The video explains two methods to add affiliate links to an Instagram profile. The first method involves using Linktree, a website that allows users to create a page with multiple affiliate links. The second method is for users with only one affiliate link, where they can shorten it using TinyURL and add it to their Instagram profile. Linktree is preferred as it overcomes Instagram's limitation of allowing only one link per profile. The video details how to sign up for a free account on Linktree, add affiliate links, customize the page appearance, and copy the Linktree URL to the Instagram profile.