What is a Realistic Expectation When Monetizing Your Podcast?

Beyond the typical questions that arise when launching a podcast, we are often asked what a realistic expectation should be for monetizing a show. It’s not surprising that there is confusion around making money from a podcast. Huge numbers get thrown around, especially where celebrities are concerned, alienating new podcasters — or even raising their expectations too high, causing them to burn out in a few months. 

But “big name” podcasts aren’t necessarily reflective of the wider picture, especially as there is more than one way to monetize a podcast. Ad sales, subscribers, bonus content, and sponsorships are all valid ways to make money from podcasting. You may choose to pursue more than one of these avenues (in fact, diversifying your monetization strategy can have great benefits), while one stream may prove to be the winner. 

In this article, we’ve put together our expert podcast monetization insights to help you understand what sort of income you could be making from your show.

We’ll cover different monetization streams, the amount of ad revenue you could expect from your audience size, and a realistic timeframe to reach a stable podcast income.

Remember, context matters. Your podcast revenue may be tied to your show type: demographics, genre, show length, and publishing cadence can influence the success of your monetization efforts. Some listener demographics are considered “harder to reach” and therefore more valuable to advertisers. 

If you’d like some expert guidance on monetizing your podcast, including a tailored strategy and support with revenue generation, reach out to us to see if you qualify for a free consultation.

Understanding Podcast Monetization

So, you want to make money from your podcast. This mission will involve turning your podcast into revenue from the following monetization streams:

• Host reads and dynamic ads.
• Sponsorships.
• Subscriptions (Patreon, for example).
• Merchandise.
• Events and live recordings.
• Content Licensing.
• Affiliate Marketing.
• Feed drops & Cross-promos.
• Ad-free premium feeds.

Not every revenue model will fit perfectly with your podcast. Success in each monetization stream will depend on your podcasting niche, in addition to audience loyalty and your business approach.

For example, to develop a sustainable paid subscriber model, you must cultivate an audience that returns to your content again and again. At this point, some of your listeners may pay $5-15 dollars a month to support the show. Since this subscriber approach often works best for indie podcasts, it may be difficult for a branded podcast to replicate. 

However, many “big” podcasts have built health subscriber models, providing supporters with exclusive feeds and bonus content.

If you have an audience base that constantly fluctuates with new listeners, you can still make money through ad reads and feed drops. But how big does your podcast audience need to be to make a sustainable income? Let’s talk numbers.

Podcast Audience Size vs. Revenue Potential

One of the first things advertisers will ask when approaching you for a partnership is, “how many downloads do you get per episode?” They want to know how many people they’ll reach if they place an ad on your podcast, and whether your rate is in line with industry standards. You can use a Lost Revenue Calculator to figure out how much revenue you could be generating.

What does this mean? Well, the actual cash flow isn’t always better for smaller shows. On the other hand, big celebrity-driven or topical shows (like news) are often a good fit for episodic or front-of-catalogue sales.

It’s also worth paying attention to unique listeners. Downloads are the metric people usually talk about, but uniques tell you how many actual humans are tuning in. A daily show and a weekly show could report the same number of downloads, but the weekly show will often have more individual listeners if those download numbers are similar.

And don’t worry if your numbers feel small. There’s still plenty of monetization potential. Ad revenue is calculated on impressions, not just raw download counts.

Here’s a rough guide for CPM (Cost Per Mille):

• Pre-roll CPM: ~$15–$20.
• Mid-roll CPM: ~$20–$30.
• Post-roll: Often unpaid (best used for self-promotion or value-add).

Are there any variations? Yes, especially for niche but highly targeted audiences. If you can prove that your listeners are engaged and hard to reach with standard advertising, you can command a higher CPM. Advertisers often value engagement and conversions as much as raw listener numbers. It’s very similar in the social media world, where micro-influencers can make money if their smaller audience is highly engaged with their content.

Here’s a podcast monetization example: 

100k monthly downloads × 4 mid-roll ads = 400k potential monthly impressions. But you’ll want to adjust for consumption rate. 

If 50% of listeners reach the mid-roll, that’s only 200k potential impressions you can monetize. And that doesn’t account for skips or the occasional technical glitch. In other words, it pays to be conservative with your estimates rather than assume every download equals a guaranteed impression.

Don’t know your download numbers or consumption data? Read our guide to making the most out of your podcast analytics.

What Can You Sell? (a.k.a Your Podcast’s Ad Space)

Before you begin seeking or accepting advertising proposals, plot out your available ad space so you know what you can actually sell. As we mentioned above, there are three different types of ad positions: pre-roll, mid-roll, and post-roll. 

Generally speaking, pre-roll means right at the beginning or early in the episode, mid-roll happens somewhere in the middle, and post-roll comes toward the end or very end of the episode.

For industry-standard definitions, you can refer to the IAB guidelines. Advertisers, especially those represented by agencies, will expect ads to be delivered according to those standards, and most bill on IAB-certified impressions. That’s why it’s important to be hosted on an IAB-compliant platform if you plan to monetize with ads.

The prime spots are pre-roll and mid-roll, but you need to prove that a substantial number of listeners will reach the middle of your episode before you can demand a higher CPM for the mid-roll placements.

Here’s an easy way to do an impression calculation: Downloads × number of each ad position = potential impressions.

But wait, there are three critical variables. Make sure to apply them per ad position to ensure you are giving yourself an accurate picture of your revenue potential.

1. Consumption Rate

Where do your listeners drop off? Example: 95% reach pre-rolls, 50% reach mid-rolls. If drop-off is high, consider moving ads earlier or adjusting content pacing.

2. Fill Rate

What percentage of your ad slots are sold? This number helps you adjust your prices according to demand. A common strategy is to use a waterfall approach: direct, host-read ads → primary programmatic marketplace → secondary marketplaces via VAST plugins.

Keep in mind, though, that fill rate isn’t the whole story. A 90% fill rate at low CPMs could earn less than a 20% fill rate made up entirely of premium host-read ads. In other words, think about both what percentage of your inventory is filled and at what CPM when you’re forecasting revenue.

Tracking all of this might sound complicated, but there are dashboards and reporting tools that make it much easier. For example, Flightpath.fm is an excellent platform that can show you, at a glance, your fill rate, ad type (direct, programmatic, VAST), ad placement (pre, mid, post), consumption rates, and revenue. 

If you’re not ready to invest in standalone software, these kinds of insights are also available through our monetization partner program.

3. CPM value

We’ve already covered the importance of CPM in an earlier section. You should offer different rates based on position in your podcast (pre, mid, post). Once you have gathered this engagement data, what is the next step? We recommend using this revenue formula to calculate your expected income:

Revenue = Sum of (Actual impressions × CPM) across all ad positions

But be aware, any fluctuation in consumption rate, fill rate, or CPM will have a direct effect on income. Try to factor in some variation to avoid stress and disappointment.

It’s also worth noting that CPMs tend to shrink as you move down the waterfall. Direct, host-read ads usually deliver the highest rates, though you’ll want to subtract whatever you pay your sales team. Programmatic ads come next, but platforms often take 40–60% of gross revenue. With secondary marketplaces, there’s another middleman. As a rough guide, your net CPMs may look something like this:

• Direct host-read: ~$20 CPM
• Primary programmatic: ~$7 CPM
• Secondary programmatic (via VAST): ~$5 CPM

This is why direct deals are so valuable. They bring in the most revenue per impression, while programmatic fills can help with volume but at a lower effective rate.

Revenue Streams Beyond Podcast Ads

If you are not ready to rely entirely on ad revenue, there are other ways to monetize your podcast. In fact, many podcasters find that combining several revenue streams works best. This is sometimes called “diversifying your monetization strategy,” and it can help you smooth out income over time.

It’s also worth thinking beyond the audio itself. Your podcast is one part of a larger media ecosystem. This “owned media” includes your website, newsletter, social channels, videos, or even live events. The question is: how can you activate your audience across those different touchpoints? What do they care about, and how can you connect them to something they’ll value?

Until you’ve built a big enough audience to attract consistent ad revenue, using your podcast to amplify other parts of your ecosystem is often a smarter play. Not only can it open up additional monetization opportunities, but it also helps you build a deeper understanding of your listeners. Activating your owned media is something that leads to stronger, longer-term brand partnerships once your show has scaled.

Feed Drops 

A feed drop is when you sell a promotional episode placement to another podcast or brand. These can command a higher CPM or be sold at a flat rate. This is usually around $50 CPM or thousands for a flat rate, even on smaller shows.

Cross-promotion Advertising

Following on from the idea of a feed drop, a cross-promo is when you partner with another podcast to exchange paid promotions or swap spots for audience growth. Cross-promotional advertising doesn’t have to be monetized, but if you have a high demand, it could be a great way to earn. 

Ad-free Subscription Feed 

Do you have a dedicated audience? Offer a premium feed through Apple Subscriptions, Patreon, or a platform like Supercast to remove ads. You can also engage with your audience on your Subscriber feed through polls and competitions.

Merchandise

Sell your fans branded products, digital downloads, or print-on-demand items. Who doesn’t love a slogan t-shirt?

Events and Workshops 

Host live shows, Q&A sessions, or educational events with ticket sales or sponsorships. Some podcasts even do cross-country tours, recording live episodes along the way. Make sure to select areas where your demographics data shows a high listener count. 

House Ads

If you have unsold inventory, use it to promote your own products, services, or other channels in your ecosystem such as a newsletter, YouTube channel, or social media.

As we mentioned earlier, these revenue streams may not work equally well for every show. Choose the options that align with your audience, your content, and the amount of time you can realistically invest. Making merch is a big time commitment, especially if you do it ethically. Starting a Discord can mean hours of extra work replying to messages and comments. Be honest with yourself before committing to a new monetization project.

If you’d like some advice on the most appropriate monetization model for your podcast, get in touch with our team.

A Realistic Timeframe to Podcast Monetization

When it comes to making money from your podcast, patience and consistency are key. Most shows take between six and eighteen months to reach the point where monetization is stable. This is true even for experienced hosts who have a built-in audience from another platform.

Here are some factors that influence how quickly you can monetize:

• Publishing schedule → Weekly or bi-weekly episodes tend to build trust faster than irregular releases. Our own show, Podcast Perspectives, is released bi-weekly for this reason.
• Niche targeting → A focused audience in a specific category can attract advertisers more quickly than a broad, general-interest show.
• Guest strategy → High-profile or well-connected guests can help accelerate audience growth.
• Marketing → A clear marketing plan can make a big difference in early growth.

A slow start is normal. A soft launch does not mean your show cannot succeed. Podcasts often see gradual download growth before they hit momentum. Monetization becomes easier once your show has established trust and a clear identity in the market.

So, what is a realistic expectation for monetizing your podcast? You could make money in less than a year, but you will need a clear podcast growth strategy to make it happen. Get straight on your potential revenue, then reach out to advertisers. Who knows? Maybe Patreon and selling merchandise is your ticket to sustainable revenue. The key is to do your research and go where your show has the most potential.

Have questions? Interested in working with The Podglomerate to help monetize your podcast? Connect with us to learn more about our podcast services.