Have you ever thought to yourself “how do podcasts make money?”. It sometimes seems as though everyone is creating their own podcast these days. A-listers such as Oprah Winfrey with her SuperSoul Conversations podcast. Business-related series such as Inside LaunchStreet hosted by elite businesswoman, Tamara Ghandour. Lesser known individuals setting up a makeshift studio at home to express their passion for a particular set of hobbies. It’s just a matter of time before your mom calls with her podcast idea.

While the concept of podcasting has existed for some time, it might appear as if it has only recently started to hit the mainstream. As this convenient form of audio content increases in popularity, it presents an opportunity grow your followership and make some money in the process. If you’d like to know how to cash in, then read on to learn 5 different ways to make money podcasting.

✴ 1. Sponsorship Deals

This is one of the more common techniques. In this case, advertisers will pay you to mention their product or service on your podcast. It is very easy to set up, and the main requirement to attract sponsors is the amount traffic you can bring in. If you have built a loyal audience and can signify good conversion rates, then you are on track to landing some reasonable sponsorship deals.

Take some time to analyze your niche. The more thorough you are the better. Ask yourself questions such as:

Is there an overlap between my audience and the advertiser’s?
Do we share similar values?

Next, create a list of companies that you think would be a great fit for your particular show and reach out to them. Trying to find out things like the standard industry rates for podcast advertising in your area beforehand will also be helpful. Then show up ready to negotiate and confidently walk away with the best possible sponsorship agreement.

✴ 2. Affiliate Revenue

A slightly different take on sponsorship, the affiliate pathway allows the podcaster to make money by receiving a percentage of the dollars their listeners pay for any products or services that are discovered as a result of the podcast. If this isn’t clear, imagine the scenario below:

Your podcast about empowering women in business creates a special 15% discount code for tickets to a big entrepreneurship seminar that has an exceptional line-up of highly respected guest speakers. If your listeners learn about this event and decide to take advantage of your offer, then you receive a commission on the money spent on any tickets sold using your special code.

Lots of different companies have affiliate programs, but the most popular marketplace is Amazon. With advertising revenue in podcasting expected to nearly double in the next few years to reach $1 billion in 2021, now is the perfect time to try and get your own slice of the ‘affiliate money’ pie.

✴ 3. Paid Or Premium Content

When you have something of value to offer, implementing special content that listeners need to pay for is a good route to take. In addition to your normal podcast series that is free for all, you can create exclusive episodes or subscription packages that are only available for a fee. The key to success here is providing rich, insightful information that isn’t easily accessible elsewhere on the web.

You can use your free content to attract visitors. Once you have their attention, give them the option to benefit from a higher level of useful information at a price. They’ve already shown an interest in your offering. As a result, they’re more likely to part ways with their money for the privilege of learning even more. As other companies have shown, sometimes 80% of your revenue can come from 20% of your customers, and these are the interested listeners you want to target first.

✴ 4. Partnerships

Finding influencers in your field to create strategic partnerships with is another good way to make money from your podcast. Networking is a great first step towards developing these kinds of relationships. The connections you make within the podcasting community and beyond will help you to close more deals, because sometimes it comes down to who you know.

Be sure to collaborate with people that have a message that is closely aligned to your audience’s preferences though. This helps to build trust and authenticity within your niche. In addition, the extra exposure to listeners on both sides leaves everyone feeling like they have mutually benefited. Future partnerships, live events, and further opportunities to generate revenue down the line could also be created as a result.

✴ 5. Selling Merchandise & Services

Some good old merch could be the way to go for podcasts with a strong following. There comes a time when your fans love your show so much that they want to buy cool t-shirts, mugs, or any other products with your catchy slogan or logo on them.

If you have very good knowledge of your niche, you could also provide coaching or consulting services for a price. Start by determining the best way to package your content that would be most appealing to paying customers. Then use your platform to market your services and you’ve created yet another way to make money from your podcast.

✴ Final Thoughts On How Podcasts Make Money

There are many different ways to make money from podcasting. Always do some research and choose the methods that will help you to best meet your specific goals based on your show’s maturity and following. Be ready to make adjustments. It will not happen overnight, but with consistent and quality production, you will eventually begin to see your audience grow. This is where you can really unlock the wealth of opportunities that are out there and capitalize on various money-making strategies.

Want more advice on how to grow a profitable podcast? Check out our mini guide to monetization here.

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