find.

Instagram’s algorithm connects you to people looking for what you offer, whether it’s photography, fitness, or jewelry. This means more potential customers scrolling through your page and engaging with your content.

Increases Engagement

It’s like throwing a party and having the right crowd show up. When you choose a category that fits your business, your audience knows what to expect.

  • Categories like beauty or entertainment tend to attract higher engagement rates because they match user interests directly.

This means more likes, comments, and shares because your followers are genuinely interested in your offering.

Helps Build Trust

Choosing the right category helps build trust, like showing up to a job interview in the right outfit. It shows professionalism and clarity.

  • Visitors who see a clear, accurate category are more likely to trust your business and stick around to learn more.

A commercial real estate agency or laser hair removal service with the right category looks reliable, making it easier to turn followers into customers.

Organizes Your Content

Whether you're posting about music lessons, personal care, or outdoor goods, your category acts as a guide, ensuring your posts stay relevant to your business and your audience.

  • Having the right Instagram category is like sorting out a messy drawer. It helps organize your content so everything makes sense.

This keeps your page focused and appealing.

Sum Up

Adding an Instagram business category is like giving your audience a quick introduction to your business without wasting bio space. A well-chosen category helps you stand out from competitors and boosts your visibility. The more accurate your category, the better. With countless options, you can go as specific as you need. This simple step ensures your business thrives and connects with the right audience on Instagram. Choose wisely!

Ultimately, selecting the best Instagram business categories is about knowing your audience, understanding your niche, and ensuring your brand is seen in the best light possible. So, get out there, choose your category wisely, and let your business shine! 

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How can I use Instagram Insights to better understand my audience?

Instagram Insights is a built-in analytics tool that provides data on your followers and post performance. You can: View demographic information about your followers such as age, gender, and location. Analyze which posts and stories get the most engagement. Determine the best times to post based on when your audience is most active. By regularly checking and interpreting these insights, you can tailor your content strategy to better resonate with your audience.

How can businesses use Instagram Direct Messaging (DM) effectively?

Instagram DM is a powerful tool for businesses to: Engage with customers on a personal level. Address queries, feedback, or complaints in real-time. Share exclusive promotions or discounts. Collaborate with influencers or other brands. Remember to respond promptly, maintain professionalism, and personalize conversations when possible.

What is the role of Instagram Highlights in my business strategy?

Instagram Highlights allow businesses to: Showcase evergreen content on their profile permanently. Organize stories into thematic collections for easy accessibility. Highlight products, testimonials, events, or promotions. By strategically using Highlights, businesses can ensure important content remains visible and accessible to followers beyond the 24-hour story duration.

Is there a way to schedule posts on Instagram to maintain consistency?

Yes, several third-party tools allow businesses to schedule posts in advance. These tools often come with additional analytics and can help: Plan and maintain a consistent posting schedule. Curate a cohesive feed aesthetic. Optimize post timings based on audience activity. It's essential, however, to still engage with your audience in real-time, even if posts are scheduled.

How can I ensure my Instagram ads reach the right audience?

How can I ensure my Instagram ads reach the right audience?

Concise Recap: Key Insights

Instagram's Transformation & Influence: Originated as a simple photo-sharing app and has evolved into a key business platform with over a billion active users. Emphasizes the power of visual storytelling, community building, and monetization of engagement.

The Evolution of Instagram: Chronological highlights from its inception in 2010, to being acquired by Facebook in 2012, introducing video in 2013, and other significant features like Stories, IGTV, and Reels.

Business Opportunities on Instagram: The platform presents a diverse range of business opportunities like affiliate marketing, selling products, offering online courses, dropshipping, and becoming an influencer. Importance of aligning business ideas with personal passions, audience needs, and platform dynamics.

Monetization Strategies: Strategies to transform Instagram engagement into revenue include Instagram Shopping, affiliate marketing, sponsored content, selling digital products, hosting paid events, and more. Trust and genuine engagement are crucial to successful monetization.

The Power of Collaboration and Avoiding Mistakes: Collaboration with other users and brands amplifies reach and introduces fresh perspectives. Common pitfalls to avoid include inauthenticity, ignoring analytics, inconsistent posting, and violating Instagram's terms of service.

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