Episode 235 | Insider Secrets to a Top 100 Podcast | Courtney Elmer

Podcast Subscriptions: Worth Your Time?

If you’re an online business owner, consultant, or expert who’s ever wondered whether you should offer a podcast subscription for your listeners, you're not alone. Sure, offering a podcast subscription could help you add more value to your most engaged listeners. It promises the potential of a new income stream. It might help you offset some editing costs. But is it right for YOUR podcast?

The answer: It depends. (I know — it’s the answer everyone loves to hear.)

But you know you can always trust me to tell it to you straight, so let’s get into it.

The Truth About Podcast Subscriptions

Subscription-based content can work for some podcasts, but it won't work well for all podcasts. As a podcast host, there are three things to consider before rolling out a podcast subscription so that: a) you don't waste your time, and b) you actually make money. Lots of articles out there talk about the pros of offering podcast subscriptions (hello, podcasters.apple.com). But for every pro there’s a con — and this article will break those down for you so that this way, you can decide if offering a podcast subscription for your listeners is right for your show.

The Financials: Talking Numbers to Me

Like any membership model, podcast subscriptions rely on volume. For example: if you have a $10 a month membership and 10 people join, that's a hundred bucks. If a hundred people join, that's a thousand dollars. If a thousand people join, well that's $10,000 — and that's a big difference. But this doesn't account for attrition. Not to mention, most podcast subscriptions start around $2/month, not $10.

Pod News and Variety recently found that about 17% of podcast listeners are "somewhat likely" to pay for podcast subscriptions in the next 12 months. I think that's insanely generous given the average sales conversion rate in the online space is 2% - 3%. But let's play along and use the 17% for your show. So say you have a podcast that gets 100 downloads a month and roll out a podcast subscription at $5/month.

If you're lucky, 17 people sign up:
$5 x 17 = $85.
Cool.

Well, until Apple dings you with its annual membership fee of $20 and 30% of whatever you earn. So now your $85 just became $65, which just became $45.50.

This doesn't even take into account the potential impact podcast subscriptions have on your overall podcast downloads, or the logistical nightmare monopoly that companies like Apple and Spotify are creating by forcing you to only be able to offer podcast subscriptions to your listeners on each platform individually.

Then again, if you're bringing in 10,000+ downloads a month, it's a different conversation. But that's not the reality for most hosts.

The Impact on Your Podcast Downloads

Offering podcast subscriptions can significantly affect your podcast's download numbers, — but not always positively. While introducing paid content might seem like a great way to generate revenue, it can also lead to a reduction in overall downloads.

This happens for a few key reasons:

1. Listener Perception: When you consider gating some of your premium content, it's important to think about how this will be received (and perceived) by your audience. When you put your top-tier episodes behind a podcast subscription, you’re also assigning a value to that content. This by default could make your free content be perceived as less valuable, and therefore, less desirable.
2. Listener Engagement: If you do offer a podcast subscription, the goal is to frame it in a way that doesn’t alienate your core listener base who loves what you do, but who might bow out if the content they’re used to getting for free becomes restricted or seems less valuable. Not every listener will be willing or able to pay for premium content, and if listeners feel like you’re making your best content less accessible, this sense of missing out might lead them to unfollow your show and seek out other podcasts that offer full access for free. This not only risks reducing your regular listener base but might also make your podcast less appealing to new listeners and sponsors.
3. Platform Monopoly: Plus, where you host your podcast subscriptions—be it Apple, Spotify, or your own setup—plays a big role. Podcast subscription content doesn't play by the same rules on every platform and you want to grow your show, not gamble with its visibility.

• Apple Podcast Subscriptions: The good news about Apple's podcast subscriptions is that both free and paid episodes contribute to your show's total download count, which can positively impact your downloads and inherent value to potential advertisers or sponsors. But, in addition to the cut Apple takes monetarily, offering podcast subscriptions through Apple means that your subscription content is only available to listeners who use the Apple platform. This creates a platform-dependency that benefits Apple, but not your listeners or your broader business goals.
• Spotify Podcast Subscriptions: Expanding your podcast subscription offerings to include Spotify can pose challenges similar to those you face with Apple. This expansion means your content gets spread across different platforms, each with their own set of rules and a piece of your revenue pie. This segmentation can dilute your brand presence and complicate your revenue stream since each platform, like Spotify, demands its own operational norms. While this diversifies your presence, this makes you more reliant on Spotify, which might not align with your big picture goals for growing and engaging your audience.
• Private Podcast Subscriptions: Choosing to host your podcast subscriptions via a private RSS feed offers a different type of control, giving you back some of the autonomy lost to platform giants like Apple and Spotify. This method lets you bypass the restrictive ecosystems of the big platforms, offering your content directly to your listeners regardless of their preferred listening tool. However, this freedom comes with significant drawbacks. Most notably, episodes delivered through private feeds don’t contribute to your overall download numbers on your primary RSS feed, which could be detrimental when trying to prove your podcast’s worth to potential sponsors or advertisers.

Navigating the challenges of whether to offer podcast subscriptions on public or private RSS feeds and its impact on your visibility on major platforms can be tricky. It requires a strategic balance to ensure your podcast thrives without sacrificing too much control, revenue, or reach.

The Bigger Picture: Time is Money

As you weigh out these decisions, you’ve also got to think about the broader implications of how you spend your time — because when you're managing a podcast alongside your business, every minute counts. So, if you've got an extra hour each week to dedicate to your podcast, what’s the best use of that time?

Creating podcast subscription content can seem like a quick win — it’s tangible, and it's income. But, you’ve got to measure that against the effort involved. Your time might be better spent on strategies that not only grow your listener base but also enhance your podcast's role as a marketing funnel for your main business, where every listener has the potential to become a client, and you keep all the profits.

Time is, after all, your only non-renewable resource. So just like any top business leader, think about your podcast not just as a creative outlet, but as a component of your business strategy. Would a CEO spread their resources thin for minimal returns? Unlikely. In the context of your podcast, this means making strategic decisions that aim to increase listener engagement, expand audience reach, and ultimately, drive more leads to your main business.

Ultimately, the choice comes down to immediate monetary gain versus investing in growth and engagement. But by prioritizing your time and resources like a CEO, you'll not only see more effective growth but you’ll also make sure your podcast serves as a powerful tool in helping you reach your greater business goals.

And if you want more tips on converting listeners into clients, make sure to follow Insider Secrets to a Top Podcast on your favorite podcast app to learn how to turn your show into a top podcast listeners can’t get enough of.

Or if you're a coach, consultant, expert, or online business owner who’s ready to turn your podcast into a lead-generating machine for your business, let’s chat. Book a free strategy call with our team to see how PodLaunch can help.

Next Up:

If you’re not converting as many listeners to leads and clients as you want to be, don’t miss the next episode: I’m breaking down the three reasons why listeners might tell you they love your show, but never ask how to work with you. Plus, you’ll get our high-converting episode framework to help you create desire and demand for your offers inside your episodes (without giving away all your secrets for free).