Why Indie Podcasters Should Use Direct Sponsorship and Memberships or one-Off Tips

Speaker: 00:00:00

[MUSIC]

Speaker: 00:00:03

Hi there, I'm Danny Brown and you're listening to Pod Chat,

Speaker: 00:00:06

the show that features leaders of the podcasting space sharing their insights on the future of the medium.

Speaker: 00:00:11

This week it's a bonus episode, but first just a quick update.

Speaker: 00:00:14

The show's been on a bit of a hiatus over the summer and it was meant to come back before this,

Speaker: 00:00:18

so I apologise for the delay.

Speaker: 00:00:20

Life got in the way a little bit, so what was meant to be a short break over the summer turned into an extended one.

Speaker: 00:00:25

So again, apologies for that, but the show will be back soon with the usual interviews.

Speaker: 00:00:29

This week, however, I want to talk about why indie podcasters should use direct sponsorship and membership or tips.

Speaker: 00:00:35

I've just come back from Podcast Movement in Denver, Colorado,

Speaker: 00:00:38

and one of the overarching topics that was up for discussion was podcast monetization.

Speaker: 00:00:42

No change there from previous years then.

Speaker: 00:00:44

And it's understandable.

Speaker: 00:00:46

It's a discussion that's been front and center of the podcasting space for many years now,

Speaker: 00:00:49

especially as we see leading industry publications like Podnews and others

Speaker: 00:00:53

share success stories, partnerships, exclusive deals, and more.

Speaker: 00:00:56

But while the conversation remains fresh, the approach to monetisation seems to have stalled, at least in some quarters.

Speaker: 00:01:02

While I couldn't get to listen to all the sessions and tracks around monetisation at Podcast Movement,

Speaker: 00:01:07

one thing I did notice was some of the thinking about advertising being the lead or the best option for podcasters.

Speaker: 00:01:12

While this might be the case for larger podcasts and media companies that represent these shows,

Speaker: 00:01:17

these ad partnerships work because the podcast is getting tens, if not hundreds of thousands of episode downloads within the first 28 days,

Speaker: 00:01:23

or 30, depending on whose data you track.

Speaker: 00:01:26

They might even be in the millions.

Speaker: 00:01:28

So yes, it makes sense for advertisers to partner with them and vice versa.

Speaker: 00:01:32

After all, that many ears placed in front of a sponsor's message is always attractive.

Speaker: 00:01:37

But for the average indie podcaster with maybe a few hundred downloads,

Speaker: 00:01:40

or even averaging a couple of thousand,

Speaker: 00:01:42

this approach won't work.

Speaker: 00:01:44

And that's okay, because it doesn't need to.

Speaker: 00:01:47

Instead, there are far more effective ways to monetize your show,

Speaker: 00:01:50

regardless the size of your audience.

Speaker: 00:01:52

The problem with using download numbers as a metric for podcast success

Speaker: 00:01:56

is that they don't tell the full story.

Speaker: 00:01:58

Because of auto download features in podcast apps,

Speaker: 00:02:00

and queue for later choices by listeners,

Speaker: 00:02:02

not every download will result in a listen.

Speaker: 00:02:05

So while an episode might get 10,000 downloads, for example,

Speaker: 00:02:08

perhaps only 2,000 result in an actual listen.

Speaker: 00:02:11

While that's still a great metric,

Speaker: 00:02:12

it does only represent 20% of the target audience

Speaker: 00:02:15

hearing an ad.

Speaker: 00:02:16

Yet sometimes advertisers still pay for all the downloads,

Speaker: 00:02:18

or maybe impressions.

Speaker: 00:02:20

And again, impressions could be a questionable metric

Speaker: 00:02:22

to go by, depending on how the agreement is set up.

Speaker: 00:02:25

Even if they're paying for CPM, which is cost per mille or cost per thousand listens,

Speaker: 00:02:29

different platforms track listens differently, so that can also skew figures.

Speaker: 00:02:33

Additionally, depending on how the podcaster is inserting ads,

Speaker: 00:02:37

you may have less say over where they go than other options.

Speaker: 00:02:40

You might also have less say over which ad partners you work with,

Speaker: 00:02:43

depending on whether you're using an ad exchange that gives you that control,

Speaker: 00:02:46

or with your podcast host that inserts at points they feel make sense,

Speaker: 00:02:49

and with partners they feel are best suited to you.

Speaker: 00:02:52

This can cause a bit of a disconnect and actually lose your listeners.

Speaker: 00:02:56

So, instead of taking this ad-based approach,

Speaker: 00:02:58

think of what makes sense not only for you, but your audience

Speaker: 00:03:01

and the sponsors or partners you're thinking of working with.

Speaker: 00:03:04

Even if you have a smaller audience, if the relevance and context is high,

Speaker: 00:03:08

the more likely an action will be taken,

Speaker: 00:03:09

whether that's your listeners redeeming a discount promo code,

Speaker: 00:03:12

getting an extended free trial,

Speaker: 00:03:14

or access to an exclusive online course event that your sponsor partner is running.

Speaker: 00:03:18

I was speaking with a podcaster about this at Podcast Movement

Speaker: 00:03:21

and wanted to know how to attract and work with sponsors when the show wasn't attracting thousands and thousands of downloads.

Speaker: 00:03:27

So we went through some of the following.

Speaker: 00:03:29

We chatted about his niche, his downloads, and how many unique listeners he had compared to these downloads.

Speaker: 00:03:34

We saw by his analytics that he had a pretty engaged and loyal listenership.

Speaker: 00:03:38

And we chatted about the types of sponsors he'd want to present to his audience and vice versa.

Speaker: 00:03:43

From there, we saw an opportunity for him to work with a local comic book store in Culver City, Los Angeles.

Speaker: 00:03:48

Because it turns out he had a pretty nice listenership there after attending a Comic-Con style event.

Speaker: 00:03:52

Even though he wasn't local to Culver City, he could let the comic book store know that he has X amount of regular listeners every single week.

Speaker: 00:03:59

And if the store was willing to sponsor the show, then the podcaster essentially has over 50 listeners who he could promote that store to in Culver City.

Speaker: 00:04:06

If you're a small business and you're told that you could potentially get 50+ Warm Leads customers each week, that's a pretty win-win opportunity right there.

Speaker: 00:04:14

That's just one example of where direct sponsorship with a relevant audience and sponsor or partner can work,

Speaker: 00:04:19

even with so-called lower numbers.

Speaker: 00:04:21

What's even cooler about this example is that the podcaster isn't even local,

Speaker: 00:04:26

but the audience is.

Speaker: 00:04:27

Just one more reason why you should be deep diving into your analytics for data that works.

Speaker: 00:04:32

Now with that example, the extra care and time the podcaster put into identifying a sponsor that works for their niche,

Speaker: 00:04:37

as well as ensuring their audience received value from the partnership,

Speaker: 00:04:40

In this case, exclusive backstage invites to offer appearances and first option a newly released merchandise.

Speaker: 00:04:46

It makes this a very valid partnership for both sides.

Speaker: 00:04:49

It's this kind of care and attention for your audience that can also reward you

Speaker: 00:04:52

if you go a more direct route to monetization with tips or memberships.

Speaker: 00:04:56

Whether that's something like Buy Me A Coffee or Patreon,

Speaker: 00:04:59

or the recently released Tips and Membership feature from Captivate,

Speaker: 00:05:02

where I'm head of podcaster support and experience,

Speaker: 00:05:04

these are excellent ways for you to offer listeners something extra.

Speaker: 00:05:07

And for them to support their favourite podcaster or podcasters

Speaker: 00:05:10

while getting rewards for doing so.

Speaker: 00:05:12

It's why one-off tips and memberships are so popular now,

Speaker: 00:05:14

both for podcasters and their listeners.

Speaker: 00:05:17

As a listener, I know I'd rather throw a few bucks the way of a podcaster

Speaker: 00:05:20

whose content has improved my life in some way,

Speaker: 00:05:22

as opposed to one where monetisation is led by how much they can make

Speaker: 00:05:25

instead of how much value they can offer their listeners.

Speaker: 00:05:28

If you look after your audience,

Speaker: 00:05:30

and consistently deliver on their expectations

Speaker: 00:05:32

when it comes to what to expect from your show,

Speaker: 00:05:34

that consistency will be rewarded by loyalty.

Speaker: 00:05:37

They'll remain an active listener or follower,

Speaker: 00:05:39

and be more open to supporting you if and when you're ready to offer something for a premium option,

Speaker: 00:05:43

whether that's a one-off tip or a current monthly membership.

Speaker: 00:05:46

Just make sure to keep things simple and realistic.

Speaker: 00:05:49

If it's a one-off tip, don't overcomplicate with multiple amount options.

Speaker: 00:05:53

Instead, either make a couple of default options or let the listener choose their own.

Speaker: 00:05:57

If it's a membership option, make every tier different from each other,

Speaker: 00:06:00

so each one shows a visible change from the previous one.

Speaker: 00:06:03

Make the benefits of each clear and obvious.

Speaker: 00:06:06

Offer a free trial. Memberships can still be tricky for some listeners to understand,

Speaker: 00:06:10

so a free trial, while still receiving the perk of the paid membership, is a great way to show

Speaker: 00:06:15

why they'd want to upgrade and pay. Offer a personal message and be genuine about why you

Speaker: 00:06:19

truly appreciate their support. And be sure to thank publicly where possible and give shouts

Speaker: 00:06:24

on your podcast. Show that your audience and their support means something. Memberships and tips can

Speaker: 00:06:29

be super effective when it comes to earning through your show. Listeners generally want to

Speaker: 00:06:33

support their favourite creators and if they can do that monetarily, they will.

Speaker: 00:06:36

Especially if you're super smart with the perks that come from being a member.

Speaker: 00:06:39

And maybe offer exclusive perks from sponsors that you're working with for an

Speaker: 00:06:43

all-round partnership bonus for both listener and sponsor. So for example,

Speaker: 00:06:46

"Subscribe to Tier X and get a special limited edition item from this show's

Speaker: 00:06:50

kind sponsors." The key thing to remember whether you're working with sponsors or

Speaker: 00:06:54

more directly with tips and memberships is to always have your audience front

Speaker: 00:06:58

and centre when it comes to what's on offer. It needs to make sense for them

Speaker: 00:07:01

and benefit them, much like your content hopefully does.

Speaker: 00:07:05

Get that right, and the size of your audience matters far less

Speaker: 00:07:07

than if you were just going down the advertiser route.