How Much Can You Make as a Podcaster?

Earnings in podcasting really come down to how well you play the business game. We know a podcaster who pulls in over $100K a year just from the opportunities his podcast brings him. Another podcaster with a top 100 show earns about $20K-$30K a month solely from sponsorships. She also uses her podcast to generate leads for her business, making around $50K-$100K altogether, although that includes paying her team.

But we can sum it up to this:

Top-Tier Podcasters:

  • Think Joe Rogan and his $100 million deal with Spotify.
  • These podcasters can make millions annually through sponsorships, exclusive deals, and ads.

Mid-Tier Podcasters:

  • If you have 10,000 to 100,000 downloads per episode, you can typically earn several thousand dollars per month.
  • This income comes from a mix of sponsorships, ads, and listener support.

Lower-Tier and Emerging Podcasters:

  • With 1,000 to 10,000 downloads per episode, you might make $500 to $1,500 monthly.
  • Earnings come from sponsorships, affiliate marketing, and donations.

9 Ways To Make Money From A Podcast

1. Sponsorships

Sponsorship is the most money-making avenue for podcasters. Let’s review Joe Rogan’s example for a minute:

  • Joe Rogan’s monumental $100 million deal with Spotify underscores the huge impact of real endorsements; his listeners trust his recommendations because they feel they’re genuine.

  • His endorsements of brands like Onnit and Blue Apron resonate deeply with his audience, building awareness and loyalty for the brands.

  • How to find sponsors for your podcast?

    • A great starting point is aligning with podcast networks like Midroll, which provide the structure and resources needed to connect with advertisers, though they do take a percentage of your earnings.
    • True value lies in taking the initiative through direct outreach, bypassing intermediaries to secure higher returns and maintain full control over your sponsorships.

  • Use this template to email brands you love to get as a sponsor

    • Begin by identifying five brands that you genuinely use and love, as personal experience makes pitches more compelling.

    • Craft personalized emails that highlight your enthusiasm for the brand, and show why your podcast is aligned with their values and target audience.

      This is how Steve Bartlett secured partnerships for his podcast, The Diary of a CEO, and makes $1.2 Million A Year as he mentioned in this YouTube video.

    • Email template similar to what Steve suggested:

    Hi [CEO's Name],

I’ve been a loyal user of [Company Name] for [X] years, and I talk about your
product regularly because it’s genuinely a part of my everyday life. As the host of [Your
Podcast Name], I’ve realized that traditional monetization wouldn’t cover my production costs,
so I’m reaching out directly to companies I truly believe in—like yours.

I have ambitious plans to make my podcast the number one business podcast
in [Your Region], and I know [Company Name] could be a perfect partner in that journey.
I’d love the opportunity to discuss how we can align and help each other grow.

Let’s chat!

Best,
[Your Full Name] Host,
[Your Podcast Name]
[Contact Information]

2. Reading Out Adverts in the Middle of Your Podcast

Monetizing a podcast requires strategically placing ads to enhance the listener experience. There are three key placements: beginning, middle, and end. Each has unique advantages and revenue potential.

  • Pre-Roll Ads:
    • Location: Pre-roll ads are situated at the very beginning of the episode, usually within the first 30 to 60 seconds.
    • Advantages: By capturing the audience’s attention early, these ads guarantee high exposure although they might be skipped by some listeners.
    • Revenue Potential: These ads typically command a CPM of $15 to $25.
  • Mid-Roll Ads:
    • Location: Mid-roll ads are embedded in the middle of the episode.
    • Advantages: They are less likely for the ads to be skipped and ensuring sustained interest.
    • Revenue Potential: With a CPM of $25 to $50, mid-roll ads offer the highest revenue potential due to their placement.
  • Post-Roll Ads:
    • Location: Positioned at the end of the episode, usually having the least listen percentage.
    • Revenue Potential: These typically have a CPM of $10 to $20.

3. Programmatic Ads

Automated ad placements where you get paid based on Cost Per Mille (CPM) or per 1,000 downloads. Let’s see how it works:

Where Should Your Podcast Be for Programmatic Ads?

To leverage programmatic ads, you need to place your podcast on platforms that support dynamic ad insertion. Think of services like Megaphone, Spreaker, and Acast. These platforms algorithmically insert ads into your episodes, targeting your listeners with precision.

How Much Can You Earn Per CPM?

Let’s talk numbers. The good part of programmatic ads is in their scalability Revenue is calculated based on CPM—cost per mille—or per 1,000 listens. You can expect to earn between $20 to $50 CPM.

4. YouTube Revenue Share

What’s the minimum threshold to monetize on Youtube?

To monetize your podcast on YouTube, you need to meet specific criteria set by the platform. Your channel must have at least 1,000 subscribers and 4,000 watch hours over the past 12 months. You can then apply for YouTube Partner Program to enable revenue ads for your channel.

How much do YouTubers make?

Earnings from YouTube can vary based on factors like viewer demographics, engagement, and ad types. On average, YouTube pays between $2 to $5 per 1,000 views through AdSense. If your podcast episode garners 2,000 views, you could expect to earn approximately $4 to $10. However, these numbers can fluctuate with higher engagement rates and premium ads, potentially leading to greater earnings.

5. Affiliate Links

How to Find Affiliates for Your Podcast

Here’s how to get started:

1. Amazon Affiliate Program:

  • Overview: Amazon Associates is easy to join and lets you earn commissions by linking products from Amazon on your podcast’s website or episode descriptions.
  • How It Works: Share your favorite books, gadgets, or any products you mention in your episodes. When listeners buy through your links, you earn a small commission.

2. Zazzle:

  • Overview: Zazzle offers affiliate programs for a variety of products including apparel, home decor, and more.
  • How It Works: Promote fun and unique items that fit your podcast’s theme. Earn up to 40% commission on sales made through your links.

3. Commission Junction (CJ):

  • Overview: Commission Junction connects you with a wide range of affiliate programs, from electronics to books.
  • How It Works: Find relevant products for your audience, place affiliate links in your show notes or on your website, and earn commissions on sales.

6. Exclusive or Premium Content

How can you offer exclusive content to your podcast listeners?

Platforms like Patreon and Supercast let you set up a subscription model where listeners can pay for bonus episodes, early access, or behind-the-scenes content. This not only generates additional revenue but also fosters a deeper connection with your audience. Think about what kind of premium content would add value for your listeners, and start offering it through these platforms.

What kind of exclusive content should you create?

The type of exclusive content you create should resonate with your most dedicated listeners. Ideas include bonus episodes, Q&A sessions, behind-the-scenes footage, or detailed show notes. For instance, “True Crime Obsessed” offers Patreon supporters extra episodes and live show recordings, enhancing their listening experience and creating a community of loyal fans.

7. Listener Support, Donations, and Tips

How do you encourage listeners to support your podcast financially?

Platforms like Patreon, Buy Me A Coffee, and even PayPal make it easy for your audience to contribute. Offer small perks, such as ad-free episodes or shout-outs, to show appreciation for their support.

8. Sell Products

8.1 Podcast Merch

What kind of merchandise should you create for your podcast?

Common items include t-shirts, mugs, hats, and even digital products like eBooks or guides related to your podcast’s content. Joe Rogan’s merchandise ranges from t-shirts to beach towels, all branded with his podcast's logo and themes.

How do you start selling podcast merchandise?

Start by designing your merchandise using platforms like Teespring or Printful, which handle printing and shipping for you. Promote these products on your podcast, website, and social media channels. Integrate a shop section on your podcast’s website to streamline sales and keep your audience informed about new items.

8.2 Digital Courses

How can you offer consulting or coaching services through your podcast?

Use your podcast to showcase your expertise and attract potential clients. Mention your consulting services during episodes and direct listeners to your website for more information. April Dunford, for example, drives traffic to her consulting services by discussing her skillset and offering practical advice on her podcast.

What should you offer as part of your consulting services?

Offer services that align with your expertise and listener interests. This could include podcast coaching, business consulting, or personalized advice sessions. Clearly outline the benefits and results clients can expect from your services to attract serious inquiries.

9. Paid Community

How do you create a paid community for your podcast listeners?

Platforms like Slack, Discord, or even a private Facebook group can serve as the community hub. Charge a monthly or annual fee that includes access to special content, live chats, or other perks.

What are the benefits of having a paid community?

Lenny Rachitsky successfully runs a paid Slack community, giving subscribers access to exclusive resources and direct interactions.

How many downloads do I need to start monetizing my podcast?

Generally, you need at least 1,000 downloads per episode to attract advertisers and make significant income.

How much money do podcasts make on Spotify?

Unlike musicians, podcasters don't earn money per stream from platforms like Spotify. To make money from your podcast, you need to include ads from sponsors or sell some kind of premium content.

Where Should I Start Making Money from My Podcast?

Quick ways to get you started

Affiliate Marketing

This involves promoting products relevant to your audience and earning a commission on sales made through your referral links. Sign up for affiliate programs like Amazon Associates and incorporate product links in your show notes and website.

Programmatic Ads

These ads are automatically inserted into your podcast by platforms like Megaphone or Acast. Programmatic ads work on a CPM basis, meaning you earn money for every 1,000 downloads, typically ranging between $20 to $50 CPM.

Long-term sustainable revenue streams

Subscription Models

Subscription models offer a steady, predictable income by providing premium content to your most dedicated listeners. Here’s how to make it work:

  • Overview: Offer exclusive episodes, early access, or behind-the-scenes content to subscribers.
  • How It Works: Platforms like Patreon and Supercast facilitate this by allowing your listeners to subscribe for additional content.

Sponsorship Deals

Securing sponsorship deals is a long-term strategy that can ensure a steady revenue stream. Here’s how to approach it:

  • Overview: Partner with brands that align with your podcast’s niche and audience.
  • How It Works: Pitch directly to companies, showcasing your audience’s engagement and the mutual benefits of a partnership.

Services and Consulting

Leveraging your podcasting expertise to offer services or consulting can be highly profitable. Here’s how to capitalize on this:

  • Overview: Offer consulting, coaching, or other services based on your expertise.
  • How It Works: Promote your services during episodes, highlighting testimonials and success stories. Direct interested listeners to your website for further details.