Did you know there are over five million podcasts and over 460 million active podcast listeners across the globe?
Podcasts have become increasingly popular in recent years. From comedy and true crime to business and politics, they cover various topics and interests. While some are created purely for entertainment, many podcasters also want to turn their passion into a profitable business. But how do they do that, and how do podcasts make money?
Read on as we delve into podcast monetization and review the latest data on podcast earnings and revenue.
Podcast Revenue Statistics
- There are 464.7 million podcast listeners worldwide.
- In 2022, the podcasting market size was worth a staggering $18.52 billion.
- By 2030, the podcasting market revenue will reach $130.63 billion.
- North America dominates the podcasting market and is responsible for the largest revenue share of over 39.1%.
- Podcast advertising revenue is set to exceed the $4 billion mark by 2024.
- Ad placement in a podcast costs around $50 per slot.
- Podcasters can make a minimum of $180 per episode for a single 30-second ad.
- 69% of podcasters who have been producing their show for over two years are successfully earning money.
How Do Podcasts Make Money?
Advertising is the most common way podcasts make money. It’s the most effective and widely used method, and according to forecasts, it will continue to be the number one revenue source for podcasters. Similar to how people make money on social media, podcasters partner with a company or organization in exchange for presenting advertised content.
According to research, podcast advertising has a 72% growth rate. Just for comparison, the total online advertising market growth rate was just 35%. Also, podcast advertising revenue exceeded the $1 billion mark in 2021, and as per the latest forecasts, it will surpass $4 billion by 2024.
To become an effective podcast earner, it’s essential to understand how you can generate steady revenue. Most successful podcasters make money by combining advertising with other strategies like subscriptions, premium content, or affiliate marketing. In doing so, they can better capitalize on their podcasting potential.
How Much Do Podcasters Make?
Podcasters can make from around $700 a month to $13,000 or a couple of million, depending on the number of downloads and the type of revenue streams they’re aiming for. A podcaster with 10,000 downloads per episode may earn an average of $500 to $900 monthly.
Even though podcast earnings are not publicly available, here’s a ballpark of how much money popular podcasts make:
- The Joe Rogan Experience earns around $800,000 per episode and an additional $16,500 to $264,000 per month on YouTube.
- The Dave Ramsey Show, with its 13 million weekly listeners, makes close to $10 million a year.
- The Tim Dillion Show has over 40,000 patrons and earns approximately $22,000 per month.
- Chapo Trap House has nearly 35,000 patrons, which means it earns over $150,000 per month.
- Pat Flynn of Smart Passive Income makes about $1.2 million a year.
How Much Do Podcasters Make Per Episode?
Podcasters can make a minimum of $180 per episode for a single 30-second ad or $250 for a 60-second ad. The amount is based on the average podcast ad rates per thousand impressions (CPM) for 30 and 60-second ads meaning that a podcast with over a million listeners may earn as much as $25,000 per episode.
In general, the earnings of podcasters per episode vary greatly and are influenced by factors such as the size of the audience, the type of content they produce, and the monetization strategies they use.
How to Make Money From Podcasting?
1. Advertising
Podcasts can generate revenue by selling ads within their episodes. This can be done through ad networks, which connect advertisers with podcasts, or by direct sponsorship deals with companies. Depending on the industry and niche, buying an ad on a podcast may cost a minimum of $50.
By type, podcast ads can be:
- Announcer or Producer-read
- Host-read
- Supplied Ads (provided by the company or brand)
- Other Publisher Produced Ads
Moreover, reports show announcer-read ads are the most used, and in 2021, they participated with 40% of the total ad revenue, up from 35% in 2020.
In terms of how ads are delivered to the listener, dynamic ads currently comprise 84% of the total ad revenue. These types of ads are inserted at the time the podcast is downloaded or streamed.
The efficiency of using advertising to earn from podcasting is further confirmed by the data that 69% of listeners claim they learned about a new product or brand by hearing it in a podcast ad. So if you’re an influencer, teen, or even a stay-at-home mom looking to make money, doing podcasts, advertising, or entering into a sponsorship agreement are one of the best options.
2. Subscriptions
Another way people monetize podcasts is by making them a subscription-based service. It’s a business model that would require a bigger audience. On the plus side, a podcaster with more listeners will earn a higher income.
Another upside to transitioning from a free, ad-supported podcast to a paid one is that some listeners prefer ad-free content. What’s more, data says the average podcast listener subscribes to six shows.
3. Premium Content
Some podcasts offer premium content or special episodes unavailable on the regular podcast feed. It’s an excellent monetization option for people who already make money doing podcasts, as it can be combined with either the ad-supported or the subscription model.
Premium content is also the answer to the question: how do podcasts without ads make money?
Namely, by using premium content, podcasters can ensure they have a solid base pay independent from that of ads. What’s more, statistics say a whopping 94% of podcast listeners are very likely to subscribe to a premium streaming service.
Here are some of the ways in which you can offer premium content to your listeners:
- Behind-the-scenes content
- Q&As with the hosts
- Extra interviews
- Ad-free RSS feed
- Early access to an RSS feed
4. Live Events
Hosting live events, meet-and-greets, workshops, or conferences is another great way to monetize, especially if your podcast has a strong following. Organizing events in the podcasting realm works just as any other event – tickets are sold, sponsors are offered advertising opportunities, and the podcaster makes some extra money in the process.
While live events require a significant audience and resources, they can be a valuable opportunity to showcase a podcast in a live setting if it is well-suited for this format. Chris and Rosie Ramsey’s live tour of Shagged.Married.Annoyed. has broken the record for the world’s biggest live podcast audience when it sold out both London O2 and two nights at Newcastle Arena in under 60 minutes–that’s nearly 30,000 tickets.
5. Merchandise sales
Some podcasters make money by designing and selling branded T-shirts, hats, mugs, and other items featuring their logos or catchphrases. You can also create your own swag store where you can sell anything from branded duffel bags and hoodies to stickers, caps, and cups.
The best part about this option is that even podcasters with fewer subscribers can start creating, selling, or making giveaways of their best podcast merch. However, in the beginning, it’s good to make it an on-demand business model until you’ve built enough buyers to invest in more.
6. Affiliate marketing
Podcasts can also earn money by promoting products or services through affiliate marketing programs. When a listener clicks on a link and makes a purchase, the podcast earns a commission. It’s a great way to monetize a show and works wonders for anyone, including teenagers and college students looking for ways to earn money.
7. Sell e-courses
Developing an online course or some other type of digital product, like an ebook or webinar series, and selling it through your podcast can be a great way to monetize. This could involve sharing industry tips or providing advice on how to succeed in certain areas related to the topics discussed on your show.
This way, your courses will offer straightforward content and useful feedback to potential podcasters. To inform your audience about your course and its contents, having an email list is essential, or you could simply promote them through your podcast.
8. Crowdfunding
Allowing your supporters to make donations in exchange for exclusive content or offers is yet another way podcasters make money. Direct funding from your listeners is not just a powerful way to sustain a podcast–it’s also a great opportunity to build strong relationships with your supporters.
There are several platforms that will allow you to set up crowdfunding campaigns so you can collect donations from your audience. It’s important to be transparent about the funds you’re seeking and what those funds will be used for, such as new equipment or production costs.
9. Sell repurposed content
Creating content for multiple platforms can be a great way to expand your reach and generate additional income. You can repurpose or reuse the same audio clips and create different types of content that you can then monetize. This includes creating YouTube videos, blog posts, or even an ebook.
For instance, if the YouTube Partner Program is available in your country and you haven’t violated any of the platform’s community guidelines, you can join and gain direct access to the Creator Support team and the option to make money from ad sharing. Being on YouTube as a creator means you can charge brands from $10 to $50 per 1,000 video views.
10. Offering consulting services
If you’re an experienced podcaster or a subject-matter expert, you can offer your services as a consultant or coach to help others start their own podcasts or improve existing ones. It’s also a great way to diversify your income streams and make money in the process.
Consulting services can involve providing advice on podcasting best practices, offering guidance on creating a monetization strategy, or teaching people how to build an audience and grow their podcast.
How Many Listeners Do You Need to Make Money on a Podcast?
Most agencies look for around 3,000 to 5,000 listeners per episode, so if you’re looking to monetize through sponsorships, this should be your target. In truth, it’s perfectly possible to earn income once you’ve established a steady audience of 300 to 500.
At the end of the day, the number of listeners you need to make money on a podcast is related to the monetization method you choose, the niche of your podcast, and the engagement level of your audience.
How Long Does It Take for a Podcast to Make Money?
It may take between six months to one year or more to make money doing podcasts. Success in podcasting takes time and practice but also good audience size, quality production, effective marketing and promotion, and solid monetization strategies.
According to a recent survey, 69% of podcasters who have been producing their show for over two years are successfully earning money. Additionally, 80% of low-income podcast earners have been running their shows for less than 24 months. Studies also show that having over 5,000 listeners per episode increases the chances for a podcast to make money by 29 times.
What Are The Highest Earning Podcasts?
Based on sponsorship value, average podcast ad cost, affiliates, and other revenue sources like the sale of merch and services, the highest-earning podcasts are:
1. The Joe Rogan Experience – estimated net worth of $120 million.
2. The Daily – estimated net worth of $10 million.
3. Stuff You Should Know – estimated net worth of $7.2 million.
4. Crime Junkie – estimated net worth of $6 million.
5. The American Life – estimated net worth of $2 million.