How do podcasts make money?
Podcasts are a great way to make money. But how do you make money from podcasting? The answer is simple: monetize your podcast. And what are the most profitable podcast niches in 2022?
There are many ways to monetize your podcast. You can sell products, services, or courses; or, you can use affiliate marketing, sponsorship, or advertisements. You can also offer paid subscriptions or pay-per-view content.
The most common way to monetize podcasts is through sponsorships and advertisements. Companies are always striving to find the best way to reach their target audience, which is useful, as podcasts are becoming one of the most popular forms of entertainment for younger generations. Being able to charge big money for a few minutes of your podcast is the ideal method. Sponsorships work similarly, instead of a one-off talk, a company regularly pays you to reference their product to increase their profile amongst the viewers. A combination of these two monetizations will lead to a very profitable podcast indeed.
How much money can I make podcasting?
Now that you understand how the money is made, let’s talk about how much can be made. The amount of money a podcast generates will vary depending on how many streams the episode has, as the more reach you have, the more desirable you become to companies. Due to this, let’s start small. A podcast of around 5,000 streams will generally charge around $20-$100 CPM (cost per thousand).
If the agreement was for $30 CPM, for your 5,000 streams you would earn,
$30 x 5 = $150
If you did 3 episodes a week at this rate it would be,
$150 x 3 = $450 per week.
From this, evidently having stream counts in the hundreds of thousands, as some do, combined with sponsorships or affiliate marketing. The amount of money that can be made is very lucrative.
For example, Joe Rogan’s podcast has an estimated 11 million streams per episode. Simply with our $100 CPM, the profits from this are extreme, without taking into consideration the demand for advertising, sponsorship, and affiliates. He is estimated to be making around $30,000 per episode.
The money-making possibilities from podcasting are vast and can only be limited by the creativity and drive of the hosts.
Why is choosing a niche more lucrative?
A podcast is more likely to succeed if it has a specific focus or target audience. This allows you to better serve your listeners and attract advertisers who are interested in reaching your niche market.
The most important thing for any podcast is to offer value to the listener. By having a focus, you can ensure that each episode provides value and helps your listener in some way. This could be anything from providing news and information to entertainment and education.
When choosing a niche, it’s crucial to select one that you’re passionate about and knowledgeable in. This will make podcasting much easier and more enjoyable for you, and your listeners will appreciate the effort you put into each episode. It will also make it easier to find sponsorships and affiliates.
The most profitable niches in 2022
As previously stated, the most important thing is finding a profitable niche. Here are some of the most profitable podcast niches in 2022:
- Business and finance
- Health and fitness
- Personal development
- Marketing and sales
- News and current events
With the startling, global rise in cryptocurrencies and everything associated with it, finance, business and technology are the perfect niches to fill. The complexities of the blockchain have many seeking answers and guidance in this new age and are proving to be an untapped niche for podcasting.
With the Covid crises came a skyrocketing need for self-help and personal development. As large amounts of time in isolation and usual routines are interrupted, this area has seen a huge leap in popularity. Requiring less technological know-how and more intimacy and emotional capacity, this is another lucrative niche for those who are not as knowledgeable with upcoming technologies.
Travel has not been an option for most lately. This has led to a mini-explosion in the travel sector of entertainment options. The locations, lifestyles, and luxuries associated with traveling have not been available, culminating in an untapped niche for travel guides and showcases of exotic locations. This niche can be more beneficial to some depending on location.
(For example, an American podcast traveling through South-East Asia will be much more desirable for those yearning to travel than a domestic American travel podcast.)
The rise of fake news and media biases has led to freelancing news sources and journalists being in high demand. These news and current events are vast as many different nationalities and linguistic groups require different sources. Leading to some extremely lucrative niches to fill. A simple check of the independent news sources in your target group could lead to a great opportunity.
The podcasting industry is ever-growing and the opportunities for those who are creative and passionate about their niches are limitless. Podcasting can be an extremely profitable endeavor, as long as the hosts put in the hard work required to make their podcast successful. So, find a niche that you’re knowledgeable and interested in, provide value to your listeners, and get started on your podcast today!
How to earn more podcasting money
Podcasting is a great way to reach out to a large number of people with your message, and if monetized correctly, even a small audience can be very profitable as well. However, in order to make the most money podcasting, you need to understand the different ways that you can earn income from your show.
The three main ways to make money podcasting are through advertising, sponsorships, and affiliate marketing. We have covered the first two already, the last is the more complicated but essential step to maximizing profitability.
Affiliate Marketing is where you promote products or services on your show and earn a commission on any sales made. The average commission rate for podcast affiliate marketing is around 10%, but this can vary depending on the product or service that you’re promoting.
As an example, your finance podcast might reference an investing website. By being an affiliate of that site, simply making your affiliate link available to your audience can increase your profits exponentially as your audience grows.
In summary, podcasting can be a very profitable endeavor if you take the time to understand your niche and the different ways to monetize your show. With the right approach, even a small podcast can make a significant amount of money. So get started today!