This Is How Much Money a Podcast With 1,000 Downloads Can Make

Hey Friend!

Have you ever wondered how much money a podcast with just a thousand downloads can make? It’s probably more than you think, but not in the way you think. People often think that making money from a podcast comes from sponsorships or brand deals. Incorrect!

Podcasting has been around for years. I used to listen in the car while working out, folding laundry, at the gym, or making dinner. Not only was I learning, but I also started wondering how much money these podcasts are making. Could this be the secret to what I’ve been looking for to grow my own online business?

At the time, I was spending four to five hours a day on social media, not having success, and struggling to find leads and people who wanted to work with me.

Five million podcasts exist today, and advertising revenue for podcasts is projected to hit $4 billion by 2025! People trust podcasts more than they trust social media ads.

PODCAST DOWNLOADS AND MORE

In this post, we’ll consider how much a podcast with 1,000 downloads per episode could potentially make. I‘ll walk you through my three favorite methods of making money with podcasting and break down the math so you can see the potential of one thousand downloads. We’ll also look at:

• How to start a podcast?
• What does it cost?
• What does it entail?
• The numbers behind podcasting monetization
• The truth about ad revenue

Finally, I’ll share what my podcast, which has over two million downloads, produces in sales and revenue. Whether big or small, your podcast audience is your biggest asset. If you’re podcasting or thinking about starting one, this is the strategy you need.

Please dive in with me. Grab that notebook and pen. I hope this blows your mind.

Podcast Downloads Method Number One: CPM Model

So, how much can you make with a thousand downloads per episode? The answer varies. Podcast download method number one is podcast ads. This is the CPM model. CPM stands for Cost Per Mille, from the Latin word for thousand. It’s a standard advertising term that refers to the cost per one thousand impressions.

Typical ad rates are $18 to $25 per thousand downloads. The first thing you can do after starting a podcast is to get some advertisers. This is easy to do. There are multiple ways to get advertisers for your podcast early on.

This is not my favorite way to make money with a podcast. I’m not going into depth on this method. Most people think ads are the best way to make money with podcasting.

Here’s an example: With 1,000 downloads per episode, you can make $18 to $25 per ad slot. If you run two ads per episode, that’s $36 to $50. That’s roughly $142,000 monthly with 1,000 downloads.

Podcast Downloads Method Number Two: Affiliate Marketing

Method number two is affiliate marketing. To make this easy, we’ll assume you get a one percent conversion from your podcast. This is a conservative number based on the thousands of students I have helped monetize a podcast.

We typically see between a one and five percent conversion from a podcast, but for purposes of this analogy, we’ll go with the conservative number, one percent.

What does a 20% commission mean? Let’s say you have a decluttering podcast but don’t have a product to sell yourself and don’t want to sell ads.

You find a decluttering coach with a product that sells for $100. You partner with that coach and sell one percent because you have a one percent conversion. She makes a sale and keeps 80%. You keep 20%. That’s $80 for her and $20 for you. That’s how affiliate marketing works.

This is a great way to make money podcasting. Let’s run the numbers on this. If one percent of 1,000 listeners buy, that would be 10 buyers. Twenty percent commission with 10 buyers for a $200 product equals $200 per episode. The numbers add up fast.

If you release four episodes per month, that’s $800 from affiliate marketing!

Podcast Downloads Method Number Three: Your Products

The third method to make money with podcast downloads is to sell your product. Let’s assume you have created your online course. This is my favorite method and the one I teach all my students to do in Podcast to Profit.

Because when you own the thing you sell, your profit margin is exponentially more than pennies on the download, as in method number one, or a small commission from someone else’s product, as in method number two. If you ask me, selling your products is the bread and butter. We need to make some assumptions.

Let’s say you create a course that costs $500. This is the baseline where I teach my students to start their pricing. And you still have a conservative conversion rate of one percent.

If one percent of 1,000 listeners buy, that’s 10 buyers, the same as in method number two. But you get to keep all the profit because you’re selling a $500 course, and you don’t have to pay someone else because it’s their product!

MORE BENEFITS OF CREATING YOUR PRODUCTS

The place where I host my courses is a one-time investment. I don’t pay a monthly recurring fee for it. My courses are passive, which means I don’t pay anyone to show up and coach them.

You want to achieve 97% profitability. A $500 course, whether a coaching session, membership, or something else, with 10 buyers will earn you $5,000 per episode. That’s amazing!

One great offer you own can outperform podcast ads by 25%. This is why I teach how to monetize a podcast inside my bootcamp.

How to Start a Podcast

Now that we’ve looked at how much money a podcast can make with 1,000 downloads, let’s talk about starting a podcast. What does it entail, and how much does it cost? So let’s get into it. The first thing you need is an idea. What will your podcast be about?

You need clarity on the direction, title, and tagline of your podcast—the clearer and more boring, the better. If you’re interested, I can help you with that. Check out my bootcamp, which walks you through all the details of podcasting.

Podcast Equipment

The second thing you need is equipment. I use Beats headphones, which are my favorite. They have noise cancellation and plug straight into your phone or microphone, keeping things simple.

Speaking of microphones, I use the Rode PodMic USB. I love Rode! I’ve had the best success with their products. Some of you might prefer the Shure microphone. If you prefer a smaller, more affordable mic, try the Rode ME Lapel mic. You can plug it into your phone or an adapter.

Full disclosure: I used a Yeti mic for the first five years of my podcast. It was great! If you’re on a budget, check that mic out or use your phone to get started.

Podcast Hosting

When starting your podcast, you will also need hosting software. I use Podbean. You will also need editing equipment. I use Audacity. By the way, Audacity is FREE and easy to use. I use it on a Mac.

That’s all you need to start a podcast. If you buy a microphone and headphones and use Podbean, your cost is under $500. If you skip the microphone, you can start your podcast for under $200. Recording on your phone with Podbean as your host would cost around $50. This is doable!

Stef’s Podcast Downloads and Revenue

Next, let’s look at what my podcast produces. I’ve been podcasting for six years. My podcast has produced over $1 million in gross revenue in the last 12 months. Here’s the math on that: If I do two episodes a week, there are 52 weeks in a year, which is 104 episodes.

When I divide the $1 million we made last year by 104 episodes, every podcast episode makes roughly $9,615.

Each episode takes me one hour from start to finish, including the planning and recording. That is $9,165 per hour! Can I get an “Amen?” This is crazy!

So why am I sharing all of this information with you? By shifting your business method, you can create a more profitable online business.

This allows you to stay away from the high algorithm-driven platforms on social media like:

• Instagram
• Facebook
• TikTok

You can exchange those platforms for audio consumption because podcasting has a much higher conversion, as I mapped out in the three scenarios.

You Can Have Results Like This with Podcast Downloads

To recap, it’s possible to earn hundreds to thousands of dollars from 1,000 downloads. It’s simple to start and scale to seven figures and beyond as you grow your podcast.

If you want me to help you learn more about this, check out my bootcamp. I will train you for five days to create a profitable podcast. I can’t wait to see you there!

APPLE PODCAST | SPOTIFY | YOUTUBE

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