CH 2 - What Is a Podcast and How Does It Work? Why Is It a Good Business Model?

0:00 What is a podcast and how does it work? Why is it a good business model? By the very definition of it, a podcast is an audio series that one can listen to by downloading or streaming the files on the internet.

0:14 Each of these episodes has a host who is called the podcaster, and they take the conversation forward. Podcasts can be stories, interviews, conversations, or the news.

0:25 There's a whole bunch of these on many different streaming platforms like Spotify, Google Podcasts, Apple podcasts, Stitcher, and more. You want to start by identifying your goals.

0:36 In this process, you must also take some time to identify the people who you want this podcast to reach, so you must decide whether you are creating content to raise awareness about an issue or a brand.

0:48 You should know what kind of audience you want to engage with, and why your podcast will mean something to them.

0:53 Once you know the topics you will be pursuing, you must do some homework. That means listening to other podcasts in the same category.

1:01 You want to read reviews about their podcasts so that you know what works and what doesn't. While you are doing this homework, you must develop the format for your own show.

1:11 This means deciding whether it's a conversation with a fellow host, interviews, or narrative storytelling. You must also figure out how many episodes you want each season to have and the duration of each episode.

1:23 Then you must start working on the outline of the individual episodes And every episode must have an intro and an outro.

1:30 The outro should ask the listeners to subscribe and leave reviews. You must also figure out the equipment you will need.

1:37 This will include headphones, a mic and a filter. Also, look into the software you will need to edit and produce the episode.

1:44 Doing this with audio files is easier than other media, so consider producing it yourself. Popular business models Now the reason why it is a good business model is also because there are different avenues that can help you generate revenue.

1:58 Now, these are not the only ways, but these are the popular ones. Add supported podcasts. In most English-speaking places, but especially the US and UK, getting advertising is a very popular way to make money and promote a podcast.

2:14 Getting sponsorship deals is also a way to make money and it comes under this category. listener-supported podcasts. Another way of making money to keep the podcast running is to get listeners to support the podcast.

2:27 Now this is a little less popular than the previous method, and there isn't any particular part of the world where this is common.

2:34 While it doesn't work for all types of podcasts, there are some that thrive on this model. A lot of these podcasts use Patreon to reach out to their subscribers, and they also offer perks for those who make donations.

2:46 directions. Direct Sales. This is another popular model in many parts of the world. It involves the listeners paying a one-time fee to download one piece of the show.

2:57 The size of that piece depends on various factors, which means the listener could get an episode, an entire series, or a collection.

3:04 They can also pay a monthly fee, which will give them regular access to a library of episodes.