Can I really make money hosting a podcast?

Recently, I was asked the question, “How can I make money doing a podcast?”  It’s a question I’ve heard a lot.  It’s also a question I’ve asked.  Let me start by telling you who asked me, then I’ll fill you in on the answer I gave.

A little over a week ago, my son Daniel asked me if I would be interested in going golfing.  I enjoy golfing, and last summer I introduced him to the sport as well.  He loves it and he’s getting pretty good.  I was happy to go, even though I knew that also meant I’d be paying for two.

We went golfing at a course that’s literally across the street from my house.  I’ve lived here for 16 years and for some reason, I’ve never golfed there, so I was eager to satisfy my curiosity about the course.  We reserved a tee time, but the course was more crowded than expected.  Several groups ahead of us were playing slowly so things were starting to get backed up.  An employee asked us if we’d be willing to partner with two additional guys to help speed up play.  We were happy to do so, and were introduced to Zach and Ben, two guys who were in college and probably the same age as my son.

We had a fun time golfing together, and after a few holes Ben overheard me talking to my son about a podcasting class I’m teaching this coming semester.  “You teach podcasting?,” he asked.  I replied, “Yes, I do.  Is that something you’re into?”  At that point, Ben told me about the podcast he just started and asked me the question every podcaster thinks about.  “How can I make money doing a podcast?”

That’s always a fun question to try to answer because there are many ways to monetize a podcast.  Some are more obvious than others, and I knew I wouldn’t be able to answer Ben’s question with a simple two sentence answer, so I told him, “I’m going to give you free access to my Launch Plan course.  It’s about more than just podcasting, but I’m certain you’ll find it helpful.  After you finish it, get back to me and I’ll be happy to help you.”

I didn’t actually know if he would bother to take the course or get back to me, but to his credit, he did both.  In fact, I received some follow up texts from him this week.  Here’s our conversation, word for word.

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Ben:  So I have been watching your videos but I am still a little confused on how I really can make money doing this podcast.

 

Me:  I sell advertising or use “dynamic ad insertion” on my shows. 

I also use the shows to point people to my websites where I offer courses, coaching, community, books, and mentorship. 

You can also use crowdfunding options like BuyMeACoffee.com or Patreon.com

 

Ben:  But if I don’t have a following how would that attract people?

 

Me:  The truth is, for any of this to work, you will need to build a following. The way you build a following is by creating content consistently and making sure that content is always helpful.

It took me a while before I was able to monetize my shows, but the first form of monetization I used was crowdfunding and it worked pretty well. 

Then it occurred to me that I could use shows to start promoting some of my books, so I did that too.

In time, my audience grew, and I was able to offer advertising options for people who wanted to pay for it. Now most podcast hosting services offer dynamic ad insertion (from an advertising marketplace) as an option you can select. 

Earning an income is most definitely possible, but there are steps that need to be focused on before that. I called them the five D’s of online platform development.

1. Discover your message. 
2. Deliver your content. 
3. Develop your tribe. 
4. Deploy your team. 
5. Derive your income. 

 

Ben:  So what do you recommend for me to start monetizing, or what are the right steps to start with if you don’t have a following yet?

 

Me:  1.  Get super clear about your message. Make sure it’s exactly what people need and want from you. 

2.  Set a content delivery schedule of at least one new episode per week.  Never miss a week. 

3. Reach out to other podcasters and offer a cross promotion opportunity where you’ll promote their show and they will promote yours. 

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I’m encouraged by Ben’s enthusiasm, and I hope he sticks with podcasting long enough to make it work, but what did you notice about my answer to him?  Could you sense a little tension between his questions and my responses?

Ben, like most new podcasters, would love to monetize their show immediately.  The truth is, it rarely works that way.  It takes time to build authority.  It takes time to develop a listening base.  Just like running a brick and mortar business, you have to do a good job providing a valuable product before you can expect to make an income.

I’m absolutely in favor of earning an income from podcasting and from offering other products and services online.  Doing so has been a game-changer for me in many ways, but I have to caution anyone who may be starting a show with income generation as their primary motivation.  I don’t think good shows work that way.  

I have two primary goals for the content I record, write, and speak, and neither of them are financial.  My first goal is to glorify God with whatever I teach or communicate.  My second goal is to serve people well and do so with integrity.  As I continue to make these my primary goals, I have seen God graciously entrust me with financial blessings as the fruit of my labor.  But whether or not I make a penny from what I’m doing in the future, I’m still going to strive to glorify God and serve people.

So if you’re a podcaster and you’re asking the same questions Ben is asking, let me encourage you build your show on the right foundation, with the right motivation, and it won’t surprise me to learn that your show will eventually become financially successful as well.

© John Stange, 2024