How Do Podcasts Make Money

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If you’ve been online in the last year, you’ve probably noticed how widespread podcasting has become. Lately, people have been trying to learn how to make money from podcasts for many reasons, but here are a few.

To begin, this market is booming, and it’s diverse. People listen to or watch episodes daily from all corners of the earth. Subsequently, more advertisers are investing in this market to reach potential customers. As a result, the ad revenue generated from podcasting continues to increase.

How to Make Money From Podcasts

Let’s get right to business. Prior to [starting a podcast], you need to see if there are any roadblocks that could stop you from moving forward. Therefore, it’s imperative to have monetization strategies laid out before you start a podcast. Here are 9 ways to make money podcasting:

As you can see, there are several ways to earn money online from podcasts. But first, you must focus on building a following. You can’t make money from podcasts without an audience. Therefore, you must concentrate your efforts on gaining more subscribers. All things considered, you can make money with a few subscribers. And there are strategies to earn money from a limited following. However, you can’t quit your job that way.

1. Find the Best Affiliate Programs

When it comes to affiliate marketing, success hinges on trust-building and strategic product selection, culminating in advertising affiliate products effectively to target audiences. I recommend that you find the best affiliate programs in your industry. In doing so you can increase the likelyhood of success! You can find the best affiliate programs by conducting thorough research and analysis tailored to your niche and target audience.

2. Promoting Digital Products

Digital products are ubiquitous, as we all know. These are products like digital audio and music, photography, software, video, eBooks, documents, tutorials, apps, and courses.

3. Make Money Teaching Online Courses

If you have good problem-solving skills, coaching people or businesses could well be your respective field. You can make money teaching online courses. You can coach people on parenting solutions, life problems, health and fitness, weight loss, and nutrition, among several other subjects.

4. Consulting

You do not need to have a degree to consult people or businesses. You will need to have a purported expert level of knowledge on the subject you’re consulting your followers about. A few types of consultants are business consultants, financial consultants, strategy consultants, social media consultants, and marketing consultants.

5. Crowdfunding

Start earning money from crowdfunding. Platforms like Patreon and Buy Me a Coffee allow listeners to support their favorite podcasts through one-time donations or recurring contributions. Incentivize donations by offering perks such as shoutouts, merchandise, or access to exclusive content.

6. Monetizing Ads

Some individuals believe as soon as they launch a podcast, they can begin earning money from monetizing. However, this is the wrong approach. You’ll need at least 10,000 followers on your social platform to monetize ads on YouTube, as mentioned earlier. However, earning money by placing ads is one of the best ways to get money. In 2021, it’s projected that advertisers will spend over 1 billion on advertisements. Therefore, monetizing ads can put you in a billion-dollar marketplace.

7. Promoting Physical Products

Physical products are the most profitable products to market. When you sell physical products, you earn 100% commission because the product belongs to you. Physical products also provide your platform, a brand that adds more value to your podcast.

8. Selling eBooks

Thinking about selling eBooks? Learning how to sell eBooks is important for many reasons. The first reason is when you write books, you provide readers with another method to engage with your platform. Consequently, you are meeting an important goal of marketing, staying engaged with your customers. Some podcasters offer their customers books and eBooks for free. Everyone loves freebies. Giving out your books and eBooks for free can definitely be beneficial in the long haul.

9. Sponsorships

One of the most popular ways to make money podcasting is through sponsorships. Implementing sponsorships on your platform can be one of the easiest methods to earn money. On the flip side, you can sell personal advertisements on your platform.

Most publishers use an advertising model called cost-per-mile (CPM) to earn. In this model, publishers earn money from 1000 ad impressions. The average rate for podcast advertisements is twenty-five dollars for a sixty-second ad (CPM).

How Much Money Do Podcasts Make?

The amount of money a podcast generates depends on the social following. Platforms with a few followers will not earn as much revenue as platforms that have a larger amount of social followers.

The spending on podcast advertising has skyrocketed over the last 6 years. In 2015, advertisers spent $69 million on ads. Two years later (2017), advertisers spent $314 million on advertisements. In 2019, businesses spent $514 million on podcast ads. According to data from the Interactive Advertising Bureau (IAB) and PwC, in 2021, experts expect ad revenue to exceed $1 billion dollars.

There is not a minimum or maximum amount of money a podcast can produce. Podcasting is not like a typical 9 - 5 job where employees get paid a certain amount weekly. Here are the top 3 podcasters:

Joe Rogan Experience ($900,000 monthly).
Chapo Trap House ($153,000 monthly).
Smart Passive Income ($100,000 monthly).

Given this data, you should have a better idea of why so many people are trying to learn how to make money with a podcast. To be honest, making money from podcasts requires a great deal of time. Before choosing this method, be sure you have enough time on your hands.

Do Podcasts Cost Money?

Answer: Yes. To develop professional content, the entrepreneur creating the podcast must have the proper equipment. There are two ways to develop content for a podcast. The first way is to record content at a studio. Whereas the second way is to record content yourself.

If you choose to record your podcast at a studio, more than likely you will have to pay for studio time. The average cost for booking time at an attractive studio can cost anywhere from $40 – $550 an hour. By the same token, you will need an audio engineer. Hiring a professional audio engineer will cost you around $40 – $200 per episode.

However, if you choose to record the podcast yourself, you’ll need to purchase the equipment and software. Indeed, it will be cheaper to record the content, but it will require most of your time.

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