How to Make Money from a Podcast (with Real Numbers & Strategies)

Erica Strong and Lorraine Hess, hosts of The Beloved Podcast

Podcasting has evolved far beyond a hobby. For many creators, it’s now a serious revenue channel. But transforming downloads into dollars requires strategy, persistence, and diversification. In this post, I’ll walk you through how you can monetize your podcast — from platform ad programs to direct sponsorships and product tie-ins — and I’ll show realistic numbers so you know what to aim for.

My team helps creators not only produce podcasts, but also build out the marketing, distribution, and monetization infrastructure — so you’re not leaving money on the table. 
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Let’s dive in.

Monetization via Podcast Platforms

Let’s look at how Apple Podcasts, Spotify, and YouTube contribute (or don’t) to direct monetization.

Apple Podcasts / Apple Podcasts Subscriptions

• Apple does not directly insert ads or pay per listen for free content. Its monetization lever is via Apple Podcasts Subscriptions.
• With Apple Podcasts Subscriptions, you (the creator) get 70% of the subscription revenue (minus taxes/fees). After a subscriber has been with you for one year, your share increases to 85% of the subscription revenue.
• Because Apple doesn’t run ad insertion, you can’t rely on “platform ads” to generate incremental income there (unlike Spotify).

Thus, with Apple, your options are: (a) get people to subscribe to paid tiers, or (b) use Apple as a distribution channel while monetizing elsewhere (sponsorships, etc.).

Spotify

• Spotify has a built-in monetization program. For “automated ads” placed via Spotify’s system, creators receive 50% of the revenue recognized for those ads. (You'll need at least 1,000 unique listeners to start the process)
• The ad revenue per show depends on how much Spotify recognizes from advertisers, which varies. 
• Spotify’s advantage is seamless monetization for creators who host with them and opt into their ad program.
  
  

YouTube / Video Podcast

• Typical YouTube ad rates for podcasts or long-form content may land around $1–$2 per 1,000 views (though this heavily depends on audience geography, ad inventory, niche). You must meet certain eligibility requirements, starting with reaching 1,000 subscribers
  
  

In practice, combining audio (Spotify, Apple) + video (YouTube) gives you multiple revenue engines from the same content.

Direct Monetization Strategies (Beyond Platform Ads)

Because platform ad revenue alone may not sustain a podcast, here are complementary (and higher-margin) monetization strategies you should layer in.

Note: While the below numbers are industry averages, we have found that our niche podcasts are able to get monthly or seasonal sponsorships (rather than based on impressions or downloads) due to their loyal and engaged following. Meaning, depending on the product and audience type, a smaller, more engaged audience can be worth more than a larger, more general one. 

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1. Sponsorships & Host-Read Ads

• This is the bread-and-butter for many podcasters. You sell ad slots in your episodes to brands.
• CPM (cost per 1,000 downloads) is the standard metric. In 2024–2025, mid-roll host-read ads typically fetch $25–$40 CPM, though for smaller shows rates might be lower (e.g. $15–$25). 
• Pre-roll (ad at the start) might command $15–$30 CPM; post-roll (end) might be $10–$20 CPM.
• Example: an episode with 10,000 downloads, with one mid-roll ad at $30 CPM yields:
   10,000 / 1,000 = 10 × $30 = $300 for that ad slot
• If you run two mid-rolls, maybe add a pre-roll and post-roll, you could possibly double or triple that (though listener tolerance matters).
  
  

2. Affiliate Marketing & Product Mentions

• You partner with companies, recommend their products, and get a commission when listeners buy via your link or code.
• Commission rates vary (e.g. 5%, 10%, 30%) depending on product/service.
• This can scale with your audience and doesn’t always depend strictly on raw impressions — conversion matters.
• Because this is lower friction than a hard sell, niche podcasts can often succeed with affiliate income even before landing big sponsors.

3. Premium Content / Subscriptions / Memberships

• Offer bonus episodes, early access, ad-free versions, exclusive content behind a paywall.
• If your niche is strong and you deliver value, even a small percentage of listeners converting (e.g. 1–5%) can produce meaningful revenue.
• For example, say you have 5,000 listeners per episode. If 2% subscribe at $5/month = 100 people × $5 = $500/month in recurring revenue.
• Or you might offer a “premium series” to paying listeners, or digital courses bundled with episodes.
  
  

4. Merchandise, Courses, Consulting, Products

• Sell branded merchandise (t-shirts, mugs, notebooks), especially once your audience is passionate.
• If your podcast domain overlaps with a skill, you can offer coaching, consulting, digital courses.
• You can craft physical or digital products (ebooks, templates, software) tied to your content.
• Because profit margins tend to be higher than ad CPM, this can be an especially lucrative stream.
  
  

5. Live Events, Workshops, Repurposing Content

• Host live podcast tapings or events (paid tickets).
• Workshops or webinars tied to your podcast topics.
• Repurpose episodes into blog posts, newsletters, social content, or premium compilations.
• Licensing or syndication (selling your content to other media outlets) is another possibility.

How Production + Marketing + Distribution Support Helps You Maximize Revenue

This is where your company’s value-add comes in. To truly monetize, a podcast can’t be “record & forget.” Here’s how augmenting production, marketing, and distribution amplifies revenue:

1. Better content = stronger engagement = higher CPMs
   A polished, well-edited show with compelling structure makes advertisers more confident.
   
   
2. SEO, show notes, transcription, blog repurposing
   These help bring in new listeners via search and improve discoverability.
   
   
3. Audience growth campaigns
   Paid ads, social media, cross-promotion, guest appearances help you reach new listeners faster.
   
   
4. Distribution to multiple platforms, video conversion
   The more places your content is available, the more ad impressions, affiliate exposure, and reach you get.
   
   
5. Data & analytics + iteration
   Tracking which episodes perform, which sponsors convert, where drop-offs happen — then optimizing your content and monetization strategies.
   
   
6. Sponsor outreach & negotiation
   Having a team that understands your audience, package deals, and can pitch to brands helps you secure higher-value deals.
   
   
7. Cross-selling & bundling
   If you have other services (consulting, courses, events) you can bundle them with podcast sponsorships or mentions, increasing average spend per advertiser.
   
   

By combining strong production + marketing + monetization strategy, our clients have a much higher chance of turning a podcast from a cost center into a profitable channel.

Tips, Caveats & Growth Levers

• Don’t overload ads — listener tolerance matters. Too many spots can degrade experience and push people away.
  
  
• Niche & targeting matter more than raw size — a smaller but highly relevant audience can yield better CPMs and sponsorships.
  
  
• Start small, prove value, then scale rates — as you hit consistent download thresholds and case studies, you can raise your ad rates.
  
  
• Diversify revenue streams — don’t rely on a single income source (ads, subscriptions, etc.).
  
  
• Protect your brand & trust — only promote brands/products you believe in; maintain transparency.
  
  
• Test pricing models, offers & messaging — run experiments with premium tiers, bundles, split audiences.
  
  
• Negotiate clean deals — define deliverables, reporting, metrics, make-goods (if performance underperforms).
  
  
• Watch platform policies & cuts — e.g. Apple’s 30% cut in year one of subscription, Spotify’s revenue share policy.

Conclusion 

Monetizing a podcast isn’t magic — it’s a layered, strategic process. Platform ad programs (Spotify, YouTube) give you baseline revenue, but the real upside often comes from direct sponsorships, audience monetization, and product tie-ins. The stronger your production, marketing, and distribution, the more leverage you have when negotiating and scaling your revenue.

Ready to take the next step? Contact me to learn more.
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​About Holly Berkley
Holly Berkley is a professional Digital Marketing Consultant and author of eight Internet Marketing books. She recently joined the team at Timeless Talent Management (www.timelesstalentmanagement.com) to help produce, distribute and market podcasts for industry professionals.  Learn more about Holly's books and marketing services at www.BerkWeb.com