In this post I’m going to share with you the strategy that is the most profitable for me as an online content creator. It’s probably not what you’d expect. Then I’ll share with you which podcasting expert quoted me about this out of context, criticized me, then censored my response on his blog.
In Q3 of this year I I used an often overlooked strategy to generate over $70,000 from my podcasts and blog. You might be thinking that I’m referring to advertising or sponsorships. But if you listen to my podcasts you know that I’ve never run a single ad (at the time of writing this post). Yes, advertising is the most talked about monetization method (and quite lucrative for many podcasters), but it is the one I use the least.
The strategy that has made me the most money is selling premium content. The content could be in the form of CDs, downloads, a home-study course, a teleseminar, a webinars, a member-only site or any number of other media. There are those within your community that will jump at the opportunity to get more from you. They want to go beyond your free podcast episodes and blog posts. A-to-Z, insider info organized in an easy-to-consume manner has value to your market.
Here are seven steps for making money with premium content.
1. Choose a Targeted and Hungry Market
This should be a well-defined niche of people that are hungry for a specific kind of information and/or entertainment. It’s also good if they have money to spend. It’s easier to define and serve your niche if you’re a member of the target market.
2. Regularly Create Valuable, Relevant Content
By creating content that your target market can’t live without, you’ll attract an audience. You’ll also brand yourself as an expert. Podcasting and blogging are great channels for doing this due to their interactive nature. Note that choosing your market comes before creating the content. You don’t create content first then find a market that wants it. You find the market first, then create the content that the market wants.
3. Build a Community Centered Around Your Brand, then Develop a Relationship with Them
When you attract an audience with your content, the objective is not just to build a list of potential customers. Build a community. Talk to them. Let them talk back to you. Help them talk to each other. Build a relationship of trust. Trust is the foundation of a powerful brand.
4. Use Multiple Channels to Deliver Your Content
Don’t think of yourself as only a podcaster or blogger. Think of yourself as a content creator. Use multiple media channels to deliver your content and interact with your community. Re-purpose your content across multiple channels. For example, one piece of content can be a podcast, a blog post, an article and a video. Do NOT overlook the importance of having an email newsletter list. Start one, build it up and use it often. Here’s the service that I use for my email newsletters.
5. Find Out What Additional Content Your Community Wants
I want to emphasize that you find out what they *want* not just what you think they *need*. What problems do they deal with on a regular basis? What part can you play in helping them solve those problems? What kind of information are they ravenous for? If you’re interacting with your community regularly, you’ll get a sense for what they want. You can also survey them to find out.
6. Create Premium Content
Based on what your community wants, create additional content. Give them valuable information that fulfills a primary need. Provide a solution. Offer incredible value. I offered several examples above. For both of my podcasts I created an eight-week coaching course. Participants were given access to weekly video and audio programs that took them through a step-by-step system. In addition they had access to email consultation.
7. Sell Your Premium Content at a Premium Price
Don’t undervalue your knowledge and content. There are things that you do every day and experience you have that others would love to have access to. They will pay to get that information and benefit from it.
The Prime Directive
If I were to sum this strategy up in one phrase it would be to offer the best value you can to a carefully targeted community with whom you have developed a relationship. Really, this is a basic premise for success in any business. You get what you want by helping others get what they want.
I want to make that clear because I’ve come under fire in the past after sharing my premium content strategy.
Short-Sighted Criticism Offered Out of Context
Jason VanOrden is pimping tele-seminars and webinars. Sounds like Network Marketing and something I would buy on late night TV.
This is a quote from Todd Cochrane’s blog about the podcast monetization panel at BlogWorld Expo. During the panel discussion I outlined my seven steps for making money with premium content. Todd posted nothing but the phrase above in response to my message.
I understand that premium content may not be his preferred method of monetization, but he makes me out to be a shady character when he posts information out of context and uses words like “pimping” and “something I would buy on late night TV.”
December 17th, 2007 at 3:39 pm
A little off subject here, but when are you doing the Professional Podcasting Course again? My company’s actually budgeted for (my) education in ’08 so I want to finalize that before they change their minds!
December 17th, 2007 at 3:47 pm
Sounds like Todd Cochrane is either jealous, stupid or just didn’t get it.
I think people that lie and attack others and don’t allow a dialog will be found out quick and filtered by the community. He is obviously bashing you to make himself look bigger in the podcasting community. He is your competition and is playing the put down game to gain more shares, looks like to me. Maybe he should go into politics, he sounds sleazy enough for it. I can see right through him tactics, hopefully the community will too.
There is being controversial and then there is being an jerk to use others for their status. We all now know where Todd falls…
December 17th, 2007 at 4:13 pm
Well, Todd C. has lost a potential client forever in me. He obviously hasn’t learned that it’s better to partner up and help one another along than it is to tear someone down.
Having purchased and gone through one of your “late night TV” courses (smirk), I have to say it was worth every penny, and I can’t wait to have more time to take the other one you offer.
Perhaps Todd C should buy one of your courses to learn how to properly do internet information marketing?
December 17th, 2007 at 4:35 pm
Hey Jason~
I stumbled across your blog a few days ago and have enjoyed your comments. This post rung a bell with me.
Our website uses the “Premium Subscription Model” very successfully and our membership continues to grow quickly and is very profitable.
I took a look at your 7 steps and sure enough that’s exactly what I did be successful. Whatever anyone says, in 2008 I’m just going to do more of the same and I’m sure continue to see those numbers rise.
In the process of figuring things out I’ve tested just about every marketing style including hard sell commercials and info marketing techniques. Some worked well – others sent me backwards a few steps.
A couple of things I’ve learned…
Provide quality content consistantly and folks will be more than happy to support you.
Charge the right price and folks will pay.
Provide real customer service and folks will pay.
Making money comes down to one thing. VALUE! Provide that to folks and you’ll always have a customer for whatever you’re selling.
December 17th, 2007 at 4:43 pm
I try to create a mix of revenue sources so I’m not overly dependent on any one thing.
We do have advertising in our podcasts at the Quick and Dirty Tips network, but my Grammar Girl audiobook (which falls under your definition of premium content) has been one of the biggest revenue sources so far, and we’re actively thinking about how we can create more products like it that our listeners will enjoy.
December 17th, 2007 at 7:13 pm
Hi Jason,
I’ve been to Alaska and back with you via Twitter which was cool!
I don’t know Todd C, neither have I heard of him until now. Sounds like the kind of person who broadcasts negative energy which is exactly the opposite that I have found with your work.
After being recommended to your book, Promoting Your Podcast and seeing how much useful information you gave there, with positive enthusiasm, for such a small price, I am a fan.
Don’t bother with people like that.
Leave them to heaven.
Often It is best not even to deign to enter into any communication with them.
Knocking somebody who is fair, honest and helpful is always a great way for them to get attention.
It usually doesn’t last!
Life always seems to have a way of sooner or later arranging things correctly.
Best,
George
December 17th, 2007 at 7:44 pm
Todd Cochrane is a somewhat knowledgeable jerk, usually. He has the view of his way or the highway. I get sick of seeing his play-by-play on twitter when he is attending a tech meet-up of any kind. He gets so worked up if someone is talking monetization that he deems less than “pure”.
Don’t sweat him. And thanks for the tips.
I do enjoy your sharing of your strategy and insights.
Eban
December 17th, 2007 at 10:30 pm
I have purchaed your book, and subscribed to your newsletter because I thought you were really credible, however, I did feel that the price you were charging for your course was outrageous. After seeing that, I am not surprised that people would refer to your business in negative terms like pimping webinars and network marketing.
December 17th, 2007 at 10:50 pm
I had the honor of hearing Jason speak at the Blog World Expo in November and I must say that his presentation alone was worth the price of admission.
Ya you where teaching me how to pimp my blog but that is not a bad thing! You in my opinion where the only presenter that really provided “premium content” without holding anything back. That is why your business is growing so fasts. The surest sign of success is that Haters like Todd C start attacking your tactics.
You scare dudes like Todd C because you are willing to share secrets and that “open source” mentality is too much for guys like Todd to handle.
Keep on rocking Jason!
December 18th, 2007 at 2:09 am
People who don’t understand that a premium price is deserved for YEARS of Jason’s work, effort and tested know-how don’t DESERVE it. It’s just loser mentality plain and simple. The people that whine about having to pay for premium content are the same people that constantly think, “poor me” and “life should be fair”. It makes me shiver….
December 18th, 2007 at 3:48 am
@Scott,
I’m becoming a big fan of the membership model. Consumers seem to really enjoy it as well.
@Mignon,
How could I neglect listing you as an example of someone who is effectively using premium content to make money?! You’re advice to diversify your income streams is dead on. If anyone reading wants another great example, check out http://grammar.quickanddirtytips.com
@George,
That’s good advice regarding negative energy. I hope you enjoyed your “trip” to Alaska :).
@Darius,
Thanks for your kind words.
@thecanary,
I can understand that the price of my course might cause sticker shock for some. However, I’ve spent a lot of time putting together the content in the course and making it worth the cost.
I have no problem with the amount I charge. More importantly, neither does the market. More than enough students signed up for the course at the price I charged. Every one of them had the opportunity to get their money back if they were not satisfied, but not a single one asked for a refund.
As one student said:
When you offer stellar value, people will gladly pay for it. I want content creators to realize the value of what they offer.
December 18th, 2007 at 9:33 am
To canary –
Once upon a time, I used to think things were outrageously expensive too. Then I learned that money is just energy – an exchange of energy for energy.
To say that something is “expensive” is relative. Is it expensive to Donald Trump? No.
Jay pours his heart and soul into his work – you can tell – his energy and excitment for sharing knowledge shines through on every podcast.
I’m sure whatever price he charged was justified for his hard work. Nobody makes you buy anything you don’t want to buy!
Lastly, sometimes you have to consider paying a ‘high’ fee an investment in your knowledge and financial growth. But if you can’t afford something, just don’t buy it!
I recommend a great book: “The Trick to Money Is Having Some” by Stuart Wilde. It’ll turn your ideas about money around!
December 18th, 2007 at 10:53 am
Jason, we met at PNME and at VON boston.
Please stop mentioning him, and giving him your attention. Bullies love reactions.
Concentrate on the stuff we like you for and the things that put a smile on your face and make you sleep at night.
scott
December 18th, 2007 at 11:31 am
Awesome reminders of thngs to do to monetize the content we create. I hope Todd C. reads this: I was a student in your Professional Podcasting Course and thoroughly enjoyed and benefited from it. From the course I picked up one idea – one you reiterate here – to repackage content as a seminar course. So far I have orders for $54,000 in registration. Your readers and listeners would do well to act on your advice and example.
December 18th, 2007 at 11:56 am
Thanks for this post. It inspires web publishers about the opportunity that we are sitting on.
Perhaps I should start leveraging more of the content instead of just running around pursuing new venture.
December 18th, 2007 at 12:19 pm
Jason,
I finally just got around to reading this blog entry. I was delighted to meet you at Podcamp Boston 2 and to subsequently exchange some valuable emails back and forth as well.
I’ve been podcasting for the past two years now and have had marginal success with advertising where at best I was making about $3,000 per month income while doing fourteen podcasts as a hobby.
In 14 days, I move into this as a full time career as a major step of faith in what I feel is a true calling from God. I haven’t got any idea where my first dollar is going to come from in January, but I’ve made the decision to move away from where I was making ad revenue because of some changes that had been made there and because their business model did not reflect the direction I’m going with my future content creation model *notice I didn’t say podcasting*
Here’s the thing, I have a sizable tight knit community built around our podcasts. There are 200 people who are on my forum, follow me on twitter, befriend me on every social network, attend my live shows online and are subscribed to more than 14 of my podcasts on an all inclusive feed. These are my inner circle community people.
Outside of that, I have about 400 to 500 people who are a part of the community but are still not fully participating, but I certainly have their ear when I speak.
Outside of that, I’ve got between 1,000 to 8,000 people who download each of the 14 separate podcasts that I produce.
I’m looking to find out what I can produce as premium content. I’m partnering with Podango to try to get sponsors for my free content.
I have so many shows and I’m wondering if I show go the rout of premium content on any of my existing shows.
Everything I’ve done up to this point has been as a hobby and people have followed me as I share my life and my various passions.
Looking at your seven steps gives me a few ideas and so I thank you.
As for Todd.. I am trying not to burn any bridges in this new media community. Lord knows I’ve been opinionated, arrogant, and have stuck my own foot in my mouth. I hope things get resolved there. I would just like to think we can all get along and I can sense that you’ve tried to make that happen. I don’t fault you for making this post to defend your credibility.
Keep up the great work and let me know when your infomercial…. strike that… your tele-seminar on how to be a successful podcast consultant becomes available.
Cliff
http://PodcastAnswerMan.com
December 18th, 2007 at 3:41 pm
@Jack,
My apologies for failing to answer your question above earlier. My next Professional Podcasting Course session will begin in January (possible early February ’08). Space will be limited, so the best thing to do is to get on the early notification list here.
@Cliff,
Best of luck in your new life pursuit in ’08! Sounds very exciting.
March 9th, 2008 at 9:41 am
This was a refreshing article for me. I want to get involved and make a little revenue to support my podcasting habit. I will get you book and study your methods. Good Luck.
P.S. Don’t worry about the haters, they are probably jealous.
September 13th, 2008 at 7:04 pm
I’ve never heard of ever of you gentleman before today. Though I appreciate those who share their ideas and understanding of how to make money, I also believe the importance of others who have opposing views on the Web should be respected. There are more hideous things on the Web. I may not always agree with opposition but without it, we all know what shape the world would be in.