Do you want to know how to make money by Podcasting? We’ve all heard reports about how much money full-time successful podcasters make, but can we trust them? Is it possible to generate enough payment via podcasting to replace your current full-time job? Having a huge listener base is essential for making profit from podcasting.
If you haven’t already started a podcast, choose a topic with a large potential audience. You can conduct a quick search in an iTunes library to see if a topic you want to cover for your podcast has a following. If there is a market for that niche, create the best content possible for it. There isn’t much demand if there aren’t many search results, so your chances of progressing to the point where you can earn a good living are slim.
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What to Have in Place BEFORE Podcast Monetization?
You want to get to the cash, I understand. However, you’ll only get there if you start with these. Here are the three major elements we identified as determining whether you’ll be able to profit from your podcast:
Are you being your “best self”? Is your podcast and content long-term viable? Do you host a podcast on a topic that interests you and, in turn, interests your listeners? If you get this right, you’ll be able to profit not only monetarily, but also through relationships and making a difference in people’s lives.
When you’re behind the microphone, how do you come across? Even if you have the best topic and message in the world, if the audience is bored, he or she will either not care or not listen.
This isn’t to say that you should act like someone else, but you should be conscious that your body language is transmitted through your voice and vocal inflexions in audio. Passion and energy attract audiences in, so make sure that comes across in your presentation, and seek to enhance your performance at all times. Remember that our Academy has a course on podcast presentation skills taught by Donald Pirie, a professional voice coach.
If you don’t have time to establish a community, you probably don’t have time to conduct a podcast. Interactions and dialogues, not only with you as the podcast presenter, but also with other listeners who share a passion for your topic, energize audiences. It isn’t a discussion if there isn’t a community or interactions, and you’re just talking at your audience rather than with them. People want to be a part of something, and if you give them that, they will like you much more. They will have greater faith in you and will work harder to help you.
How much money do podcasts make?
Do podcasts generate revenue? They certainly do! Big stars get a lot of listeners and a lot of ad income as a result of their popularity. According to Advertise Cast, the average 30-second CPM (cost per 1,000 listeners) is $18, while the 60-second CPM is $25. In 2018, The Ringer had 420 million downloads and generated $15 million in ad revenue (paywall). Amy Schumer was paid $1 million only to create a Spotify show.
But how much of a difference do “smaller” names make? What’s more, how do they do it? Here are some instances of what I mean:
The Bowery Boys is a Patreon-funded podcast on New York City’s history that earns over $3,800 per month. Through Patreon alone, The Last Podcast On The Left earns nearly $57,000 every month. They also sell t-shirts and do live events in different cities on a regular basis. You can find additional instances by typing “podcast” into the Patreon search box, but not everyone publishes their revenue, despite the fact that you can estimate it based on the number of supporters. On Patreon, there’s an interesting and informative survey of the top-earning podcasts. What is certain is that how much money people get through podcasting is heavily influenced by their consistency and duration.
How to make money by Podcasting?
A podcast can be monetized in a variety of ways. The most successful podcasts employ a variety of monetization tactics, resulting in revenue from a variety of sources. What are the benefits of diversifying your benefits streams? For the sake of safety. Imagine earning all of your money by uploading your podcast on YouTube, only to have your channel banned one day. Everything would be taken away from you! As a result, it’s wise to diversify your profits streams.
Assume you’ve met all of the above criteria — you know you’re working on a terrific project and you’ve considered your skills. You have a few different alternatives to choose from. You can try as few or as many as you want, but it’s probably best to concentrate on a few and do them well rather than to spread yourself too widely. So let’s get into these 12 tried-and-true methods for monetizing a podcast…
The most popular way for podcasters to make money is through sponsorships. This is when the podcast promotes the sponsor in the middle of the episode. Every episode, you’re likely to hear your favorite shows promote their sponsors a few times. The amount of payments you make from a sponsor is determined by the number of downloads your episodes receive. Sponsors pay a cost per mille (mille means “thousand” in Latin). The cost per thousand impressions (CPM) ranges from $18 to $50, with very successful podcasts bringing in much more.
You can charge varying prices for your adverts depending on where they appear in your episode. Pre-roll adverts appear at the start of the show and last for roughly 15 to 30 seconds. Post-roll advertisements appear at the end of the show and last 15 to 30 seconds. Advertisers value them the same way. Because the audience is engrossed at the time, mid-roll advertising are more valuable. Occasionally, the sponsor will provide you with a script to read. Occasionally, the sponsor will give you additional leeway. We recommend charging $15 for pre- and post-roll commercials and $20 for mid-roll ads when you first start selling advertising. To find out how much you can charge for commercials, use the Podcast Sponsorship Calculator.
2. Direct support including premium content
When you ask your followers to pay you money to support your show, this is known as direct support. There are plenty of people who will gladly give you a little cash so you can keep producing episodes if your content and personality are good.
Because it’s simple to set up, this is one of the first solutions we propose to podcasters wishing to monetize their show. The best way to get profit is to set up a Patreon account and develop a page that explains why you deserve support.
3. Affiliate sales
Getting compensated to introduce listeners to another company’s product is what affiliate marketing is all about. Where do you go to find those people? Going through a network like Amazon, Buzzsprout, or Podcorn is the most efficient way.
On a podcast, here’s how affiliate marketing might work:
You’re a parenting show host who mentions your favorite baby wipes brand. You use your own link to notify your listeners where they can get those wipes. You’ll get a tiny commission if one of your listeners clicks on that link and buys some wipes. You can also include a link to the product in your show notes and on the website for your podcast. It’s critical to maintain your audience’s trust. As a result, admitting that you receive compensation for your suggestions is a smart idea.
The bottom line
Hosting a podcast can be a great opportunity to show off your industry knowledge or to earn some additional cash while sharing a pastime. The most common ways for a podcast to make money are via selling commercials, participating in affiliate programs, offering subscriptions, or crowdsourcing. Increasing your show’s accessibility by uploading it to major sites like Spotify or Apple Podcasts can help you grow your following, which will attract advertisers. However, even if you don’t have a large audience, you may make benefits from your podcast by selling tickets to live concerts, advising others on how to run a podcast, or monetizing your skills at speaking events.