Grow The Show Episode 194 Summary: How Small Podcasters Are Making Big Money in 2024
In Episode 194 of Grow The Show, host Kevin Chemidlin delves into the surprising ways small podcasters are generating substantial income without relying on traditional sponsorships. Drawing from his extensive experience in podcast growth and monetization, Kevin shares actionable insights and real-life examples that illustrate how even modestly sized audiences can translate into significant revenue streams.
1. The Core Principle of Podcast Monetization
Kevin begins by debunking the common misconception that only large podcasts can generate significant income. He emphasizes a fundamental truth about podcast monetization:
"There is only one way to monetize a podcast audience: by getting that audience to buy something. That is it. Full stop."
— Kevin Chemidlin [02:30]
He explains that every monetization strategy, whether through sponsorships, memberships, or paid guest appearances, ultimately hinges on the audience making purchases. This principle underscores the importance of building a loyal and engaged listener base that trusts the podcaster's recommendations.
2. Case Study 1: The Solo Part-Time Fishing Podcaster
To illustrate his point, Kevin presents the first case study of a solo podcaster who hosts a fishing show. Despite managing the podcast part-time alongside a full-time job, this podcaster achieves impressive financial success with modest download numbers.
- Podcast Metrics:
- Downloads per Episode: ~1,000
- Annual Revenue: Over $100,000
The secret to his success lies in a strategic partnership with a boat dealership. Instead of seeking traditional sponsorships, he secures an affiliate deal where he earns a 10% commission on each boat sale resulting from his podcast's referrals.
"Any time one of his listeners buys a boat from that dealership, he gets 10% of the sale."
— Kevin Chemidlin [14:45]
Given that boats typically cost between $15,000 and $75,000, each sale can net him between $1,500 and $7,500. Even with a small percentage of his audience making a purchase, this model allows him to generate six-figure income annually.
3. Understanding Audience vs. Downloads
Kevin clarifies a critical distinction between downloads per episode and total audience size:
"His downloads are 1,000 per episode. But his audience is probably closer to 10,000 or more, because... downloads per episode are usually only 10 to 20% of your total audience size."
— Kevin Chemidlin [18:20]
This broader audience base increases the likelihood of conversions, making the affiliate partnership highly lucrative despite what initial download numbers might suggest.
4. Case Study 2: Podcast with a Backend Business
The second example highlights a podcaster who operates a backend business, further demonstrating the versatility of monetization strategies.
- Podcast Metrics:
- Downloads per Episode: ~2,000
- Annual Revenue: Over $1,000,000
This podcaster offers a high-ticket annual membership related to investing, priced at approximately $8,000 per year. Through his podcast, he attracts about 12 new members each month, translating to substantial recurring revenue.
"12 times 8 times 12 means that his business makes over a million dollars per year."
— Kevin Chemidlin [25:10]
Unlike the solo fishing podcaster, this individual benefits from having a structured company around his podcast, including additional marketing and sales support. Nevertheless, the podcast remains a central driver of his high-ticket sales.
5. The Common Strategy: Selling Expensive Products
Both case studies converge on a shared strategy: selling high-ticket items. Whether through affiliate partnerships or direct sales of premium memberships, the key to monetizing small podcasts lies in offering valuable, expensive products that resonate deeply with the audience.
"The secret to making big money with a small podcast is by selling something expensive."
— Kevin Chemidlin [38:05]
This approach leverages the trust and authority the podcaster has built with their listeners, making it easier to encourage high-value transactions.
6. Expanding the Strategy to Other Platforms: Instagram Influencers
Kevin extends this concept beyond podcasting by discussing how Instagram influencers are successfully implementing similar monetization tactics. He cites examples of lifestyle influencers offering destination trips to their followers, commanding high commissions with relatively low sales volumes.
"There are tons of them who make big money by selling something to just 20 people... they make 50, 60 grand just by hanging out with 20 of their audience members."
— Kevin Chemidlin [40:50]
This illustrates that the core principle of selling expensive products can be effectively applied across various content platforms, not just podcasts.
7. Overcoming Fears and Encouraging High-Ticket Sales
Addressing potential listener concerns, Kevin reassures that even audiences perceived as financially modest often have the capacity to invest in high-ticket items. He urges podcasters to consider the value and exclusivity of their offerings, encouraging them to "combat the fears that come up and let me know once you start making big money from your small show."
8. Final Takeaways
Kevin concludes the episode by reinforcing that:
- Monetization is about sales: All revenue-generating strategies ultimately involve the audience purchasing something.
- High-ticket items can drive significant income: Even with a small audience, selling valuable products can lead to substantial earnings.
- Leverage audience trust: Utilize the trust built with listeners to promote high-value offerings effectively.
By focusing on these strategies, small podcasters can transform their shows into powerful business assets, irrespective of their download numbers.
Kevin Chemidlin's insights in this episode provide a roadmap for podcasters seeking to monetize effectively without relying on traditional sponsorship models. By embracing high-ticket sales and understanding the true size of their audience, podcasters can unlock significant revenue potential even with modest listener bases.