Understanding the Basics
When you’re considering how many subscribers you need to make money, it’s important to understand the basics of monetization. Subscribers are the lifeblood of any content-based business, whether it’s a podcast, a YouTube channel, or a blog. The number of subscribers you need to start making money can vary widely depending on several factors.
Monetization Models
Before diving into the numbers, it’s crucial to know the different monetization models you can use. Here are some common ones:
- Ad Revenue: This is the most common way to make money from subscribers. You can earn money through ads placed on your platform, such as pre-roll, mid-roll, and post-roll ads.
- Merchandising: Selling branded merchandise can be a lucrative way to generate revenue. This can include t-shirts, hats, mugs, and more.
- Donations and Crowdfunding: Platforms like Patreon allow you to receive donations from your subscribers. This can be a steady source of income if you have a loyal following.
- Affiliate Marketing: By promoting products or services and earning a commission for each sale, you can make money without having to create your own products.
- Membership Sites: Offering exclusive content or services to paying subscribers can be a great way to generate revenue.
Calculating the Number of Subscribers Needed
Now that you understand the different monetization models, let’s look at how to calculate the number of subscribers needed to make money.
Ad Revenue
According to a study by PubMatic, the average CPM (cost per thousand impressions) for a podcast in 2020 was $10. However, this can vary widely depending on the niche and the platform. For example, a podcast in the gaming niche might earn $20 CPM, while a podcast in the personal finance niche might only earn $5 CPM.
Let’s say you want to earn $1,000 per month from ad revenue. If you’re earning $10 CPM, you would need 100,000 impressions per month. Assuming an average of 10 impressions per subscriber, you would need 10,000 subscribers.
| CPM | Subscribers Needed | Impressions Needed |
|---|---|---|
| $10 | 10,000 | 100,000 |
| $20 | 5,000 | 50,000 |
| $5 | 20,000 | 200,000 |
Merchandising
Merchandising can be a more unpredictable source of income, as it depends on the popularity of your brand and the demand for your products. However, let’s say you sell a t-shirt for $20 and you want to earn $1,000 per month from t-shirt sales. You would need to sell 50 t-shirts per month.
Assuming each subscriber buys one t-shirt per month, you would need 50 subscribers. However, if you can increase the average order value by selling multiple products or offering bundle deals, you might need fewer subscribers.
Donations and Crowdfunding
Donations and crowdfunding can be a more challenging way to make money, as it depends on the generosity of your audience. However, let’s say you want to earn $1,000 per month from donations. If you receive an average of $10 per subscriber per month, you would need 100 subscribers.
Affiliate Marketing
Affiliate marketing can be a lucrative way to make money, but it requires a significant amount of traffic to your website or platform. Let’s say you want to earn $1,000 per month from affiliate marketing. If you earn an average of $10 per subscriber per month, you would need 100 subscribers.
Membership Sites
Membership sites can be a great way to generate recurring revenue. Let’s say you charge $10 per month for your membership. To earn $1,000 per month