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So you’ve just started your own podcast, and now you’re looking for ways to monetize it. You got you podcast on Spotify or Apple iTunes, and now it’s time to make it more successful. One of the most common strategies that podcasters go for is a sponsorship, where you get paid to market a brand, product, or service to sponsor your podcast. This type of podcast advertising can rake in some serious money as your show grows.
Sponsorships can be tricky. Building trust with your podcast listeners is essential in amassing a loyal following, and in order for you not to break that trust, you need to make sure that you promote things that are actually in line with the principles and ideals of your show — or even you as a person.
Here are some easy steps you can follow to start gaining podcast sponsorships, while keeping a genuine connection with your brand and your listeners.
There’s no single way to strike sponsorships with brands, but there are a couple of tried-and-tested ways that you can find potential sponsors as well as helpful information about pitching, pricing, and encouraging sales (or clicks) in exchange for revenue.
A podcast sponsorship is basically a deal between you and a brand or service where you help sell their products and increase awareness of their brand. These goals are priced and measured using two metrics:
This is how much sponsors will pay you per 1,000 downloads of your podcast, views on your video podcast, or impressions on your social media posts.
CPM pricing will typically involve agreements like, “I’ll pay you $20 for every 1,000 downloads per episode where we have an ad spot.” But more often than not, sponsors use it to assess the efficiency of their ads (8,000 downloads for a $500 ad is $6.25 CPM).
This measures the number of sales or signups businesses get as a result of your ad. Think of it as a “referral bonus.” It’s the ideal metric for small shows with a more engaged audience.
You can invite your listeners to avail from a particular business by offering an exclusive discount coupon code or directing them to a website through an affiliate link on your podcast blog, both of which help track which potential or actual customers came from you. Alternatively, CPA can also be used to assess the efficiency of their ads (100 signups for $500 is $5 CPA).
There are no real industry standards for podcasting rates, so it can really depend on the sponsor and your current reach. But for CPMs, sponsors typically spend $15-25 for every 1,000 listeners. For CPAs, sponsors usually spend $15-30 on each person that ends up signing up or buying their product, depending on the predetermined goal. If the CPM and CPA numbers are within the acceptable range, sponsors are likely to renew their ads with you.
Ad spots can also have different prices depending on its placement in your podcast — pre-roll (before the podcast starts), mid-roll (commercial), or post-roll (after the podcast). Should you decide to offer ad spots, many podcasters would suggest the following rates for pre-roll and mid-roll ads: $18 and $23-25, respectively.
Despite being the first thing that listeners will hear, pre-rolls are cheaper because they are typically only 15 seconds long and are very straight-forward (“This podcast is sponsored by…”). Mid-rolls, on the other hand, are more free-form and can last about 60 seconds, during which you will be reading out main talking points provided by your sponsor while improvising to make it sound authentic for your audience.
Bonus Tip: Start low and establish a good track record (several ad renewals) before working up to a higher price, especially if you’re starting out with a small audience or not sure if the sponsor is a good fit for them.
Whether you’re a beginner or a seasoned podcaster, it’s always easier to strike sponsorships with independent creators and small businesses that admittedly need help to reach their market. You may already know a few — for example, an online business that already sells around the world or a local store (only effective if you have a big group of active local listeners).
You can also do an online search on what’s popular with your market or, better yet, ask yourself what you would like to test. What would your listeners buy or download (in the case of mobile app sponsors)? Feel free to consult your friends, fellow podcasters, or even your listeners themselves.
Chances are you already know at least one small business that you can work with, so just make sure that it is marketable to the type of people who actually listen to you.
The professional way to agree on a sponsorship deal is to send an email, along with your more detailed pitch, to your prospective sponsor. These should include information about your show and your suggested pricing. The presentation is typically in the form of a slide deck, and is an excellent way to impress your sponsor and make everything look official.
Take your time in producing an aesthetically pleasing yet professional-looking set of slides and optimize it for your sponsor. Treat it like a business portfolio that will impress and provide relevant information to your potential clients.
A pitch will more or less include the following details:
With your pitch proposal ready, it’s time to compose your pitch email. Remember that this will be the first thing that your sponsor will read from you, so it’s important to be thoughtful about how you compose it. You’ll have to provide information that answers who you are, what you want, and why they should care about your offer.
For your intro, you can simply introduce yourself as the host or co-host of your show. Provide the subject matter of your show, express how you like the sponsor’s business, and that you would like to know if they are interested in working with you to promote their products or services.
You can then get into more detail about your show — how long each episode is, your usual theme and topics, any previous sponsors you’ve partnered with, how and why you think your show will be a good marketing medium for their business, and the number of downloads and listeners you have, to give them an idea about your audience size and reach.
Add another paragraph where you can offer links to your best episodes, so they can learn more about you and your show. Finally, conclude your email by saying that you have attached a PDF file containing more information about your show and sponsorship proposal, and that you’re open to discussing it with them.
And of course, don’t forget to thank them for their time!
There’s a reason why we suggested that you create a template for your pitch—you’ll need to reach out to as many good sponsors as you can.
If they don’t respond, that’s not the end of the line. You may consider sending a follow-up email. You never know if your message was lost in their inbox. These are almost as crucial as the first as you don’t want to seem too persistent. There’s a chance that the sponsor hasn’t even read your first email, so you’ll want to be polite about asking for an answer.
Send your follow-up email more than one week after the first email. Make sure you don’t send it twice (once is enough!) and end it on a gracious note that will tell them that you’re open to collaborating whenever they are ready.
Podcasts are effective for selling, spreading awareness, and building good reputations for businesses, mainly due to podcasting being an intimate medium for hosts to really connect with listeners. Businesses will need you nearly as much as you need them, so getting podcast sponsors is just a matter of striking a good connection and a mutually beneficial agreement. Good luck!
Absolutely! Some of the most successful podcasts, such as the Bill Simmons Podcast, earn millions. Of course, it takes a lot of work and resources to go from zero to $1 million, but you can start small with a few ad investments here or sponsorships there as you slowly grow your revenue as you build your listenership.
Many podcast sponsors are looking for at least 5,000 downloads per episode, and they often pay based on the number of downloads each podcast episode gets (in increments of 1,000). That said, rest assured there’s wiggle room there, especially considering the variety of potential sponsors and your influence or following outside of the podcast. If you have a great social media following and you’re new to podcasting, make sure to tout that in proposals. Or, if you have a niche podcast and you’re targeting sponsors within that niche, you may have luck with fewer downloads per episode as well.
Podcasts revenues vary dramatically based on following, listenership, subject-matter expertise, niche, and more. Typically, podcast sponsors pay a certain amount per 1,000 downloads (known as CPM, or cost per mile). Those newer to the podcasting game may start in the $10s or $20s per 1,000 download. Those with a bit more experience or a unique selling proposition could expect up to $40 or $50, or higher. In fact, some of the top podcasters make up to $500,000 per episode, or more. If you go the affiliate sponsorship route, you’ll get paid based on the amount of affiliate content your audience buys.
You have a number of ways to integrate sponsors into your podcast. For one, you can run an advertisement at the beginning, middle, or end of your podcast with either content they produce and you air, or content you’ve recorded in your own voice. (The latter is often ideal, as your audience is used to hearing your voice, so it feels most authentic to the show.)
Another way to engage sponsors is affiliate sponsorship. Through this kind of program, you will provide listeners with a direct and specific link to purchase product; you’ll earn commissions based on their purchases. You can always get creative with your sponsorship offerings, too. For example, you could add one investment level for pure audio snippets, and others for a full review with an audio snippet of your experience with the product.
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