HOW TO MONETIZE A PODCAST: Beginners Guide

How to monetize a podcast
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“How can my podcast stand out?” may be a question you have if you’ve recently started a podcast or are looking to monetize it. How do I get the word out about my show? How can I use it to make money? This post will address all of these queries about how to monetize a podcast, how to monetize a podcast on Spotify, and how to monetize on anchor. So keep reading to learn everything you need about expanding and earning money from your podcast. 

What is a Podcast?

A podcast is a collection of spoken word audio episodes that concentrate on a subject or theme, such as cycling or startups. With the help of an app on your phone, you may subscribe to the program and access the episodes whenever you want on your headphones, in the vehicle, or via speakers.

How Many Listeners do you need to Monetize a Podcast?

Naturally, the number of listeners per episode is closely tied to the success of a podcast; thus, having more listeners increases the likelihood that your program will be profitable.

But today, we’ll discuss how to monetize a show at every level of listenership and end the reliance on a vast audience.

Let’s examine your odds of making money from podcasting with various listenerships and the most effective method to do it.

#1. Small Podcasts Generate Revenue through Sales of Their Products

In revenue, a small show averages less than 1,000 listeners per episode. Of course, it will be more difficult to commercialize the more listeners you have. However, chances start to present themselves when you get close to 1,000 listeners.

These 1,000 listeners seem insignificant compared to the number of subscribers an average blog or YouTube channel may have. Additionally, it is impossible to significantly monetize a blog or YouTube with such a small audience.

However, 25% of higher-paid podcasters monetize well with fewer than 1,000 listeners per episode. This is possible within a year following the premiere of a new show. In the prior episode, I went into greater detail about this.

But you must comprehend your target market to make an offer and convert a sizable portion of that audience. This brings up the next point:

#2. If Small Podcasts Know Their Audience, They Can Make Money

When you have a small audience, precise targeting and understanding your target demographic is essential. As I’ve stated earlier, selling a service or a product is the only way to make a small event profitable. As a result, you must understand your audience’s demographics, needs, and purchasing preferences.

In actuality, 90% of podcasters with better incomes have taken the time and analyze who their broadcasts are intended for.

As we dug deeper into the data, we discovered that one of the essential characteristics separating podcasters with a high level of financial success from those with monetization difficulties is a thorough understanding of the target audience. Spending this time increases your chance of making money with your show by 4.7 times.

How Much Money Can You Make from a Podcast? 

Before starting, every new podcaster has the same inquiry: “How much money can podcasters make?” They are curious about it; before they put their time and effort into building a podcast audience, they will receive a reward.

What is the potential income for podcasters? Truthfully, most earn nothing. Many podcasts have negative cash flow since they must pay for hosting and equipment before making any money.

It takes time for creative efforts like podcasting to generate revenue from viewers. It takes some time before listeners decide you are worthwhile. Therefore, if you want to start a podcast to get paid this week, you should find another source of income.

How Do Podcast Creators Monetize Their Podcasts?

In reality, there are numerous methods to monetize a podcast. The most lucrative podcasts employ various monetization techniques, resulting in revenue from numerous sources.

Why should your revenue be diversified? To protect. Imagine that all of your income comes from your YouTube podcast, but one day YouTube decides to block your channel. You would be destroyed! Therefore, it is best to develop several revenue streams.

In our article on podcast monetization, we explore every possible revenue stream. Still, here we’ll focus on the top four: Sponsorships, direct assistance, premium content, affiliate sales, and ancillary goods.

#1. Sponsorships

The most typical source of income for podcasters is sponsorships. When this happens, the podcast will advertise the sponsor on air. Every episode of your favorite shows indeed contains a few advertisements for them.

The number of downloads your episodes receive determines how much money you will receive from a sponsor. The cost per mille method is used by sponsors; Mille is Latin for “thousand.” Rates vary from $18 to $50 CPM, but highly well-liked podcasts might bring in much more.

Depending on where you place your adverts within your episode, you can charge them at varying rates. Pre-roll commercials typically air for 15 to 30 seconds at the program’s start. After the program, post-roll adverts also air for 15 to 30 seconds. For advertisers, they have equal value.

#2. Direct Assistance with Premium Material

Simply asking your audience to donate money to support your show is direct support. Many individuals will gladly give you a little cash so you can keep creating episodes if your material and personality are good.

Because it’s simple to set up, this is one of the first options we suggest to podcasters wishing to monetize their show. The best way to get money is to set up a Patreon account, write a page explaining why you deserve support and start taking donations.

#3. Affiliate Income

Similar to sponsorships, affiliate sales pay you depending on what you sell for another firm rather than by the download. For each sale, the other business gives you a commission.

Many podcasters and YouTubers make use of Audible’s well-known affiliate scheme. You are provided with a unique affiliate link by Audible. When someone clicks on your link, you receive $15 and the credit for the transaction.

Make sure the company provides you with a straightforward link that is simple for you to mention and your audience to understand if you choose to monetize through affiliate sales.

#4. Additional Products

Selling related products is the fourth typical method of generating revenue from a podcast. This could be goods, training programs, advice, publications, or admission to live events.

You don’t have to manage your fulfillment center when selling your products. You can either employ a drop-shipping or print-on-demand service to send orders to your clients. All you need is a spot on your website where they can place a purchase.

How Much Does Spotify  Pay Per Podcast?

There are numerous ways to monetize a podcast on Spotify. Regardless of your experience level or social media engagement, you can make money with podcasting if you employ the appropriate tactics.

Does Spotify pay Podcasters?

Select podcasters receive payments from Spotify as royalties.

Loud and Clear claims that Spotify compensates songwriters and artists indirectly via rights holders like:

  • Record companies
  • Distributors
  • Aggregators
  • Collecting organizations

How Spotify Pays Per Podcast

The average payment to artists is somewhere around $0.00357. Consequently, you can win this sum if you are a new player in this game. As a result, if you receive 100 streams, you will receive 35 cents.

$3.57 will be yours after 1,000 streams. To make $20,000, it will take roughly 3.5 million streams annually.

You must now see all these figures to understand their underlying mathematics. Nobody suddenly starts making six figures off their podcast or music. You must hit the aforementioned “game” nine times to get six figures.

Are 1000 Downloads Good for a Podcast?

I firmly believe podcasting shouldn’t be the main objective of attracting a sizable audience. Nevertheless, it’s crucial to monitor and comprehend your download statistics.

Individual podcast episode downloads should be in the range recommended by the industry, considering your personal and professional objectives for the show.

Every podcaster is at a different stage in their development. Therefore, it’s critical to remember that these statistics are purely subjective. Nevertheless, it’s helpful to be aware of your podcast’s month-to-month performance.

Your Podcasting Objectives

What you want from your podcast will ultimately determine whether or not you have high download rates. It’s critical to remember how different podcasting is from social media. Going viral won’t lead to your discovery. To increase your podcast’s audience, you must take advantage of the one you presently have.

In light of this, you can determine your download objectives by looking at your current audience. How many podcast episodes would be downloaded if your target was for 20% of your social media followers to do so?

Not Everything Relies on Numbers

I’ll keep yelling it from the rooftops: the success of your podcast is not determined by gaudy statistics like the number of downloads each episode receives. That’s a far more crucial figure to monitor if you’re a business owner hoping to use your podcast to attract customers. Even if you receive many downloads, if none of your listeners become customers, it’s time to plan.

Your objectives should be focused on increasing the number of listeners who join your Facebook group or Patreon if you want to use your podcast to create a community around your personal brand. Ultimately, I believe the purpose of tracking download statistics is to assess our progress toward our objectives.

Monitor the Proper Podcast Metrics

Are you prepared to begin monitoring podcast analytics in a meaningful way? Get a Podcast Statistics Report Template from a shop to keep track of your monthly statistics.

How do You Start a Podcast with No Money

My first advice to anyone is to avoid starting a podcast if you’re only interested in making money. I began out in radio and had a good deal of success, but I didn’t start thinking, “I’m going to be so successful on the radio, my God! I merely desired to appear on the radio. The same holds for podcasting. No matter how many people are listening—Ten or Four million—you have to want to do it.

#1. The First Step is to Speak!

Start doing it before you research or consider marketing strategies or anything else. See if you enjoy both doing it and hearing it. I guarantee that no one else will find you intriguing if you can’t listen to yourself in the mirror. But don’t be too tough on these early episodes. Be prepared to discard them all; they’ll probably be awful. Nobody is born with the ideal gift of gab, able to sit down, put on their microphone, and be amusing immediately. However, if there are any positive signs, or if there aren’t any, but you’re still having fun, keep going.

Listen to the top four marketing podcasts if you want to start your own, and note what you like and don’t like. The same applies to comedy, movie reviews, or whatever else you enjoy. Make a list of possible segments and ideas to help you decide on the structure of your podcast. Feel free to build on their ideas and make them your own. You can set your show apart from the rest if you know what the competition is doing. Also, keep in mind that this is a show. Three or four guys around microphones drinking and shooting the breeze is not a program, as I’ve repeated a million times to people, and it describes 90% of podcasts available today. Plan a little and create a format.”

#3. Purchase Affordable Recording Gear

Purchase an inexpensive microphone that connects to your Android or iPhone. Although there are many firms that accomplish this, iRig is a nice one. One costs roughly $40 to $50.And while quality is different, it isn’t significant enough to warrant spending that much money when starting a podcast.

Conclusion

Although many prosperous podcasters earn hundreds or even millions of dollars, SM Smaller-scale producers may only make a few hundred dollars. In contrast, many successful podcasters make thousands or even millions. An average podcaster with 10,000 downloads per episode might anticipate earnings of $500 to $900. Creators on an aller-scale might only make a few hundred. An average podcaster with 10,000 downloads per episode might anticipate earnings of $500 to $900. Now you have seen how to monetize a podcast, it’s time to start your podcast series!

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