How To Make Money From Podcasting On Spotify

Podcasts are booming in popularity, and if you’ve started one, you’re probably wondering how to make money from a podcast on Spotify. The good news is that Spotify, a major podcasting player, provides several ways to earn money on its platform. But how do podcasts get paid? This guide will cover those options and lay the groundwork for a thriving podcast business. Just look at successful podcasters like [Joe Rogan] and [The Daily] who have monetized their content on Spotify, and you’ll see the potential!

How to Monetize a Podcast on Spotify

Click here for my free podcast monetization guide

Make Money with Fan Support: Your Community Invests in You

Spotify makes it easy for your loyal fans to support your work financially. This comes in a few forms:

• • Subscriptions: Fans pay a monthly fee for access to bonus content, early episode access, behind-the-scenes extras, or even an ad-free version of your regular show.
  • One-Time Donations: Listeners who love a particular episode or really appreciate your work can show support with a single donation.
  • Other podcast hosting platforms offer similar support as well, and they allow you to publish your podcast to multiple platforms like Spotify, Apple Podcasts, Google Podcasts, and other podcast apps.

Ads: Two Approaches, Different Trade-offs

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Think of ads on podcasts just like commercials on TV or radio. Spotify offers two main choices.

Automated Ads: This is the most hands-off way to monetize. Spotify handles everything – inserting ads into your episodes and paying you a certain amount based on how many people hear those ads. It’s a great way to start earning, but it can be harder to predict how much you’ll make, and you’ll need to hit 100 on Spotify within the last 60 days.

Sponsor-Read Ads: This involves you, the host, reading out an ad for a specific brand or product. You’ll often need to find sponsors yourself, which can be a challenging process. However, this method usually pays more than automated ads, as brands know your voice directly reaches your audience. To find sponsors, you can start by reaching out to companies and brands that align with your podcast’s niche or by joining podcast advertising networks. As an alternative to direct sponsorships, you can also direct listeners to your podcast’s website that you’re in control of where they can find useful and helpful things that can earn you money. 

THE BEST WAY TO MONETIZE A PODCAST

I made this video to explain the logic, and I encourage you to watch it in its entirety, even if you watch it twice until you understand what I’m trying to show you.

Nobody talks about this, and I don’t know why, but having a well-structured website is one of the best ways to make money with a podcast and it doesn’t even matter what platform you’re using.

This is where things get very interesting because while you could earn $1-$5 CPM (cost per mille), you could instead start funneling traffic to offers that get you paid big money.

For instance, you could direct your listeners to a website for a transcript of the episode, including episode notes and bonus content, collect emails for an email list (where you can let people know about the next episode, for example), and point people to affiliate offers that earn you a commission on a sale/conversion without touching inventory or dealing with anything physical at all.

It’s all about directing your traffic where you want them to go!

Here’s an exercise: Open Spotify podcasts, start listening to a couple of shows and pay attention to the advertisements you see.

I think you’ll see a few things…

1: Spotify might take over and play an ad. The ad will show on the screen, and play audibly.

2: The host might play a clip which is an ad recorded by someone else but played within the episode itself.

3: The host might read their own ads and talk to you about joining things like ButcherBox, SimpliSafe, a VPN service, and more.

Are you getting the picture?

Host-Read Ads on Spotify – (Secret Money Hack)

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You might have noticed that most podcasts have some kind of sponsored message, read by the host for things like…

• Web Hosting
• Meal Delivery Services
• Online Therapy
• Sports Betting
• Life Lock 360

These are all excellent and high-profit ways to make money on Spotify!

The key is that host-read ads technically bypass Spotify or the platform’s cut of the revenue. Instead of running an automatic ad through the platform, where Spotify might take 3% of your ad revenue — you’re directing people off the platform to things that get you paid directly. That means more money in your pocket!

Where the money is made isn’t necessarily on the ads…because, depending on what ads are triggered by the platform, it might pay relatively little…

But if your podcast is niche specific, let’s say it’s a podcast that talks about web security, privacy, tech, and other things relating to being safe online, you could promote services like NordVPN Threat Protection that pays 80% of a sale which can be like $50 + per sale.

And if you were to take 30 seconds out of your show to talk about why you use Threat Protection (and actually give it a try yourself first), you can make a lot of sales with very little traffic. So you don’t need 1,000 downloads to see the money, you might need 50-100 to get a conversion on a $50 sale.

Affiliate Marketing On Steroids

This is basically what started with the Joe Rogan podcast years ago. From my understanding, he had a website and a forum and would participate with the community on it while recording the show. While it didn’t have a large following of millions of people, he was able to foster a dedicated community around himself by having an online presence. It’s this online presence that can earn even more money.

Website and Patreon: Expanding Your Fan Support

• While Spotify’s subscription options are convenient, consider building your own website to cultivate a deeper connection with your most dedicated listeners. Websites are hubs for your community, letting you:
  • Affiliate marketing relating to your show’s niche
  • Offer exclusive content or merch only found there.
  • Direct listeners to podcast episodes for bonus content, show notes, helpful tools and guides.
  • Get found in Google/Bing/Yahoo search using keywords the search engines pick up – which means organic and free listeners discovering your podcast and tuning in.
  • Funnel listeners into programs that earn money on day one, without waiting for eligibility requirements or specific listener counts — you can just as easily join the Amazon Associates program and put relevant gear on the website and make money as soon as people start showing up.
  • Set up a Patreon: This popular platform lets fans pledge monthly support in exchange for tiered rewards you set.

In-Episode Subscriptions: Another Option, Less Common

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• Some podcast hosts enable fans to subscribe directly to a podcast episode without using a third-party service. Listeners might text a particular number or visit a webpage you mention during the show. While less common, it can be another way to offer a seamless experience for super-fans. 

Spotify Monetization Requirements: Am I Eligible? (Important!)

Unfortunately, not everyone can start making money on Spotify immediately. Here are some common requirements:

• Listener Numbers: You usually need a certain number of listeners (100 within the last 60 days) to qualify for different monetization options. Don’t be discouraged if you’re new — you can get listeners fast if you’re smart about it. Consider our methods above… Also YouTube can help people in as well, direct them to your website to get them subscribed to your Spotify profile, and help them by putting up helpful content!
• Location: Not all features are available in every country, so check Spotify’s documentation for your specifics.

Workaround: Direct Listeners to Your Website

While there might be listener number limitations on Spotify monetization, you can still leverage your podcast to drive traffic to your website, where you have more control over earning opportunities. Here’s how:

• Mention your website in every episode: Make it a habit to remind listeners about your website at the beginning and end of each episode.
• Offer website-exclusive content: Incentivize listeners to visit your site by offering bonus content, early access to episodes, or exclusive merchandise they can’t find anywhere else.
• Promote subscriptions and donations on your website: Once listeners are on your website, it’s your home turf. Clearly, display options for subscriptions or one-time donations to support your work.

Spotify Helps You Do It Right

Spotify isn’t just leaving you to figure everything out! Check out their resources, including:

• Dashboards and Analytics: Track listeners, see demographics, and get the data you need to make informed monetization choices.
• Guides and Tools: Spotify provides step-by-step instructions and even tools specifically designed to help podcasters set up subscriptions, donations, and more.

Beyond Spotify: More Ways to Earn Money

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Your podcast is a launchpad, not just a single destination. Here’s how to expand your reach and income:

• Affiliate Marketing: Partner with brands whose products fit your audience. Put their unique links on your website and in show notes, earning a commission when someone buys through you.
• Email Lists: Don’t just rely on Spotify to notify your fans. Collect emails via your website for direct communication, promotions, and building stronger bonds with super-fans.
• SEO Mastery: Search Engine Optimization helps people find your show on Google. Learn the basics to make your podcast and website visible and attract new listeners organically.
• YouTube: New Audience, New Money Create videos from your podcast audio, either highlights or full episodes, for YouTube’s massive audience. You can potentially monetize on YouTube as well!

Spotify’s monetization options – ads, subscriptions, and donations – are powerful tools. See if you’re eligible, and if not, focus on growing your audience. Explore other strategies, too, and you’ll build a multi-faceted, successful podcast business.