Podcasting may have started as a niche hobby but has quickly become a massive business opportunity. With a projected revenue of $130 billion by 2030, many new podcasters wonder: how do podcasts make money?
A podcaster can turn their passion into profit in numerous ways, including sponsorship, affiliate marketing, selling merchandise, and premium content. In this guide, we explore eight different ways to make money through podcasting and the time it takes to turn a profit.
- The Income Potential of Your Podcast
- How to Make Money With Podcasts: 8 Ideas
- How Long Does It Take to Monetize a Podcast?
- Turn Your Podcast Into Profit
The Income Potential of Your Podcast
How much money could your podcast make?
It depends on your niche and content, audience size, and engagement levels.
Niche and Content
Podcast CPM may vary across niches, which can significantly influence how much you can make with your show. Podcasters targeting unique niches with dedicated and engaged listeners may attract premium advertisers willing to pay more to reach a targeted audience.
Audience Size
A larger podcast audience size may significantly increase how much your show can make, regardless of the methods you are exploring for earnings potential. The bigger your audience, the more attractive you’ll be to advertisers for sponsorship, and the more you can earn from listeners’ donations and subscriptions (if you’re offering premium content).
Engagement Levels
The engagement level of your podcast is just as important as audience size. With highly engaged listeners, you’ll have more downloads, ensuring that advertisers can get better ROI from sponsoring your show. Audiences will also be more likely to support your show through donations, crowdfunding, merchandise purchases, and more.
How to Make Money With Podcasts: 8 Ideas
Like any mature industry, podcasters have access to multiple revenue streams they can leverage to maximize their earnings.
Here are eight revenue stream ideas you can use to monetize your show:
1. Sponsorships
Sponsorship is one of the most popular monetization methods in the podcast industry. This involves getting paid by an advertiser to talk about their product/service during your show.
Here’s an example of a Brilliant.org sponsorship hosted on Deep Dive with Ali Abdaal:
Sponsorships work in one of two ways: episode advertising spots and host-read ads.
In-episode advertising typically falls into one of these formats:
- Pre-roll Ads: These ads play at the beginning of a podcast episode. They catch listeners’ attention when it’s most likely at its peak.
- Mid-roll Ads: These ads appear in the middle of episodes. They’re effective because they reach listeners who are actively engaged in the podcast content.
- Post-roll Ads: These ads appear at the end of an episode. They can offer a final impression that might resonate with listeners as they decide what to listen to next.
Host-read ads look somewhat different.
This is where you deliver personalized advertising messages in your voice. This is more engaging and appeals more to podcast listeners than pre-programmed ads.
There are typically two ways to get started with sponsorships: you can attract advertisers to you or reach out to them directly. If you have a smaller audience, your best bet may be reaching out directly.
2. Podcast Advertising Networks
In addition to sponsorships, podcasters can also partner with companies to feature advertisements at designated points in their episodes. You typically earn a commission each time an audience member listens to one of these ads.
The amount of money you receive will depend on two things: the length of the ad and the number of listeners you have. For example, with the industry’s average podcast CPM (cost per thousand), you can charge $18 for a 30-second ad slot, $30 for a 60-second, and up to $125 for a minute ad slot if you have around 5000 downloads per episode.
If you’re looking for an easier way to get started, you can join a podcast advertising network such as Podcorn, Acast, or Libsyn. Alternatively, you can enroll directly with podcast hosting platforms like Spotify for Podcasters or Podbean to start earning revenue from pre-programmed ads.
3. Affiliate Marketing
As a podcaster, you may often mention various items, such as products, brands, books, music, fashion, and gadgets, that your audience might be interested in buying. Affiliate marketing, then, will allow you to earn a commission when your audience purchases products based on your recommendations.
Here are some ways to get started with affiliate marketing:
- Check the websites of your favorite products to see if they offer affiliate programs.
- Add your unique link to your show notes and earn a commission each time a listener purchases through your link.
- Integrate natural, relevant product mentions into your podcast episodes.
4. Merchandise Sales
Merchandise can help you generate revenue from your podcast while deepening your connection with your audience. This could include branded items, apparel, or stickers that feature your podcast’s logo or popular catchphrases.
Take the example of MKBHD (Marques Brownlee), who developed an extensive catalog of branded merchandise. He sells these products both as a revenue stream and as a way for fans to show their support and affiliation.
Branded merchandise can turn listeners into ambassadors. They won’t just feel closer to you—they’ll proudly display your podcast logo publicly.
Just remember this is often a labor-intensive revenue stream — you might have to handle the production, printing, shipping, and storage of merchandise yourself. If you’re willing to pay extra for third-party services, you could turn to platforms like Printful, Teespring, or Redbubble.
5. Premium Content
If you have material that is truly valuable to your audience, you may want to consider selling it as premium content.
Examples of premium content include:
- Digital downloads
- Ebooks
- Checklists
- Guides
- Recipes (if you’re in the cooking niche)
- Webinars
- Member-only events or meetups
- Q&A sessions
- Behind-the-scenes clips
One good example is Ali Abdaal, who often plugs his book into his podcast episodes.
Many podcasts, including the Knowledge Project, offer transcripts as part of their premium memberships. Some of these shows repurpose these transcripts into ebooks so their audiences can purchase their favorite ‘episodes.’
If you wish to streamline the transcription process, you can always turn to a podcast repurposing tool. Platforms like Podsqueeze, Descript, and Adobe Podcast AI are popular options for podcasters in a hurry.
6. Subscriptions
Offering content behind a paywall can help you earn additional podcast revenue.
This could include:
- Bonus episodes, where you create additional podcast episodes
- Behind-the-scenes content, which highlights any shenanigans off-mic
- Ad-free episodes, where you offer versions of your episodes without advertisements
- Extended versions of interviews, possibly with cut content from other podcasts
As an example, Heather McDonald’s Juicy Scoop podcast offers multiple subscription tiers:
You can use first-party platforms like Spotify and YouTube to start enrolling audiences on subscriptions. Otherwise, you could opt for a third-party podcast hosting platform like Buzzsprout or Patreon.
7. Crowdfunding and Donations
If your audience feels inspired while listening to your show, they may want to donate a few dollars to support you each month.
To effectively make this a solid revenue stream, you’ll need a steady podcast audience that is deep into your podcasting world. Platforms like Patreon, Buy Me a Coffee, and Ko-fi donation links can help you set up a crowdfunding source.
Here are a few best practices to keep in mind:
- Clearly communicate how user donations will be used, such as improving the show’s quality, covering hosting fees, or hiring guests.
- Let listeners know they’re genuinely making a difference for your podcast. You may want to actively mention this in your episodes and let the audience see the cause they’re supporting.
- Thank and show gratitude for your top supporters by dropping their names (or usernames) in the episode.
8. Combine Multiple Income Sources
To maximize your podcast’s earnings, you may wish to combine multiple revenue sources. This allows you to make more money from multiple outlets, which can hedge your bets against unexpected market downturns.
For example, you can offer premium content while still taking sponsorship or have affiliate links to sell merchandise. The goal is to maximize your podcast’s earnings without affecting the quality of your show.
Keep in mind you don’t have to do all these things at once, especially if you’re focused on improving your podcast performance. It may be better to select specific opportunities that best suit your workflow and podcast theme.
How Long Does It Take to Monetize a Podcast?
Technically, you can make money right away from starting your podcast. However, it may take several months or even years to maximize your earnings.
Let’s look at some statistics:
- Roughly one in four high-income podcasters make a profit within their first year
- Nearly 70% of profitable podcasters needed to maintain their show for 24 months or longer
- Podcasters making low to no income are more likely to have a brand-new show (six months old or younger)
It may take two or more years to make your podcast profitable, so focusing on income immediately could be counterproductive. Instead, you should discuss a passionate topic, remain consistent, and promote your show in the right markets, including LinkedIn.
Turn Your Podcast Into Profit
Going full-time into podcasting and earning a sizable income might take some time, but it can later become a worthwhile full-time venture. Your podcast earnings depend on how big your show gets, the audiences you serve, the quality of your show, and, importantly, how well you can market your podcast.
At The Podcast Consultant, we help clients optimize their show’s potential and maximize their earnings — one episode at a time. We specialize in launching, producing, recording, and growing podcasts so you can do more of what you love and less of what you don’t.
Curious to learn more about how we can help your podcast reach its full potential? Schedule a discovery call, and we’ll chat with you one-on-one.