How Do Podcasts Make Money: Exploring Different Revenue Streams for Podcasters
Podcasts have become increasingly popular over the years as a form of entertainment, education, and storytelling. With thousands of podcasts available on different platforms to suit various interests, it’s not surprising that many people are curious about how these audio shows make money. In this article, we’ll explore some of the different revenue streams for podcasters and how they can monetize their content.
Sponsorship and Advertising
Sponsorship and advertising are perhaps the most common ways for podcasters to make money. Brands and companies typically partner with podcasters to create sponsored content, which can vary from pre-roll ads, mid-roll ads, shoutouts, or sponsored segments. The key is to make these ads seamless and relevant to the podcast’s content and audience.
For instance, popular true crime podcast My Favorite Murder has worked with various brands such as Squarespace, Audible, and Madison Reed, among others. They often do live reads or pre-recorded ads during the show, and they make sure to add humor or personal anecdotes to make them engaging for listeners.
Affiliate Marketing
Affiliate marketing is another way for podcasters to monetize their content. This involves partnering with brands and promoting their products or services to their listeners. The podcaster receives a commission for any purchases made through unique links or codes provided to their listeners.
Pat Flynn’s podcast Smart Passive Income is an excellent example of a podcast that leverages affiliate marketing. Flynn talks about various tools, services, or courses related to online business and entrepreneurship and provides affiliate links for those interested. He’s transparent about his affiliation with these companies and only promotes products he’s tried and tested himself.
Premium Content or Memberships
Some podcasters offer exclusive content or merchandise in exchange for a fee. This includes access to ad-free episodes, bonus material, merchandise discounts, and even private communities where listeners can interact with hosts or other fans. This is typically done through platforms such as Patreon.
True crime podcast Sword and Scale, for example, charges $5 per month for access to ad-free episodes, early releases, and bonus content. They also have different tiers for different levels of access, with higher-paying tiers getting merchandise or shoutouts on the show.
Crowdfunding
Crowdfunding is an alternative way for podcasters to receive financial support from their listeners. Platforms such as Kickstarter, GoFundMe, or Patreon allow podcasters to create campaigns and receive financial contributions in exchange for exclusive rewards, such as early access to episodes, merchandise, or even guest appearances on the show.
A good example of a successful podcast crowdfunding campaign is Radiotopia’s annual fundraiser. Radiotopia is a podcast network that produces critically acclaimed shows such as 99% Invisible, Criminal, or Ear Hustle. Every year, they launch a crowdfunding campaign to generate support from their listeners and maintain their independence as a network. They offer exclusive merchandise, meet and greets, or live shows in return for contributions.
Live Events and Merchandise
Podcasters can also monetize through live events, such as live shows, tours, or meet and greets. This allows podcasters to engage with their audiences in person and provide exclusive experiences for their fans.
Merchandise is also a popular revenue stream for podcasters. This includes t-shirts, mugs, posters, or any other item related to the podcast’s brand or content. Podcasters can sell their merchandise through their website or third-party providers such as TeePublic or Redbubble.
A successful example of a podcast that monetizes through live events and merchandise is My Brother, My Brother, and Me. The comedy advice podcast features three brothers who answer questions from listeners and give humorous advice on various topics. They often do live shows and have an extensive catalog of merchandise ranging from t-shirts and posters to board games and even a cookbook.
Networks or Sponsorships
Finally, some podcasters make money through partnerships with networks or media companies. These partnerships can include production support, sponsorship, marketing, or distribution. Networked shows can also benefit from the exposure and resources that come with being part of a larger group.
An excellent example of a podcast network is Wondery, a media company that produces and distributes true-crime podcasts such as Dr. Death, Dirty John, or Sword and Scale. Wondery has amassed a large and loyal following and has partnered with notable media companies such as The New York Times and Bloomberg to produce and distribute their shows.
Conclusion
Podcasters have various options to monetize their content and make a living out of their shows. Sponsorship and advertising, affiliate marketing, premium content and memberships, crowdfunding, live events and merchandise, and networks or sponsorships are among the most popular ways to do so. As a podcaster, it’s essential to find the revenue stream that works best for your show, audience, and brand.
If you’re looking to monetize your podcast, do your research, and explore the different options available. Don’t be afraid to experiment and test what works best for your listeners and brand. With the right strategy and approach, you can turn your podcast into a sustainable income stream and produce even more engaging, entertaining, and informative content for your audience.