With Joe Rogan signing an exclusivity deal with Spotify for a reported $200 million in early 2022, it’s no secret that the podcast market can be a lucrative one. However, not every podcast is worth somewhere in the nine-figure range, so you might be wondering how much podcasters really make on average.
The earning potential of podcasting depends on a host of factors, like audience size, upload frequency, industry, and of course – the monetization method used. If you’re just starting out, it’s unlikely that you’ll be pulling in the big bucks, but don’t worry – with the right strategy, you can turn your podcast into a profitable venture.
In this post, we’ll look at how much you can expect to make from podcasting. Then, we’ll go over some of the ways that you can monetize your podcast. Let’s get started!
How Much Can Podcasters Expect to Make?
The amount of money that podcasters make varies widely. Most of it comes down to the size of their audience.
However, podcasting is a thriving industry, with advertising revenues on this platform growing at 26 percent year over year, reaching $1.8 billion in 2022. This number is expected to more than double by 2025, with the total revenue projected to reach $4 billion.
You might be wondering: Where is all that money going?
Sure, the bigger names (like Joe Rogan, Dax Shepard, Bill Simmons) take the largest part of the pie. Top-earning podcasters can earn millions of dollars each year. However, the reality is that most podcasts won’t make any money at all. That aside, even smaller shows and networks can reach a significant revenue once their podcasts are becoming popular.
Uploading new episodes on a regular basis can help you grow your audience. In turn, you might begin to see interest from advertisers who want to promote their brand through your show. Leveraging your content to publish posts on multiple mediums (podcast episodes, blog posts, website, newsletter, social media etc.) can help you grow substantially.
It’s always good to aim high and dream big – but expecting millions of dollars in revenues isn’t easy thing to actually achieve. If you’re a solo podcaster without an audience, the journey will be long, but can always reach nice numbers.
More established shows or professional podcasters can have a little more opportunity for making decent revenue.
The exact figures can really fluctuate, but anything from a few hundred dollars per month, to tens of thousands per month can be done. There’s plenty of evidence for these with popular podcasts these days, so that should definitely be a good sign.
We’ll talk about the different strategies for monetization in a minute. However, these numbers suggest that having more ears can translate into higher earning potential.
Do You Have to Monetize Your Podcast?
Before we dive into monetization options for podcasts – let’s first think if it’s the right thing for you. Should all podcasters monetize their podcasts at all costs? Not at all. In fact, many podcasts are considered hobbies or side-projects by their hosts. You don’t have to decide initially whether you’re going to monetize your show or not – it can be done at any later stage as well. Of course – it’s much much easier once you get a decent number of subscribers/listeners, so waiting a little more doesn’t hurt your chances of seeing revenue from your show.
There are also many B2B podcasts that aren’t directly monetizing their shows – they do get indirect “profits” from the podcast, even if those aren’t necessarily monetary revenues. Businesses can get improved exposure, marketing, networking and much more through podcasts, so a direct monetization isn’t always the only option.
How to Monetize Your Podcast
Many platforms enable you to make money from your podcast through different means, such as sponsorships, direct support from your audience, and affiliate advertising. Keep in mind that these strategies are in no way mutually exclusive. You can use all three in a single episode to maximize your earning potential.
Sponsorships refer to ad reads during a podcast. These can either be read by the host or automatically played after a certain amount of time:
Affiliate marketing is similar to regular ad reads, except you can earn per action. For instance, you may offer a free trial for an online audiobook platform to your listeners.
Let’s assume this program pays you $10 for each new account that registers with your code. If you have just a one percent conversion rate, you’ll be making about $1,000 for every 10,000 downloads. Not too bad!
You can also offer podcast memberships, subscriptions and donations so that listeners can support you directly. This can be a significant way to build an income stream from your podcast.
You can also encourage different levels of support by creating multiple tiers. For instance, you can offer a $1/month tier for those with a low budget. Then, you might have a premium tier at $10 or $15 a month. This would provide access to exclusive content and other perks.
If your podcast is on YouTube, you can also try to monetize your YouTube channel. YouTube pays based on ads showed to your users. A high view count and subscriber count on YouTube can always help as well.
Tips for Podcast Monetization
Think about monetization from your very first episode, before you even make a dime from the podcast. You don’t have to attempt to monetize it from the get go. That said, creating high-quality content, publishing on a regular schedule, interacting with listeners, and building a brand around your show can go a long way. We recommend that you create a podcast website for your show with your own domain name. This can really help building authority, getting additional sources of traffic, and a direct communication line with your audience.
Once you have a website, even more monetization options can become available. You can start selling merchandise or even sponsorships on the website itself.
While you can use all options mentioned in this post simultaneously, it’s perhaps better to stick to 1-2 methods that work best for your show. Don’t overwhelm your listeners with too many call to actions or ads during the show. This can become a pain for them. Try to keep things as relevant as possible to your audience. Whatever you do for monetization, remember to offer value to your audience when trying to monetize your show.
Large audiences present content creators with an opportunity for monetization, and podcasts are no exception. With an engaged and constantly growing audience, regular uploads, and a commitment to creating high-quality content, there’s no limit to how much you can make from your podcast.
Podcastpage.io makes it simple to build a website for your podcast and begin monetizing your content. It offers customizable audio players, automatic episode imports, and pre-made templates that make it easier to attract viewers and build an audience. Start your website today!