This transcript was generated from the episode audio and may contain minor errors.
[Music]
Hey there, what's up? Welcome, this is Side Hustle School. Your host, Chris Guillebeau with you here. So glad you're tuning in today. Every day we're bringing case studies, tips, stories, questions and answers, various segments and features all focused on how you can create extra money without quitting your day job.
And ultimately, the extra money is designed to help you do more of what's important to you, okay? Money is just a tool that can allow you to have more confidence, to be more secure, more options for your life, et cetera. So that is our one and only mission, our singular mission, I should say. Today's question, one of our listeners is wondering about podcasting as it relates to paid subscriptions, okay? Now there's been some recent news in the podcast world, which if you haven't heard, then you don't need to keep up with the podcast world if you're not a podcaster.
But Apple Podcasts, Spotify and probably some other networks, they're all jumping on this premium podcast train. And maybe you've actually noticed this if you listen to other podcasts that have a premium version. If you wanna start one, if you wanna start one of your own, a podcast has a paid subscription, how do you do it? Okay, and by the way, this is not an announcement of Side Hustle School moving to that format. I am very happy that the show is free for all.
Totally free here. Of course, premium quality and premium listeners like you, but nobody's paying, okay? That said, there's nothing wrong with offering premium content. Of course, we are trying to help people make extra money, build that security for their future, et cetera. So for those who like the idea of doing that, what's the deal?
Like with this trend, how do you take advantage of it? How do you jump on that train? As with everything in podcasting and other forms of new media, it is a rapidly changing world, but let's see where we're at now. So how can you sell a podcast as a paid subscription? That's our question.
It's coming up in just 30 seconds. [Music]
Hello, Chris. This is Chelsea from Thousand Oaks, and I've been listening to the show for a couple of years now. I saw that Apple announced an option for podcasters to offer a premium subscription. Are you going to do that with Side Hustle School?
And if I wanted to try offering it, what do I need to know? For example, I saw that Apple will take a 30% commission, which sounds like a lot for something that they have always provided for free before. Is there any way around that? Thanks, and looking forward to hearing your thoughts. [Music]
Chelsea, thank you so much for the question.
Yes, it is a changing world, rapidly changing world. New stuff coming out all the time. So if you want to offer a premium podcast, well, first of all, as I mentioned briefly, I have no plans to do that. If I ever do, it would be something that is additional to what we're doing here. I'm very grateful to be able to reach a lot of people through a free podcast.
And maybe that is actually the first thing to know that if you're offering a paid premium podcast, you're going to have a much, much smaller audience than you would otherwise because people are used to podcasts being free. So it doesn't mean that no one would pay for it. It just means that very few people would compare to the number of people who would listen otherwise. So if you do want to do it, two parts, the logistics. First of all, which are pretty simple, listeners can subscribe directly in Apple podcasts.
It is seamless for them, just like any other subscription they pay for. So that's the benefit in the sense that there's not a whole lot of other hoops they have to jump through to do it. But yes, 30% commission is not small. That's just the Apple way. There is no way around it, at least not if you're going to go through that system.
Spotify is a little bit different. They have been making a big play for podcast audiences in recent years. And so they have also put together a program, kind of announced the same week, basically, that allows creators to get paid. To learn more about those details, go to anchor.fm. Once again, that's anchor, A-N-C-H-O-R.FM.
Right now this is in the US only, but they expect to roll it out more widely pretty soon. Also, the pricing is very, very different. I'm taking this from their webpage. It says, "For the next two years, this program will come at no cost to the creator, meaning that participating creators receive 100% of their subscriber revenues. Excluding payment transaction fees.
Starting in 2023, we plan to introduce a competitive 5% fee for access to this tool." So basically two years it's free, then it's going to be 5% compared to 30% right away, you know, right now. So as I said, that's just the Apple way. You got to decide if you want to play in that world or not. But more than the logistics, you also need to think about how you're going to separate this paid podcast from anything else that you're doing. As mentioned, a free podcast can reach a lot of people.
Paid podcast is going to reach a fraction, very, very small fraction of those people. So if you already have a podcast, will the premium one be something new and additional? Or do you want to only run a premium paid for podcast? Which is totally okay. It's just a different approach.
So you got to decide what is important to you. But I hope that info is helpful to anybody out there who's like, "Oh, I didn't know that was possible." Maybe I'll look into that some more. As for me, like I said, I have no plans to do that at the moment or anytime in the near future. So I am happy that you are listening. Thank you.
And listeners, if you have a question, come to sidehustleschool.com/questions. We're going to continue to feature them throughout the year, along with updates from other listeners as they launch their projects. All right, that's it for today. Don't stop believing. Come back tomorrow.
My name is Chris Guillebeau. This is Side Hustle School. [Music]
From the Onward Project.
