Podcasts are becoming more popular content channels because of their ease of use. Unlike most content channels, you can listen to a podcast while doing other things. You can learn on the go. But beyond the convenience podcasts offer, do they have a financial value? If they do, how much does a podcast make? How can you make money doing a podcast? Below are the answers to these questions and more.
Can You Make Money Podcasting?
Yes, you can make money podcasting. You can feel the effects of podcasting in your bank accounts asides the goodwill you’ll receive from your audience. Successful podcasters like Pat Flynn and Joe Rogan built a living from their podcasts. This shows you can make money from podcasting. That said, how do you go about it?
1. Advertisements:
One of the most common ways to make money doing podcasts is to run ads on your podcast. Businesses are looking for ways to get their products in the face of potential customers; if your platform can do that, they will run after you.
The best part is that you don’t need to trouble yourself finding these businesses; there are podcast networks that connect podcasters with advertisers and do all the work. All you need to do is run the ad on your podcast according to their conditions and get paid. However, you must be creative with how you run ads on your podcast. Ads are mostly a huge turnoff to listeners, but you can always find a way around it.
2. Sponsorships:
Another way to make money from podcasting is to seek sponsors for your show. Businesses are willing to sponsor podcasters in return for publicity on your podcast or use it as an avenue to connect with their audience. Aside from companies that look for money, some non-profits also sponsor podcasters ready to promote their work as part of their corporate social responsibility.
3. Donations:
This depends on how well you have served your audience. As a podcaster, you can ask your audience to express their goodwill towards your show by donating to support you or a cause you are passionate about. For instance, if you have a solid audience of 1000 people and 100 out of them donate $5 each per month, that’s about $500 in your bank account every month!
4. Selling products:
It is easier to sell anything to your audience, especially if your podcast provides value that serves them. You can sell customized merchandise like shirts, books, bags, household items, etc. A loyal audience would want physical representations of their favourite podcast around them. For example, if you have built an audience around fashion, you can launch a clothesline. Since you have built authority in that niche through your podcast content, it will be easier for people to buy clothes from you.
5. Premium content:
This content is only available to those who pay for it. If your free content is valuable enough, it won’t be difficult to upsell your audience to your premium content. Also, you can package your premium content into online courses, information products, etc. and sell to your audience. For example, if your podcast is focused on helping businesses improve their marketing strategies, you can create a course on marketing and sell to business owners.
6. Affiliate marketing:
Here, your podcast acts as the middleman between a company and buyers. Affiliate marketing is one of the easiest ways to make money from podcasting, provided you have a ready audience. You need to advertise a product or service on your podcast and get a commission off every sale made through your podcast. There is usually a customised link the company gives you to be able to track every sale. The more the sales, the more money you make. It’s advisable that the products you advertise relate to your podcast theme to make it easier for your audience to buy.
7. Consulting:
If you consistently publish valuable content, you can easily make money doing podcasts by offering consulting services. Consistency establishes you as an authority in your niche; it’s easier for people to believe what you say. You can monetise this by working as a consultant for people who need your experience. You need to guide them and get paid for it.
8. Speaking gigs:
It’s easy to get invited to speak at events and get paid for it if what you say on your podcast resonates with those who listen. Speaking fees can depend on how popular your podcast is, how competent you are, how much the organisers are willing to pay, etc.
9. Live events:
Hosting live events is an excellent way to make money with podcasts. Once you have the audience, rent a space and gather them together. You can even record some episodes of your podcasts with them, especially if the entry fee is moderate. Asides the money you are making, you are also strengthening your podcast community and providing your listeners with networking opportunities.
How Much Does A Podcast Make?
Statistics show that there is no fixed amount as regards how much you can make podcasting. What determines how much podcasts make is how large their audience is, how well they can combine different monetisation methods, and how effective their marketing is.
The money podcasts make for advertisements is calculated as cost per mile (CPM) or per one thousand listeners, which can range from $15 to $30, depending on the advertisers or podcast platform you use. If you have 10,000 people listening to your podcast weekly and you get paid $25 for every thousand listeners, that’s $250 you’ll be making monthly from podcasting. Some podcasts that make a steady flow of income include Smart Passive Income and The Ringer.
In addition, you need to combine the monetisation methods if you want to make good money with podcasting. A podcaster who runs ads on their podcast sells custom merch and offers consulting services will make more money than one who only relies on ads.
However, it’s not enough to know how podcasts make money. You have to do what successful podcasters do too. The first thing is to determine your content. Your content will determine your target audience. If you know how businesses can scale their income, your target audience is business owners and those aspiring to own a business.
Asides the quality of your content, you need to be patient and consistent. Your podcast won’t start making millions of dollars the first day or the first year you start. Building a large, loyal audience isn’t magic; it takes the right strategies and time. Therefore, if you aren’t ready to play long-term, you’ll find it challenging to make money from podcasting.
Conclusion
Making money from podcasting is easier once you have built a loyal audience with quality content, effective marketing and consistency. Also, combining different monetisation methods will scale up your income from podcasting and make it highly profitable for you.
Check out our free “Podcasting Mastered” course for a detailed walk-through on everything you need to know about starting a successful business podcast. And feel free to reach out for personalized guidance.
