Instagram: How Australians are making money on social media

Savvy small business owners are cashing in using the social media platform as their main marketing tool.

"I don't actually know how a business could survive without Instagram. You can have a really great product no one knows it exists," Ebony Stevenson from Tiny Harlow told A Current Affair.

"It's all about marketing and I think Instagram is the best way to market these days."

The Melbourne mum launched her handcrafted rattan toy business Tiny Harlow in 2018.

Ms Stevenson says she collaborates with other brands and influencers to help boost sales and followers.

"I think this time last year, we had about 2000 followers and we've times that by more than 10 within the 12 months, so it's been crazy how quick it's grown."

For Not So Mumsy founder, Marcia Leone, the mother of two built her lounge-wear and accessories brand, Not So Mumsy The Label, off the back of her personal Instagram profile which has more than 240,000 followers.

"I had already built my community first, so I already had my market there… I would say about 90 per cent of my traffic comes directly through the app," Ms Leone told A Current Affair.

Data from Instagram shows 60 per cent of users say they discover new products on the app.

While more than 200 million Instagrammers visit at least one business profile daily.

With endless businesses online the market can be crowded, and some business owners say it can be hard to stand out.

For young baker Anthony Randello-Jahn, his doughnut businesses Jamm'd and Levain Doughnuts have taken off.

He says he initially used the app as motivation to keep working towards his business dream.

"At the start when I didn't have any staff, Instagram gave me a little more purpose. I knew I had people following me," he said.