How many listeners do you need to make money on a podcast?

Are you thinking about generating money through your podcast? You might be wondering how many listeners or legitimate downloads you need before you can court a sponsor.

To answer this question, we need to understand exactly what sponsors want from a podcast.

There are a few key things every sponsor wants.

What Sponsors Want from a Podcast?

Realistically, there are only a few things that a sponsor needs from your show:

1. Awareness

The first thing sponsors need is awareness. Any Chief Marketing Officer (CMO) of any brand or marketing coordinator in any small business knows that if you’re buying awareness, you need big numbers.

Marketers are absolutely aware that they also need to convince and convert potential customers into paying, loyal advocates.

This is where podcasting really excels.

Example: Big Podcast Advertisers

Let me explain this a little further. If you’ve ever heard an advertisement for Squarespace or stamps.com on one of the big podcasts, you’ll notice a pattern. These companies know that:

• There will be some conversions from these ads
• Some people will visit the page the host reads out
• Some listeners will enter the coupon code and get the free trial

However, what they’re really banking on is awareness.

The Power of Awareness Marketing

What I mean by awareness is that these brands are looking for their name to touch as many people as possible, as often as possible.

They want us to hear about Casper mattresses and Squarespace frequently so that when we start thinking about needing a service like theirs, they are top of mind.

This is awareness-level marketing.

2. Convince and Convert

While awareness marketing is great for big podcasts with tens or hundreds of thousands of listeners, what about smaller podcasts?

Can you get sponsorship with just 500 listeners?

This is where the “convince and convert” level of marketing comes into play.

How To Start Podcast Without Money and Audience

Sponsorship Opportunities for Smaller Podcasts

Imagine you’re a small business working locally, regionally, or in a very niche market. Let’s use the example of someone wanting to sell Star Wars toys to Star Wars fans.

The Niche Advantage

Sure, you could spend tens of thousands of dollars on the highest level of geekdom podcasts. This would work for awareness – people would know about you – but it would cost a fortune, and listeners may not be ready to buy.

What sponsors really want to access are the hyper-fans. Guess who has the hyper-fans?

Small Star Wars podcasts.

Small niche podcasts that don’t have mass-market appeal but absolutely match and talk to the real-life people who want the thing you’re selling.

How Many Listeners Do You Need?

Now, this might be controversial, but in my view and experience, you can start to cover the costs of your own podcast with as little as 100 downloads or listeners per episode.

Here’s why:

The Power of Specificity

If you run a smaller podcast that is niche, hyper-focused, maybe hyper-local or regional, you can work with sponsors who want to target that specific audience. The key is to prove that your listeners are very specific and very niche.

Early Monetization

With 100 dedicated listeners:

• You won’t break the bank
• You won’t retire or make a living from it
• But you will cover your costs

This allows you to reinvest in marketing to increase your listenership, which in turn unlocks more sponsorship opportunities. This is how you build a business through podcasting.

Monetization Methods

You don’t have to rely solely on fixed-price sponsorship models. There are other methods you can explore:

• Listener support
• Premium content
• Various pricing models

However, for most podcasters, fixed-price sponsorship is the way to start.

Building Engagement for Sponsorship Success

If you’re set on working with sponsors, here’s how to build the engagement that will attract them:

1. Aim for your first 100-500 listeners
2. Encourage listener interaction:

• Ask them to tweet at you
• Request comments on your episodes
• Create opportunities for engagement

3. Showcase this engagement to potential sponsors

Remember, it’s not just about numbers. Demonstrating that you can generate real engagement with your audience is crucial for attracting sponsors, especially in niche or regional markets.

Targeting the Right Sponsors

Once you’ve built your engaged audience, it’s time to approach potential sponsors. Here’s how to target the right ones:

1. Identify niche-specific brands: Look for companies that align closely with your podcast’s topic.
2. Consider local businesses: If your podcast has a regional focus, local businesses can be excellent sponsors.
3. Think about your audience’s needs: What products or services would genuinely benefit your listeners?

Example: Star Wars Toy Seller

Let’s revisit our Star Wars toy seller example. For them, sponsoring a small, dedicated Star Wars podcast with 500 listeners could be more valuable than advertising on a general pop culture podcast with 10,000 listeners.

Why?

Because every single one of those 500 listeners is potentially interested in Star Wars merchandise.

The Value Proposition for Small Podcasts

When approaching sponsors, highlight these key points:

Targeted audience: Emphasize the specific interests of your listeners.

High engagement: Show how your audience interacts with your content.

Cost-effectiveness: Smaller podcasts often offer better value for niche advertisers.

Authenticity: Your recommendations carry weight with your dedicated audience.

Starting Your Monetization Journey

Ready to start monetizing your podcast? Here’s a quick checklist:

1. Assess your audience: Do you have at least 100 dedicated listeners?
2. Understand your niche: Can you clearly define your podcast’s focus and audience?
3. Gather engagement data: Collect examples of listener interactions and feedback.
4. Research potential sponsors: Look for brands that align with your content and audience.
5. Prepare your pitch: Create a compelling case for why sponsors should work with you.

Remember, monetization is a journey. Start small, focus on providing value to both your listeners and sponsors, and grow from there.

Conclusion

So, how many listeners do you need to start monetizing your podcast? While traditional wisdom might suggest thousands, I believe you can start with as few as 100 dedicated listeners.

The key is to focus on your niche, build engagement, and provide real value to both your audience and potential sponsors.

Don’t let a small audience size discourage you. If you have a focused, engaged listener base, you have something valuable to offer sponsors. Start small, be persistent, and watch your podcast grow both in audience and monetization opportunities.

Remember, every successful podcast started somewhere. With the right approach, you can begin covering your costs and investing in your podcast’s growth, even with a modest listener base.