Unlocking the Secrets Of Podcast Networks
By Tom Seest
How Does a Podcast Network Work?
At PodcastBig, we help new podcasters develop strategies to create content, traffic, and revenue from podcasts based on our experiences and experimentation.
Podcast networks take care of finding advertisers for you – meaning no time wasted trying to secure sponsors on your own! Most offer a revenue-sharing model, with each partner sharing 70/30 of the revenue generated.
Networks typically employ in-house teams of copywriters, designers and automation specialists who promote your shows across their entire network and assist with digital marketing efforts.
Shows with high download counts are of particular interest. In return for providing these shows with funding and creative control over them – even to the extent of prohibiting criticism against other networks or shows.
How Does a Podcast Network Work?
Table Of Contents
How Do They Make Money?
Podcast networks rely on the principle of “strength in numbers.” By pooling multiple podcast shows under one umbrella company, they attract more advertisers willing to advertise on multiple podcasts and then charge a commission based on how much advertising revenue each podcast generates.
Cost per mille (CPM) ads are often utilized by networks as an effective strategy, charging a flat rate per 1000 impressions an episode generates. While exact figures depend on publishing frequency, content quality and demographics; as an approximate guideline you could earn $6-20 CPM with pre-roll (before) advertisements; $11-25 with mid-roll ads (during the show); and $4-15 post-roll (at the end of an episode).
Some networks also provide other benefits, including promotion, production assistance and digital marketing support that may prove especially valuable to new and struggling podcasters. Please keep in mind that these services usually come at a fee or may require meeting a minimum number of downloads or monthly listeners before being available to you.
Other podcast networks may use more centralized operations and hosting, which can reduce costs per individual show while still giving them full control of their operation. This model could be especially advantageous to podcasters looking to scale up but retain individual show control.
One drawback of joining a podcast network can be its restriction on your creative freedom. For example, some networks forbid criticizing other shows on the network or provide a list of topics that cannot be discussed during your show.
Before approaching a network for negotiations, work hard at increasing your audience size and monetizing your podcast. Strong listener numbers demonstrate your dedication to your show as a valuable resource for advertisers; thus enabling you to negotiate for a larger share of ad revenue.
How Do They Make Money?
How Do They Monetize?
Podcast networks aim to attract shows with large, dedicated audiences that can generate significant advertising revenue. Podcast ads are sold on a cost per mille (CPM) basis; meaning advertisers pay a set rate per thousand listeners who hear an advertisement, so having an established fan base and regular publishing schedule are essential when joining any podcast network.
Podcast networks typically take a 30% cut of any ad revenue generated by podcasts they manage, usually stipulated in a contract when podcasters join the network. Most people view joining such a network as beneficial, as it saves them the trouble and hassle of searching for sponsors themselves; but before making your decision it is still wise to carefully weigh up all potential advantages and disadvantages as even losing 30% can quickly add up over time.
Some podcast networks require creative control from you as a creator, such as forbidding you from criticizing other shows on the network or giving a list of topics that should not be discussed during an episode. Before agreeing to these stipulations, always read all fine print carefully and read them over before signing your name if applicable. Furthermore, some networks require you to advertise their sponsors which could become problematic if their products or services don’t align with what your show stands for.
Podcast network monetization strategies vary, but many rely on ad placement and sales to monetize. Some podcasts employ full-time ad sales staff while others outsource this task to third-party agencies; either way, the goal should always be to maximize ad revenue generated from each episode.
Podcast networks also monetize by giving podcasters access to their centralized platform for hosting, management and other features. This can be especially helpful for smaller podcasts that don’t have the financial means for their own separate hosting service – though it could prove more problematic should a host change take place down the road and all analytics related to that podcast could become redundant and require starting over with another host.
How Do They Monetize?
How Do They Make Their Shows Popular?
Podcast networks help shows gain popularity by promoting them, using cross-promotion, and offering access to a larger audience through advertising. Furthermore, they offer support and advice to new and growing podcasts alike. Podcasters interested in joining one should carefully weigh up the potential advantages and disadvantages before making their decision; such as losing control, signing exclusivity agreements and revenue sharing agreements as possible drawbacks of joining.
Podcast networks can also increase popularity by developing consistent branding across their shows, which will help to build a loyal listener base and build brand recognition. Furthermore, podcast networks may be able to negotiate better advertising deals due to reaching larger audiences.
Some podcast networks opt to centralize their hosting and operations to reduce equipment costs such as recording bays, DAWs and vocal mics. Furthermore, sharing production resources among network members allows them to collaborate on ideas to further improve each show while making it more attractive to advertisers.
Other podcast networks focus on cultivating relationships with their listeners by engaging them through social media, email and forums. Furthermore, this information helps create targeted ads for their shows, which attract more advertisers while simultaneously increasing their revenue.
Podcast networks may provide many advantages to independent podcasters; however, they should not be seen as the solution to all their woes. Finding the appropriate fit between you and your show and any podcast network can be key to finding success; before approaching one it is wise to increase listenership and maximize value before engaging them! Once this step has been accomplished, begin negotiations for deals!
The primary drawback of podcast networks is that they require podcasters to agree to a revenue-sharing model, which may prove challenging for certain shows. Furthermore, members may be required to pay monthly membership fees, which can become costly for smaller shows that do not have sufficient funds available to cover such costs.
How Do They Make Their Shows Popular?
How Do They Make It Easy for Podcasters?
Podcast networks usually provide a centralized platform for hosting, distribution and management (e.g. Captivate). In exchange, podcasters agree to specific terms and conditions regarding how profits are shared among them; advertising agreements; etc.
Joining a network can bring many advantages: increased audience reach, more monetization opportunities and the chance to collaborate with other shows on the network. However, applicants should keep some key factors in mind before applying for network spots:
First and foremost, podcast networks may require podcasters to adhere to certain guidelines and branding standards, which may restrict creative freedom. They may ask that you not criticize other shows on the network or give a list of topics not allowed – this can limit creative freedom significantly when starting out. They may also take up to 30% of profits when starting up; something which could prove costly as you develop.
Podcast networks also offer production assistance and tools that individual podcasters do not have access to, such as studio time, recording equipment, editing services and research support. Networks may also facilitate cross-promotion of newer shows by more established ones on the network – something which could prove especially helpful if other shows in that network already have established audiences.
A central marketing team can also be invaluable to driving traffic and generating leads for podcasts in a network. This may take the form of social media campaigns, SEO optimization and paid search ads; or through established sponsorship arrangements that enable advertisers to find your podcast.
Podcasters can apply for networks by filling out an application form that typically requests basic information about the podcast such as how many downloads it receives each month and why you wish to join. Networks will evaluate applications before making decisions on who to accept into their roster.
Joining a podcast network can be an invaluable way for podcasters to expand their audience and monetize their content, but before making their final decision, it’s crucial that they carefully weigh all the potential advantages and disadvantages of joining one. They must ultimately decide if forgoing 30 percent of profits is worth reaping the added advantages that come from being part of an expansive network.
How Do They Make It Easy for Podcasters?
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