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Yes, they get given products and are paid to feature products in their images. To tip them, keep following, liking and maybe refer them more followers via word of mouth, etc.

Source: Got a friend whose full-time gig is posting on Instagram.

What would be interesting is if I take a picture of lets say my "new" macbook pro and tag it. It becomes like an amazon affiliate link and I get a cut if someone buys the underpowered thing.

This would then be the only platform outside of YouTube that would then allow you to monetise the content you create directly via the platform itself.

Most of the fitness men/women with lots of follows get sponsorship deals to promote protein-bars, weight-loss stuff, and similar.

It's not directly based upon the site, but it is pretty blatant once you start spotting it.

In that niche the "leaders" are well compensated already.