Recently, podcasting has grown in popularity as a form of entertainment and information exchange. Now, you can create podcasts using services like Spotify, which gives listeners access to a wide range of content.
Spotify can be your best bet when it comes to making a podcast. Users get various benefits, including access to a large and diverse audience, easy distribution and promotion, the ability to monetize through advertising and sponsorships, and integration with other Spotify features like playlists and recommendations.
However, you need to know how to monetize your podcast to make money on the platform and take full advantage of its features. Here are ways how to make money from podcasts on Spotify.
8 Ways on How to Make Money from Podcasts on Spotify
Spotify Ad Studio
If your podcast has a large audience, you can use Ad Studio to create ads and target them to your listeners.
Spotify Ad Studio is a self-serve advertising platform that allows advertisers to create and manage audio ads on Spotify. As a podcaster, you can use Ad Studio to monetize your podcast by allowing Spotify to serve ads to your listeners. You will receive a portion of the revenue generated by these ads.
To use Ad Studio, you must have at least 5,000 monthly listeners in the US, UK, Canada, or Australia. Once you meet this requirement, you can sign up for Ad Studio and create an ad campaign. You can choose the target audience for your ads based on demographics, interests, and location.
The revenue you earn from Ad Studio ads will depend on various factors, including the number of ads served, the length of the ad, and the advertiser’s bid for ad space. According to Spotify, the average CPM (cost per thousand impressions) for Ad Studio ads is around $18.
Advertising
Advertising is one of the most common ways to monetize podcasts on Spotify. Advertisers will pay you to promote their products or services on your podcast shows. You can choose to read the ads yourselves, or you can have pre-recorded ads inserted into the podcast shows.
There are two main types of advertising, CPM (cost per thousand impressions) and CPA (cost per acquisition). With CPM advertising, you’re paid a fixed rate for every thousand downloads or impressions of the ad.
With CPA advertising, you get paid based on the number of listeners who take a specific action, such as making a purchase or signing up for a service.
To attract advertisers, you must have a sizable audience. To have such an audience, you can promote your podcast shows on social media, optimize your podcasts for SEO, and use other marketing techniques to grow your listener base.
Sponsorships
You can also monetize your podcast by partnering with brands and creating sponsored content.
For example, if you have a podcast about travel, you could partner with a travel company and create an episode about their destination or tour package.
You will receive payment for the sponsorship. Sponsorships are similar to advertising but involve a longer-term relationship between you and your sponsor.
In a sponsorship deal, the sponsor pays you a set amount of money to promote their products or services over a certain period of time, such as a season or a year.
Sponsorships are often more lucrative than advertising because they provide a more consistent income stream. They also allow you to build stronger relationships with your sponsors and listeners.
To find sponsors, you can reach out to brands directly or use a platform like Podcorn, which connects podcasters with potential sponsors. The amount you can earn from sponsored content will depend on various factors, including your audience size, engagement rate, and the type of content you create
Remember, sponsorships require more commitment from both parties and may limit your ability to work with other sponsors or advertisers.
Affiliate marketing
You can sign up for affiliate programs for various brands and promote their products using a unique referral link. Affiliate marketing is a great way to monetize podcasts because it allows you to promote products or services that align with your brand and your listeners’ interests.
If a listener clicks on your link and makes a purchase, you will receive a commission, a percentage of the sale. For example, if your podcast is about cooking, you could promote a particular cookware apparel brand and receive a commission for each sale made through your link.
To find affiliate programs, search for products or services related to your podcast and see if they offer an affiliate program. You can also use affiliate marketing networks like Amazon Associates or ShareASale to find programs to join.
The commission rate and the number of sales made with your referral link will determine how much you can earn from affiliate marketing.
Affiliate marketing also provides a more direct relationship between you and your listeners. Listeners are more likely to trust your recommendations than those of a traditional advertiser.
Merchandise sales
You can monetize your podcast on Spotify by selling merchandise. Especially if you have built strong communities around your shows, then merchandise sales can be a great way to monetize that community.
You can sell your listeners branded t-shirts, mugs, hats, and other merchandise. You can also sell digital products such as eBooks or courses related to your podcast’s topic.
Merchandise sales can be a profitable revenue stream. However, you’ll require a significant investment of time and resources to create and promote the products.
Additionally, you must have a strong brand and a loyal fan base to make merchandise sales viable.
Patreon
If you have a small number of loyal followers, using Patreon can be your bet if you still want to monetize your podcast. Patreon is a membership platform that allows creators to earn money from their fans.
As a podcaster, you can create a Patreon account and offer exclusive content and perks to your listeners in exchange for a monthly subscription fee. For example, you could offer early access to episodes, bonus content, or personalized shoutouts.
To promote your Patreon, you can mention it on your podcast on Spotify and social media channels. The amount you can earn from Patreon will depend on the number of subscribers you have and the subscription fee you set.
Live Events
Hosting live events is another way to monetize your podcast on Spotify. You can host live events and charge admission. You can sell tickets to live recordings of your podcast, Q&A sessions with listeners, or guest speaker events. You can also sell merchandise at these events to increase revenue.
You can use platforms like Eventbrite or Meetup to host live events to promote and sell tickets. The amount you can earn from live events will depend on the ticket price and the number of attendees.
Ask for Donations
Another way to monetize podcasts on Spotify is to ask for donations from your listeners. This involves creating a donation page or setting up a platform like Buy Me a Coffee or Ko-fi where listeners can make one-time or recurring donations to support your podcast.
By asking for donations, you ask your listeners to show their appreciation for your content and help you continue creating it.
While donations may not provide a consistent source of income, they can be a great way to supplement other monetization methods and show your listeners that you value their support.
Conclusion
There are several ways to make money from podcasts on Spotify, including using Ad Studio, sponsored content, Patreon, affiliate marketing, and live events.
The amount you can earn will depend on various factors, including your audience size, engagement rate, and the monetization method you choose.
Building a successful podcast takes time and effort; not all podcasts will be profitable. However, consistently creating high-quality content and building a loyal audience can increase your chances of monetizing your podcast on Spotify.