How to Make Money Podcasting by Incorporating Premium Content
Premium content is all the rage in the podcasting community these days -- and for a good reason. It’s one of the best ways to monetize podcasts, and you can do it in a much more authentic and genuine way than chasing sponsorships.
It’s not just independent podcasters coming to this conclusion, either. According to a prediction by Evo Terra on Podcast Pontifications, premium podcasting is the wave of the future. He believes that we’re on the brink of yet another podcasting revolution, one that will mirror the likes of entertainment companies like Netflix and Hulu. As Terra notes, it’s highly likely that listeners will soon be able to pay $8/month to listen to exclusive, high-quality, well-produced podcasts.
But until that day comes, you likely want to know how to make money podcasting through premium content now. To answer that, let’s cover some of the bases first.
✴ How do podcasts make money?
The majority of podcasts currently make money through sponsors and in-show advertisements. We’re not discounting that as a legitimate avenue. There’s a reason the big podcasters all do this. It works -- if you have a large enough audience.
Of course, there are additional ways to bring in some extra revenue. You can host live shows and profit from the ticket sales, promote affiliate links, or even make money off YouTube.
But one of -- if not the -- best alternative ways to make money is through premium content that’s behind a paywall.
✴ What is premium content?
When we say “premium content,” we mean any additional content outside of your regular (free) podcast episodes that you can put behind a paywall.
This bonus content could consist of several things, from interview segments that didn’t make it into the edit to access to an exclusive Facebook group. But the most common form of premium content is bonus episodes.
You have a ton of latitude when it comes to what exactly goes into these bonus episodes. Here are some suggestions for types of shows that have been done before:
Podcast.co suggests making one bonus episode the exclusive second part to an interview with a well-known guest.
Another popular option is to have an “Ask Me Anything” episode, where the host(s) answer listener questions.
Or, you could do a deep dive into a subject you didn’t have time to fully explore during the main episode.
You can do the same format week in and week out, or your bonus episode can be a rotating mixture of these. Any or all of these are valid choices. Or maybe you have an entirely different idea that no one’s thought of before, in which case, power to you! We can’t wait to hear all about it.
✴ How to monetize a podcast through premium content
The logistics of how to make premium content are pretty straight forward. The real challenge is how to get listeners to pay for it.
✴ Are you ready to monetize?
First and foremost, you need to take a look at your podcast as it stands and make sure you’re ready to make the leap into monetization. If you’re just starting out and only have 100 downloads a week, then perhaps wait a beat. Instead of making extra work for yourself for a negligible return, focus on improving your podcast and capturing the attention of a slightly larger audience.
✴ What type of bonus content will you create?
However, once you are ready to move into premium content, the first thing to do is consider what you’re going to provide. You want to make sure that it’s an incredibly tempting offer that your most loyal listeners simply can’t turn down. If it’s just more of the same, it may not excite your audience enough to convert them into paying listeners.
As suggested above, think about splitting episodes into two parts. The first part goes onto your regular podcast feed that’s available to all listeners, but part two is exclusive to the paid feed. This incentivizes listeners who want the full story to pay for the bonus content.
Even if you don’t want to do the two-part format, be sure that you’re enticing listeners with your premium content. You want to make it seem like they’re missing out by not subscribing. (Be sure that they actually are missing out by keeping your extra content super high-quality. The last thing you want is for someone to pay for premium content and then be let down.)
✴ How often can you commit to bonus content?
Consider how often you plan on putting out bonus content and factor that into your workload. You want to find a balance between offering quality premium content while also not overloading yourself with so much extra work that all your content suffers.
✴ How much should you charge?
After you’ve got your idea nailed down, it’s time to decide how much to charge for your premium content. Podcast.co’s advice is to keep a low barrier for entry -- meaning don’t overcharge. Asking for five dollars a month is a much easier sell than trying to get someone to commit to $25/month.
Normally, we would say focus on quality over quantity, but in this case, the reverse is true. The best way to monetize through premium content isn’t to charge a super high amount that only a few people are willing to commit to -- it’s to charge a small enough amount that a ton of people will buy into it.
✴ How to manage premium content
The next question is how to host all this bonus content. The Podcast Host has several suggestions for how to manage your premium content for new paying subscribers. The biggest decision you’ll have to make here is whether you’re willing to do everything manually yourself or if you’re ready to pay for automated services that will do a lot of it for you.
Both options are valid, and it’s important to consider your current circumstances. After all, you can always upgrade to automated services later. So, if you’re just starting out and your list of paying listeners is rather small, consider going the free route until it becomes necessary to bring in some help. (Hopefully, the fact that it’s necessary means you’re already bringing in some steady income from your monetization.)
✴ Our final suggestion
Asking your listeners for anything is hard, but a good rule of thumb to make it easier is to ensure that you’re always offering more than you’re asking for. It’s obvious when you’re thinking about ways to make your listeners’ lives better and trying to give them more -- and when you’re doing things simply for your own profit. When your listeners see the former, they appreciate it, and that, in turn, makes them more willing and excited to support you.
Even once you start to monetize your premium content, don’t forget about your free podcast feed. That’s your bread and butter. Always look for ways to improve in both avenues. Premium content is a great thing for loyal fans, but you also want to attract new listeners (who then one day might turn into loyal fans). The only way to get those people is to continue to put out a great free podcast.
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