iPods are everywhere these days. Just visit any college campus for example and you’ll see an endless stream of kids with earphones stuck in their ears. Maybe they’re listening to their lecture notes from chemistry class. Fat chance! They are most likely tuned into their favorite songs downloaded on their sleek iPods. Steve Jobs and Apple have certainly hit a home run with this little goodie, each priced between $100 and $400, resulting in sales topping 20-million units. This doesn’t include a huge array of accessories also readily available. And internet music libraries such as iTunes have earned $500-million so far. Not bad for something that was launched barely two years ago. Speaking of songs, the average number downloaded on an iPod is 2,000 and counting.

From Blogging to Podcasting

Besides iTunes there are many other sources for both music and talk and it’s all on the internet in the form of podcaster websites. This is an evolvement from “blogging” which means that virtually anyone can get on their virtual soapbox and say what they want and post it for the world to read. Tens of thousands of blogging websites are on the Web. If you wonder how effective they are, consider that Dan Rather had to take early retirement from CBS after his fictional news story about President Bush and his National Guard Service was exposed by online bloggers. The popularity of the written word (blogs) has now evolved in an audio form (podcasting).

How To Start

Anyone can be a podcaster. All it takes is a microphone hooked up to a computer, with some free software to create audio content and post on a website and you’re in business. The minimum investment is about $100. Once you’re listed on Shoutcast or some other podcasting search engine, you’re right there with everyone else. Those interested routinely scour the sites looking for something they want to hear. And with their iPod software they “subscribe” to what you offer and download it for their listening pleasure. It should be pointed out that people don’t just listen as they walk around. With accessories they can listen in their cars. And this doesn’t count the millions of PC users who would rather listen on their computers.

So far so good, but we’re not talking about getting rich just yet. By the way, earlier this year there were an estimated 4500 podcasting websites, now that figure has mushroomed to over 8000; and next year that number is expected to double, demonstrating that a lot of people are really getting into this new technology.

Offering a Quality Product

Now we come to the serious part of the equation. It takes a bit more money to produce a really quality product, especially if you’re offering music, and that’s what listeners expect. You’ll need editing software, voice and sound processing, higher quality microphones, perhaps some CD of MP3 players, licensing agreement fees with the likes of ASCAP and BMI, signing up with a bandwidth company, etc. This can run into the hundreds if not thousands of dollars – a rather expensive hobby. And then there’s the time involved to produce what people want to hear. But it can be worth it. The last time your author looked at Shoutcast (one of the many websites that lists podcasters), the most popular podcaster was generating 8,000 simultaneous listeners. And your bandwidth provider can easily handle that and much more, perhaps up to 60,000 people tuning in at one time. That’s major! But so is just 1,000 listeners as you’ll see.

What to Charge

The major search engines such as Google and Yahoo and major websites charge an advertiser between .05 and $100 per “hit” – meaning someone has locked into a website page. It is also known as a “click-through.” The correct advertising terminology is a CPC (Cost Per Click). A website such as Playboy is usually valued at the high end of the price range so unless you’re going to concentrate on offering a sex-oriented website, you can forget charging anything like that. But let’s take even the low-end price of just .05 CPC. That means if 1000 people are listening to your podcast at a given time you can realistically charge $50. And you don’t have to just settle for one single advertiser. You might be able to accommodate several in say an hour’s time. If you overdo it, however, you’ll lose people.

Money from Other Sources

Besides selling commercials yourself you can also contract with the major search engines. Google, for instance, offers AdSense. They pay you a commission on an ad they place on your website. Again it’s based on the number of click-throughs as described above. One podcaster interviewed said he couldn’t believe how much money he made for what he thought was just a “throw-away idea.”

Where to Find Advertisers

Finding prospective advertisers depends on what you’re podcasting. Keep in mind you’re not like a small town radio station which is going after local clients. You’re reaching the whole world so you’ve got to have that mindset. If it’s music then perhaps you can advertise bands that have new CDs. If you’re talk oriented maybe an author has a new book he wants to advertise. For the time being you can forget the major advertisers such as GM or Proctor & Gamble. Their advertising agencies haven’t caught on yet and they only buy massive audiences. But you’ll probably be able to find a nice niche. Also keep in mind that more than just iPod listeners are scouring the podcasting listings. Advertisers are also checking things out and if they notice a particular podcaster that is attracting large numbers of people, they’ll contact you.

You probably won’t get rich doing this but you’ll cover your expenses and have some fun. Also, it won’t happen overnight. But if you get established and people begin to find you and like what they hear – they’ll tell others. And don’t be afraid to suggest that in your podcasts. In time you might be surprised. A few years ago who ever heard of “blogs?” More important, who cared? But now they are almost mainstream. Just ask the President of CBS News in aftermath of the President Bush scandal. In a few years podcasting could start to rival traditional broadcasters for listeners. And you're able to do it for a fraction of the cost of buying and operating even a small market radio station. It could be an exciting and profitable time for podcasters. And, unlike traditional broadcasters they won’t have to worry about the FCC. Watch out for Howard Stern!