"I gotta be honest with you, I didn't make a ton of money as an actor last year," Philipps said. "I made more money doing that kind of stuff, like the partnerships with brands."
"I'm not above it, guys," she added.
"I just only choose things that I genuinely like and, like, would want to partner with, like, for instance, my Michaels partnership, which, you know, is my favourite thing of all time. And I'm doing one next week, I think, that feels like me."
Philipps has posted about numerous brands, including Campbell's Soup, but admitted she would never promote something she didn't like.
"Unless it was, like, a billion dollars," she added.
And Phillips isn't the only celebrity to embrace revenue from brand endorsements.
There's currently more than 3.7 million posts on Instagram with the hashtag #ad.
The hashtag, which celebrities use to openly admit they are advertising a product, came after the Federal Trade Commission in the US started to clamp down on people who were sneakily advertising on the social media platform.
More than 90 individuals were warned earlier this month by the regulator to stop disguising advertising and "deceiving consumers".
And, when it comes to Instagram endorsements, no famous faces come close to the Kardashian - Jenner clan.
When Kim Kardashian was robbed at gunpoint in Paris last November, the reality star went radio silent on all her social media channels for more than a month.
Numerous reports quickly revealed the amount of money the reality star was losing.
Considering Kardashian charges upwards of $300,000 an ad and was posting at least once a week, the reality star was losing a lot of money.
Thousands of celebrities and 'influencers' have embraced the endorsement trend and considering the amount of money they can earn from a single post, it's not much of a surprise why.
At least now, thanks to the crackdown from consumer regulators, you can finally be sure on whether or not a famous person is endorsing something because they love it or because they're getting paid to love it.