You Won’t Believe How Much Spotify Pays Podcasters?


Dear future/ up and coming podcasters and avid podcast listeners, do you ever wonder how much Spotify pays Podcasters? If you are in the process of growing your audience to begin seeking sponsors, you must have pondered upon whether or not you should have your podcast on Spotify.

So, how much does Spotify pay podcasters?

Spotify does not pay podcaster any money. However, podcasters are capable of making money off of Spotify indirectly because different companies and services can sponsor podcast episodes. Thus, you can earn money via Spotify due to the millions of people who use the app.

If you are interested in learning about how Spotify works and how do podcast creators can generate money by having their podcast on Spotify, then make sure that you continue reading this blog post.

How much does Spotify pay podcasters?

Money

There are two major ways the podcasters can make money indirectly via Spotify. They are the following:

  1. Podcast creators can make money on Spotify by promoting their own Merch or other things like books and services.
  2. Podcast creators can make money on Spotify via advertisements.

Method number one: Making money on Spotify by promoting their own Merch or other things like books and services.

YouTubers are not the only want who can make a stream of revenue by selling Merch; podcasters can do the same thing too.

But why would someone buy a shirt or a mug that has the podcast’s branding on it or that is deemed more pricey than getting a similar shirt from H&M?

Well, a podcast creator who creates content that is deemed beneficial, whether in entertainment or teaching purposes, makes their audience feel like they are getting something for free.

So, when a podcaster decides to sell Merch, many people choose to buy it to support their favorite podcaster who has helped them improve an aspect in their lives one way or another.

You will often see content creators making Merch using the following POD ( Print on Demand) sites:

  1. Printful
  2. Printify
  3. Teespring

So, when someone listens to a podcaster’s podcast on Spotify and hear that there is Merch that is now available and they decide to purchase it, the podcast creator might make money off of having their on Spotify, despite Spotify paying them nothing.

Spotify is now considered to be the most used application when it comes to listening to podcasts, taking the place of Apple Podcasts. This means that the majority of podcast listeners use Spotify as there number one podcast player.

So, podcasters will be making more money by having their podcast on Spotify because it will expose the podcast to a bigger audience, thus allowing the podcaster to make more money by selling more of their Merch potentially.

Merch is not the only thing that this applies to. Selling things like services, courses, and even books are more ways that podcast creators use to make money. Having your podcast on the bigged podcasting platform promises more potential exposure, and thus more potential sales.

This is all without paying podcasters a single dime!

Method number two: Making money on Spotify via advertisements.

Spotify

When it comes to podcast advertising, there are three popular pricing models that podcast sponsors offer. These three models are the following:

  1. Negotiating a price with the sponsor
  2. Cost per Mille (CPM)
  3. Cost per acquisition (CPA)

Advertising model number one: Negotiating your price with the sponsor

Negotiating a fixed price with a sponsor is a great advertising model for new podcast creators who run a very specific niche and who have a very passionate and highly engaged audience.

Why is that?

If a podcast is not getting thousands of streams or downloads per episode within the first thirty days of its release date, then the podcast creator won’t be able to make much money via the other advertising models. I will be talking about CPMs next, by the way.

This Advertising model allows podcasters to negotiate a flat fee for sponsorship on their small yet highly niched podcast.

Because the audience is very passionate and highly engaged, the sponsor will offer a flat fee that would make the podcaster more money than if they have followed the CPM model, which is what I am going to talk about now.

Advertising model number two: Cost per Mille (CPM)

CPM stands for the following:cost per mille or cost by thousand. Using this advertising model, which is quite a popular model, sponsors pay podcasters a certain amount of money for every one thousand episode downloads or streams.

This ad can either be played at the beginning of the episode, somewhere in the middle of the episode or at the end of the episode.

So as you can see, there are three different slots for ads in this type of sponsorships. They are the following:

  1. Pre-Roll:
  2. Post-Roll
  3. Mid-Roll 

The Pre-roll ad slot

  • This is the ad slot where the podcaster talks about the sponsorship at the beginning of their episode.
  • The pre-roll ad slot is the most popular ad slot, but not the most desired.

The Mid-roll ad slot

  • The mid-roll ad slot takes place somewhere in the middle of the episode.
  • This slot is considered to be the most flexible ad slot because it gives the podcaster room to incorporate the sponsorship a bit more organically.
  • This is why the mid-roll ad slot is the most effective ad slot for sponsorships.
  • Thus, the mid-roll ad slot the most desired ad slot.
  • Thus, it is no wonder that the mid-roll ad slot is the most expensive ad slot.

The Post-roll ad slot

  • This is an ad slot where the podcaster talks about the sponsorship at the end of their episode.
  • The post-roll ad slot is typically fifteen to thirty seconds ( 15- 30 sec) long.
  • The post-roll ad slot is considered to be a designated slot for the last call to action.
  • The post-roll ad slot is considered to be the least preferred ad slot.
  • Since this is the least preferred ad slot, it is the cheapest one.

There are industry standards for podcast sponsorships, and they are the following:

What's the Average Podcast Sponsorship Cost- Industry standards
  • The Pre-roll ad slot: The ad duration is fifteen seconds ( 15 sec), and the CPM or cost per thousand listens is eighteen dollars (18 dollars).
  • The Mid-roll ad slot: The ad duration is sixty seconds (60 seconds), and the CPM or cost per thousand listens is twenty-five dollars (25 dollars).
  • The Post-roll ad slot: The ad duration is thirty seconds ( 30 sec), and the (CPM or cost per thousand listens is ten dollars (10 dollars).

Advertising model number three: Cost per Acquisition (CPA)

CPA stands for cost per acquisition. This is an advertising model where sponsors pay the podcast creator a specific percentage or a certain amount of money for every acquired customer. For example, affiliate sponsorships are considered to follow the CPA model.

As you can see, as long as the podcast is streamed and download, the podcaster can make money off of it if they have a sponsor.

This yet another way Podcast creators make money by having their podcast on the current biggest podcast player app, Spotify, even though Spotify does not directly pay the podcasters any money for having the podcast distributed on their platform.

If you have a podcast, but you don’t have it on Spotify, make sure that you check out and read my How to Publish A Podcast on Spotify, where I share with you a simple guide that you can follow to get your podcast on the most listened to podcast player.

How to Publish A Podcast on Spotify?

Other questions related to how much does Spotify pay podcasters?

How Do Podcasts Make Money?

There are so many different ways that podcasters can use to make revenue off of their podcast shows. The most popular five ways are the following:

  1. Using Affiliate links
  2. Selling Merch
  3. Starting a Patreon page
  4. Getting their podcast sponsored
  5. Selling your own services or products

To learn more about how exactly podcasters use these methods to make money, then feel free to check out and read my How Do Podcasts Make Money blog post.

How do podcasts make money: Sponsorships

A podcast can generate revenue for podcast creators in many different ways, and one of the most popular ways podcasters make money is by getting Sponshorhips. A Sponsor typically pays the podcast to create per CPM. CPM stands for ( cost per mille/ cost per thousand)This means that podcasters get a specific amount of money per thousand downloads or streams.

To learn about podcast Sponsorships and CPMs in more detail, then make sure that you read and check out my How Do Podcasts Make Money: Sponsorships blog post.

How to get your podcast sponsored?

There are a couple of things that you should keep in mind before you start approaching sponsors. Your podcast’s episodes should be receiving at least a few thousand listens or downloads per episode within the first thirty days of its release date. Or, your episodes should be getting a few hundred views or streams per episode within the first thirty days of its release date if you run a highly niched podcast and you have passionate listeners.

Are you looking for A Step-by-Step Guide to Getting​ Your Podcast Sponsored post that to help you get your podcast sponsored? Well, look no further cause I have the perfect guide for you.

That’s it for today’s post. You should now know that Spotify does not pay podcast creators any money for having their podcasts on Spotify. However, podcasters can still make money indirectly from Spotify by doing the following:

  1. Podcast creators can make money on Spotify by promoting their own Merch, books, and any other services.
  2. Podcast creators can make money on Spotify via advertising.

My Sources

Till next time,

Ayah

Ayah Assem

I am a creator and a consumer of many forms of artistic content. With podcasting leaving its mark and declaring its significance in the current content world, I have decided to learn everything related to how to create a podcast. Who knows, maybe in the near future I will start uploading and sharing my creative work in the audio format. Join me on my journey of understanding the podcasting world, as I will be sharing with you all of the information that I am going to learn. Feel free to share with me your podcasting journey at podcastingdiaries@gmail.com and keep an eye on all of the music, books, podcasts, movies, tv shows, and YouTube channels that I always reference.

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