With more than nine million followers, Joe Rogan is the richest podcaster. He makes about $75,000 per episode. With his posting frequency of three episodes per week, Joe Rogan makes $10.8 million a year.
Who knew podcasting could make you so much money?
You’re probably wondering, “how do podcasts make money?” Lucky for you, we have everything you need to know about ways to make money podcasting. Just keep reading.
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How Much Money Can You Make From a Podcast?
As you can tell, you can make tens of millions of dollars from podcasting shows. In fact, you could make way more than that as many other business owners do with their podcast revenue.
Podcast hosting can be extremely lucrative no matter where you are in the world. Podcasters have the ability to build multiple income streams through their podcasts and products. Therefore, they aren’t making money from just one check.
You can also build a considerable audience size and engage with your listeners around the world. Delivering value and informational content or simply by sharing your knowledge in every podcast episode.
Instead, they’re pulling income from multiple streams. By diversifying, someone with a podcast can double or even triple their income.
The amount of money that you make from podcasting depends on how many downloads and listens your podcast gets. It also depends on affiliate marketing, sponsorships, advertisements, and other income streams.
When you’re just starting out, you may only make a few cents per episode. It’s just enough to negate the hosting fees. But, you’ll make more and more as you build your business.
How to Build Your Podcast audience
Unless you have one million followers on Instagram, it’s not likely that you’re going to start with many podcast listeners. But, modern-day social media makes it easier and easier to share online projects.
Here are a few tips for building your podcast following from the bottom up:
- Use search engine optimization for the title and description of your podcast
- Invite listeners to review the podcast
- Share your podcast with as many people as possible
- Create a website page dedicated to your podcast
- Line the podcast up with other kinds of content you may be creating
- Focus on quality over quantity
- Start now rather than later
All in all, it will take you a while to build your podcast following. This isn’t going to happen overnight. You may need to dedicate years of work to your podcast before you start making a substantial profit.
How Do Podcasts Make Money?
We briefly mentioned that podcasters have multiple income streams. This means that they’re making money from different partnerships, companies, and activities.
But, how exactly does each of these income streams work? And, how can you make them work for you?
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Sponsors and Advertising
First up, we should talk about sponsors and advertising. This is one of the most common ways to make money with podcasting.
There are plenty of ways that you could come in contact with a company that wants to sponsor you:
- You reach out to them
- They reach out to you
- Your managing company reach out to them
- They reach out to your managing company
However, finding sponsors for smaller podcasts is more difficult. This is especially if you do not work with a management company.
Usually, advertisers want to book slots on podcasts that have at least 5,000 listeners in one month. This isn’t a concrete number, but it does remain an industry standard for many companies.
Depending on the number of listeners per month and the number of successful referrals, you may receive different advertising revenue. Podcast income also depends on the value of your personal brand and potential collaborations on other platforms as well.
Unfortunately, there isn’t a single equation that every company uses to pitch payment. However, a management company may be able to help you figure out how much a slot on your podcast is worth.
Working With Management Companies
While having a management company may seem like a necessity for every podcaster, it’s not. You do not need to have a management team to bring on sponsors and their products. Nor do you need to have a management team to have a successful podcast.
Management teams are there to help podcasters that have too much on their plate. They can help with completing multiple tasks in just one conference:
- Connecting you with sponsors
- Negotiating deals with sponsors
- Overall brand management
- Getting scripts and outlines for sponsorships
You shouldn’t hire a management company just because you think you need one. You should be confident that a management company will help amplify your brand and its products. Usually, someone with a podcast doesn’t consider hiring a management company until they’ve transitioned to full-time podcasting.
Some podcasters create online courses that correspond with the topics that they cover on their podcast. For example, a podcaster who talks about social media strategy may create a course on that same topic.
Online courses are becoming more and more popular. At the same time, they’re becoming more and more lucrative. This is especially for financial courses like those that cover subjects like credit cards.
So, influencers of all kinds are taking advantage of this opportunity to show others what they know. Usually, they’ll structure their courses into a package deal. This means that their subscribers/followers can buy a set of their courses for a specific amount of money.
By using this technique, podcasters prevent their subscribers from having to pay for each individual module.
Online courses can cost as much or as little as you want them to. Depending on the content, you could charge as much as $1,000 for one course. But, most creators tend to charge around $100 at most.
Keeping the price down makes your course more accessible to a wider range of people. This is the key to more profit and more exposure.
Creating an Online Course is a fantastic way to monetize a podcast for those entrepreneurs that want to share their knowledge.
As with any content that you were least, you want to make sure that it brings value to your customers. What are the content is to inform or educate your followers, you want to make sure that you’re giving out quality content.
So, when you’re creating your online course, you want to make sure that you’re giving the best that you can to your subscribers. This is especially because they’re paying for this content.
Follow these steps as you create your online course:
- Decide what you’re going to talk about
- Ask your podcast audience what they would want you to cover
- Conduct research on the topic even if you’re already an expert
- Write an outline for your course
- Create the content that you’ve outlined
- Post the course online
- Create a selling page for the course
- Share the news about your course on the day of its launch
- Track course sales and make adjustments as needed
Don’t forget to mention the course on your podcast show. You may also want to consider a giveaway for your course. You could even offer a discount code for those who listen to your podcast.
Services and Consultation
If you’re talking about a subject in depth on your podcast, you likely know enough about it to offering consulting or other kinds of services.
Consulting isn’t just a way for businesses to make money. You can give a social consult, a medical consult, a book consult, and more.
Consulting is just the professional word for advice. However, you have to be able to give your customers valuable, usable advice to take advantage of this income stream.
Some people make hundreds of dollars every hour that they perform consulting, and you also can get paid to give advice. However, your pay rate will depend on the kind of consulting you’re doing, the quality of your opinion, and the way that your advice impacts listeners.
When you’re first starting out, your consulting may not be worth much. But, as you grow your personal brand, you’ll be able to earn more through this revenue stream.
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Affiliate Marketing for podcasters
Affiliate marketing is not the same as sponsorships. Affiliate sales usually involve some kind of a link that an influencer provides their audience. This link tells the companies website that the visitor came to the affiliate sale by way of the podcast show.
If the person who clicked on the affiliate sale link makes a purchase, the influencer is likely to get a portion of that sale.
Some podcasters will reach out to companies to get these links. Others will join affiliate programs independently, making the link by themselves.
There are plenty of affiliate marketing options out there. You don’t have to wait for a company to approach you. In fact, you may be able to join multiple affiliate marketing programs without having to talk to any company representatives.
That said, is very important to find the right affiliate program that matches your business goals and your objectives. The success of this business model is to provide both values to your podcast audience and affiliate sales for you.
Some podcasters offer memberships to access extra content. They may offer exclusive podcasts, videos, shows, or other kinds of content.
They may even create different levels of memberships to accommodate different kinds of content. You may have heard of the “basic, advanced, premium” setup in which members earn more content if they pay more for a higher level.
One of the most popular podcast hosting influencers to do this is Pat Flynn with his website, smartpassiveincome.com. He has been selling memberships and physical products on his website for several years. He swears by the technique to target your audience and build a stronger relationship with your audience.
Other websites like youpreneur.com and fizzle.co also use this setup.
There are plenty of benefits that come with the membership setup:
- Your followers will grow closer to you
- You can branch out to new kinds of content
- You can create a close-knit community
- You have another income stream
Premium content can be anything you want it to be. It is just exclusive content that you’re putting behind a paywall. It could include any of the following:
- Behind the scenes clips
- Exclusive interviews/conferences
- Early access to podcast episodes
- Additional podcast episodes
- Question-and-answer sessions
- Tours of your podcast space
And, this isn’t it. You can be creative and offer these and more as premium products.
Most podcast hosting professionals keep all of their premium products on a subscription basis. This means that their followers may pay a few dollars a month to access these special materials.
Platforms like Patreon make controlling gated content like this easier. Before these kinds of platforms, influencers like podcasters had to distribute and maintain the gated content themselves. Now, they can easily share content without having to worry about security concerns.
Another great revenue stream that you could begin is through public speaking. Since you’re a podcaster (or thinking about becoming one), you should be comfortable speaking for an audience.
Even if you haven’t spoken in front of a physical audience before, the transition from podcasting to life speaking is smooth.
You could approach public speaking from many angles:
- You can talk about how you became a podcaster/influencer
- You could inspire others who want to follow in your footsteps
- You could talk about the same or a similar topic that you discuss on your podcast
- You could talk about a completely different topic than the one that you cover on your podcast
- You could do live versions of your podcast
Some people with podcast shows even launch these live events online on their websites. You could also offer this material on a platform like Patreon.
Depending on how large your following is and what your audience demographics are, public speaking could make you thousands of dollars per appearance. Although, you aren’t going to get paid this much at the beginning of your career.
Build Your Business
So, how do podcasts make money podcasting? Well, the answer is that podcasters have multiple ways of making money. By diversifying their portfolio, they’re making more money overall.
Plus, those extra income streams can pad their earnings if anything were to go wrong with their podcast. The more income streams you develop, the better able you’ll be to protect yourself.
You should be careful in developing all of these income streams. Don’t overdo it or you could end up creating poor content on every platform.
Remember, put quality over quantity.
And, if you ever need help building your podcasting business, contact me. I can help you find the information you need to succeed. Just let me know how I can help.