Most people may think that setting up an internet radio station is a direct ticket to make money online. It takes hard work, commitment, and above all a good plan to succeed. Initial set up costs are also high, contrary to the normal thoughts out there that starting this business is an easy venture. In this article, we are going to tackle the various ways through which online radios make money and possibly suggest the best ways you can follow to start and promote your internet radio station with the aim of earning money.
So how can you earn money from your internet radio station?
Internet radios don’t rely on one way to earn cash. There are different business models that you can follow to start and promote internet radio station in order to earn money. The two main models use are:
1. Sponsorship model
This model is a more indirect method of advertising used by internet radios. In this model, companies pay to sponsor particular shows aimed at target audience or demography. The way it works is the presenter mentions the sponsor at the start and end of a show, endorsing the sponsoring company or their service. Some radios also showcase the sponsorship in their site.
Advertisement model
In the advertisement model, companies pay for air-time. This is the most common method used that is tried and tested. Small sound bites get played in between tracks. It is a simple but efficient way to grab the listener’s attention.
Other ways to earn money
3. Membership
This is another sure and effective way to generate revenue. If managed correctly, you can make a good fortune out of your internet radio. To justify your membership fee, you need to be a notch higher from the free to air internet radios. Justify to your listeners that the content is worth the fee you’re charging them.
4. Donations
Rather than going the membership way, you can also decide to go off goodwill and generosity from your listeners. You can embed a PayPal donate button on your website to allow listeners donate what they want. The good thing with this model is that there is no limit on the amount you can receive, but you are also not sure of how much you’ll get making it not a long term option of making money from your online radio.
5. Affiliate marketing
Online businesses have affiliate programs that pay money bases on the number of clicks. Some even pay a commission on sales originating from clicks. Unique tracking IDs are used to track the number of people funneled from your website.