Top 4 ways to monetize a podcast
In the past year, we’ve seen a considerable increase in terms of podcast consumption. As we speak, there are 62 million Americans listening to audio content each week. Around the world, there are 800,000 active podcasts with over 54 million episodes available. Due to a low cost of entry, a record of 192,000 new shows were launched in 2019.
This considerable increase in audio consumption is mainly due to innovative gadgets such as Amazon’s Alexa or Apple’s AirPods. As more people are attracted by this relatively new trend, content creators keep on finding effective ways to monetize podcasts. Even if there are many was for that, we couldn’t find a dedicated platform capable of accepting several income sources and methods.
In this article, the focus will shift towards common and efficient ways in which content creators can begin to monetize their own podcasts.
1. Podcast Sponsorships
This seems to be the most common way to monetize podcasts. Popular shows can generate thousands of dollars per month through sponsorships. However, some creators and listeners feel like including sponsorship slots within their shows can get annoying. For this reason, it is important to contract sponsors that can relate with the presented content in your show.
If you start a podcast today, do not expect sponsors to line up at your doorstep tomorrow. Like most things in our lives, it takes time to reach a desired level. First, begin to host free podcasts in a niche you are passionate and knowledgeable about. The key is to be consistent, to build a captive and engaged audience before monetizing content through sponsorships. So, what are the common standards for Podcast Sponsorships? Based on the CPM (cost per one thousand visitors), content creators can monetize through sponsorship based on the number of downloads (listens). Therefore, sponsors will pay different amounts for Pre-roll, Mid-roll, and Post-roll slots.
Pre-roll – In this stage, the host will talk about the sponsor’s product or service for 15 seconds before jumping into the main content. To give you an idea, a 15-second Pre-roll generates around $18/1000 listeners.
Mid-roll – This one comes with more flexibility and is included around the 40 – 70% mark of the podcast episode. It lasts for 60 seconds and the host talks about a specific product or service, most of the time sharing a personal story where possible, covering some of the features and benefits. Sponsors are willing to pay more for Mid-roll exposure and it tends to generate $25/1000 listeners.
Post-roll – This stage represents the last call to action your listeners will hear. It lasts around 15 to 30 seconds and purchasing behaviors are influenced the most within this stage, because of the final call to action. For 30 seconds of Post-roll exposure, sponsors pay $10/1000 listeners.
2. Ask for donations
Asking for donations might be the simplest way to monetize a podcast. If you are confident that your content is valued by listeners, you are set to succeed in terms of receiving contributions. Of course, it will only come from engaged, loyal and passionate audiences. Monetizing through donations is a good way to avoid giving portions of podcasts to advertisers. The simplest and most common way to receive donations from listeners is by adding a ‘donate’ button to your podcast page. Before asking for donations, make sure that your followers are well informed and aware of where the money goes. To keep inspiring them, you’ll certainly need to invest in equipment and other tools to deliver better and better content. Therefore, create an authentic call to action that makes it clear where you’ll spend money coming from donations and for what purposes.
As a host, you can receive donations by simply adding a PayPal button or by creating a Stripe account and add it to your page. At Streams.live, we have well-established partnerships with both PayPal and Stripe and opening up an account enables you as a host to receive donations within the platform.
3. Paid premium podcast content
Let’s say that you have some audio content that you’ve worked really hard on. This can be a longer podcast that provides high-value content for listeners. This is where you can add another layer of monetization and create paid membership tiers. Of course that reaching this level will take some time before your listeners pitch in to access such content.
Price customization is under the host’s complete control and the available platforms usually take a small percentage from the revenue earned. With Streams.live, you can add this small percentage on the customer’s side, meaning that you as a creator will end up with nothing to pay in exchange. Usually, creators consider lessons, bonus series, exclusive interviews and more to fall under the ‘exclusive content’ umbrella.
4. Sell products during your podcasts
According to a recent study, 65% of US listeners are very likely to further look into a company they find out about during a podcast and 64% of them have actually bought a presented product or service they’ve heard about during an audio show. It seems that audio tends to be a successful medium for sales due to its intimate relationship it creates between brand and listener. Without any images displayed, listeners can only imagine what is presented during a podcast, making them eager to see it for themselves. The one-on-one relationship audio creates is much stronger and effective than a 30 second TV commercial. There are different ways and techniques for selling products within podcasts and these are:
- Branded Podcasts
With this method, there is no need to pay for external advertising and you can get as creative as it gets with the narrative of your podcast. Starbucks is among those using this method and it presents several stories about ordinary people doing impressive things, to create positive change. Afterwards, the important brand is immediately associated with positive social causes.
- ‘Supply & Demand’ Podcasts
To fully take advantage of this method, you need to know what your customers like. This way, you can build a podcast around a theme which meets their interests. With ‘supply & demand’ podcasts you can even sell affiliate products which you are not in competition with. It is a great way to form collaborations that create a mutual benefit.
- Podcast Guests
If you are hosting podcasts, you can have dedicated sessions for guests. You can give them the opportunity to market themselves as a brand and be an authority in a given sector. As a host, you can simply negotiate with your guests and receive a percentage from every sale that takes place during your sessions.
At Streams.live, our mission is to create a platform that enables content creator to easily monetize their passions and hard work. By looking more into the podcast world, we’ve identified a gap in terms of a dedicated platform designed to accommodate several monetization methods. Our goal is to accommodate these needs in a user friendly and intuitive environment.