Looking to quit your job? Cool your jets.
The question on everyone’s lips is “How do you make money from a podcast?” And while some podcasters are making a living from their show the majority of people don’t make a dime.
That doesn’t mean you can’t generate revenue from your podcast but you need to think more creatively than just “How can I sell ads on my show?”
Why aren’t ads the answer?
Most podcast ads are sold on a ‘cost per mille’ basis.
That means advertisers pay a certain price per thousand (mille) listeners and that price is not very big (around $15 – $40 depending on the ad).
That means you need A LOT of downloads to bring in any significant amount of revenue. Or to make investing in your podcast attractive for a business looking to advertise (because most businesses want big downloads to reach enough people to justify their spend).
If your weekly audience is around the 100 – 200 mark (which is where a lot of podcasts sit) it’s not going to be high enough to attract advertisers or to generate enough revenue for you.
So, as a smaller podcaster, you need to get more creative if you want to monetise your show because ads are the least lucrative way to do it.
So, how to make money from a podcast if you don’t sell ads?
Sell products or services you’ve created
Think of your podcast as a chance for people to try before they buy.
Turning up into people’s ears each week builds trust, so if you’ve got a product or service that ties into the content of your podcast you can introduce people to it via your show.
Then if they like what they hear they can upgrade to the paid content if they want to dive deeper.
That’s what I do with my podcast, PodSchool.
People who listen to the show can get a sense of my teaching style and expertise.
Then, if they want further assistance putting their podcast together, they can sign up to my online podcasting course secure in the knowledge that I know what I’m talking about and that they’re comfortable with my teaching style.
Affiliate marketing
This is when you sell a product or service on behalf of another creator and get a cut of the purchase price.
I would only advise doing this with products or services you’ve tried yourself because if you endorse something that’s not high-quality, it will erode the trust your audience has in your recommendations. And that trust is what you rely on when it comes to generating income from your show.
It’s never worth recommending something just for money because the cut you get won’t be enough to cover the resulting damage to your brand if your audience loses faith in you.
Some companies will offer affiliate programs as standard, while others will only allow their products to be sold via people they trust so it might take some time to build relationships.
If you’ve got a keen audience of people a seller might not be able to get in front of without you, it could be a great opportunity for both of you.
But again, the product must align well with the content of your show.
Selling subscription services
A couple of examples of this could be a membership site where people get additional content each month or a closed Facebook group where listeners get advice or coaching from yourself or other experts.
Something to remember if you’re thinking about this option is it’s A LOT of work.
When you’re asking people to cough up a recurring amount of money you have to make sure the service you’re offering is worth it.
That means you have to constantly offer up new stuff which can be a huge undertaking.
For some people, this model works well, for others, you might be better off offering a course for a one-off fee.
Ultimately, you have to ensure that if you go down this path you’re giving your audience enough added value every month to make sure their investment is worth it.
The donation model
This is usually only possible when you’ve built up a loyal fan base of people who love your show and would rather pay a small amount per month to keep it alive than live without it.
If you want people to donate money to your show (Patreon is a website a lot of podcasters use) you’ll need to develop additional content as a reward for their investment.
Examples might include free show merchandise, access to behind-the-scenes videos and recordings, first access to live show tickets, or an ad-free version of the podcast to listen to each week.
The possibilities are endless, so get creative.
Podcast apps like Apple Podcasts and Spotify also offer subscription models so you can monetise your show and provide additional bonus content but remember it’s only available to listeners who listen on those specific apps.
People who are willing to pay for your content are often your biggest fans so if you go down this road you want to make sure you’re rewarding them with something they find truly valuable.
Live events
If you’ve got an audience that loves listening to you they’ll probably want to turn up to a live show and experience your podcast in person.
Getting in front of your fans is an amazing experience for both you and them because it allows you to see how people react to your show.
It also builds on the relationship your audience has with you and makes them feel like they’re part of something.
And it can be a great way to generate additional revenue (provided you keep your costs low…so don’t go renting the Opera House for your first gig).
Establish yourself as an expert
Doing a weekly podcast can get you in front of people who might not have been able to find you previously.
I’ve seen people get job offers from their podcast, sign up coaching clients, and get contract work.
If you know your stuff and you’re sharing tips and information you’ll be surprised at how many opportunities will come through the door because people like your approach and can get a sense of what you’re about before they’ve met you.
Get booked for speaking gigs
This is another benefit of establishing yourself as an expert in your field and can be a great way to generate revenue because speaking gigs usually pay well.
Having said that, when you’re starting out, you might be asked to do them for free and there’s nothing wrong with doing a few freebies to build up your experience, reputation, and testimonials/reviews.
Having a podcast is a great way to show people your style behind the mic so organisers of events can get a sense of your personality and hosting style, which they won’t be able to get if you’re just sending a cold email.
But what if you really want to sell ads?
If you do sell ads on your podcast you need to give the content in the commercial bits as much thought as the rest of your show.
If you want businesses to invest in your podcast you want to make sure they get value out of it but you also want your listeners to get something valuable too.
So think about how you can make ads a seamless part of your content so they feel more like a recommendation from a trusted friend than 30 seconds of a hard sell.
Be creative and put your listeners first
No matter how you’re planning on monetising your show you never want it to be at the expense of your listeners.
The trust you’ve built up with your audience is the thing you’re monetising, especially when you’re selling ads, so you have to do everything you can to protect it.
You also need to think creatively about how to monetise your podcast, especially when your audience numbers are low.
And while making money from something you’re creatively passionate about is great it can’t be the only reason you’re doing a podcast.
If it is, you won’t be able to make it through the long weeks, months or years when you’re trying to build your audience and you won’t truly be dedicated to the people turning up to hear your show.
And that’s the most important thing to focus on if you want to build a successful podcast that you can one day turn into a business.
Got a burning podcasting question you’d like answered? Send me an email.
Want to start your own podcast but need a little help? Download my “How To Start A Podcast” guide or sign up for my online podcasting course, PodSchool.
