Back in June, I wrote a post about “10 Great Ways to Make Money Podcasting“. I thought it was worth revisiting given a recent post by David Sparks titled “9 Successful Techniques for Making Money from Podcasting“. David’s post is great because he provides good examples of people following the 9 business models he outlines.

To start, let’s compare the lists.

My List included

1. Sell you content
2. Donations
3. Run ads within the podcast
4. Promote a sponsor within your podcast
5. Run ads on your webpage
6. Sell your own product
7. Sell professional services
8. Sell training
9. Affiliate sales
10. Affiliate lead generation

David’s list included:

1. Use a podcast network to get sponsors
2. Get your own sponsors
3. Beg for donations
4. Give some away, sell the rest
5. Partial show free, full show paid
6. Build a network of programming and sell advertising
7. Build your brand to sell your services
8. Sell an iPhone app
9. Integrate sponsorship with the show’s editorial

While number nine and two on the list seem to be the same thing, David’s list does add a few ideas to my list. I particularly like the addition of selling an iPhone app.

On the flip side, I think his list is pretty focused on advertising related business models and is really missing the most important opportunities for podcasters who want to make money – selling products and generating leads.

It was clear from the takeaways at the Blogworld Expo that this is the most successful way to make money, unless you have a really huge audience.

If you have other ideas for monetizing new media let me know.

At the BlogWorld Expo, Jason Van Orden talked about achieving an effective $816 CPM for his downloads, as compared to the average podcaster getting $15-40 CPM. He got my attention.

Here’s the quick video version of how he did it. The longer post summarizes the rest of his presentation about how to grow your audience on the web. He has some excellent advice, which may be one of the reasons he has been able to realize such a return on his efforts.

Jason is an expert in new media and internet marketing. He is also the author of Promoting Your Podcast.

Jason starts out by discussing goals. The end goal is an action, something we want the audience to do because of our efforts. But we have some work to do to earn the action.

We need influence to make the action happen, and we don’t get influence instantly. We have to bank influence overtime and then we can make the withdrawel.

Before influence, comes engagement. We need an audience that this active and engaged with the content and the subject.

Before engagement, comes permission. We need the audience to opt-in in some way, to sign up for our email list, subscribe to our podcast or blog, or follow us on Twitter or Facebook. We need them to take a step to give us permission to send them stuff.

Finally, before permission, comes attention. We need to get their attention to get the process started.

Jason describes these steps as the New Media Money Map:

1. Attention
2. Permission
3. Engagement
4. Influence
5. Action

Jason then dove into the subject of attention in more detail.

He pointed out that we live in an attention economy and that competing for attention is the focus on new media marketers.

Jason went on to describe the components of new media magnetism that can help you gain more attention.

He described the components as relevance, reciprocity, authority, trust, convenience and desire (either urgent pain or rational passion). Building these components into your content and behavior will help you gain more attention.

He went on to describe what he called the preeminence principle. This is all about making sure you are the expert everywhere your users go. This ubiquitous expertise helps reinforce your position in the users mind.

Jason provided some great tips on how to be ubiquitous. He described how high rankings in search engines is essential and how it’s not just Google, but also iTunes and Youtube. He described how all search engines use relevance and authority to drive their rankings. In iTunes, he has found that keywords are what drives relevance and subscriptions, ratings and reviews help to drive authority.

Some other tools to use include Feedburner and Tubemogul to help with distribution. He also suggested Webcam Max and Camtasia as software tools to help generate content.

Moving on to permission, he described how your email list is still your most important list, but now you have Twitter followers, RSS followers, Facebook fans etc. Don’t overlook building those lists as well. He pointed out that you should make your opt-in one of the most prominent parts of your web page and make sure it’s above the fold. Aweber and iContact were his two suggestions for mailing list management.

He suggested GotoWebinar as one of his key tools to convert people on Twitter and Facebook into email lists and conversion opportunities. Don’t sell on Twitter, use it for sending invitations.

Jason then described his thoughts on engagement. The drivers of engagement are knowing you, liking you and trusting you.

You want your audience to resonate with you. He also said that telling stories is a method that works exceptionally well.

He suggested The Story Factor by Annette Simmons as a great resource for improving your story telling.

At this point, we started running out to time, but you can get more information from Jason at his blog.

 Digital Podcast 61 - The $816 CPM Story [3:22m]: Download

The last two days, I attended BlogWorld Expo, held in Las Vegas.  The show covered a wide range of topics interesting to bloggers and podcasters, including topics for bloggers who want to turn their new media efforts into commercial successes, newbies wanting to get started and companies trying to develop strategies and processes for working with social media.  I focused my time on the tracks relating to turning your blog or podcast into a commercial success.

From those tracks, I came away with four key takeaways for bloggers and podcasters who are trying to become commercial successes at what they do.

1.  You have to be willing to work hard.  Whether you’re trying to break through or already well known, you need to put in the hours to make it work.  The evidence suggests that the most successful bloggers 3-5 times every day.  Whether it’s blogging, podcasting, video, or micro-blogging, consistently producing lots of content is a key component of success.

2. You need to be the expert, or a least perceived as the expert.  And you need to put in the time to stay ahead of others in your field.  Expertise leads to credibilty which can lead to trust and conversion.

3.  You need to develop and follow a process for successful new media marketing, capturing attention, engaging your audience, building influence and ultimately getting your audience to take action.  I saw a great presentation on the topic from Jason Van Orden and will be providing detailed notes in a later post, so stay tuned.

4. Most of us need produce a signature product to be commercially successful.  Making money via advertising just doesn’t seem to pay enough to make it work unless you have a huge audience.  Whether it be an ebook, a coaching class or a continuity program, product seems to be the way people make good money.  If you can develop a successful continuity program, that seems to be the most lucrative product.

 Podcast Video [1:30m]: Download

One of the key factors in turning podcasting into a real business is effective execution of best practices in content creation, marketing, distribution, monetization and user experience. Many publishers are not following best practices in these areas. The result often looks more like someone’s hobby than a real business endeavor.

Developing content, building audience and getting advertisers to buy in will take serious effort. Publishers who understand the huge opportunity for subscribable media and its capacity to shape the media industry’s winners and losers will step up and make the investment required.

Putting these elements into a framework allows for systematic evaluation of operating practices across publishers and for the identification of best practices for new media publishing.

The framework links the three key elements of Audience, Content and Advertisers with the critical activities of creative/production, marketing, distribution, monetization and user experience.

In each of these functional areas, there are best practices that need to be deployed to make the most of a new media business. Some of these factors are observable from the outside looking in and others require examining how things work from the inside out.

Creative and production encompass the all important aspects of conceiving the concept, translating it into a show and producing high quality content on a regular schedule.

Marketing involves many factors including the key factors like search engine optimization, iTunes/media directory optimization, syndication via RSS feeds and sharable players. Evidence of best practice marketing can be found in how well things like ID3 tags are populated, the quality of feeds, file naming practices and quality album art. These are all factors that impact how findable the media is.

Monetization can take many forms and best practice players will find the right mix that works for them. While we can’t determine how much a show makes from the outside, we can examine the presence of monetization mechanisms like advertising, premium content, sponsorships, commerce/merchandise and paid syndication.

Distribution is an important component. In this area we are specifically looking for cost effective high quality content delivery. New media files are quite large and how well the distribution infrastructure works can have a significant impact on the user experience. In many cases we can determine whether a content delivery network is being utilized and we can also observe the use of advanced file sharing technologies like BitTorrent.

Perhaps the most important and observable element of the best practice framework is the user experience. How well are the shows presented? Is the content available in a format compatible with the devices consumers want to use? Is it easy for the audience to interact with the show? What’s the online viewing experience like? The answers to these questions and the inputs of the other four elements of the framework all go into determining how effective the user experience is.

By examining these factors in detail, we can begin to identify specific changes that will improve business performance and help publishers get serious about building new media businesses.

In the weeks ahead, we will dive into each of these areas to examine best practices and to review how well different publishers are employing best practices.

[tags]podcasting, best practices, new media[/tags]

Chris Anderson, author of The Long Tail, posts on What does the Media Business Model mean and with some help from friends goes on to list 24+ business models for monetizing media that do not require cash payment by the consumer (what he calls free or almost free). Whether it’s really free or not is in the eye of the beholder, but that’s a different discussion.

Making money podcasting has been tough for some, so I think the list of business models is great, particularly for those who might not have exhausted their imaginations for ideas on how to monetize media. However, I think that the immediate focus on business models is like losing sight of the forest because we are gazing so intently at the trees and the different types of trees that grow there.

If we step back from the business model forest created by the economics of impressions, and ask is there something more. Is there something beyond our forest of impression based models? I think the answer is yes.

Forests don’t exist by themselves, they exist as parts of ecosystems. So, what are the media based ecosystems that are inspired, created and formed around content? Content based communities seem like a logical answer, and beyond that networks of content based communities. Content has always been a powerful driver of community – just look at MySpace and YouTube.

We can and should recast the discussion from economics of impressions to the economics of communities. And what are the economics of communities? They are micro-economies where trade, commerce and personal interaction are all intermingled with each other. Think of Second Life and their booming economy.

When the economic infrastructure is put in place to allow commerce to start and thrive, the business models based upon community economics are truly endless. We can stop worrying about impressions and leads and start monetizing the “utilities” that make community based economies work. And what are the utilities? Think currency, banking, trading, land and all the other stuff we take for granted in the physical world.

How might this work? Let’s take Madonna and the Live Nation deal for an example. They did the deal premised on expanding the revenue stream from selling content to selling entertainment, merchandise and whatever else they can sell. That seems like a good first step towards expanding from monetizing Madonna’s content to monetizing the Madonna community.

But what else could be done to monetize the Madonna community and how could it be done in remote places like Myspace, YouTube and Facebook? If we free our imaginations from the constraints of impression based thinking, what if Live Nation created a Madonna currency that they would honor for goods, products and shows and a payment system for exchanging currency for goods and services. They could create an economic utility that fans could use to trade and exchange for goods and services.

Need a Madonna based theme for your MySpace page, 10 Madonas(10Ms) please. Incentive for Super Fans who share user generated content at YouTube and assign the rights to Live Nation – 3Ms per video or whatever makes sense. And guess who’s the bank and chief payment processor – Live Nation. Now that’s a business model worth shooting for.

So what do people think? If you ran a community and could turn it into an economy what business would you want to run? If you think this won’t work why not?

Here’s the list of impression based business models from Chris’s post:

• CPM ads (”cost per thousand views”; banner ads online and regular ads in print, TV and radio)
• CPC ads (”cost per click”; think Google ads)
• CPT ads (”cost per transaction”; you pay only if the customer brought to you from a media sites becomes a paying customer. Here’s an example.)
• Lead generation (you pay for qualified names of potential customers)
• Subscription revenues
• Affiliate revenues (think: Amazon Associates)
• Rental of subscriber lists
• Sale of information (selling data about users–aggregate/statistical or individual–to third parties)
• Licensing of brand (people pay to use a media brand as implied endorsement)
• Licensing of content (syndication)
• Getting the users to create something of value for free and applying any of the above to monetize it. (Like Digg or our own Reddit)
• Upgraded service/content (ed: aka “freemium”)
• Alternate output (pdf; print/print-on-demand; customized Shared Book style; etc.)
• Custom services/feeds
• Live events
• “Souvenirs”/”Merchandise”
• Co-branded spinoff
• Cost Per Install (popular with top Facebook apps who can help others get installs)
• E-commerce (selling stuff directly on your website)
• Sponsorships (ads of some sort that are sold based on time, not on the number of impressions)
• Listings (paying a time based amount to list something like a job or real estate on your website)
• Paid Inclusion (a form of CPC advertising where an advertiser pays to be included in a search result)
• Streaming Audio Advertising (like radio advertising delivered in the audio stream after a certain amount of audio content has been delivered)
• Streaming Video Advertising (like streaming audio but in video)
• API Fees (charging third parties to access your API)

[tags]new media, business models, economics of community[/tags]

Chris MacDonald, Libsyn’s EVP of Business Development and Operations, told me all about the Association for Downloadable Media.

Chris is the newly elected Chairman of the Association. Chris explained that the Association for Downloadable Media is focused on providing standards for advertising and audience measurement for episodic and downloadable media. If you are producing downloadable media the association is working on making it easier for advertisers and publishers to buy and publish ads on this type of content. If you want to get involved you can join the association. Individual memberships are $150 and corporate memberships are $1,000 for now.

 

 Digital Podcast 21 [16:40m]: Play Now | Play in Popup | Download

In today’s announcement, The Association for Downloadable Media (ADM) announced the election results for the 20 inaugural office seat positions including the Executive Board (Chair, Vice Chair, Secretary, Treasurer); eleven (11) Advisory Board seats, Chairs for: Advertising Standards Committee, Education & Outreach Committee, Measurement Committee, Membership Committee and the Terminology Standardization Committee.

Elected individuals for the 4 Executive Committees (Chairman, Vice Chairman, Secretary and Treasurer), 11 Advisory Board seats and 5 Committee Chair positions are:

• Chair
  • Chris MacDonald, Chris MacDonald, Libsyn PRO Enterprise Platform and Indiefeed
• Vice Chair
  • Susan Bratton, Personal Life Media
• Secretary
  • Matthew Snodgrass, Porter Novelli
• Treasurer
  • Duncan Perry, Podcast.com, Treedia.com
• Committee Chair: Advertising Standards
  • Brian McMahon, National Podcasting System
• Committee Chair: Education & Outreach
  • Rob Walch, Wizzard Media
• Committee Chair: Measurement
  • Angelo Mandato, Raw Voice
• Committee Chair: Membership Committee
  • Bryan Moffett, NPR Digital Media
• Committee Chair: Terminology Standardization
  • David Rowley, Kiptronic, Inc.
• Advisory Board
  • CC Chapman, The Advance Guard
  • Jonathan Cobb, Kiptronic Inc.
  • John Furrier, Podtech
  • Rob Greenlee, Microsoft Zune
  • John Havens, BlogTalkRadio
  • Risto Koski, Nokia
  • Jim Louderback, Revision3
  • Mark McCrery, Podtrac
  • Elisabeth McLaury Lewin, PodcastingNews.com
  • Kent Nichols, AskANinja.com
  • Tim Street, French Maid TV

[tags]Association for Downloadable Media, ADM, advertising, new media[/tags]