Do Podcasts Make Money on Spotify?

People often want to know if they can make much money publishing podcasts on Spotify. The answer is that they can.

The top 5 podcasters earned a combined $71 million in 2021. However, the average podcaster makes $33 – $54 per episode if they can attract roughly 10,000 downloads. In addition to ad revenue, the same podcaster could earn affiliate commissions of $500 – $850 an episode with that same traffic volume.

There are different ways to earn money with podcasts, from sponsorships to content charges and affiliate marketing. People who are just starting out and experienced podcasters alike can make money by strategizing.

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Continue reading to learn all about podcasts and what kind of money they can make on Spotify.

Are Podcasts Worth it?

Podcasts are growing in popularity, and many people find them worthwhile. You can monetize them in different ways, and they help you build an audience. This can lead to marketing opportunities for any business you run.

Podcasting, as an industry, has grown a great deal in the past few years. In fact, between 2018 and 2019, the number of active podcasts increased from 550,000 to 750,000, which is a 36% increase. The number of episodes during the same period increased by 62%, from 18.5 million to 30 million.

Podcasting is taking off, and now is the time to get started. As more people listen to podcasts, they are looking for more content. The number of people who regularly listen is expected to grow a great deal in the coming years.

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Another reason they are popular with creators is because they are inexpensive to start. You can create episodes out of your existing content, and you can produce them quickly without a lot of fancy equipment.

The most important place to spend money is on devices to improve your audio quality.

You can promote products, host an interview with experts, take questions from fans, and more. You can also earn money making your podcasts. You can run ads, find sponsors, ask for donations, and more.

Are Podcasts a Waste of Time?

Podcasts are not a waste of time. The content needs to be relevant and keep your audience engaged. The most significant disadvantage is that you have to be consistent to build a following.

You can’t take time off, and you need to publish regularly. Typically, you will want to publish every week. It can be challenging to keep up with.

Do Podcasts on Spotify Make Money?

podcast money

First of all, some podcasters get paid royalties. Artists and songwriters get paid indirectly through record labels, aggregators, distributors, and collecting societies. Podcasters on Spotify can make money.

The way it works is that songwriters and artists make agreements with these rights holders where they allow them to distribute their work. They then deliver to Spotify. Spotify pays two-thirds of what they make to the rights holders.

Between 75% and 80% of the payments are for recording rights, and 20% to 25% are for distribution. The rights holders then pay the artists based on their agreement.

Whether or not Spotify pays podcasters depends on several factors, including how many downloads and followers they have, what monetization strategies they use, how many markets the content streams in, and the agreements they have with rights holders.

When someone is starting out, they may need to work hard to grow their followers. People who have 5,000 or more downloads for their episodes will have more credibility and draw more sponsors to negotiate higher rates for ads.

Other podcasters may already have a following on social media.

You can combine different methods of making money for your podcasts, and stream them to different markets. Another way to make money is through affiliate links. You need a large following for this as well because the more downloads you have, you will have a better chance of people clicking on the links.

How Much Do Podcasts Make on Spotify?

spotify money

To be paid by Spotify, you need to make sure that your show has listeners. The best way to draw more listeners is by producing content that appeals to a wider range of people.

If you choose a topic that only appeals to a small group, it will be hard to draw listeners.

There are different ways to monetize your podcasts, and how many you make use of determines how much your podcast can make. First, you can use sponsorships or advertising.

You can charge clients a fee of anywhere from $18 to $100 for every 1,000 listeners you have during your show. If your show has a lot of listeners, sponsors will pay more.

You will promote their brands during the show. You usually do it in the beginning, the middle, or the end. The highest-paid ads are mid-roll ads, which occur in the middle of the show.

If you have an advertiser paying you $20 CPM and 100,000 downloads, your income will be $2,000. If you run two ads, you will earn twice that.

You can also make money from commissions. In this case, you will give your listeners a link where they can make purchases, and the seller will pay you commissions on these purchases.

patreon tip jar

Another way to earn money is by asking your listeners for donations. Create a Patreon account with a page asking for support. Then, offer them premium content in exchange.

You can also charge others for resources, live chats, early access to episodes, newsletters, and more.

If you become established and are considered an expert in your field, people may pay you to speak at public events. You can also do paid subscriptions, which is part of a paid podcast program launched by Spotify in 2021. The fees for this can be $2.99, $4.99, or $7.99 each month.

You can also publish books and sell them or develop online courses and charge for them. You have a built-in platform to promote these items, and you can create a webinar to get people excited about what you have to offer.

Other podcasting companies pay podcasters directly, including Google Podcasts, Apple Music, Amazon Music, and YouTube Music.

Affiliate Marketing Money from Podcasting

affiliate commissions

If you want to monetize your podcast on Spotify, one of the best ways is through affiliate marketing. You can promote electronic or physical products and services from other companies on your show and earn commissions on any sales made.

For example, let’s say you’re a podcaster who interviews authors about their latest book. You could promote that book on your show and earn a commission on any sales made through your affiliate link.

The average commission rate for affiliate marketing is around 10%, but it can vary widely depending on the product or service you’re promoting. For example, digital products such as eBooks and online courses tend to have higher commission rates than physical products like books and DVDs.

To be an effective affiliate marketer, you need to build up a rapport with your listeners and establish yourself as an expert in your field.

To find affiliate programs, you can search online or contact the companies directly. Many companies have affiliate programs, but not all of them advertise them publicly.

To be an effective affiliate marketer, you need to build up a rapport with your listeners and establish yourself as an expert in your field.

Only then will people trust your recommendations and make purchases through your links.

Does Spotify Show Podcast Activity?

spotify charts

Podcasts count if you listen for 30 seconds or more. Podcasts have a “listening activity” to keep track of every podcast to which users listen. This information is shared with people’s followers, so their friends can see what podcasts they listen to.

If you are a podcaster, you have an analytics dashboard. The metrics show starts, streams, listeners, and followers. A start is when someone clicks on your episode.

A stream is when the listener plays your episode, and they need to listen for at least a minute. Listeners are unique listeners, and followers have clicked the subscribe or follow button.

You can see metrics for a choice of date ranges through the episodes tab. You can see the episode performance for each episode, which includes the average listen time and completion percentage by listener. They also show starts, streams, listeners, the gender of the listeners, and their ages.

How Many Listeners Do You Need to Make Money on a Podcast?

Do podcasts make money on Spotify? The answer is yes, but it depends on how many listeners you have. Podcasts can be a great way to monetize your content and build an audience, but it takes time and effort to get the ball rolling.

The key to making money with a podcast is having enough listeners that are engaged in your content. If you’re just starting out, it may take some time before you start seeing any real income from your podcast. But if you’re consistent with creating quality content and promoting yourself through social media or other marketing channels, then eventually the numbers will start increasing.

When it comes to monetizing your podcast on Spotify specifically, there are two main ways: advertising revenue or subscription fees for premium episodes/content. Advertising revenue works by placing ads within each episode of the show which pays based on impressions (the number of people who hear/see the ad).

Subscription fees allow users access exclusive bonus material such as extended interviews or behind-the-scenes footage that isn’t available anywhere else.

This requires more work upfront since these types of episodes need additional production value added to them compared to regular ones; however, they can also bring in more income over time due to recurring payments from subscribers who keep coming back for new material every month or so.

So how many listeners do you need before making money? It really depends on what type of ad network(s) you use (if any), as well as what kind of subscription model(s) are implemented into your show’s structure.

Both factors play a large role in determining potential earnings per episode/monthly basis respectively; however, generally speaking, most podcasters report earning around $20-$50 per 1k downloads depending upon their niche & target demographic.

So if we assume an average download rate across all shows being 10k downloads per episode then one could expect roughly $200-$500 dollars worth of income generated each month depending upon various factors mentioned earlier!

Overall though regardless of whether using ads networks/subscription models etc., having at least 5-10 thousand monthly active listens is usually where most podcasters begin seeing tangible results when attempting monetization strategies via streaming platforms like Spotify.

So don’t give up hope even if progress seems slow initially because once those numbers start climbing higher & higher chances become increasingly good that actual monetary rewards will follow suit soon after!

Final Words on Making Money Podcasting

Spotify pays some podcasters indirectly or directly, but there are many ways to make money through your podcast. You don’t have to be Joe Rogan to make some good income from podcasting on Spotify. The most critical aspect of earning money is to attract listeners and followers.

If you want to get started recording your own podcast, you can try something free like Discord.

Juan Louder
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Juan Louder

I started SoundStudioMagic to learn how to record my own audiobook at home, and now I'm addicted to all the latest techniques and gear.

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