How this fashion influencer makes money through her Instagram posts

Danielle Bernstein is behind the blog "WeWoreWhat," and documents her life through her social media accounts, blog, podcast, and YouTube channel.
3:00 | 02/27/18

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Transcript for How this fashion influencer makes money through her Instagram posts
Reporter: Front row seats at fashion week are usually reserved for magazine editors and movie stars. But the new it girls of fashion are Instagram influencers. Think of them as the reality TV stars. Social media generation. They put us in a spot that was at the end of the runway so we could get a great shot of the girls walk in. Also a very visible spot for other photographers. Because we were all just in the collection. Reporter: Designers hand them up to tens of thousands of dollars for a single post. The influencer market now worth an estimated $2 billion and expected to reach 10 billion by 2020. This is what fashion week looks like in my living room. Reporter: Danielle Bernstein has nearly 1.8 million Instagram followers. I like to think of myself as a perfect mix of relatable and aspirational. I do that with my dressing as well. So not everything is high-end and designer. A lot of it is very affordable too. Reporter: At 25 years old she's already made "Forbes's" 30 under 30 list. Her brand, we wore what, includes a blog, a podcast, a YouTube channel, brand collaborations, and her own clothing line. Earning her upward of seven figures a year. So we turned the second bedroom in this apartment into my closet. I needed the space. These are my overalls. These are the overalls you that designed. I designed. The leather pants. Do you pinch yourself? Can you believe you do this for a living? My mom always like literally gives me a pinch and she goes just remind yourself this is not real life. There is a really glamorous side to it. But I really do work hard. I get invited to a show, I'll usually be dressed by the designer. My front row babe. And then I'll sit front row and I'll be documenting the clothes as they come by so you really feel like you're there. It's really just a way to make fashion and fashion week attainable to the masses. Good morning. Reporter: Danielle posts snippets of her daily life almost constantly. I actually think less than I would say the average person about what I post because it's so authentic and in real time. Mommy's first fashion show. We're going to Sally Lapointe. Both wearing Sally Lapointe. I just try to keep it real. I mean, I'm a young new Yorker trying to make it like everyone else. Reporter: She dropped out of college to pursue building her brand. And I was blog more than I was paying attention in class. I was like, okay, I need to try to make this a real business. So I took two semesters off from school, and I blogged, and then I went back. Reporter: Her schedule today includes several outfit changes. Five fashion shows. Plus dinners and afterparty. We are on our way to one of my favorite shows every season, the Zimmerman show. Reporter: It's one of the season's hottest brands. The runway's absolutely stunning. It's like wallpaper everywhere. Reporter: With pieces retailing in the thousands. Throughout the show Bernstein's followers are living vicariously through her instastories. After the show ends I quickly decide which ones are my favorite and I post those. Reporter: Back at the apartment she has 15 minutes to change. Post again. And head to the next show. Designer zadig and Voltaire. Another fashion photo op. Today she even has her own camera crew documenting her as she documents herself. Three of New York fashion week. Although she wasn't paid to attend these fashion shows, many of her posts are paid advertisements. From these pony red kicks color coordinated with New York City graffiti to this H & M swag, these pretty petals from pro flowers, or this Fiji bottle strategically positioned he next to her perfect pout, she's even making money drinking water. Do you pay for anything? I do. Yeah, I like to pay for things. But there's a lot that I don't have to pay for. I mean, all like the travel and beauty and all that kind of stuff is usually taken care of. Reporter: She says she can have up to 20 different offers in a month. I've turned down jobs all the time. I won't put my name on something that I don't fully approve of. So when I have those design collaborations I'm at every design meeting, everything from the buttons to the stitching to the color to the way that it fits. And do you make a percentage on each item that's sold? So there will either be an up-front design fee and that includes for marketing and social media posts and all that kind of stuff, and then a percentage on the back end. What's the percentage on the back end? It varies. Usually I like it to be half. Reporter: Influencer advertising is changing the fashion industry. Now advertisers are thinking entirely differently about how they're spending that money. They're recognizing that there's this appeal with influencers like the post popular kid in class. So you decided to be transparent about how you make money. And that built your following. That helped build it up. Yeah. It's weird when you say it like that because you know, hashtag ad and hashtag sponsored it doesn't look nice and it doesn't sound pretty, but being real to my followers I think actually helped me. Reporter: Being real is also the law. Last year the federal trade commission stepped in to control transparency, reminding social influencers they're required to disclose paid posts. Another issue is this burgeoning industry is grappling with, fake followers. Advertisers are going to be take a closer look at this going forward because they really want that true value, that real relationship and that real following of true devotees, not bots. Reporter: Danielle says her following is real. And loyal. What's the goal? I get asked a lot what's your five-year plan? It's really just to grow my current businesses, invest and take part in new ones, and to just be a boss. Reporter: For "Nightline" I'm linz yoie Janis in New York.

This transcript has been automatically generated and may not be 100% accurate.

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