Welcome to RNCN Studios, your trusted guide for generating income from your podcast. With the growing preference for podcast advertising over television ads – 43% versus 17% respectively, according to a recent Spotify survey – it’s time to capitalize on this lucrative avenue.
Different Types of Income From Podcasting
Here, we’ll discuss various avenues to generate income from your podcast, which include:
- Traditional Advertising
- Coupon Code or Affinity Marketing
- Listener Supported Methods
Traditional Advertising
The most common revenue model is traditional advertising. Advertisers pay an upfront amount for a commercial slot within your show. As of 2021, the average rate for a 60-second podcast ad was $25 per thousand listeners. For instance, if your podcast averages around 2000 listeners per show, you could charge approximately $50 for each minute-long ad. We will discuss further how you could increase this rate or reach a larger audience.
Coupon Code or Affinity Marketing
This involves promoting a sponsor’s product or service with a special coupon code. Rather than paying upfront, sponsors will share a percentage of the sales generated from your audience. However, this requires an active and engaged audience to take action.
Listener Supported Methods
Platforms such as Patreon offer a way to crowdsource funds from your fan base. Alternatively, you could develop your own payment portal or sell merchandise for additional revenue streams. Depending on your content and the passion of your fan base, this could be an effective method.
Finding Sponsors
Our client, Trevor Houston from “The Who You Know Show,” shares some insights on finding sponsors for your podcast. Essentially, it starts with establishing a show that warrants attention from an advertiser.
“One of the things that I think is pretty important, I know a lot of people, they want to wait to sign on to have sponsors in advance… You got to build it first. There’s that old saying, if you build it, they will come, right? If you build it, they will come.”
– Trevor Houston
Creating a solid foundation for your show is vital before thinking about sponsors. In the beginning, there may not be any sponsors, leading to upfront expenses. However, consider these as marketing costs, a necessary business expense.
Building Relationships with Potential Sponsors
Trevor also suggests looking at your existing relationships, your potential partners, and those who add value to your business or organization. Offering these contacts free commercials in your podcast can be a great way to get started.
“What you’re going to do is then get some video commercials. You’re going to get like 30-second, 45-second little clips of their business, of their marketing, and you give it away at in the very beginning. What that does is first of all, you’re adding value to your already strong relationships.”
– Trevor Houston
This strategy not only strengthens your existing relationships but also creates a perception that your show is professional and well-supported, which can draw in new sponsors. The goal is to provide value first, and the rest will follow.
Putting Ads to Use Even Without Sponsors
Remember, you don’t need to wait for a sponsor to start your podcast. If you have ad space within your show and no one’s paying for it yet, find ways to make it beneficial to your listeners.
Engaging in Affinity Marketing
Affinity marketing is a great approach to connect with sponsors hesitant about traditional advertising. Here, the sponsor creates a coupon code or a special link specific to your show. When your listeners use this code or link, the sponsor knows it came from you, and you get a cut from the sales. Let’s hear from Heath Oakes of Second Shot about his experience with affinity marketing.
“Affinity marketing is a really big deal…we get a percentage of the monthly payments that people sign up. By signing up with our code, our members also receive a discount…And that money stacks up over and over and over.”
– Heath Oakes, Second Shot Podcast
Keep in mind, the structure for affinity ads can vary. You might get a percentage of the money spent or a fixed amount per customer. It’s beneficial if your listeners get a small discount or some other offer that would entice them to visit the sponsor’s site. This should be a consideration when seeking potential sponsors.
Different Sponsorship Models
Julian Placino, the host of the Pathways to Success, shares his experience with three types of sponsorships.
“The first is a product donation sponsorship…The second sponsorship is an affiliate sponsor…And lastly is the traditional sponsorship.”
– Julian Placino, Pathways to Success
Product donation sponsorships involve a company donating a product to your show in exchange for placement. Affiliate sponsorships are similar to affinity marketing, where you promote a product and receive a kickback for every product sold. Lastly, traditional sponsorships involve receiving a monetary fund in exchange for ad placement.
Even as a micro-influencer, Julian emphasizes the importance of finding a strategic company that can benefit from accessing your audience. Understanding your audience’s needs and aligning them with the right sponsor can result in a beneficial partnership for all parties involved.
The Membership Model
Our final discussion revolves around the membership model, a beneficial approach especially if you have a dedicated audience. This model is also fitting for shows that may not appeal to traditional advertisers due to niche content or sensitive themes. With the membership model, you only need to cater to your audience. Let’s hear from Debbie Georgia, host of a political show called America, Can we talk?, who uses both traditional advertising and sells memberships.
“If you go on the internet, you can find topics and speakers on every subject imaginable. And so to offer membership to people, you have to be thinking what can I give them that is unique and in value? People like to pay for access. That’s what they like.”
– Debbie Georgia, America, Can we talk?
She offers members exclusive access to a weekly show and the opportunity to send in questions. This exclusivity and accessibility make the audience feel connected to the host, providing a unique value they won’t find freely available.
Patreon and similar websites simplify the membership process, allowing you to define different tiers of support and their associated benefits. Another method to generate listener support is merchandise. Not only does it serve as a fun way for your fans to support you, but it also acts as a billboard for your show.
Generating Income from Guests
Trevor Houston also provides an alternative method to generate income. Due to the demand for a slot on his show, he charges certain guests a fee to appear. However, this is flexible and can vary based on the value the guest brings to the show.
“We also will charge not only for commercials, but we have got a demand now for the actual show schedule that we’re charging up to $500 just for a guest to come onto the show… They want to come on because for them, it’s a free commercial for them.”
– Trevor Houston
Ultimately, there are multiple methods to generate income for your podcast or show. It’s about understanding your value, your audience, and leveraging that to create beneficial partnerships, memberships, or monetize through advertising and guest appearances. Be creative, persistent, and always deliver value to your listeners.