What they mean by mats is materials. "Mats" are obtained by using a gathering profession like herbalism, mining, skinning, or by killing monsters that drop mats. In my experience, obtaining materials is a waste of time. It doesn't make that much gold and it doesn't give you any other benefits.
Try doing valuable dailies every day for gold instead, that way you get gold and reputation. To make gold faster and more efficiently is by playing the auction house. Playing the auction house is basically buying valuable things then reselling them for a profit. I played the auction house by buying out mats that people needed to level their crafting professions, so I bought stuff like sungrass, ragveil, copper ore, thick leather, etc. Then reposted them for a average of 5g per one, it's amazing how much profit I made doing something so simple. I also crafted stuff with alchemy, and jewel crafting and resold it for profit.
Another way I made gold was logging in by raptor nest spawns, go to wowhead.com and search "nest" then go to the objects tab, all of the spawns are right there. You can go to some of them at a very low level (as low as 20) and end up carrying back 500g or more.
What they mean by instances is basically a dungeon. To go to a dungeon you type /lfg and then select one or hit random. They won't make much gold though, players most commonly do them for gear and reputation.
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