5 Part Roadmap to Making Money

Today we are looking at the first installment of a five part series on how to make money online by telling stories through podcasting platforms with real information to help you go from sharing for free around the campfire to making money while sharing around the world. Links are provided for deeper dives into specific aspects of the industry. A book for how to craft your narrative podcasts will be coming soon.

Part 1: Advertising and Sponsorships – Monetizing with Ads Without Selling Out

When many people think of podcast monetization, advertising is the first method that comes to mind. Advertising and sponsorships involve promoting a company or product during your podcast – typically as short “ad reads” or sponsor messages. For story-driven podcasts, ads can be woven into your show in a way that doesn’t disrupt the narrative (e.g. a host-read ad before or midway through an episode). This section breaks down how advertising works, how to get sponsors, and what kind of audience size you need.

How Podcast Advertising Works (and Why It’s Lucrative)

Podcast ads are often sold on a CPM (cost per mille) basis – meaning you earn a set rate per 1,000 downloads or listens of your episode (castos.com). Rates vary, but typical CPMs range from $18 to $50 for many podcasts (castos.com). Ads can be:

Host-read ads – you, the host, read the ad in your style (these make up ~55% of podcast ad revenue (backlinko.com) because they feel more personal).

Pre-recorded ads – inserted by the sponsor or network (announcer-read ads are ~40% of ad revenue (backlinko.com).

Baked-in vs. dynamic – Baked-in ads are part of the episode audio permanently; dynamic ads are inserted at playtime, allowing you to swap old ads out or target by listener location.

In the U.S. alone, podcast ad revenues reached $1.9 billion in 2023 (podnews.net) and are projected to top $2.5+ billion by 2025 (backlinko.com). This growth is driven by more companies shifting ad budgets into podcasts, attracted by their engaged audiences. As an example of ad potential: the MrBallen Podcast (known for strange, dark stories) was pulling in nearly 7 million downloads per month, which put it at the top of Spotify/Apple charts and enabled “plum CPM rates” far higher than what the same content earned on YouTube (theverge.com). In other words, a popular story podcast can command significant ad dollars.

Real-World Example – Lore: Lore, Aaron Mahnke’s hit storytelling podcast about folklore, began as an indie show and grew to millions of downloads. Mahnke carefully integrated sponsor messages (for brands like Casper mattresses or Audible) in his eerie tales. Those host-read ads became a primary income source as Lore’s audience expanded, demonstrating that even a spooky story podcast can earn solid advertising revenue without alienating listeners.

How Many Listeners Do You Need for Ads?

Advertising works best when you have a sizable audience. Generally, sponsors are most interested if you get at least a few thousand downloads per episode within 30 days of release. Many podcast ad brokers and networks (like Midroll, AdvertiseCast, or Podcorn) look for a minimum of ~5,000 downloads per episode before they’ll connect you with bigger advertisers. If you’re smaller than that, don’t worry – you can still explore ads, but the earnings will scale with your reach.

For instance, with a $20 CPM, 1,000 downloads yields about $20 for one ad slot. If you have 5,000 downloads, that’s ~$100 per ad per episode. Top shows with 100k+ downloads can earn thousands of dollars from a single ad. If your story podcast grows a loyal following (even if it’s niche), you might find sponsors willing to pay premium rates to reach those listeners. Some niche podcasts secure sponsors at lower download levels because their audience is highly targeted and engaged. For example, a fictional crime podcast with 2,000 devoted listeners might attract a specialty mystery book subscription box as a sponsor, even if bigger brands aren’t knocking yet.

Engagement matters too – advertisers love podcasts because listeners tend to trust the host. If your audience routinely listens all the way through your episodes, an ad midway (mid-roll) will get heard. Host-read ads, delivered in your unique voice, often perform best because they feel like a recommendation. As evidence, host-read endorsements account for the majority of podcast ad revenue (backlinko.com), showing how much brands value that personal touch.

Getting Started with Ads and Sponsorships

So how can a new or growing podcaster start earning from ads? Here are some steps and tips:

• Join an Ad Network or Marketplace: When you have consistent downloads, list your podcast on platforms like Podcorn, AdvertiseCast, or Gumball that connect podcasters of all sizes with sponsors. These act like marketplaces where you can pitch yourself to advertisers or accept ad campaigns. Even as a beginner, you might find small sponsors here (e.g. an indie author sponsoring a horror fiction podcast). Example: Podcorn lets you set your price and ad format for sponsors to consider, which is great for hobbyists starting out.

• Use Your Podcast Host’s Monetization Tools: Some hosting platforms offer built-in ad programs. Spotify for Podcasters (Anchor) has an Ambassador Ads program – once you hit 50 listeners, you can start running ads for Anchor itself or others automatically. RedCircle and Podbean both have advertising marketplaces and dynamic ad insertion for shows of various sizes. These platforms can fill your episodes with programmatic ads (pre-recorded spots) so you earn a little money even with a small audience. It won’t be much at first, but it’s passive income that can grow.

• Reach Out Directly or Locally: If you have a niche or local audience, try approaching businesses directly. For a story podcast, think about related products. Do you tell historical fiction stories? A local museum or a history book publisher might sponsor you. True crime tales? Maybe a home security company or a legal service fits. Create a simple media kit (with your download stats, listener demographics, and a description of your show) and send it to potential sponsors. Emphasize your engaged community and how a sponsorship would benefit them. You might start with a lower CPM (e.g. $15–$20) for your first sponsor to build a relationship (castos.com), and increase rates as you prove your ads’ effectiveness.

• Keep Ads Audience-Friendly: It’s crucial to integrate ads in a way that doesn’t turn off your listeners. Many story-driven podcasts use “advertisement break” music or a narrator segue so the ad feels like a natural intermission. Also, be selective – try to partner with sponsors that match your content or that you genuinely like. Your audience’s trust is gold; if you promote irrelevant or spammy products, they’ll sense the sell-out. The best-case scenario is when fans don’t mind the ad because it either feels like part of the show or it’s something relevant to their interests. (For example, listeners of a mystery podcast might actually appreciate hearing about a new thriller novel release.)

• Leverage Dynamic Ad Insertion Later: As you grow, consider moving to a hosting service that supports dynamic ads. This way, you can insert fresh ads into old episodes. Imagine someone binge-listening your 10-episode fiction series – you could be earning new ad revenue on those older episodes by updating the ads, or even use that space to cross-promote your other projects. Platforms like Megaphone, Acast, or Spreaker offer these capabilities once you’re big enough or willing to pay for pro hosting.

Case Study – MrBallen: John Allen (aka MrBallen) started by telling strange, dark stories on YouTube and then launched his podcast in 2022. Within months, MrBallen Podcast hit 7 million downloads per month and shot to the top of the charts (theverge.com). With that kind of volume, advertisers were eager to pay for spots on his show. Allen brought on a head of sales and secured premium sponsors who wanted to reach his true-crime-loving audience. In fact, advertisers often pay higher CPMs in podcasting than on YouTube, because podcast listeners are seen as more captive (Allen noted that podcast CPM rates beat YouTube’s handily at his scale (theverge.com). MrBallen’s rapid success shows the potential of advertising – once you build an audience, ad revenue can become a lucrative, scalable income stream. (And notably, he did this with a story-driven format – proving even narrated storytelling can attract big advertisers.)

Best Platforms and Tools for Podcast Ads

To wrap up this section, here are some recommended platforms related to ads and sponsorships:

• Podcorn – Marketplace for podcast sponsorships; great for beginners to find sponsors and set up host-read deals.

• AdvertiseCast – Advertising network where you can list your show for potential sponsors (often better if you have a few thousand listeners).

• Spotify for Podcasters (Anchor) – Free hosting with easy ad activation (especially for U.S. users). Also allows offering paid subscriptions on Spotify.

• RedCircle – Hosting platform with dynamic ad insertion and an ad marketplace even for smaller podcasts. Also offers cross-promotion tools.

• Podbean Ads Marketplace – If you host on Podbean, you can opt in to get matched with sponsors or use their programmatic ads.

• Midroll – A well-known agency/network (now part of SiriusXM) for larger podcasts to get matched with premium sponsors. (Aspire to join this when your downloads are high five-figures!)

• Ad Revenue Calculators – Tools like the Midroll Podcast Sponsorship Calculator can help you estimate earnings. For example, Midroll’s calculator suggests if you have 10,000 downloads, a mid-roll ad at $25 CPM could net ~$250 per episode (castos.com).

Takeaway: Advertising is one of the most tried-and-true ways podcasts make money. For story-driven shows, it’s entirely possible to include ads without ruining the listener experience – just keep them relevant and thoughtfully placed. Build your audience first, and the sponsors (and dollars) will follow. Many of the most successful podcasts earn the bulk of their income from advertising (castos.com), but it usually takes reaching a critical mass of listeners. Don’t worry if you’re not there yet – in Part 2, we’ll explore ways to monetize even with a smaller but passionate audience through listener support and subscriptions.

Stay tuned for part 2 coming soon!