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

In today’s digital world, podcasts are a powerful medium for content creators to share their voices and stories. But well it's a fun hobby, how can you use podcasts to make money?

Starting your own podcast doesn't just have to be a hobby, you can make money from it as well. It's hard to nail down exactly how many listeners you need to start making money from a podcast. One of the main reasons for this is that making money isn't simply down to your audience size.

From podcast ads and sponsorships to premium content and affiliate sales, there are various podcast monetisation methods to explore.In this article, we will cover these different monetization strategies and how to utilize them. Whether it's through podcast ads, sponsorship, subscriptions, or selling additional products, we'll cover each way a podcast can make money.

How many listeners do I need to start making money podcasting?

Your first milestone to look out for is 1,000 downloads per episode. At this milestone, you should have enough listeners to be able to start monetizing your podcasts. This milestone can be achieved within the first year, or even sooner depending on how successful you are. Content quality, your niche, and marketing can all affect the success of your podcast.Here are some other milestones and considerations that will affect your earnings.

Earnings Per Listener

Your earnings will vary depending on how many listeners you have. Your platform and revenue model will also drastically change how much you earn.Typically, the main way a podcast makes money is through subscribers, ads, and sponsorships.

You can create more revenue streams for things like merch, but the amount you can earn from that can vary greatly.Here are some things to consider before focusing on audience numbers.

1. Ad Revenue

Average CPM:

• CPM (cost per mile) – This is the industry standard for ad revenue. Podcasters are paid based on the number of listens. On platforms like Anchor, Libsyn, and others, the average CPM ranges from £15 to £50.
• Earnings Per Listener – If you’re working with a CPM of £25, this translates to £0.025 per listener. Therefore, with 1,000 listeners per episode, you could expect to earn around £25 per ad slot. Most podcasts have 2-3 ad slots per episode, potentially bringing the total to £50-£75 per episode.

2. Subscription Platforms

Patreon and Supercast:

• Platforms like Patreon and Supercast enable listeners to directly support you by subscribing to premium content that you create. Conversion rates are usually between 1-5% of your total audience. Patreon is the more popular option, but you should research both before making a decision.
• If you have 500 listeners, and 5% of them (25 people) become paying subscribers at £5 per month, you’d generate £125 in monthly revenue. The amount of subscribers you have should grow along with your audience. With 5,000 listeners and a 5% conversion rate, you should earn £1,250 monthly.

3. Podcast Hosting Platforms

Spotify and Apple Podcasts:

• Your hosting platform won't directly affect how much you earn per listener, but your platform will offer you ads and sponsorships once you have a large enough audience.
• Usually, these platforms will start offering podcast monetization once you have a more substantial listener base. 5,000-10,000 downloads per episode is typically the threshold, but as stated earlier, you can start monetizing with just 1,000 downloads per episode.

Breakdown by Listener Count

To get a better understanding of listeners and potential earnings, here's a little breakdown:

1,000 Listeners

• Ad Revenue: You could start earning around £25-£50 per episode. You can earn more or less depending on your CPM rate as well as how many ad slots you have.
• Subscription Revenue: If 5% of your listeners (50 people) subscribe at £5 per month, that’s £250 in monthly revenue.

5,000 Listeners

• Ad Revenue: Your ad revenue should increase with your listeners. With 5,000 listeners, your earnings from ads could increase to £125-£250 per episode.
• Subscription Revenue: With a 5% conversion rate, 250 subscribers could bring in £1,250 monthly.

10,000+ Listeners

• Ad Revenue: Podcasts can generate £250-£500 or more per episode. At this point, a podcast could be a primary income.
• Subscription Revenue: With 500 subscribers (5% of 10,000 listeners) at £5 per month, you could earn £2,500 monthly.

The amount you earn can vary greatly, and there isn't a guaranteed threshold to start making money. However, 1,000 listeners is generally considered the first step to earning an income.If you want a podcast as a primary income, you would likely want closer to 10,000 listeners per episode. If you consistently achieve 10,000 listeners, you can easily earn £500 per episode. If you have additional revenue streams such as a subscription service and merchandise, you could expect this to be a lot more.Once you have an audience base between 1,000-10,000, you should have enough listeners to make money off your podcast. Here are some other monetization methods that will increase your earnings even more.

4 Key podcast monetisation tactics (Overview)

Podcast monetisation has many avenues that can be quite lucrative. Remember audience size isn't always the key to making money. Here’s a quick rundown of the strategies we will cover.

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1. Sponsorship and advertising

Sponsorship and ads are some of the most common podcast monetisation methods. Sponsors and advertisers will want a podcast with a large and engaged audience. They want their sponsorships and ads to reach as many people as possible to make their ads worth it and increase their ROI.Typical monetisation through sponsorships involves integrating ads into your podcast episodes – these can be pre-roll (at the beginning), mid-roll (in the middle), or post-roll (at the end).Depending on the podcast, ad placement can vary greatly in terms of how successful it would be.

Not all podcasts maintain a steady viewership throughout, meaning that different advertising slots have different values. A high-paying sponsorship would want a popular podcast with high viewership, and to be airing at a popular time during the podcast.

2. Audience support and crowdfunding

Even if you have a niche audience, you can use platforms like Patreon, Buy Me a Coffee, and Ko-fi to let your audience support you. If you have a dedicated and loyal audience, then for just a few dollars a month, you can give them premium content such as exclusive episodes, bonus content, early access to new content, or exclusive membership benefits.Successful listener support often hinges on creating compelling premium content that resonates with your target audience.

3. Affiliate marketing

By incorporating affiliate marketing links into your podcast’s show or discussing products during episodes, you can earn commissions on sales generated through those links.You'll need to effectively promote products and services, and make sure those products align with your podcast’s content and audience interests.

A successful podcast with a listener base in the range of 5,000 to 10,000 downloads per episode can help generate significant affiliate income. You can still do affiliate marketing with fewer downloads, but you should expect to make less income.

4. Selling products or services

Your podcast can also serve as a powerful platform for promoting and selling your own products or services, such as merchandise, online courses, or consulting services.If you want to start selling merch and other services, you'd probably want a few thousand viewers. This is partly because the cost of making the merch and services can be quite high, so you'll want to make sure it's a worthwhile investment.Selling branded merchandise or offering specialised online courses to their listeners can boost the money you make.

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Let's explore these in more depth.

Sponsorship and advertising

Sponsorship and ads are some of the most common podcast monetisation methods. Sponsors and advertisers will want a podcast with a large and engaged audience. They want their sponsorships and ads to reach as many people as possible to make their ads worth it and increase their ROI.Typical monetisation through sponsorships involves integrating ads into your podcast episodes – these can be pre-roll (at the beginning), mid-roll (in the middle), or post-roll (at the end).Depending on the podcast, ad placement can vary greatly in terms of how successful it would be.

Not all podcasts maintain a steady viewership throughout, meaning that different advertising slots have different values. A high-paying sponsorship would want a popular podcast with high viewership, and to be airing at a popular time during the podcast.

While it's a bit of a misnomer that high views mean lots of money, it certainly helps. If you want to make money podcasting, especially with ads, then a high listener count is important. Advertisers and sponsors typically prefer people with a sizable audience.

Engagement is also important for ads. Having a big audience is great, but if there's little to no engagement, then they won't get the ROI they want from their ads. Advertisers won't sell ads to an unsuccessful podcast.

Some advertisers will only want a few hundred listeners, while some will want thousands, here's a breakdown of what to expect:

Audience numbers for attracting sponsors

So, the big question is: How many downloads will you draw in more sponsors? Typically 5,000-10,000 downloads per episode is the goal, and tens of thousands of downloads are even better. Most successful podcasts want to hit this sweet spot if they want to make enough money to be viable.

This number can vary depending on the niche and the specific interests of your listeners. Niche podcasts with a target audience could attract sponsors within that niche, even with fewer listeners. Specialised content can appeal to certain brands.Broader podcasts on more general topics would have more competition and might require a larger audience to justify the cost of advertising.

Podcast advertising rates

To understand advertising rates, we're going to have to get a bit technical. Rates vary widely on your audience size, engagement, and the type of ad placement.Cost-per-mile (CPM) rates can vary from £15 to £50 or more, depending on the podcast's reach and engagement. This is what an advertiser pays you per thousand viewers you get.

• Pre-roll ads – Ads at the beginning of an episode. Pre-roll ads usually have lower CPM rates compared to mid-roll ads, because they don't have as many listeners. They can still offer significant revenue, especially if your podcast has consistent viewership as well as new listeners steadily flowing in.
• Mid-roll ads – Usually in the middle of an episode, mid-roll ads command higher CPM rates due to airing during peak listening times. These ads benefit from higher listeners and engagement, which drives up their value.
• Post-roll ads – These are found at the end of an episode and as such often have the lowest CPM rates. They can still hold a lot of value, depending on if your audience engagement lasts until the very end of an episode, so don't discount them just yet.
• Dynamic ad insertion – Dynamic ads are inserted into podcasts in real time. This helps maximise ad revenues by tailoring content uniquely to different audiences.
• Programmatic advertising – Using automated technology to sell ad space, programmatic advertising allows for targeted and real-time ad placement based on viewership data. This process can simplify advertising, but will also involve working with podcast advertising networks and other podcast platforms.

Getting to grips with how advertisements and sponsorships work can help you to set realistic expectations, and hopefully help you start to make money podcasting. Grow your audience and increase your engagement, and you'll be seeing advertisers coming to you in no time.

Crowdfunding and subscriptions

Crowdfunding is another fantastic podcast monetization method to make money podcasting. Subscriptions can give you consistent, monthly income that can keep you doing what you love.Platforms like Patreon, Buy Me a Coffee, and Ko-fi enable you to offer unique content and perks in exchange for a monthly fee or one-time payment.

Audience size

Before you start a subscription service of some kind – like a Patreon – you'll want to make sure you have a consistent and loyal audience. You'll want to put a lot of work into this exclusive, unique, content, and having a large, active audience would mean more subscribers. The larger your audience, the more potential supporters you can attract.

Even a small audience could provide you with substantial financial backing if you consistently produce high-quality content. Once you have a dedicated audience, you can introduce your Patreon or Ko-fi, and you'll usually see at least some support. This support can vary depending on what you offer in return, a bare-bones Patreon that offers very little can turn people away and even lose you valuable viewers.It’s crucial to build a strong community around your podcast. The stronger the community, the more likely you're to get support.

Engagement matters

Having a large audience does wonders, but engagement is just as vital for your success. Engagement means interacting with your content in some way, usually through things like comments and social media. If people are engaging with your content, you've made something they are invested in. This means they are more likely to support your podcast.Making some content exclusive or having perks can enhance engagement and encourage more listeners to become patrons.

Premium content and other types of support and perks

On platforms like Patreon, the choice of what you offer is up to you. Support is usually put into tiers, with each tier being more expensive, but offering more in return. Here are some of the common perks people offer:

• Bonus episodes – Typically additional content that isn't available to the general public. This can be more of the same content, or even 'how it's made' tutorials, showcasing what editing software you use and the creation process.
• Early access – Everyone loves feeling like they are first, so why not release content early to your subscribers?
• Premium content – Podcast subscriptions benefit from having behind-the-scenes content, Q&A sessions, and tutorials that show off your podcast skills.
• Merchandise discounts – Discounts for subscribers can be great if you have a lot of merch.
• Direct interaction – Subscriber-only live streams can add a level of exclusivity to your podcasts, making your subscribers feel special and adding a personal touch.

Premium membership offers your viewers a way to support you while getting more of the content they love.While a lot of these will encourage people to subscribe, it's also important to remember not to be too exclusive. The bulk of your audience will probably be non-subscribers, so they will still need enough content from you to stay invested.Create valuable and interesting content that doesn't derail the free content you deliver.

Affiliate marketing

Affiliate marketing is a popular and effective way to generate revenue by promoting products or services through affiliate links.

When listeners purchase through these links, you earn a commission. The success of affiliate marketing depends on your podcast's audience size and engagement level.Here’s an in-depth look at how you can use affiliate links in your podcast marketing.

Relevance is key

Choose affiliate products or services that are relevant to your podcast’s topic and audience. A technology podcast would want electronics and gadgets promoted for example.The more relevant the product, the more likely your audience will be interested in purchasing through your affiliate link.

Seamless integration

Integrate affiliate links naturally into your podcast episodes. For example, you can mention the product during a relevant segment of your episode or provide a brief review or recommendation.Avoid overloading your content with affiliate promotions, this can come across as pushy. Listeners don't like being directly sold to either, so keep it subtle.

Show notes and episode descriptions

Include the links in your podcast’s notes and episode descriptions. Make sure they are visible and easy to find. Make the descriptions compelling to draw your audience in.A direct call to action can encourage them to check out a link while not being in their face.

Special offers and promotions

Many affiliate links offer special discounts or exclusive promotions to a specific audience. This is usually done through unique codes.These codes both give your audience a discount, but will also be flagged up whenever they are used. This is important to let your marketing partner know if the link is successful.

Selling services and other monetization strategies

Selling products or services through your podcast can be a highly effective monetisation strategy. Whether you’re interested in merchandising, online courses, or consulting services, understanding your listener base is crucial for achieving sales goals. Successful merch sales depend heavily on how many people tune in to your podcast.

Having a wide range of products and services will make you more money. However, having as many revenue streams as possible is good in theory, but you need to be careful not to stretch yourself too thin.Each revenue stream needs to run seamlessly to make money. Give every aspect of your business attention so that nothing falls by the wayside.

Here’s a guide on what to sell, and how it can increase your podcast revenue.

Merchandise

If you’re selling branded merchandise such as T-shirts, mugs, or hats, having a dedicated listener base of around 2,000 to 5,000 active listeners can be a good starting point. Remember that the cost of producing the merch shouldn't be more than the money you're making from it.Merchandise sales are often driven by loyal listeners who feel invested in your podcast. Clothing merch is also a great way to advertise your podcast for free.

Online courses

Online courses or workshops are great if you have enough expertise in a given area. The success of these courses depends on a few things, including your knowledge base, your teaching ability, and how well put together the courses are.For an online course to see some success, you’ll want a larger audience, typically in the range of 5,000 to 10,000 listeners per episode.

Educational content often requires a higher level of commitment from your audience, and a larger pool of listeners increases the likelihood of finding individuals interested in investing in your courses. However, if your lessons are quite good, or you have a niche topic, this can be achievable with an even smaller audience.

Coaching services

Online coaching courses are pretty popular nowadays, people want to learn about all kinds of things, and having a one-on-one or group coaching service can be quite tantalising.You can coach your audience on whatever you want. You'll want the topic you're coaching to be relevant to your podcast, such as teaching about editing software for a technology-based podcast.

An audience between 1,000-3,000 should be enough to start monetising coaching services. Create engaging content for a small, captive audience and you see your income increase.Some of the highest-earning podcasts can offer the best quality coaching services. You'll have to set your sights realistically to start with, but in time, you could offer a top-quality coaching course too.

Factors affecting revenue beyond listener numbers

While having a substantial listener base is crucial for podcast monetisation, several other factors also significantly impact your revenue potential.

Engagement and audience demographics

Engagement can make a large audience much more valuable. An engaged audience – one that actively listens, interacts, and participates – is more valuable than a larger, less responsive one.Understanding your audience’s interests, demographics, and behaviours helps tailor your podcast monetisation strategies more effectively.

• Engaged audience – Active listeners are more likely to respond to ads and make purchases through affiliate links. You're more likely to make money with an engaged audience.
• Audience demographics – You should always know your audience's age, gender, location and interests. Having these details lets you tailor your content. Targeted ads can also be used more effectively if you know your audience.

Quality of content

The quality of your content and the professionalism of your production can significantly affect your podcast’s success and revenue.

• Content quality – Well-researched, engaging, and high-quality content will quickly get you a larger audience. If the content is good enough, they might even share your podcast and engage with sponsors or affiliate offers.
• Production values – A high-quality production will always be better than something thrown together last minute. High-quality audio, clear editing, and professional presentation give your audience a much better experience. There are some exceptions, if your podcast host is particularly charismatic, or the content is engaging enough, it does not have to be the best quality.
• RSS feed – A podcast's RSS feed can keep your audience up-to-date on the latest news and information regarding your podcast.However, if the quality is too low, it will turn people away, regardless of the content.

Consistency and your niche

Regularly releasing episodes and creating content on your specific niche can help build a loyal audience. A loyal audience is vital to make money.

• Consistency – Keep a consistent schedule that your audience is aware of. Regular updates keep your audience engaged and coming back for more.
• Niche relevance – If your content is built around a niche topic, then always remember to keep your content focused on that. You might not have a large audience, but they will be dedicated, and you'll know what they want.

Marketing and promotion efforts

Marketing is a great way to increase your podcast's visibility and draw in a larger audience. Fortunately, there are a few easy ways to market your podcast that are also cost-effective.

• Social media – Stay active on social media like Twitter (X) and TikTok. Social media helps you reach a wider audience and drives traffic to your podcast. Having high social media engagement can also attract sponsors.
• Promote your content – Social media is a great and easy way to promote your podcast content. You can create snippets from a podcast and post them to TikTok or YouTube shorts to create short, digestible content.
• Cross-promotion – Collaborating with other podcasters within your niche can introduce your podcast to a new audience, and be mutually beneficial between you and the other podcast host. Collabs are also a great way to make your podcast seem more credible.

If you focus on these, you should start to see your audience grow. Growing your audience can increase your revenue potential and hopefully help you make money podcasting.High-quality content, audience engagement, and strategic marketing will help you build a profitable and sustainable podcast.

Tips for growing your audience base

Expanding your listener base is crucial. Here are some strategies to help you grow your audience.

Social media campaigns

Use platforms like Twitter (X), Facebook, Instagram, and LinkedIn to share updates about new episodes, behind-the-scenes content, and engaging posts related to your podcast’s theme.Tailor your content to each platform and use targeted ads to reach potential listeners interested in your niche. Social media platforms tend to have their ads you can invest in.

Podcast directories and platforms

Submit your podcast to popular podcast directories and platforms like Apple Podcasts, Spotify, Google Podcasts, and Stitcher.Ensure your podcast is optimised with relevant keywords in the title, description, and show notes to improve discoverability. You can also use a streaming service like YouTube to stream live events.

Email marketing

Email marketing is a useful marketing channel to provide useful and interesting information to your listeners. Let your dedicated listeners subscribe to a newsletter. A regular newsletter can have episode updates, exclusive content, and promotional offers.

Conclusion

Having a large audience can certainly help you make money with your podcast. Your audience can increase merch sales, or increase your subscriber count, but it's not always guaranteed. You could technically start to make money with only a few viewers.

You'll want at least 5,000-10,000 downloads per episode to consistently make money, but an engaged and devoted audience can lead to even more sales.With the right podcast monetisation strategies and a focus on growth and engagement, you can start to increase your podcasting income while building your audience.

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If you’re looking for professional support to elevate your podcasting game, TYX London Studios offers top-notch facilities and expertise to help you produce high-quality content that attracts and retains listeners. Our podcast recording studios will provide you with everything you need to make an amazing podcast to dazzle your listeners.Contact us today to explore how we can assist you in achieving your podcasting goals!