What Is The Best Way To Monetize A Podcast? – PTC 494

Podcast Talent Coach

One of the biggest struggles podcasters face is how to monetize a podcast. They simply rush to the monetization phase without doing the foundational work first.

MONETIZE A PODAST WITH AUTHORITY

Before you can monetize your podcast, you need to have authority and influence in your niche.

In this episode, I will share nine ways to monetize a podcast. But none of these ideas will work without authority.

If you can't influence a room and move the crowd toward action, no monetization strategy will be effective.

To have influence and authority, you need to become well known in your niche. You will become well known by becoming known well. And you become known well by telling your story and building a relationship with your audience.

The rapport you build with your audience feeds that authority. When they are ready to solve their problems, your audience will start with those with whom they have a relationship.

Relationships start with familiarity and grow into trust. It is the foundation of authority and influence.

Once you have influence over an audience, you can motivate them to take action.

This is where all monetization begins. If you aren't monetizing your podcast, you probably haven't spent enough time building relationships, authority and influence.

If you would like help building that strategy, take advantage of my podcast strategy call. You can find details and apply for a call with me online at www.PodcastTalentCoach.com/apply.

Let's talk about why coaches struggle to monetize a podcast.

PODFADE

I was working with a client creating a strategy to get her interviewed on other podcasts. It's a solid way to grow your audience.

The term podfade has been around for years. A podcast podfades when the host just stops publishing new episodes and the show fades away.

It has often been said that the big hurdle is around 7 episodes. I always thought it was an old wives' tale.

Then she and I opened Apple podcasts and started searching for podcasts that fit the criteria.

To find shows that will interview you, the podcast needs to meet 3 important criteria.

First, the show needs to fit your niche. It should appear that the podcast is talking to your ideal target listener. Not necessarily your topic, but indeed your listener.

Next, the prospective podcast needs to actually interview guests. There is no need to reach out to a show that doesn't do interviews.

My podcast was solo for the first 275 episodes. It didn't stop people from reaching out telling me they would make the perfect guest.

Finally, the podcast needs to be actively publishing new episodes.

FRESH EPISODES

So we searched caregiving in Apple podcasts. Here is what I find today.

12 Step Guide to Caregiving – 1 episode published in May 2018

Twenty-Four Seven: A Podcast About Caregiving – 19 episodes, last in December 2022

Caregiving Coach – 19 episodes, but last was July 2023

The Caregiving Secrets Show – 7 episodes, last published June 2021

Caregiver Storyteller – 18 episodes, last show November 2023

Caffeinated Caregivers – 9 episodes, but only 3 in the first 5 months of this year

Caregiver Conversations – 19 episodes, last published July 2023

Caring for the Caregiver – 4 episodes, last published September 2020

Eye on the Caregiver – 22 episodes, last published May 2023

Caregivers Share – 9 episodes, last published December 2023

The Senior Caregiver Podcast – 8 episodes, last published November 2019

The Purposeful Caregiver – 14 episodes, last published December 2023

Now there are many others that have hundreds of episodes. But these dozen have fewer than 24 episodes. They didn't even make it half a year.

Whether it's 7 episodes or 14 episodes, many podcasts fade away early for 3 reasons.

First, the podcaster realizes that podcasting is more work than they thought it would be. They don't have a system to consistently produce a weekly episode without eating their entire week.

Next, the podcaster discovers the audience doesn't grow as fast as they thought it would. They haven't built a system to quickly and easily build their audience.

Finally, the podcaster gets frustrated that the podcast isn't generating revenue like they thought it would. This typically happens because they haven't created a strategy to leverage the audience attention to generate sales.

We've talked a lot about producing and growing your show. Let me give you 9 ways to monetize a podcast.

The first two I really dislike. The other seven are solid.

MONETIZE A PODCAST WITH ADS

The first way to monetize your show is advertising on your show, just like radio.

Unfortunately, this won't work for you. And it's bad for business.

Most advertising agencies and large advertisers want podcasts with 5,000 downloads per episode. Only 7 percent of all podcasts reach this level.

If you're not nailing 5,000 downloads per episode, you most likely won't be landing any advertisers either.

Advertising is bad for business, because it clutters your show. People are fleeing traditional media to get away from ads.

We would do research with our radio listeners. Time and time again, listeners would tell us the one thing they hated most was all the commercials.

It didn't matter how many commercials we played, it was too much.

I once programmed a radio station where we promised to never play more than 3 minutes of commercials. In comparison, many stations play 8 or 10 minutes of commercials today.

We quickly went to #1 in the ratings with that station. But the top complaint was still too many commercials. People simply don't want commercials in their content.

It takes a lot of time to sell advertising. And you're always trying to sell the next one. On top of that, your show can only hold a limited number of ads. Your revenue will have a ceiling.

COMMODITY

But the worst part of advertising is that it turns your podcast into a commodity. Advertisers treat your audience the same as every other audience. They will pay a set amount of money per 1,000 listeners.

That assumes the thousands of listeners to Joe Rogan's podcast are the same as the thousands of listeners to Gary Vaynerchuk's podcast. And that simply isn't true.

If you advertised Quickbooks on Gary's show, how many listeners need Quickbooks? Probably a good proportion, because many of Gary's listeners are entrepreneur's or have a side hustle.

If we advertised Quickbooks on the Joe Rogan podcast, how many listeners need it? We don't know. The audience is too broad. Only a fraction of the listeners are entrepreneurs. Some work retail. Others work blue collar jobs. Some sit at a desk. Others are managers.

Advertising Quickbooks on Gary's show would be much more effective than ads on Joe's show, because a greater percentage of the audience are qualified buyers.

However, agencies treat all audiences the same. Your show becomes a commodity. Salt is salt regardless of the brand. That's unfortunate for your show.

There just isn't enough benefit to attempt to monetize with ads. Skip it.

SPONSORSHIPS

Sponsorships are similar but a bit different than ads.

Most of the same negatives you get with ads also come with sponsorships. There is a ceiling on your revenue, it takes a long time to sell, and your listeners don't want it.

The difference is the relationship. Sponsors typically support the show and are tied in with the podcast more than an ad on the show.

An ad says, "Buy Blue Apron". It rarely has anything to do with the podcast. The advertiser simply wants access to the audience.

A sponsor supports the show and is usually a good fit.

Smart Passive Income with Pat Flynn is sponsored by Circle, ClickFunnels, Interact and other tools that online entrepreneurs use. Pat can talk about how he uses these tools in his own business. It's more than just an ad.

With sponsorships, you can also go beyond the podcast.

Sponsors can be included on your website, in your newsletter, on your social media accounts, as sponsors of your events, and a variety of other ways. This relationship is a lot more than an ad. It is worth a lot more as well.

SMALL AUDIENCE

There are ways to land sponsors without a huge audience when you stack your value.

An advertiser would get an ad on your episode to your 150 listeners.

A sponsor would get those 150 listeners. They would also get the 2,500 people on your email list, the 1,500 people following you on Facebook, the 1,200 people on your Instagram, the attention from the 800 people who visit your website every month, and the 150 people that register for your webinar.

Instead of the 150 listeners the advertiser receives, the sponsor gets the attention of 6,300 collective fans from all of your channels. Stack the value.

On top of that, your sponsor's product is exactly what your fans need. Only a few of Pat Flynn's fans would want and need Blue Apron. But most all of them could use ClickFunnels.

Though I'm not a fan of sponsorships, I like them better than ads.

SELL YOUR STUFF

My favorite way to monetize your podcast is to sell your own stuff. You control everything.

With your own products, you know the quality of the goods. You know exactly what your listeners are receiving.

You also keep all of the revenue when you sell your own stuff. Double win.

Courses, books, digital products, software and merchandise are just a few things you can sell to your audience.

I like products, because you do the work once to create it and can sell it over and over again. You can also incorporate your stuff into your content.

SELL YOUR COACHING

The next way to monetize your podcast is to sell coaching. I like this as much as selling your stuff.

The downside of coaching is time investment. It takes your time to continue to deliver while products require you to do the work one time.

On the other hand, coaching is usually sold for more. It is a bigger ticket with more revenue upside. You need to make fewer sales to generate more revenue.

One-on-one coaching can move to group coaching to leverage your time. This will happen after you find the common challenges amongst your clients.

SELL OTHER'S STUFF - AFFILIATES

I've really had good success with affiliate sales as a way to monetize my podcast. This is how Pat Flynn got his start.

With affiliate sales, you promote somebody else's product or service on your podcast. It is best when you tie it into the content. Then you provide your affiliate link.

When your listeners buy through your affiliate link, you earn a commission. The rate you earn can usually vary from 10% to 50%, but I've seen as high as 100% on an event ticket where the host will sell their high-end program.

There are quite a few benefits to affiliate marketing. You don't have to create the product. There is no concern about fulfillment. Affiliates will often give you swipe copy and graphics to market the products.

The downside to affiliates is the need to continuously sell. When somebody buys, they aren't your clients. They become the customer of your affiliate. You're basically starting from scratch each time.

There is no chance for an upsell with an affiliate product. The client is buying from your partner. There is no chance to go back and offer them the opportunity to buy again.

When working with an affiliate partner, you also don't control the quality of the product. Always ensure you are dealing with quality companies. Your reputation is on the line when you endorse an affiliate product.

As a matter of law, be sure you don't make false claims or say that you use a product or service that you do not use. You cannot say "it tastes great" if you've never tasted it. It sounds logical, but many do it. Statements like that are against Federal Trade Commission regulations.

PROMOTE EVENTS

Using events is another way to monetize your podcast.

Rather than promoting your products or services on your show, hold an event. Promote the event on the show and sell products and services at the event.

Your events could be webinars, workshops, VIP days, 3-day events, live events, conferences, or any other gathering.

There is power in community. Bring your audience together, and help them make progress. Once you help them solve a challenge, you can offer the opportunity to go deeper with you. Make them an offer for your products and services.

These events can be free or can come with a fee. It all depends on what the attendee receives during the event. What transformation will they experience?

Whether or not to charge is also determined by the amount of work it will require from you to create the event. Webinars are typically free, because it's only an hour of your time. 3-day events usually require an investment, because you are providing tremendous value over the course of 3 days.

DONATIONS AND CROWDFUNDING

Many podcasters use donations and crowdfunding to monetize their podcast. I'm not a fan.

Your listeners shouldn't need to donate to your hobby.

Instead, sell them something.

Don't say, "Please give me $5". Instead say, "If you'd like to support the show, purchase a show t-shirt for $25 on the website."

With the $5 donation, you get $5 and the feeling of receiving a handout. Your listener gets nothing.

With the $25 t-shirt, you get $15 or more after the cost of the shirt. Your listener gets a great shirt. Everybody wins.

There are plenty of print on demand shops that can help you with this. You can also buy a gross and ship them as they are ordered.

PREMIUM CONTENT

I don't see many people use the idea, but selling premium content is a way to monetize your podcast.

You could create basic info on the podcast. Then offer additional content, behind the scenes content, video footage, supporting documents, or a variety of other premium content for a price.

Interviews could be used for this. The podcast could be the basic 30-minute interview. Premium content subscribers get an addition 30-minute interview with key takeaways and other "never before told" stories in the premium content.

MEMBERSHIPS AND MASTERMINDS

Finally, memberships and masterminds are a great way to monetize your podcast.

A membership is like premium content with a community element attached.

The mastermind idea is the community without the premium content.

This idea is driven by the podcast using the fear of missing out. On the episode, talk about what you've been doing in the membership or mastermind. Make people really want to be part of it.

The great thing about memberships and masterminds is the recurring revenue. People are paying each month to be part of the group.

YOUR MONETIZATION

Let's talk about your monetization. Take advantage of my podcast strategy call. Let me help you develop your monetization plan.

If you don't have a mentor who can take your hand and walk you every step of the way, go to www.PodcastTalentCoach.com/apply, click the button and apply to have a chat with me. We will develop your plan and see how I can help and support you to achieve your podcast goals.