Ready Entrepreneur

How You Really Make Money Online with Podcasting

by Case Lane

This post is part of the Real Stories Behind Making Money Online Series.

Information is valid as of February 26, 2022

The oral tradition has sustained humanity for millennia.  Without the spoken word, and the passing of information through speech, our progress would have been severely slowed.

So when the podcasting format appeared, with its ease of use and access, no human should have been surprised when everyone decided to start a podcast.

But in fact, although podcasting looks like the ready domain of every talker across all subjects and ideas, today there are over 3 million podcasts, a fraction of which have at least ten episodes, and another fraction of which are considered consistently active.

As the least crowded of the major online platforms, podcasting is an extraordinary opportunity for anyone with a message. But creating a podcast does require production equipment, some technical skill, and quiet time to get your show recorded. 

And of course, there is the talking part…

Podcasting is for those who can carry on a conversation, teach, entertain, or facilitate discussion for an audience they cannot see. It is not for those who are turned off by the sound of their own voice, afraid to play with digital files, and have no interest in promotion.

With podcasting, the opportunity to create and join the podcaster community remains a reality for those who want to try it.  As each new show emerges, a successful gem brightens, and the excitement over podcasting begins again.

And it’s important to understand how you can monetize your podcast, and use the audio program to your advantage.

Podcasting as Your Online Business

While starting an online business is an extraordinary opportunity for you to establish a foundation for your own professional satisfaction, financial security, and lifestyle freedom, to get started you have to select an online platform that fits your interests, skills and budget.

Podcasting allows you to have open discussions about any subject in the world, share the conversations you want, grow an audience that enjoys listening to valuable information, and earn income through sponsorships, advertising and memberships.  

But does the platform have all the elements you want and need for an online business venture?

If your online platform of choice is to start a podcast, you need to be aware of the joys and limitations of the effort. 

In this article, I explain the real story behind starting a podcast to make money online.

Podcasting is for Talkers

A podcast is a streaming audio program, usually recorded, sometimes live, that can be supported by advertising, sponsors or listeners.

The term podcast comes from merging the idea of an iPod, a portable audio player, with broadcasting to, in the beginning, play radio programs. The pod part remains a mystery for those who may not know the word iPod was made up by a copywriter. 

Although many have tried to develop an acronym for it…the word is just iPod. A word now forever tied to the podcast communication medium.  While most iPods remain buried in the back of consumers closets, the podcast holds firm as the legacy creation from the device’s existence.

Today, podcast content has gone far beyond existing radio programs.  The range of programming you can listen to includes commentaries, historical narratives, interviews, true crime, sports analysts, fictional dramas and much more. 

If you want to start a podcast to make money online, you have to consider the subject you will be delivering to your listening audience.  Is there an angle or viewpoint missing from the current offering of podcasts (there always is), and how can you deliver for that audience?

Podcasting is for talkers, and podcasts are for listeners.  The content you need to create to make podcasting pay must align with that basic fact. You have to create audio programming that people want to hear.

Become a Podcast Host

When you create a podcast, you are the host. Whether you plan to speak solo on a subject for a half-hour, interview an interesting speaker, or direct a debate between two guests, you are in charge of the show.

When you are thinking about creating your podcast, consider who you want to be, and how you want to run the show.

Podcast Format

Podcasts are found through podcast directories, and all list various categories of related content. But all of the categories are subject…not format, specific.

You are going to want to select a format for your show.

Decide on the type of show you want to host. Some shows sound like parties, others are serious. Some have a lot of adult language, some play music, some are always live…you can do any type of performance to attract your audience.

You can even mix your formats, maybe have a commentary episode , then an interview, then a teaching episode, then back to a commentary.

Podcasting has no rules.  You decide on the format, length, content, tone, and pace of your show.

The only basic concept is that the audio must be clear.  You are asking listeners to give up their time to hear your show.  Poor audio quality creates an unsatisfactory user experience, which typically does not lead to repeat customers.

If there is a question between experimental content and audio quality, choose audio quality all the time.

Should You Start a Podcast?

Once you consider the format that might work for you, you will have to decide if podcasting is going to be your online business.

You can go all in with a podcast..if you:

• Like to talk
• Have a good subject area or topic, or a flair for audio creativity
• Are not afraid to promote your program
• Have the ability to edit and produce digital audio, or pay someone to do the work for you
• Are prepared to be consistently and reliably posting shows

How to Start a Podcast

The technical aspects of starting a podcast creates trepidation for potential podcasters.

The basic approach is:

• Name your show
• Record an audio program, edit as necessary
• Create a show graphic for the cover art
• Upload to a podcast hosting service

The process can be 100% free, which is one reason there are so many podcasts that only post an episode or two.  Assuming you have a digital device like a smartphone, and access to the Internet. You can record your audio, download your file, and host your podcast on a free service.

But if you definitely want to build a business out of your podcast, in most cases there will be upfront expenses for a quality external microphone and a dedicated podcast hosting service. If you decide to have a website for your show, your costs increase.

The investment in an external microphone is typically worth the cost. As stated earlier, audio quality is the hallmark of good podcasting, and having a dedicated microphone gives your show a professional characterization that you will want to continue.

No Frills Podcasting

The no-frills, all free road to podcasting would work like this:

• Record your show on your smartphone or laptop using the built-in microphone
• Edit your show using free software like Audacity, or don’t edit at all
• Create a show graphic using a free tool like Canva
• Create an account on a free hosting service like Anchor, and upload your files

In no time, you will be live and broadcasting to the world. As you grow your audience, you can add the other features that would transform your podcast into a business.

Podcast Hosting

A podcast hosting service stores your recorded file and creates an RSS feed that can be distributed widely to ensure you reach your targeted audience.

Today, podcast hosting providers offer free and paid services.

Free Podcast Hosting

Increased competition has opened up opportunities for podcasters as more free services are offered by hosting providers who cover programming needs.  In fact, some of the free services are beginning to offer more features than the paid ones!

But typically, there will be a catch – usually related to using the service’s branding and advertising – which constrain your money making options and intentions.

Paid Podcast Hosting

Paid hosting will include features like reporting where you can track your audience growth, and tools for social media or your own website.

Costs typically depend on factors like podcast length.  For example, Buzzsprout’s rates are free for up to two hours a month, paid rate starts at $12 a month for up to three hours.

If you plan to do a daily half-hour podcast, you should look for the most affordable rate.

Recording and Distributing Your Podcast

Recording

Once you know where you will be hosting your content, you can create it. Podcast content is created everywhere – from car commutes to Hollywood studios.  But if you’re just starting out, your preference is likely to be a quiet corner of your home where no external noises will be picked up by the microphone.

But even intended silence is not assured, as dogs bark, kids laugh, and the delivery trucks drop packages at your door.

You will have to find the best time to record, maybe after trying several times, before you know what will work best for you.

Ad-libbing versus Reading

Some podcasters swear by the natural, free-flowing conversational style that ad-libbing brings to a recorded show. They keep just a few points in mind, and then say what they want to say off the top of their heads.

Others find ad-libbing too unstructured and risky. They prefer to remember everything they want to say by writing it down first, and reading from a prepared document.

If you are doing a commentary show, you may want to have notes to help you remember your best points, and ad-lib only at naturally sounding spots in your dialogue.

For interviews, you have almost the same split between those who read from prepared questions, and those who allow the conversation to flow.  Since either option can make for great audio, you just have to decide how comfortable you are with the outcome.

Editing

Uhhh….Ummm…click…long pause…doorbell…Ahhh…long pause…’oh, can you take that out?…’

Editing the podcast can turn a 30 minute project into three hours, it smothers the joy of the production, and can be one of the reasons many podcasters drop off the platform after only a few episodes.

Some podcasters recommend leaving in all the ‘natural’ sounds, but have you ever heard a successful podcast that is not also a clear and smooth broadcast?  If your guest takes long pauses that split the flow of the show, that’s where you start editing. If the sounds are just natural conversational speak, you can leave it in.

Either way, even if you are not personally editing the core show content, you may need to add an intro or outro to your show, or if you want to get paid…advertising, which still takes time and requires some production.

Editing can be outsourced, but you must carefully select your editor and provide clear instructions.  You will still need to listen to the show to make sure it sounds the way you intended.

If the first editor you select does not work out, keep trying until you find a good one.

If you have no funds to hire an editor, you will have to do the work yourself using free software like Audacity. The app has a lot of features, but you only to need to learn the basics that will help you create a good show. So go ahead and set aside the extra time to get the editing work done.

But remember, editing is not the fun part of podcasting.  Be aware that this may the beginning and end of your efforts if you are not realistic about the time and effort it takes to produce a good-sounding show.

Adding Music and Effects

Music is a wonderful addition to a podcast show, especially a consistent intro that becomes your theme.  On the Ready Entrepreneur podcast, you can hear the ‘news room’ sound that signals the show is information and discussion oriented.

To add music to your show, you can search for websites that offer free, cleared music. 

Clearances

If you plan to use copyrighted music, and make money off your podcast, you must obtain a clearance from the copyright owner.  Unilaterally, using someone else’s content to make money is not legal, and not cool.

Send an email to the copyright owner explaining who you are, why you want to use the music, and how you plan to use the music. You might be surprised by the response. Many copyright owners are happy to share their creation, especially since podcasts are offered for free, and an up and coming podcaster who intends a limited use of the product, is not typically a threat to their ownership.

Video Podcasts

YouTube has become one of the top platforms for ‘listening’ to podcasts. And many podcasters make a video version of their show.

If you are doing interviews, and use Zoom or another video communication platform to record, you automatically have another asset when you create the podcast. You can edit the video and put it on your YouTube channel.  

Creating a video podcast enhances your web presence, provides more search engine results, gives you an opening to another audience, and provides your guests with another asset to share with their audience.

The video podcast is extra work, but it is also a great option for extending your podcast brand.

Transcripts

Re-purposing podcast material is one of the reasons the medium is a great asset for podcasters. If you write out your show, you have automatically created the transcript that you can also post when you upload the episode and make it available to listeners.

In general, best practice is to include a transcript of your show for the hearing-impaired. While there is limited enforcement of this practice, if you have the material, you should post it. If you wrote out your show but ad-libbed, you can put a disclaimer at the top of the transcript that says it may not be an exact word-for-work transcription of the show.

The transcript can also be used to create subtitles if you decide to post a video version. 

When you are first getting started with your show, focus on delivering great content. But as you are comfortable with production…and certain you will continue, look at the other services offered by your hosting provider and consider adding features to your show.

Admin and Legal Stuff

DISCLAIMER: This section is provided for informational purposes only and is not legal advice. For all legal issues related to your podcast, you should seek the advice of a legal professional.

When you create a podcast, accessibility is not the only administrative issue that you may encounter.

If you are doing guest interviews, many guests will assume it is audio only.  But if you plan to post the video, make sure you advise your guests, that show will include a video version – and get a signed clearance.

Your podcast episodes are assets and you want to be able to use them across platforms as you see fit. While there has yet to be a major case of someone suing over a podcast interview, it’s better to get clearance ahead of time that the guest knows you own the show, and may use the audio, video and guest likeness (photos) for distribution and promotion.

You can obtain this clearance before the interview by including it as a statement on your guest interview form that the potential guest has to check before submitting their request.

You should also be careful about using copyrighted images, quotes, graphics, videos or other content.  You want your podcast to stand-alone as your own material, so make sure all the content you include is owned by you, or has an open creative-use license.

Podcast Directories

Once you have completed recording and editing your show, you will post it to your hosting provider.

Most hosts will automatically distribute your show to a number, but not all, of the podcast directories. The podcast directories are the lists of all the podcasts available to listen to on a specific platform.

While the biggest names like Apple, Amazon and Spotify are exactly where you want to be, you will also want to make sure your podcast is listed on every available source.

Being in every directory increases your search presence, and enhances your ability to be found by random listeners.  When you search for your podcast online, you want to ‘own’ the first page of search results.

Check your host provider’s list of automatic feeds against the list of all possible directories to confirm that your podcast can be found ‘wherever you listen to podcasts.’

Promoting Your Show

While you can be discovered through a listener directory search, the only successful way to promote your show is word of mouth.

No podcast directory is perfect in its search and information capabilities.  And no service is offered that breaks down all the podcast information to help you find the exact type of show you are looking for. 

So if you have a podcast, you have to promote, promote and promote again.

The podcast launch is typically the first move new podcasters make to get their show in front of people. You promote directly to your list, friends, organizations, and anywhere you have an audience to let them know that your show is available.

But after the launch, you have to keep growth going by spreading the word through social media, your work or business, speaking, and guest podcasting.

For every episode, create show posts that highlight the content and can be promoted across social media platforms. If you have guests, distribute the posts to them and encourage them to promote on their own social feeds.

If you are speaking about a particular product or person on your show, give them a shoutout on social media also, by tagging, and letting them know they were featured.

And keep talking about your podcast. Mention your show wherever you have a chance. Re-use the content, across platforms, and re-use the promotion materials to re-feature a good or popular episode once or twice a year.

How Podcasts Make Money

The more you can promote your show, get the word out, drive listeners to you, and raise your ranking and popularity, the more opportunities you will have to make money.

There are multiple ways to make money with a podcast, but the four most direct are to promote your own or affiliate products, get paid advertising, get a sponsor or sell a membership to exclusive content.

Promote Products

Your podcast is your platform, and you can choose to promote your own or affiliate products as part of your show.

When deciding to promote, find products that align with the content of your show and integrate them into the discussion or commentary that you are already doing.  The transition can be smooth, as you state that you have an affiliate link in the description of the show, or you can do a hard break, and ‘insert’ your own type of advertising.

If you are promoting your own products, especially books and courses, you should be able to clearly connect your content to the content of your podcast (unless they are completely different topics). This actually enhances your authority, and gives your audience more insight into the value you deliver.

You can create your own ads, add music and effects and make it sound like a professional advertisement. But be careful about being too ‘salesy’ or promoting products out of context. You want to provide valuable information to your audience, this includes information about products or services they can use.

But you do not want your show to be just an advertising vehicle, so choose wisely.

State the links in your ad or comment, and put them in the episode description.  If your listener is interested they may just click and buy the product.

Paid Advertising

You can also have third party advertisers place ads in your show. For the most part, you have to have minimum audience numbers to attract national brands. But if you are talking about a specific subject, which may be interesting to specialized or local businesses, you can solicit advertising directly from them.

Advertisers are looking to target unique and niche audiences. If you demonstrate how you can deliver ‘ears’ you may be able to attract advertising even if you have a small podcast.

Start by reaching out directly to advertisers you think may be interested. Tell them about your show theme, topic, audience size and frequency.  Remember once you commit to delivering a show for an advertiser, you have to deliver the show. So make sure you are comfortable with podcasting as your platform before actively reaching out for ads.

When you have paid ads, you are typically paid upfront, you don’t have to wait for someone to click on the ad. This helps give you some stability and support for your podcast.

Sponsorships

You appeal to sponsors the same way you would reach out to paid advertisers, by telling them how aligning with you would be good for business.

A sponsorship can be for an entire episode, or for the show. Sponsors can request that you read promotional material, or refer to the sponsor in comments, or for a portion of the show.

If you have a video podcasts, sponsors can ask for their product to be displayed behind or beside you, or even on you, if it’s a clothing.

If you have a specialized topic, you may be able to obtain a sponsor to cover your editing, transcribing, hosting and other costs.  The only way to find out is to ask.

Memberships

You can also ask your audience.

In recent years, more podcasters are reaching out to their audience to sponsor and financially support the show through paid memberships. The podcasters offer exclusive members only content in exchange for a fixed or open fee.

As a podcaster this will mean providing additional content like the video, snippets, learning guides, exclusive outtakes from interviews, or other material that extends the podcast brand, while building a home for the audience community.

While there can be a lot of extra work in establishing a membership site, it can also be an outstanding opportunity to grow your entire business.

Your podcast community can also become the community that buys your books, courses, products, and services. You can start with membership in a podcast and turn it into membership in your world. And the more you grow your listeners, the more opportunities you have to make money online with a podcast.

What Makes Podcasts Successful?

While the most successful podcasts begin with great content, there are plenty of shows that are able to deliver that initial element. What separates them from the shows that have millions of listeners? A few key factors…

Consistency

When listeners see a show has hundreds, now thousands of episodes, they are more willing to make an investment in the podcaster, because the podcaster has made an investment in them. Consistently posting a show, and building day-to-day or week-to-week gives the listener a sense of security…and FOMO…

If a listener sees the show constantly putting up new episodes, they begin to wonder what they are missing and are more inclined to check and click on the latest information they want.

Specificity

Listeners are searching for people who are speaking about the subjects they care about, and being relevant and interesting in the process. If you can find a topic with a core audience that is currently under-served but available, you will have your successful podcast.

Uniqueness

With three million podcasts, there should be three million unique voices, but far too often podcasters try to copy the work of those that they hear.

The most successful podcasters create a unique voice, one people identify with that person. From the types of questions that are asked, to the shock-value of their commentary, to the revelation style of their facts…these types of speakers have transformed audio programming, and taken the audience along with them.

As you set out to be a podcaster, think about your unique voice, your singular message and your particular style. Be an emergent leader in the space, and promote to those who have been waiting to hear from you.

Podcasting is an extraordinary opportunity for you if you have a message that you want to deliver. There is a spot waiting for you, and you can use podcasting to make money online.

On the Ready Entrepreneur Podcast, I offer information and advice on getting started with an online business, and interviews with outstanding entrepreneurs about their journey, find the show wherever you listen to podcasts:

You can also hear Case Lane interviews on dozens of awesome shows focused on:

Entrepreneurship: https://www.readyentrepreneur.com/podcast-guest-appearances/

Guest Podcasting: https://www.readyentrepreneur.com/podcast-guest-appearances-speaking-about-guest-podcasting/

Awesome Product Offers

If you want to start guest podcasting to promote your product or business, click here to get an extraordinary offer on my Expert’s Guide to Finding Podcasts for An Interview:

If you would like to get the Podcast Directory List of where to post your podcast, click here: https://podcastgueststar.com/podcast-directories-list/

DISCLOSURE: links to Buzzsprout are affiliate links that earn for eligible purchases at no additional cost to you.

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