This post continues the Podcast Seminar series. This week we discuss a popular topic, monetizing your podcast.
If you talk to 10 different podcasters and ask them how to monetize your podcast, you’ll get 10 different answers. A few of the popular models that I’ll discuss in this post are donations, “premium” subscription, promoting products, pay per episode, advertising, sponsorship, and affiliate links.
First off, let’s get this ugly fact out of the way; unless your podcast is a standout in the thousands of podcasts in iTunes, there’s a good chance you’re not going to make a dime on your podcast. If you’re getting into podcasting to make money, you’re going to be sadly disappointed. At least for right now. There are opportunities to make a few bucks, but basically the monetization model for podcasting is far from fleshed out. Even though that’s the case, let’s take a look at the models listed above.
Donations – The donation model of monetizing is very much like a PBS television station or NPR radio station. The hosts solicit money from listeners or viewers. There is usually a button on their website that says donation or tip jar. The donations can be one time or setup as monthly. Paypal is the usual suspect here in setting up a donation scheme. For an example of this model, check out any of the TWiT podcasts. Leo Laporte has a donation button on the twit.tv site where you can sign up to give a one time amount, or give monthly. You could also call this a benefactor model.
Premium Subscription – When you subscribe to a podcast, it’s not like subscribing to cable. No money changes hands. You simply add the podcaster’s RSS feed to your aggregator of choice. In the premium subscription model, you still subscribe to the podcaster’s feed, however this time you have a username and password and you pay the podcster to subscribe to the feed. This model is much like the premium channels like HBO. You pay an agreed upon amount each month. There are a few services that can provide this type of service, but the one that’s getting a lot of use is Premium Cast. Check out The Bitterest Pill for an example of this type of podcast monetization.
Product Promotion – If you sell a product as part of your business, then this is the monetization model for you. I made a reference to Gary Vaynerchuk of WinelibraryTV in a previous Podcast Seminar post. The Winelibrary is Gary V’s business. Each episode of the show he uses some of the product available in his store. He doesn’t push the product, but instead gives an honest review of the wines. Sometimes good, sometimes not so good. I don’t doubt the the number of bottles flying out the Winelibrary has gone up by a large amount due to the show. Take a look at the show and see how to sell products without making each episode of your podcast an infomercial.
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