How do podcasters make money?
You're here because you have an existing podcast you'd like to start earning money from. Or you are brand new to podcasting and looking to launch, but curious how podcasters like Joe Rogan and Glennon Doyle make so much money from their podcast alone?
Let's start with the obvious: creating a podcast is a labor of love. Putting out engaging content consistently takes dedication, energy and time. So wouldn't it be amazing if that passion could translate into some financial rewards too?
The good news is, it absolutely can. In this comprehensive guide, we'll explore 10 unique, clever strategies that can you help you monetize your podcast from the start - or from anywhere you are in your podcasting journey.
By the way, I'm Jamie Kennedy, the executive podcast producer here at Brave Moon Podcasts. Today we’re going to be talking about monetizing your podcast.
What is direct podcast monetization, and how is it different than monetizing from your podcast indirectly?
Direct podcast monetization involves generating revenue directly from the podcast itself. Indirect monetization, on the other hand, leverages the podcast's audience to promote your business.
Both are incredibly powerful opportunities for you to start making money. If you run a business and sell products or services, a podcast helps bring more awareness to your brand. And since nearly 60% of podcast listeners have made a purchase based on a podcast ad alone, selling your product or service on a podcast is incredibly effective!
Direct podcast monetization comes from building a following of loyal listeners. You can compare it to having a large TikTok or YouTube; these influencers monetize directly from their platform, just like you can monetize directly from your podcast.
A podcast allows so many various revenue streams, all of which will put more money into your wallet at the end of the day.
In this article, we're going to focus on how to monetize your podcast directly. If you're curious to learn more about how to drive revenue and improve brand awareness with a podcast, visit our article Podcasting: Your Brand's Secret Weapon.
Here's how to monetize a podcast directly.
The good and bad news is: there's no one-size-fits-all approach to podcast monetization. The best strategy for you will depend on your audience size, content niche, and overall goals. Some of these strategies will only work when you start getting 1,000 downloads per episode - others you can do as soon as your first episode drops!
It also matters what strategies feel right to you. Some of these might feel icky, while others feels like a no-brainer. Follow your gut!
Here are some popular methods to consider:
Sponsorships
The podcast sponsorship market has been expanding rapidly. In 2022, podcast ad revenue in the US reached $1.8 billion, marking a 26% increase from the previous year. This growth trajectory is expected to continue, with projections suggesting the market could surpass $4 billion by 2024.
Securing sponsorships can be approached through various avenues, each offering unique advantages. One effective strategy is direct outreach to brands that align with your podcast's content and audience.
Many successful podcasters have found that personalized outreach can lead to fruitful partnerships and potentially higher payouts.
Alternatively, podcasters can connect with podcast advertising networks such as Acast, Spotify's Audience Network, and LibySyn Ads. These platforms simplify the process by linking podcasters with potential sponsors and managing much of the logistics involved in sponsorship deals.
Additionally, self-serve platforms like AudioGO allow advertisers to create campaigns starting at relatively low budgets, making it easier for smaller podcasts to attract sponsors and diversify their revenue streams.
Direct Advertising
Direct advertising offers a great chance for podcasters to make money from their shows.
Dynamic ad insertion (DAI) technology has also changed how ads are added to podcasts. In 2022, the use of DAI increased by 51%, with 67% of podcast ads now being dynamically inserted. This technology allows advertisers to target specific groups of listeners based on demographics and interests, making ads more relevant.
For podcasters, this means they can earn more money by showing different ads to different listeners within the same episode.
Platforms like Acast Ad Marketplace make it easier for podcasters to find advertisers. These platforms connect podcasters with brands and handle the details of ad placement and tracking. Acast reported that podcasts using their marketplace saw an average revenue increase of 250% in 2022.
Listener Donations & Subscriptions
Listener donations and subscriptions are a fantastic way for podcasters to earn money while creating a strong sense of community with their audience. By allowing your loyal fans to support your work directly, you can deepen the connection you share with them. A recent study by Podcast Movement found that 35% of podcasters have adopted listener support models, and those who actively promote them often earn between $500 and $1,000 a month. That’s a nice boost to your income, all thanks to the people who love what you do!
Platforms like Patreon and Buy Me a Coffee make it super easy for podcasters to set up donation and subscription options. For instance, Patreon reports that the average podcast creator on their platform makes about $315 a month from just 20 patrons. That shows how even a small group of dedicated listeners can make a big difference!
Plus, these platforms let you offer fun rewards, like exclusive content or special perks for subscribers, which can help keep your audience engaged and excited about your podcast.
One of the best things about listener support is that it can provide a more stable income than relying solely on ads. According to a survey by Podcast Insights, 68% of podcast listeners say they would happily support their favorite shows financially. Among them, 37% prefer a subscription model, while 31% like the idea of one-time donations.
This willingness to pay shows just how much value listeners place on quality content and their desire to see it continue. By embracing listener support, you're not just monetizing your podcast; you're building a community of enthusiastic supporters who want to help you succeed!
Premium Content
Creating premium content for your podcast is a fantastic way to reward your most dedicated listeners while boosting your income. It's like offering a VIP backstage pass to your biggest fans! According to a 2023 report by Podcast Insights, 27% of podcasters now offer some form of premium content, and those who do report an average increase in revenue of 30-40%.
One of the great things about premium content is how flexible it can be. You might offer bonus episodes, early access to regular episodes, or ad-free versions of your show. Some podcasters even provide exclusive Q&A sessions or behind-the-scenes content.
The best part? Premium content can help create a stronger bond with your listeners. A study by Acast revealed that podcast subscribers are 2.6 times more likely to listen to every episode of a show compared to non-subscribers. Plus, they're more likely to recommend the podcast to friends.
By offering premium content, you're not just increasing your income – you're building a community of super-fans who are invested in your success. And remember, you don't need a massive audience to make this work. Even if just 5% of your listeners subscribe at $5 per month, that can add up to a significant boost in your podcast income!
Sell Merchandise
Selling merchandise is a great way to monetize your podcast while strengthening your brand connection with listeners. Branded items like t-shirts, mugs, and hats can resonate with your audience and provide a solid revenue stream. According to a survey by Podcast Movement, 22% of podcasters sell merchandise, earning an average of $200 to $500 per month. This highlights the real potential for income through merch sales!
To get started, set up an online store on your website or use an e-commerce platform like Shopify. Partnering with print-on-demand services such as Printful or Teespring can simplify the process, as they handle production and shipping for you. This allows you to focus on designing appealing products that reflect your podcast's identity without worrying about inventory management.
Promotion is key to successful merchandise sales. Use your podcast episodes to highlight new products and special offers, and leverage social media platforms like Instagram and TikTok to showcase your merchandise visually.
Affiliate Marketing
Affiliate marketing is a popular strategy for podcasters to generate revenue. By promoting products or services related to your podcast's niche and earning a commission on each sale, you can create a sustainable income stream.
To effectively implement affiliate marketing, identify relevant products or services that align with your audience's interests. Negotiate affiliate deals with companies in your niche and incorporate affiliate links into your podcast episodes, show notes, and social media posts. Track your affiliate earnings and optimize your strategy to maximize your revenue.
Live Events and Workshops
Hosting live events and workshops has emerged as a powerful strategy for podcasters to monetize their shows and forge stronger connections with their audience. This approach has gained significant traction in recent years, with many successful podcasters leveraging it to great effect.
According to a survey by Podcast Movement, 35% of podcasters have hosted a live event, and 62% of those who haven't are interested in doing so in the future. These events can take various forms, including in-person meet-and-greets, live recordings, workshops, and virtual webinars. The flexibility of format allows podcasters to cater to both local and global audiences.
The financial potential of live events is substantial. For instance, the true-crime podcast "My Favorite Murder" sold out a 6,000-seat arena in Los Angeles, generating over $200,000 in ticket sales for a single show2. While not all podcasts achieve this level of success, even smaller events can be lucrative. On average, podcasters who host live events report earning between $500 to $5,000 per event, depending on factors like audience size and ticket pricing.
Beyond direct ticket sales, live events offer multiple revenue streams. Many podcasters report increased merchandise sales at live events, with some seeing a 200-300% boost compared to their online sales.
Furthermore, live events serve as powerful marketing tools. They can help grow your audience, with 78% of podcasters who've hosted live events reporting an increase in listeners following the event. They also provide networking opportunities, allowing podcasters to connect with industry professionals and potentially open doors for future collaborations or sponsorships.
Create Digital Products
Creating and selling digital products is another effective way to monetize your podcast. These products can include ebooks, online courses, templates, or exclusive content. To maximize your earnings, focus on creating high-quality products that solve specific problems for your audience. You can sell these products directly through your website or through platforms like Gumroad or Teachable. By offering valuable digital products, you can generate recurring revenue and build a loyal customer base.
Public Speaking
Leveraging your podcast's popularity to become a sought-after public speaker can be a lucrative avenue. By sharing insights and stories from your podcast, you can attract speaking engagements at conferences, workshops, and corporate events. As you gain recognition as an expert in your field, you can command higher speaking fees and generate substantial income. Additionally, public speaking can help you build brand awareness, connect with potential clients, and generate leads for your other business ventures.
Coaching and Consulting
Offering coaching and consulting services is a valuable way to monetize your podcast. As a podcast host, you've likely developed expertise in a specific niche. By leveraging your knowledge and experience, you can offer one-on-one coaching or group consulting sessions to help others achieve their goals. You can charge a fee for these services, either hourly or as a package deal. Additionally, you can create digital courses or workshops to share your knowledge with a wider audience.
Frequently asked questions about podcast monetization.
What case studies can you provide of podcasts that were successful with monetizing their podcast directly?
Looking for some real-world examples of podcast monetization success? Here are a few:
This true-crime podcast rose to fame with its witty hosts and captivating storytelling. They've leveraged a combination of sponsorships, merchandise sales, and live events to create a thriving business.
This award-winning news podcast demonstrates the power of listener subscriptions. Their premium tier offers ad-free listening and bonus content, giving dedicated listeners a way to directly support their favorite show.
Should I start a podcast to make money?
Yes, and no. Ideally, you're starting a podcast because you have a viable business, product or service, and you're looking to promote it through a podcast.
Most podcasts make their living by using a podcast to target their business's target audience and sell to them through the podcast. Brands that have done a great job with this mindset are Fitness Flipped by Peloton, Virgin Active Minds by Virgin Active, and Why We Eat What We Eat by Blue Apron.
From there, as your loyal listenership grows, more monetization revenue streams will grow. You've got this!
How many listeners do I need to start making money from my podcast?
There's no hard rule here. If you have 10 loyal listeners, you have a potential revenue stream. Small, but the potential is there.
I recommend you build monetization strategies into your podcast from the start. Things like premium content episodes can be released as soon as your debut episode releases. It's helpful to you and your listeners to establish the monetization journey early!
Here's how to get started with monetizing your podcast.
Research
Dig deeper into specific monetization strategies that resonate with your podcast and audience.
Experiment
Don't be afraid to try different methods and see what works best for you.
Track and Analyze
Monitor your results and adjust your approach accordingly.
Remember, building a successful podcast takes time and dedication. But with the right mix of passion, strategy, and a little bit of Brave Moon magic, you can turn your podcast into a profitable venture that fuels your creativity and connects with your audience on a whole new level.
For You, On Us
Click the link below to download the comprehensize Building a Profitable Podcast monetization guide, which helps explain podcast monetization even better than this article.
