If you want to know how to start a delivery business, then now is a good time to start.
It’s no secret that the trend of online shopping has skyrocketed during the pandemic and continues to do so.
Organizations like the National Retail Foundation (NRF) say that the increasing demand for online shopping is mostly due to its convenience.
After all, everybody appreciates the luxury of placing an order from the comfort of their homes and receiving it directly to their doorstep with minimal delivery fees. It’s because of this that delivery services are booming these days.
However, with industry giants like FedEx, USPS, and DHL, you might wonder how to start a delivery business with a bang and outpace your competitors.
But don’t worry. If you’re someone who’s seeking a guide on how to start a delivery business then this article is just for you!
In this post, we’ll talk about everything you’ll need to know to start strong and staying firm in the competitive delivery business world.
Let’s dive in.
Step 1: Hone Your Idea
Every business begins with an idea. You brainstorm about a business type and assess the opportunities it has in store for you. Sometimes, your passion for a business may cloud your judgment.
Here’s how to start a delivery business that will actually be a good investment and make you money:
Why? Identify an Opportunity
The global market size of courier and express services is projected to grow at 4.9% by 2027. Another stat reveals that 63% of shopping occasions begin online.
With millions of people purchasing online, from household products to personal care items, and books to groceries, the delivery service market has the potential to let you dream big.
The soaring demand for online shopping (an $8.1 trillion dollar industry) is enough to consider a delivery service business. Because more people purchasing online products translates to a proportional increase in your target audience and business demand.
Who? Identify Your Target Market
Finalizing your target market depends on your personal preferences. Maybe you want to partner with a local flower shop or collaborate with popular pizza places.
Likewise, cake shops, household furniture stores, and fumigation services could be other businesses to work with.
As a rule of thumb, opt for a market with high consumer demand. For instance, the demand for online grocery shopping has surged in the past few years and is potentially one you could target for your business.
Turning to and targeting an audience more likely to drive your business sales and discarding the rest will boost your chances of success.
Step 2: Create a Business Plan
The second step in how to start a delivery business after honing your idea is to develop a business plan.
The experts at Harvard Business Review believe that the biggest factor in the success of a business is whether or not it has an efficient business plan in place. Therefore, it’s essential to have one in place before getting started.
Here’s how to start a delivery business with an effective business plan:
Define the Scope and Pricing Strategy For Your Delivery Business
What do you want to offer your customers, and how do you plan to price your delivery services?
Without thinking about and addressing these problems before getting started, there’s never going to be a guarantee of your survival in the highly competitive business world.
Define the Scope of Your Delivery Business
Another important question you’ll need to address when brainstorming about how to start a delivery business is the scope of your company.
Not all delivery services are the same. An efficient one tracks the order from when it’s dispatched to when it’s delivered.
It keeps the customers in the loop to make deliveries more predictable. So, what do you plan to offer, and how far are you willing to go for the customers?
Considerations that will define the scope of your business.
Will you take responsibility for damaged products, or do the customers bear the loss?
How about when the order gets delivered past the delivery date?
Are you only going to work on a local scale or do you plan to make your service a national or international service?
Develop a Pricing Strategy
After determining the scope of your business, another thing you should be on top of is your pricing strategy.
Here’s how to start a delivery business with a pricing strategy that works for you and your customer base:
Conduct customer base surveys to understand your target audience and how much they’re willing to pay for delivery services.
Study and examine your competitor’s pricing model.
Take into consideration the demographic factors of your service area.
Carry out A/B testing to check your pricing model and design the perfect setup for your business.
Develop a Marketing Plan and Establish Your Brand Identity
Business without marketing is like a car without an engine. It will exist, but it won’t work.
Here’s how to start a delivery business with an effective marketing plan and build a reputation in the industry.
Create a Marketing Plan
With over 4.26 billion social media users, social platforms serve as excellent marketing tools. A robust social media campaign on Facebook, Instagram, TikTok, and Twitter will catch your audience’s attention.
Instagram, with its one billion active monthly users; Twitter, with over 368 million active users; and Facebook, with a whopping 2.69 billion active users, present countless opportunities to target your ideal audience.
From enticing images to catchy headlines, anything has the potential to go viral. Make sure you hire a skilled copywriter and graphic designer to make your ads stand out.
Top Tip: you can also go the traditional route – hanging flyers in public areas and giving business cards and coupons to local businesses.
Establish Brand Identity
Staying active on social media is one thing, but you must also establish your brand identity to add credibility to your delivery business and gain customer trust.
Starting with building an appealing, professional logo to give your business a unique brand image.
Additionally, you must also develop your delivery business website. Publishing high-quality, SEO-optimized content is bound to drive traffic.
Adding customer testimonials and reviews to it is also a good idea as new customers may find it a reason to pick your business for the next time they need something delivered. After all, 95% of consumers read reviews and use them to make decisions before buying.
When developing a game plan, the next thing is to learn about your competition and the secret strategies that give them an edge in the industry.
Conduct comprehensive market research and use forums and social media to derive helpful insights. You can also reach out directly to customers to learn about their preferences and tweak your strategies to align them with their interests.
Determine Your Start-up Costs and Create a Financial Plan
Sorting finances is crucial to ensure your business doesn’t fail before it gets off the ground.
Here’s what you should consider and figure out before you start wondering about how to start a delivery business.
Determine your Start-up Costs
The primary business expenses include vehicles and insurance. The vehicle doesn’t need to be snazzy, but it must be reliable and capable of handling deliveries regularly. Secondly, you’ll need commercial auto insurance for delivering packages.
Other startup costs are relatively minor, usually costing only a few hundred dollars. They may include the following:
Equipment costs
Fuel costs
License fee
Marketing expenses
Software (fleet management software, accounting software, and website builder)
Create a Financial Plan
Write down your goals and see how much you can afford to achieve them. As a rule of thumb, begin small and climb the ladder eventually.
A smart business owner creates an effective financial plan to manage finances like a pro. For instance, you can use your personal vehicle to minimize upfront costs.
Once you make enough profit, you can always purchase a business vehicle.
Top Tip: Consider opting for free marketing strategies like social media and door-to-door marketing if you’re a bit strapped for cash in the early stages of your business.
Develop a Growth Plan for Your Delivery Business
Where do you see yourself in the next 5 years? Business growth sounds enticing, but you must have a robust and realistic growth plan to flourish.
Here are a few tips that might help when coming up with a plan for starting a delivery business.
Always try to retain existing customers. The Harvard Business Review highlights that acquiring new customers is 5-25% more expensive than retaining an existing one. So, save your money by making existing customers happy.
Keep conducting regular market research to stay ahead of trends. It helps you maintain a customer-centric approach and identify growth opportunities. Staying abreast with the latest trends will always benefit your delivery service business.
Stay active on social media. When nothing else helps, social media does. It’s a place with your target audience; you only have to grab their attention. Be relatable, informative, and helpful; the audience will be yours.
Step 3: Understand and Comply with the Legal Requirements
When wondering how to start a delivery business, the last thing anyone wants is to get sued or stuck in legal matters. Complying with the legal requirements is crucial for a smooth business operation.
Determine the Appropriate Legal Structure for Your Business
Your needs and preferences will determine the legal business structure you want to pick. The popular ones include the following.
Partnership. It involves two partners who own the business and shares the risks and profit.
Limited Liability Company (LLC). This setup is where the owner isn’t directly responsible for liabilities and debts. It enables business owners to manage new investments and risks easily.
Sole Proprietorship. This holds you liable for debts and liabilities since you own all the operations. The only perk is that you get to keep all the profit.
Check out our ZenBusiness review to learn about a great service you can use to get this done!
Obtain Necessary Licenses and Permits
You cannot just own a vehicle and expect to run a business seamlessly. Most regions and districts require additional licenses, like a commercial driver’s license (CDL) besides a driver’s license.
So be sure to reach out to your state’s specific authority, like the Department of Commerce or Secretary of State, to learn about the administrative legalities and clear any hurdles that may keep you from operating your business smoothly.
Obtain Insurance Coverage
Another administrative point is getting insurance coverage from a legal business entity. It is worth noting that your personal vehicle rarely covers insurance for business purposes. So you’ll need additional coverage for a successful delivery service.
Business insurance is another consideration. It protects you in case of damaged and lost packages.
Register for Taxes
You’ll also need to register for various state and federal taxes before you start your business. To begin with, you’ll need to apply for an Employer Identification Number (EIN) through the Internal Revenue Service (IRS) website.
The business structure you pick will determine the precise taxes. For instance, some LLCs can benefit from being taxed as an S corporation.
Registering for taxes is crucial to building authority as a business and fulfilling your responsibility as a citizen.
Protect Your Intellectual Property
Guarding your intellectual property is essential to reap the rewards of your creative business efforts and keep people with malicious intent from stealing your work.
A reliable way to protect your intellectual property is to enforce your ownership rights by registering it with the government.
Top Tip: You can also protect your intellectual property by documenting your discoveries, creating strong credentials, and using rights management.
Open a Business Bank Account and Credit Card
Opening a business credit card and bank account is essential to protect your business assets.
When business and personal accounts are mixed, your personal assets are at risk in the event your business gets sued.
Plus, building business credit from the get-go can also help you avail of other financing options and credit cards in your business’s name further down the line.
Step 4: Choose the Right Vehicle and Equipment for your Delivery Business
Without the right tools, you’ll struggle to load and transport parcels. This means reduced business and more complaints.
Determine Delivery Needs
Do you plan to deliver small and mid-sized items or larger products? Generally, a pickup truck is suitable for small items. However, appliances and furniture require heavier items like a cargo van or a box truck.
Research and Compare Vehicle Options
The Ford Transit, Ram ProMaster, Nissan NV, Chevrolet Express, and Toyota Prius are some popular names in the industry.
Before purchasing a delivery vehicle, make sure you consider the size, loading capability, and fuel efficiency before purchasing a vehicle. That’s primarily because these factors will affect your running business costs, and whether or not you’ll be able to make short-trip deliveries or long-haul routes.
Invest In Necessary Equipment and Supplies
Buying a vehicle is only one side of the story; you must also purchase numerous pieces of equipment to keep your business up and running. These may include items like:
Stretch wrap
Moving blankets
Ratchet straps
Bungee cords
Forklifts
Dollies
Packing materials (based on the products you want to deliver)
Maintain Vehicles and Equipment
Vehicle maintenance ensures safety on the road and boosts fuel efficiency. It also helps maintain your vehicle’s value and makes up for timely deliveries.
The same goes for other equipment needed to get the job done. Ensure your equipment is in shape and available for efficient delivery processes.
Step 5: Build and Manage an Effective Team
Teamwork makes the dream work; the same goes for your delivery business. Hiring capable members is one thing, but you must train them to help them stay on top of the latest industry trends.
Using a Delivery Service vs. Creating an In-House Delivery Team
The problem with using a third-party delivery service over an in-house team is that it doesn’t give you quality control over your business.
So, in the event the third-party messes up, the blame will be yours to take. This means a mistake on their end can take a toll on your reputation.
Plus, it won’t help you save much money either because your income will be shared with a third party.
Building an in-house team gives you greater control over quality and lets you keep all the profits in your wallet – a win-win.
How to Train and Hire Staff
Here are a few tips and things to consider when hiring employees if you’ve decided to opt for the in-house delivery team route.
Develop a Job Description and Hiring Process
Highlight all the roles and responsibilities of delivery drivers and other employees in the job description. These may include the following.
An understanding of navigation systems
A valid driver’s license
An understanding of handling materials safely, like chemicals and food items
Punctuality and time management
Physical strength to load and unload cargo
Excellent vision to drive safely
Establish Clear Expectations and Policies
Every business has its unique policies. Ensure you share your business policies and salary structure during the hiring process. This will eliminate misunderstandings down the road and leave no room for confusion.
On top of that, it’ll help you form a healthy workplace relationship with your employees, which naturally boosts their performance.
Measure and Evaluate the Performance
Have your employees been making timely deliveries? Did they pick and pack the correct order? Was the delivery made to the right address?
Finding out the answers to these questions will help you evaluate their performance. You can also hold weekly training sessions to share valuable tips and help them hone their delivery skills.
Eye-Opening Delivery Business Stats
Still on the fence about whether or not the delivery business is a good fit for you? Maybe these statistics will help you realize the potential of this industry.
Key Takeaways
With more consumers turning to online shopping, the demand for delivery services is accelerating.
Creating a business plan is likely to contribute to your business growth and boost sales by roughly 30%.
With over 4.26 billion social media users, popular social media platforms can serve as excellent marketing tools for aspiring delivery service business owners.
Knowing your competition is important to thrive in the competitive business world.
Vehicle, equipment, fuel, and marketing costs are primary business expenses.
Retaining existing customers is 5-25% more expensive than hiring new ones.
Building an in-house team gives you greater control over quality and lets you add to your revenue.
That just about sums up how to start a delivery business and thrive in the industry!
Remember, the success of your business significantly depends on the effort you put into the new venture.
So, be sure to take everything you’ve learned in this article today and start applying it with determination to build a strong foundation for your delivery service business.
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Elysia Cartlidge is living proof that success will come if you work hard and don’t give up.
As a registered dietician with a full-time corporate job and two small kids, Elysia had a full plate and not much time. But she started her website, Haute & Healthy Living, originally as a hobby. A few years later, when she realized she could monetize it, she shifted her focus to healthy recipes, doubled down on SEO, and worked extremely hard on the weekends and when her kids were napping or sleeping.
Today she has a thriving website earning up to $15k per month.
Keep reading to find out:
Why she started her blog
What happened after she took her first blogging course
How long it took her to join Mediavine
Where her income comes from
How much she works on her site
Her marketing strategies
Her thoughts on SEO and social media
How she approaches keyword research and link building
How she creates content
Her favorite resources and tools
Her biggest challenge
Her greatest accomplishment
Her main mistake
Her advice for other entrepreneurs
Meet Elysia Cartlidge
My name is Elysia, and I’m a wife and mother to two little boys, Leo and Max, who are 5 and 2 ½ years old. I have a Master’s in applied nutrition and have been a registered dietitian for 11 years. I was a retail dietitian for 8 years before making the decision to quit and run my online business full-time in January 2022.
Why She Created Haute and Healthy Living
I decided to create my website Haute & Healthy Living, back in 2015 strictly as a hobby. I had just started my first corporate job as a dietitian and was looking for a creative outlet to work on outside of my day job.
When I first launched my website, it was intended to be a lifestyle blog. I posted about recipes, fitness, home decor, DIY projects, and beauty – pretty much all the things that I loved. I never had any plan to turn my website into a business.
I posted about random topics for about 8 months and then I completely stopped posting on my blog during 2016 and 2017 because I got engaged and was busy with wedding planning. Then shortly after the wedding, I got pregnant and had no energy or desire to blog.
During my maternity leave in 2018 with my first son, I decided to start dipping my toes in the world of blogging again. My mom sent me a link to a course called Elite Blog Academy, and I decided to take the course since I had some time while my baby was sleeping. Through the course, I learned that you could monetize a blog and turn it into a business, which to me was completely mind-blowing!
From that point on, I made it a goal of mine that I would monetize my blog and one day quit my job and blog full-time. My husband, family, and friends were supportive, but I think everyone questioned if you can actually make money from a blog. I made it my personal mission to prove that I could do it.
I niched down to just posting healthier recipes and started implementing some of the strategies from the course. I managed to grow my blog traffic to a point where I qualified for Mediavine a year later, in March 2019.
That was the game changer. Since being with Mediavine, my monthly revenue has continued to grow to the point where I was able to quit my full-time job after my second maternity leave in January 2022.
Although I started out covering a wide range of topics, I now focus on posting easy and healthy recipes for busy families.
How Much Money She’s Making
As I mentioned, every month my blog revenue continues to grow, but it’s currently bringing in about 10-15K per month, depending on the month. I’m on track to make around $130-150k this year.
The majority of my revenue comes from ads, but I do make some money from selling my ebooks (a few hundred dollars per month) and from affiliate marketing as well (around $100/per month).
I will also launch another website in the next couple of months, which I hope to monetize in the next couple of years to help further diversify my income.
Although I launched my website in 2015, I started truly taking it seriously and treating it more like a business in 2018, so it’s taken me about 5 years to reach this revenue level.
I had to work on it very much part-time during this time period since I was also working full-time at my corporate job and tending to two young children.
I pretty much built my business at night when my kids were sleeping, on weekends when I wasn’t working my other job, and during my maternity leaves while my kids were napping or sleeping.
On average, I probably work on my business 35 hours per week, though it varies weekly depending on how much my kids are home with me.
Elysia’s Marketing Strategy
I don’t really have any unique marketing strategy that I’m using. My goal is always to produce high-quality content and to use keyword research to help people find my content. That’s my primary marketing strategy.
I’m always trying to improve my food photography as well, which can help with marketing since people will be more likely to want to try a recipe if it looks good.
Finally, I use Pinterest to help share my content, which also brings in some traffic.
Her Thoughts on SEO and Social Media
SEO is incredibly important for my business since most of my traffic comes from search engines.
Aside from Pinterest (which I outsource), I currently don’t use much social media to grow my website. If you saw my number of followers, you probably would think that my website isn’t very successful since I have less than 5000 followers on Instagram and Facebook combined and don’t even have a TikTok account.
I decided to stop posting on Instagram a little over a year ago and only post on FB when I think of it. I found that social media was a major time suck, the algorithms kept changing, and the ROI wasn’t there. So I switched gears and focused the majority of my time on SEO and developing blog content, and that’s when I started seeing the most growth.
If you compare this January and February to the same time last year, my traffic is up about 80%. The moral of the story is you can still be successful and see growth without having a massive following, so don’t get caught up in the vanity metrics.
Keyword Research
I search for my initial ideas using keyword research to determine which recipes to develop. I implement strategies from Stupid Simple SEO and Cooking with Keywords, two courses I took to help me better understand keyword research.
I try to target lower competition keywords so that people can find my content, rather than going for super competitive keywords, which can be difficult to rank for.
Link Building
Link building is very important, although I probably haven’t devoted as much time to it as I should, as there aren’t enough hours in the day. I hope that focusing on SEO and getting content to rank in top positions on Google will help organically generate backlinks.
I also provide links to my content in roundup groups that other bloggers can use on their sites if they choose to help with backlinks. Additionally, I use my expertise as an RD to sometimes contribute to publications like Insider, Livestrong, Women’s Health, Eat This, Health, etc., when the opportunity presents itself to help build up authority since these sites have a high DA.
Her Content Creation Process
Currently, I try to post about 2 new recipes and update one old recipe per week. I’d love to do more, but at this point, quality is more important to me than quantity. This amount is what I find to be the most manageable during this busy phase of life with young children.
When it comes to my process, first, I’ll come up with initial recipe ideas by conducting keyword research. Then I’ll select a recipe idea from my list and test it (usually multiple times) and make any necessary tweaks before photographing it, editing the photos, conducting additional keyword research, coming up with a post outline, drafting up the post, and inputting the images.
A lot of work goes into creating each post, so it’s definitely more than just coming up with a recipe and posting it on the blog.
Her Email List
I do have an email list that I email weekly. I mostly grow it by using opt-ins on my site. People who choose to subscribe will be added to my email list.
Elysia’s Favorite Resources
Some of my favorite podcasts are EatBlogTalk, the Blogging Millionaire, and Food Blogger Pro. I also like the TopHatRank webinars for learning about best practices for SEO.
Her Top Tools
I use KeySearch for keyword research and find that it’s affordable without being overly complicated like some of the other tools out there.
I also like Asana for building my content calendar since I can easily move things around.
Finally, I use Excel spreadsheets. I find tracking my content in spreadsheets is the best way to keep track of content ideas and keywords since I’m constantly adding new ideas.
Her Biggest Challenge
The biggest challenge I’ve faced is staying up to date on the latest best practices, the constant fluctuations with algorithms, and the never-ending Google updates.
In the blogging world, things are constantly evolving, so you have to be prepared for a bit of a roller coaster ride.
Her Most Impressive Accomplishment
My most important accomplishment thus far has been building up my business to the point where I could quit my corporate job after my maternity leave and pursue my online business full-time.
This not only allowed more flexibility and time to spend with my children, but it also proved to myself and those around me that you can accomplish anything you set your mind to.
Growing my business to this point was all done while having a full-time job and a very demanding newborn and a toddler. It was not an easy journey, but I feel incredibly blessed knowing that the hard work has paid off and that I now get to wake up every morning and work on something that I’m truly excited about.
What She Wishes She Knew When She Started
I wish I had known that you have to post content that people are searching for. If you fail to do this, chances are people won’t be able to find you, which can definitely slow your growth.
I probably would have been much further ahead if I had known this from the start. But learning and mistakes are all part of the journey!
Her Biggest Mistake
Speaking of mistakes, mine is not focusing on SEO sooner. In the beginning, I posted random recipes that had catchy titles, rather than focusing on what people were actually searching for.
When I started focusing on SEO and meeting my readers’ needs, my business began to grow. I’m still going back now and fixing the mistakes that I made.
Her Advice for Other Entrepreneurs
You can accomplish anything you put your mind to.
The key is showing up consistently and putting the work in.
The difference between those who succeed and those who fail, is the ones who succeed are the people who continue to put the work in even when the odds are against them.
Do more of what’s working and less of what’s not. Through consistency and regularly assessing and refining your strategy, you will eventually find success.
When you work hard on your podcast, it shows. Hours of dedication put into creating well-crafted, interesting content pays off with a fine-tuned product— your very own podcast. A show that listeners discover and keep coming back to week after week. And while having a great show and a growing audience is rewarding, you may want to get the full benefit from your work. We’re talking about a payday.
Whether you’re a bedroom podcaster or a seasoned pro, Acast believes that everyone deserves to find their audience and make money from their craft. So if you’re looking for tools to turn your passion into a side hustle or even a career, we’ve got you covered.
Getting podcasters paid is our business at Acast. We provide creators with the best monetization tools that enable them to find a model that works for both them and their audience. From ads and sponsorship to subscriptions and one-time payments, Acast makes it easy to get paid for doing what you love. We’ve already paid out over $240 million to creators, and they’re all earning in different ways — we put the creator in control.
In this article, we will talk about how to make money podcasting and the different monetization methods available on Acast and beyond. We’ll cover how to get started with ads, sponsorships, and subscriptions, and how you can track your earnings and growth with clear and transparent metrics. As well as touching on additional revenue streams such as merch, live events, and affiliate marketing.
Why and when should I monetize my podcast?
Look, we know that not everyone gets into podcasting to make money. In fact, we don’t encourage people to start a podcast specifically to make a quick buck — it doesn’t work like that, but more on this later. But the beauty of podcasting is that it allows you to turn a passion project into a side hustle that can earn you money and, if you’re lucky, even develop into a career. If you’re in it for the long haul, you’ll want a strategy when it comes to monetizing your show.
Getting paid will allow you to sustain making episodes. For example, if you have an interview podcast, you can attract more guests by offering a fee for their time. If your podcast involves traveling, you can fund your next trip to produce future episodes. You may decide to hire specialists such as sound designers, social media managers, or a producer, to take your show to the next level and improve the quality of the show going forward.
Having a little extra money in your pocket can pay for essential podcasting equipment and recording gear. Maybe there’s a snazzy new microphone you’ve been coveting, or you want to upgrade your editing software. If you don’t record at home, monetizing can also help pay for regular studio time in a professional podcast studio.
As for when to start monetizing, it’s down to the individual. You can start straight away with ads on platforms like Acast to open up an income stream, and there’s no risk in launching a subscription early on to start developing your offering. Keep in mind there are some limitations on how much revenue you can generate while your audience is limited, but there’s nothing wrong with starting early.
What do I need to start monetizing my podcast?
As we said, we don’t encourage people to start a podcast to make money fast. Podcasting is a medium that takes planning, managing, and a fair bit of hard work to start seeing success—don’t rush to the bank after starting a podcast with one episode.
While there’s no definitive list of things you need to start making money from podcasting, as it can differ from podcast to podcast. Here are the foundations that you should have in place before exploring monetization:
Quality content
When you’re starting out with a new podcast, it’s important to focus on creating the best possible content you can. This all starts with your idea, concept, and format for the podcast. Something that plays to your strengths as a creator, and offers listeners something different that they can’t hear on any other podcast. We love the phrase “Build it, and they will come” because it is so true in podcasting. We’ve got a great guide for how to start a podcast called Aclass Essentials with tons of helpful insights into how to create quality content, which is a great place to start.
Building an audience
Building and sustaining a podcast audience is crucial for monetizing — it’s your audience that advertisers are paying you to reach, or the listeners themselves who will support you financially. Ultimately, it’s a case of steadily growing your podcast and building your audience — keeping listeners tuning in, episode after episode. It’s about making sure that they don’t “dip in”, but rather hit the follow button and keep coming back for future episodes.
It’s all about consistency, which is the fuel for podcast growth. Keep a regular release schedule, and use seasons to give yourself a break. Your listeners are creatures of habit, and podcast listening is habitual behavior, so they’ll appreciate knowing exactly when new episodes are out.
The best and most obvious way of getting an audience to return is simply to ask them. Make sure you always tell listeners their support matters and tell them to follow wherever they get their podcasts — as well as leave a positive review. Point out you’ve got social media accounts they can follow, and that you’d love to hear from them. The relationship between the podcast host and the listener is an unusually close one, so make the most of this bond.
Some podcasters take advantage of other marketing channels to entice returning listeners. This could take the shape of an email newsletter, dropping a reminder of the next episode into listeners’ inboxes. Your podcast should feel like a club, where your most valuable listeners are the ones who keep coming back – the ones who reach out to let you know they’re listening. Let them know you’re listening, too.
Choosing the best podcast monetization platforms
If you’re serious about developing a successful podcast monetization strategy, your best bet is to work with specialized partners in generating revenue for your podcast. These platforms offer tools that do all the heavy lifting for you, so you can focus on doing what you do best — making podcasts. Platforms and tools vary in what they provide; from podcast advertising networks, membership subscriptions, one-off payments, donations, merch, and more.
There are a lot of choices out there, which can leave podcasters feeling overwhelmed about which platforms to choose. That’s why Acast developed its podcast hosting platform to be a one-stop shop for the most effective podcast monetization. Podcasters can access our podcaster advertising network, the ‘Acast Marketplace’, where they can monetize with ads and, once they’re big enough, sponsorships. We also have our industry-leading subscriptions and one-time payments tool ‘Acast+’, which allows podcasters to get paid directly by listeners in return for premium content, ad-free episodes, and much more. You can find out more about these monetization tools below.
How do podcasts make money?
Here we go, your complete guide to the various podcast monetization methods, along with helpful explainers and tips on how to get started.
Podcast advertising and sponsorships
Podcast ads and sponsorships are the bread and butter of podcast monetization. If you’ve ever listened to a podcast, chances are you’ve heard what these sound like. These commercial messages from brands and businesses are what put the most money in podcasters’ pockets and keep podcasts free for listeners.
First, let’s define a few important terms:
Ads are shorter commercial messages in podcasts, usually, 30-60 seconds in length, that are typically created by the advertiser, brand, or business themselves. These will often feature their own signature voice, tone, or music associated with that brand.
Sponsorships are commercial messages that are direct endorsements of a brand, often read by the podcast creator themself — also known as host-read sponsorship. These are typically longer, around 1-3 minutes in length. As sponsorships are personally created and read by podcasters, this ad format is suitable for podcasts with bigger listenerships.
Dynamic Ad Insertion is a technology that inserts ads and sponsorships into your podcast, which Acast invented all the way back in 2014. Dynamically inserted ads and sponsorships are heard on your podcast episodes at the right time, targeting the right audience, across all of your shows’ episodes. This means that your podcast, no matter how far back in your catalog your listens are taking place, will generate passive income even from episodes published years ago. Neat!
In the majority of cases, it’s recommended that you sign up for a podcast host that’s got a built-in podcast advertising network, like Acast. On Acast’s platform, you have everything you need for podcast creation, publishing, and monetizing — including access to the Acast Marketplace where you can start making money through ads and sponsorship that uses dynamic ad insertion, and manage and track your revenue all from the same place.
Monetizing with Acast means you can make money from advertising no matter what app is used by your podcast listeners, including Apple Podcasts, Spotify, Amazon Music, Google Podcasts, and any other app that catches your RSS feed.
Acast works with the world’s biggest and best brands, so you don’t have to worry about any dodgy ads. On top of this, we ensure that ads sound right at home on your show by putting you in control of setting criteria for any brands or categories that you don’t feel are right for your listeners. It’s our job to make sure your audience hears the right ad that won’t interfere with their experience.
You also have control of showing us exactly where you want ads to be heard in your episodes, using what is known as ‘Ad Markers’.
Pre-roll markers usually play at the very start of your episode
Post-roll markers usually play toward the end of your episode
Mid-roll markers can be placed in the middle of any episode that is at least 10 minutes long. And want to know a secret? – this tends to be the most lucrative ad spot.
Before an ad plays in your episode, we play our iconic audio logo (the Acast North Star) to let your listeners know the difference between your show and the ads.
Once ads are in your episodes, it’s time to get paid. The amount of money you earn depends on the number of listens, your show category, how brand-safe your content is, and a few other factors. Crucially, ad revenue is dependent on CPM (Cost Per Mille), which is a fancy way to say the cost-per-thousand impressions (listens) from your listeners. This can range between advertisers, but typically falls between $5-50 per CPM. Once you’ve reached a certain monthly threshold (for example, $50 in the US), you’ll receive simple steps to tell us where to send your money. You can also track your earnings through the dashboard with our transparent metrics.
As your podcast grows and you get bigger, you may find that advertisers want to hear from you directly, in your voice. These are podcast sponsorships, and Acast can help connect you with sponsors. Sponsorships are podcast host recorded endorsements of a product or brand read aloud by the podcast creator. Podcasts allow you to fully take control of advertising in your own style. In fact, it’s that personal connection between you and the listener that our advertisers want to tap into. Eligibility for the sponsorship on Acast starts at 500 listens per week, but sponsorship campaigns are managed on a case-by-case basis through our dedicated podcast sales team.
Of course, there’s the option of going it alone and pitching potential sponsors yourself for your podcast. Before you reach out, you’ll need to have some numbers ready. Advertisers will want to know how many downloads or listens your podcast gets, and therefore how many impressions their ad is likely to get. In other words, how many people are likely to hear it. You should also be prepared to talk in detail about who your listeners are, and why they’d be interested in the sponsor. For most podcasters, this is very time-consuming and difficult to manage whilst doing everything else it takes to create a podcast. And keep in mind, if you have your own baked-in ads you are not eligible for sponsorship opportunities from Acast.
Podcastsubscriptions, memberships, and premium content
Working with brands isn’t the only route for making money in podcasting, increasingly a lot of creators are supported directly by their listeners through subscriptions or memberships, as well as one-off payments for premium content. And you may not need masses of listeners to make this work – you just need them to be really into what you’re doing.
It’s a bit of a different approach to advertising – one that relies on building a loyal audience base before it can be truly sustainable. But when it works it can be so effective in creating revenue that grows alongside your show’s popularity and helps you build a strong, two-way relationship with the people who are investing in you.
There are a few platforms out there for podcast subscriptions, such as Supercast and Patreon—which Acast has integration with. Acast also has its own supercharged subscription tool called Acast+, which is included in its hosting platform. Think of Acast+ as the ultimate podcast membership club, all available through the same platform you host and publish your podcast.
Podcast subscriptions and premium content are a way to offer listeners all sorts of benefits or perks in return for a monthly fee, or one-time payment. Essentially you’re creating a paywall for exclusive content. Acast+ subscriptions work across pretty much every listening app including Apple Podcasts, Google Podcasts, Pocket Casts, Podcast Addict, and many others. This means a super seamless experience for your listeners. No changing apps or even feeds to access their Acast+ benefits.
Let’s look first at monthly subscribers—that is, listeners who pay a monthly subscription fee, set by you to access benefits. On average, we’ve seen that around 2-5% of audiences could become paying subscribers using Acast+. Shows that promote frequently and persistently can see upwards of 7-10%. This process can take a while – podcasts are slow-burning experiences built on trust and faith so don’t be disheartened if things take a while to ramp up. Persevere, focus on your show, and the subscribers will come in time.
You’ll need to work out what you can offer your listeners in return for their subscription. You can set up a range of tiers for different amounts of money and assign perks to each. Benefits that you can offer through Acast+ include:
Ad-free episodes: Acast can automatically remove ads from episodes for paying listeners.
Bonus episodes: Exclusive podcast content for the people who love it most.
Early access: Get episodes to your superfans before anyone else can listen.
Access to archive: Holding back your archive is a great way of turning new listeners into paying subscribers
You can also customize these tiers to fit with the themes and stories of your show. Take a look at some of Acast’s popular podcasts that are using Acast+, including WTF With Marc Maron, Sh**ged, Married, Annoyed, and Owning It.
Acast+ brings all the tools you need to convert your audience to membership, including a dynamically-inserted intro message added to your regular episodes, explaining what your subscription is and how to subscribe. And cleverly, you can make sure these messages aren’t served to any existing subscribers. You can also put a custom call-to-action in your show notes so people can easily click straight through to your subscription offering.
You can also test your listeners’ appetite for subscriptions with one-time payments for special episodes, bonus content, or bundles of episodes in one go. This can be a really great, low-stakes way of bringing them closer to your show without the pressure of ongoing payments. You’re also not limited to podcasts. Audio content like audiobooks, stand-up sets, live recordings, and more can all be delivered to your audience through Acast+.
You don’t just make money with Podcast subscriptions, they’re also a great way of building an email list—which you can use to build a closer relationship with your biggest fans.
Podcast subscriptions work because they are a great example of what makes podcasts so special. It’s about you, it’s about what you love and connecting you with the people who love what you do.
Affiliate programs
Affiliate programs allow you to earn commission by promoting a business’s products or services. When your listeners use your affiliate link to make a purchase, you earn a percentage of the sale. Here are some steps to help you make money in podcasting using affiliate programs:
Choose a niche: Identify a specific niche that your podcast caters to. For example, if you host a podcast about personal finance, you can promote affiliate products related to finance and investments.
Find affiliate programs: Research and find affiliate programs that align with your niche. There are several affiliate networks available, such as Amazon Associates, ShareASale, and Commission Junction. Acast also has its own affiliate program.
Select products: Choose products or services that you genuinely believe in or have used yourself. It is crucial to promote high-quality products that will provide value to your listeners.
Promote products on your podcast: Once you have selected the products, you can promote them on your podcast by creating engaging ad spots. You can also add links to the show notes or your podcast website.
Track your earnings: Keep track of your earnings from affiliate marketing to determine the effectiveness of your efforts. This will help you make adjustments to your strategy and optimize your earnings.
Acast has its very own affiliate program, which can earn you a 30% recurring commission every month for each podcast customer you refer to Acast who signs up for one of our paid-for plans. This is perfect for podcasters as you’re already speaking to people interested in the medium, and can talk from experience about the joys of podcasting.
Additional ways to monetize your podcast
Donations and crowdfunding
Similar to one-time payments, there are tools to request one-off donations from your listeners to support the podcast. People often phrase this to their listeners as helping them buy a cup of coffee, a beer, or an in-joke related to their podcast. You can do this through Acast+ easily by creating a one-time payment tier and customizing the message.
Crowdfunding is a slightly different approach than a donation, but still involves your fans contributing to support the podcast. Usually, creators will launch a crowdfunding campaign to launch a new podcast or series, using platforms like Kickstarter—which has a whole section dedicated to funding podcast projects. For example, James Acaster, co-host of Off Menu, funded a new podcast using Kickstarter.
Merch
Another way to earn money directly from your diehard fans is by selling merchandise. This is a great way to put money in the bank but also to build a community with your audience around your podcast — like a real fan club. Using e-commerce platforms like Shopify and Everpress or specialist merch platforms like Spring, you can create branded t-shirts, mugs, hats, or even books or an online course that ties in with the topic of your show.
Live events, live streams, and gigs
In-person live events and live streams offer podcasters the opportunity to connect with their audience in a more intimate way. The relationship between podcasters and listeners is unlike any other medium, so many fans want to be able to interact with their favorite podcasters. You can run events such as live Q&A sessions, behind-the-scenes looks at your show, and even exclusive interviews with your guests. And the best part? You can charge your audience to access these events.
To get started, you’ll need to choose a platform to host your live events and live streams. There are plenty of options out there, including YouTube, Facebook, Twitch, and Zoom. You’ll also want to promote your event through your podcast, social media, and email list to get as many people to attend as possible.
And here’s an idea, why not try using one-time payments on Acast+ to sell tickets to your live events?
Summary
There you have it, a comprehensive look at all the different ways to earn money through podcasting. Monetizing is just one aspect of podcasting, but an important one if you’re looking to turn your passion into a profitable venture. From ads and sponsorships to merchandise and subscriptions, there is a monetization strategy that can work for you and your audience. At Acast, we offer a variety of tools and features to help you monetize your podcast on your own terms. Get started by signing up or switching to Acast today.
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