There are a few ways for podcasters to make money with their show. Sponsorships and advertising are the most obvious.
Podcasts are also a great way to promote your own products and services along with affiliate marketing.
Then there are platforms like Patreon where patrons can support your show while getting bonus content.
Some podcast networks will offer paid options for ad-free versions of their shows.
Spotify has thrown its hat into the ring and has released paid subscriptions, and so far — it looks pretty good.
How Do Paid Subscriptions Work?
Spotify paid subscriptions will be one of the easiest ways for creators to earn money through their podcast.
The biggest thing right off the bat is creators can keep 100% of subscription revenue.
This appears to be in place until 2023 where Spotify will then take 5% for you to access the paid subscription feature.
This is a big move as there are no other models like this that allow creators to keep all the profits.
This is pretty astonishing and seems to be how Spotify is going to set itself apart from anyone offering paid subscriptions.
I’m sure the prospect of keeping all the revenue will attract most of those looking to create paid content.
How To Set Up Paid Subscriptions
The setup process is simple and done through Anchor. You simply set a price that subscribers will be charged monthly. As of right now, options are $2.99, $4.99, and $7.99.
The setup process is very streamlined and you can be up and running in minutes. It’s important to note that this requires using the Anchor platform.
However, on Anchor, everything is contained within it such as hosting, distribution, and now: monetization.
Once you are set up, any new show you record can be a regular release or subscriber-only. The thing I love about this is you don’t have to worry about separate feeds and multiple platforms.
Paid subscriptions are a great option for smaller podcasters who aren’t pulling in the big numbers that most advertisers look for.
It’s tough to attract any sponsors unless you are doing at least 5,000 downloads per episode — but many require at least double that.
With this new subscription model, smaller creators have the potential to be paid for their work despite not having a giant audience.
Your audience can subscribe to your show through Anchor or Spotify. The paid episodes will exist right in their existing show feed.
This makes it an easier decision for someone to pay and support your work.
Compare this to Patreon. It can be a bit of a process to get people from your show to their website. There are a lot of stages to get a listener to become a paid supporter.
Spotify is making the process extremely easy.
The other significant thing is your subscribers also don’t have to worry about multiple shows, platforms, or feeds. Everything will be in one place when they subscribe to you.
Final Thoughts
We all know how Spotify is going all-in with podcasting. They’ve invested hundreds of millions into the medium.
Spotify has taken steps to not ignore smaller creators. Not everyone can be Marc Maron or Joe Rogan making $100 million.
Spotify has made changes to make it easier for smaller creators to be discovered. With their new paid subscriptions, they’ve shown how they want regular creators to succeed.
If you have a loyal audience, I’m sure they would love to support you. Podcast listeners are very engaged and devoted to the shows they enjoy.
Many listeners would see only $2.99 a month as a simple decision to make.
Paid subscriptions from Spotify look like the easiest way to monetize your show and provide your audience with bonus content.
As of right now, this feature is only available in the U.S., but will hopefully open up soon to other countries.