Building an indie business in the center of venture capital, I am Alex Edmonds, also known as supremerumham. ham on the internet. And this is the building an indie business podcast. Okay, so today, we're gonna be talking about podcast apps, and how they make money. They make money through people posting in ADS. Alright, so let's get started. So, most podcasts apps are free. But they allow people to give them money for a premium service. So like I said, the they have ads, so the premium service will have no ads. And, and it'll give users access to exclusive content, or uploading your own content, or more than podcasts. Like, if you have a lecture, and an audio file, or like an RSS feed of audio files or lectures, then you could upload that to the podcast player. So, um, there's the amount they charge is different from each podcast player. So like, their podcast players, that, uh, they have music, and more than just podcasts and music, some other things in their podcasts that are part podcast apps that are just strictly podcasts on the on the platform and those, I've seen them charge around $10 a month, like known a year $10 a year. Yeah, and some I've seen 710 the expensive ones are like $14 a month. That's crazy, dude. Um, okay. So every podcast needs hosting. And some of these podcasts players offer hosting, um, in order to allow people to create a podcast. And so what they do is, they allow people to charge for their content, make their own, make that single podcast on premium, and allow that person to charge people to listen to a podcast. And then they take a cut. So let's say I create the open podcast community app. And then I allow people to host their application, or know to host their podcast on the I allow them to make their stuff private, and charge users to listen. So I get a percentage of the, of the amount they're charging every month or every episode, whatever it they can decide. And that's about three to 5%. Um, yes. And the reason why some hosting platforms do this is because it encourages the podcast hosts to promote their podcast on their platform. So I would be encouraging people to promote their show on the on the open podcast community app, right. And so that would bring more users in to the app. And they're not just going to download the open podcast community app to listen to one podcast, they're gonna they're gonna listen to the podcast, right, that they paid for. But then they're gonna listen to all the old stuff that they've listened to before. So it gets them to switch. podcast apps, and then I could charge more for ads because I have more users than usual. Right? Um, yeah, so as the host grows, the podcast player grows. Um, this is a little unstable to me, to be honest, because it all depends on the host. If I get someone that's if most of the people on the app are charging 90 nine cents a month, then I'm only getting like, three cents, right? So it's not a lot of money that I would be getting based on the host. Um, yeah. But then there's the fact that I could get that I could get the next Bill Burr on my podcast. Right. So I'm Bill Burr has a lot of listeners. And those listeners would download the podcast will come to the podcast app for him. And then as his podcast grows, the next Belper I get more more and more users. And so that that effect multiplies with every person I have on the podcast up, right. Yeah, I think so too. Good idea, Alex. Um, so ads, ads are based on the category that the podcast, the chosen, ad is in. So Oh, it's based on the categories of podcasts. And when someone is listening to a certain category of the podcast, the ad will show up. And so the ads that I've seen, they're not invasive, they're not pop ups. They're just little like, tabs at the bottom. And they, they say add, and, like, have their copying and their image of the podcast. And that's the type of clients that the podcast players have. Its podcast, right? Um, so the most expensive category is business with 1000 clicks per 1000 cost per click. So every, every thousand clicks is $1,000. No, yeah, that makes sense. And then the least expensive category is kids and family. And that's $100. CPC. Right. Okay, so what's my opinion of all this? Um, well, for ads, it's limited space, right? Because, um, you have a certain amount of ad space for each category. And usually, what I found is it's about 10. Right? So you've 10 ads per category. And so that that's actually a decent amount. If you're just working on by yourself, right, as some podcast player developers are. So for business. If you've 10 slots, that's $10,000. If it's all filled up, right. And I think the other one was, like 750. So seven, tene. 50 for the 10 ends. So it's not bad. Right now. 7500? Sorry, Jesus, I think it's early. Oh, yeah. I but I also think that if there's a category where someone is struggling, or like, let's say kids and family doesn't, doesn't fill up my wallet, that the podcast player could have bulk discounts. So if someone buys two or three ads, it's $90 and $100. That's a 10% discount. That's pretty good. And you'd at least be filling up the ad space. It's not empty, because no, or at least a discounted ad is better than a empty, no ad. Right. And then I also think that they could add more options, then advertising podcasts. They could do podcast, hosting platforms, not actually that's a bad one, maybe like podcasts and microphones, right? Or podcast equipment. And that way, you're expanding your potential clients. The reason why I said podcast hosting platforms is a bad idea is because that could lead to another podcast player trying to advertise on the podcast players own app, right? So that would be cool. Because here's the thing with Advertising podcast is that there's only 1.4 million podcasts. And that's split between all the players. And there's 20 to 30 players. So that's not a lot of clients. But then like I said, You're making a lot of money with the clients that you have now. So it all depends, right? But then again, the amount of podcast is always growing, right? So your potential audience is growing at the same time. And then there's problems with the premium service. A lot of people know a lot of podcasts apps are free already. Right? Even the premium ones. So they a lot of people may not be willing to pay for premium. Because why? Why pay for the towel in the milk is free, right? It's what my mother always says. Oh, yeah. And but the thing with people is, that's always scalable. It's a lot easier to get a person to listen to a podcast, then, you know, start a podcast. So there's 1.4 million podcasts. But there's millions of people listening to podcasts, and they might be willing to pay because they don't want to see ads. Right. So that's something to think about. Okay. That's all I have for this episode. Thank you for listening. Have a nice day. Bye.