Web-radio host Dan Carlin in his garage studio.
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Because Carlin releases his show much less frequently, it doesn't command the highest rates. A majority of his income is generated by listener donations. (Carlin declined to give specific figures.) Other popular podcasters, including Maron and Joe Rogan of The Joe Rogan Experience, produce shows as often as twice a week. Niche technology and business podcasts are especially lucrative. John Lee Dumas, host of interview show Entrepreneur on Fire, says he pulls in ad revenue of $240,000 per year plus an additional $150,000 with a listener membership program. "Sponsors are willing to pay me so much because every single person listening to me is their target audience," Dumas explains.
The medium itself is also growing. According to Edison Research, the percentage of Americans who are listening to Internet-based talk radio has nearly tripled since 2006. Some 17% of Americans now regularly download at least one show per month to their smartphones and computers. The majority are in the coveted, Web-savvy 12-to-34-year-old demographic.
Carlin is a former television reporter for KABC in Los Angeles, where he grew up. He made the switch to talk radio in the 1990s, hosting a political radio broadcast that eventually became the template for his current-affairs-themed Common Sense. But Carlin's often unorthodox political views--he regularly skewers both major political parties in Washington--never quite jibed with corporate radio's obsession with discovering the next Rush Limbaugh. "I remember one consultant telling me that the audience needs to know where you stand on every issue within three minutes of turning you on, and I would ask, 'What normal person is able to distill their beliefs in three minutes?'" recalls Carlin. He broke out on his own using proceeds from a previous Internet venture as startup capital. First came Common Sense in 2004, followed by Hardcore History in 2006.
Carlin begins each day by going through his hometown paper, the Eugene (Ore.) Register-Guard, clipping articles that might provide fodder for his political show, the format of which is similar to your average AM talkfest. He reads news sources ranging from the Huffington Post to al-Jazeera and scours feedback sent by his fans over e-mail and on Twitter. By mid-morning, he turns toward research for the history show. While a typical Common Sense broadcast averages an hour and is produced roughly every two weeks, Hardcore History shows last much longer and require Carlin to draw from 30 to 40 books. He records in a sound booth he built in his garage for about $3,000, and his shows are edited by his one full-time employee using Apple's Logic Pro recording software.
Show Them the Money
The surge in profitable programs wouldn't be possible without interest from advertisers. Some of the biggest sponsors include Web-hosting company Squarespace, Internet-services provider Tucows and Audible, the audiobook subscription service owned by Amazon. Michael Goldstein, the head of marketing for Tucows, says podcasts are appealing because ads that appear on them work. That may be because hosts work the advertising messages into their programs. On a recent Joe Rogan show, the host launched into a diatribe about waiting in line for stamps at the post office. His program is sponsored by Stamps.com a company that sells postage online.