So, you started a podcast and are looking to make money from it.
But, how do you do it?
There is a misconception when it comes to making money from podcasts. Many think that sponsorship money comes falling out of the sky once you publish your first episode.
The truth is…it doesn’t.
There are many ways to monetize your podcast but always keep in mind your main goal is to get more clients. As such, monetization should be your secondary focus.
With that in mind, let’s jump into the world of making money through podcasting.
What is Podcast Monetization?
Podcast monetization refers to the various ways you use a podcast to make money. This is money earned directly from the podcast itself through advertising, premium content, etc.
There are several strategies that podcasters use to monetize their content.
These includes:
· Selling the podcast itself or granting exclusive access to paying members,
· Selling other products or services
· Using an ad marketplace to get ads for your podcast, or using Spotify’s ad insertions, ad studio, or audience network tools to help monetize your podcast.
Monetization Should NOT Be Your Main Focus:
Yes, your ultimate goal with any type of content creation is to make money. However, do not make monetization your number one goal when podcasting.
I know, that sounds contradictory. Let me explain what I mean.
If you go into podcasting in the hopes of making money off the podcast itself, you are going to be disappointed. (More on that in the next section).
What you want to focus on is branding and attracting more clients.
As a podcast host, you have a chance to show people are you are an expert in a specific field. Or, in the least you know what you’re talking about. It becomes a branding tool as people will start to recognize your face with a specific industry.
When you talk about your niche on a podcast, people who listen will start to feel comfortable that you know what you are talking about and likely not a scam. When they trust you, they will do business with you.
So yes, you will make money with the podcast. But, most of it will come in the form of new clients to your business.
How Much Money Do Podcasters Actually Make?
I hate to disappoint you, but Spotify is not about to call and offer you more money than they offered Joe Rogan in order to bring your podcast to its platform.
In fact, most podcasters make exactly $0 from podcast monetization.
Now, you will read articles that talk about being able to make between $300 and $5,000 per episode, but this is an estimate based on having 10,000 downloads of your podcast. Well, let me show you just how “common” that is.
According to an article in Demand Sage, here are the numbers:
· Top 1% of Podcasts get more than 3994 downloads.
· Top 5% of Podcasts get more than 795 downloads.
· Top 10% of Podcasts get more than 335 downloads.
· Top 25% of Podcasts get more than 93 downloads.
· Top 50% of Podcasts get more than 30 downloads.
That means your podcast would need to be in the top 1% of all podcasts in order to start seeing any real numbers from monetization.
So, now that I have discouraged you, let me cheer you up a bit. Because we do not rely solely on statistics, there are ways to make a lot of money through podcasting.
Yes, There Are Ways To Make Money Through Podcasting:
Before you stop reading and give up (I know I brought you down a little bit in the last section), there are ways to make money with your podcast.
The monetization spoken about in the previous section is all based on number of views. But you don’t need many views to make money.
For instance, if you have a good podcast, you can charge for premium content, sell affiliation products that you talk about on the podcast, and even get subs and donations from people who subscribe.
With that in mind, let’s get into the different ways this can be done.
Monetization Through Advertising:
Podcast advertising is one of the most common forms of podcast monetization. It involves placing ads through the podcast so that listeners are exposed to specific brands and/or products.
Podcast advertising is a growing marketing tactic that involves placing audio ads within podcast episodes. According to a survey conducted in 2018, 78% of listeners don’t mind podcast ads and sponsorships because they know they support the podcast
Advertising on podcasts generally takes two forms:
· Host read advertising
· Product placement ads
Host-read ads are pre-recorded ads that are voiced by the hosts of the podcast, while dynamically inserted ads are ads that are inserted into pre-existing podcast audio using software.
These ads can be easily changed across a podcast’s entire catalog without making changes to the original audio file.
Podcast advertising is an effective way for brands to reach a broad audience. Audio content is highly effective at conveying information and messages, and podcast ads can help earn people’s trust, reach wide audiences, increase ROI, and promote products.
Making Money Through Affiliate Advertising:
Are you an affiliate for a product or services? Well, do a podcast about it.
For instance, you will hear me mention marketing websites during my Marketing Impact podcast. Many of these are ones that I use on a daily basis, but I also get a commission should I recommend someone to the site who winds up making a purchase.
So, making such a referral can be done through your podcast and you can make money from those sales.
Looking for a place to find plenty of affiliate programs? Dave Jackson and I discussed Share-A-Sale on the Marketing Impact Podcast.
Now, don’t just make a podcast about that product or services. That is cheesy and doesn’t offer any value to your listeners. However, you can always incorporate that information into a podcast about a specific topic.
For instance, let’s say you do a podcast about pay-per-click advertising. During the podcast you mention that you use SpyFu to find keywords. Include your affiliate link in the show notes so that people can sign up for the service (you in turn will get your commission for the referral).
Simple as that.
On a final note, remember that there are legal requirements when it comes to sponsored products through affiliate marketing. You must disclose that you are an affiliate and that you will make money when people purchase a particular product or service you are advertising.
Listener Support (Premium Content and Subscribers)
Listener support is a popular and effective way for podcasters to monetize their content.
This method of monetization involves generating revenue directly from listeners, rather than relying solely on sponsorships or advertising.
Listener support can take many forms, including:
· One-time donations
· Monthly subscriptions
· Merchandise sales
· Premium content
· Live events
One of the primary benefits of listener support is that it provides podcasters with a direct connection to their audience. By offering ways for listeners to support their favorite podcast, podcasters can build a loyal and engaged listener base.
This can lead to increased word-of-mouth promotion and a stronger community around the podcast.
“Finding success in podcasting has to be secondary. If you’re getting into it for the success or the money, the industry isn’t quite there yet. It should be for the love of the game right now.” — Matt Gourley
Some podcasts include a “donate” button on the website where they are hosted. Or, there could be a donate button on the social media profile associated with it.
This allows people to give money anytime they choose.
Offering monthly subscriptions is also done in combination with offering premium content. You can have users sign up through Patreon or other platforms that allow you to paywall content. Offer premium content that no one else can see unless they subscribe.
Of course, merchandise sales can be part of the monetization. If you are doing a video podcast, wear T-shirts with the podcast name and sell them on your website. If you have a catchy slogan that you are known for, place it on mugs and other merchandise and offer it as well.
Finally, live events are a great way to generate revenue. Here is how you do it.
During a live show (e.g., Rumble or YouTube), allow people to donate money and have their questions read live on the air. This way people feel more connected as an audience and get the chance to have their voice heard while you are airing the live show.
Sponsorship Income:
Sponsorship income is similar to advertising income. However, there is a slight twist.
Sponsorship income does not always involve you mentioning a product or service on a podcast. Sometimes, it involves using products during the podcast.
Let’s say Beats reaches out to you and wants you to use their headphones. They will send you free merchandise in exchange for you using their headphones on the air. Sounds simple right?
Look at some of the podcasts you watch every day, and you will notice the sponsorships that are not even mentioned by the hosts. What are they drinking? What signs are hung up in the background? Is the host always wearing the same brand of clothing?
Guess what? You just identified brand sponsorships.
Now, don’t get me wrong. This is often part of advertising income and sometimes overlaps. I cover it separately here because not all forms of sponsorship are advertising.
Now, what is the best way to get brands to sponsor you or advertise with you? Well, you need to have a podcast portfolio.
Charging Guests to be on Your Podcast
This one is a little tricky to address.
I am not endorsing doing this, but at the same time I am not going to shame a podcast for doing it. I just want to point out that it is a way to earn revenue if you want to charge guests to be on your platform.
The downside? Trust.
“I’ve found that podcast hosts with an engaged and loyal listenership choose guests based on the value they provide to the podcast audience, rather than the short-term financial gains they may receive,” writes publicist Alice Draper for Insider.
If you think about it, she is right. While there is nothing wrong with charging people to speak on your podcast, your audience may start to distrust anything being said since everything being said is being paid for.
Podcast Portfolio for Advertisers
Okay, let’s say you decide you want to go the advertising or sponsor route.
As stated, advertisers are not likely going to flock to you and beg to be on your podcast. So, you need something to give them to make them interested in paying you.
The best way to do this is through a podcast portfolio.
What is a Podcast Portfolio?
A podcast portfolio is a collection of materials that a podcaster can use to showcase their podcast to potential advertisers or sponsors.
It typically includes information about the podcast’s target audience, niche, and unique value proposition, as well as statistics on downloads, listeners, and social media engagement.
A podcast portfolio may also include testimonials from satisfied listeners or previous advertisers, ad placement options, sponsorship packages, and examples of brand integrations.
By presenting a podcast portfolio to potential advertisers, podcasters can demonstrate the value of their podcast and secure profitable partnerships that benefit both parties.
What Should You Include in a Podcast Portfolio?
When presenting a podcast portfolio to potential advertisers, it’s important to showcase your podcast’s unique value proposition and provide evidence of its success. Here are some items that you may want to include in your podcast portfolio:
1. Podcast overview: Provide a brief overview of your podcast, including its niche, target audience, and unique selling points.
2. Download and listener statistics: Include statistics on the number of downloads and listeners your podcast has received, as well as any growth trends over time. This can help advertisers understand the reach and impact of your podcast.
3. Demographic information: Provide information on your podcast’s audience demographics, including age, gender, location, and interests. This can help advertisers determine if your podcast aligns with their target audience.
4. Testimonials: Include testimonials from satisfied listeners or previous advertisers. This can help build credibility and trust with potential advertisers.
5. Ad placement options: Outline the different ad placement options available in your podcast, including pre-roll, mid-roll, and post-roll ads. Provide details on the length of the ad, how it will be integrated into the podcast, and any other relevant information.
6. Sponsorship packages: Offer different sponsorship packages that advertisers can choose from. This can include options for different ad lengths, frequency, and placement. Be sure to include pricing information and any added value that comes with each package.
7. Brand integrations: Highlight any previous brand integrations your podcast has done. This can include sponsored segments, product reviews, or other branded content.
8. Social media presence: Provide information on your podcast’s social media presence, including follower count and engagement rates. This can show advertisers the potential reach of your podcast beyond just the audio content.
Summing It Up:
There are various ways to monetize a podcast.
It’s important to build a strong audience and community before monetizing a podcast, and to carefully consider which monetization strategies will be most effective for your particular podcast.
Finally, keep in mind that you should concentrate first on branding and using your podcast as a form of content. Monetization will follow, but not if you don’t offer your subscribers valuable content.
If you are just getting started with learning how to podcast, I would ask that you consider one of my digital marketing courses on podcasting. For less than $50 you can learn everything you need to know about podcasting from equipment needed, how to find guests, and marketing after the fact.
