The Startup Mindset Every Podcaster Needs

A few years ago, I had an embarrassing experience asking someone to sponsor my podcast. I forgot to ask about their budget, and when they asked for my rate, I made up a number. They immediately said they would pay ONE HUNDRED DOLLARS more than what I said, which let me know my rate was at the bottom of their budget, and I sold myself short. Really short.

So how do you value a podcast? I looked at how to value a startup. A podcast is like a startup, right? A startup’s valuation denotes what it is worth at a given point in time. Factors that make up the valuation include the product or service's development stage; proof of concept in the market; the CEO and their team; peer or similar startup valuations; existing strategic relationships and customers; and sales.

I have been wrestling with the term ‘valuable’ for a year. I received an email from Medium to write about what I determine as valuable and what makes it valuable and I was stumped. Seriously. 

I know my nind was valuable. I’ve always been proud to say, "Give me an afternoon and a book, and I can learn anything." But what happens when you have to determine what you actually WANT to spend your time on? This is a lot more difficult. How would I value my podcast?

This is the prompt from Feb. 16, 2022: Assessing Your Value as a Creator

• How do you assess your worth as a creator? 

  • Based on the value you bring to a project/client? 

  • Based on the country you live in and your respective living expenses? 

  • Where is the client based? 

  • What does the client think you are worth? Something else? 

• What is the importance of knowing your value in the Creator Economy, not just as an individual but as part of a collective?

I spent a few hours trying to find the best title for this article; something like 'I am invaluable but my content costs this much.' But I didn't like this and couldn't get past the title to even write the article.

Was my podcast valuable if I wasn't earning money that season? Was my podcast only valuable when I had a sponsor?

Well, I spun and spun and spun in circles, never submitted anything, and fell into a depression because I couldn't determine the value.

• I was working on the 4th season of my podcast.

• I didn't have a podcast sponsor.

• I was trying to earn some money.

I did not feel valuable. I could not determine what was valuable. Was my podcast valuable if I wasn't earning money that season? Was my podcast only valuable when I had a sponsor? My podcast is valuable now, and it was valuable when I was not earning money. But I had to understand that.

So I researched 'How to value a startup,' and let me save you some time and frustration: startup company valuations are not the right metrics for podcast valuation. I could only know the external value of my show by asking people, and I don’t have access to every podcast listener. 

But I do have access to the newsletter subscribers. So I began asking the audience whether they had changed jobs since listening to this podcast. If I changed the podcast from biweekly to weekly episodes, would they continue to listen? If I took a month-long break, would you be looking for the podcast or contact me to see if I was okay? Yes, Yes, and Yes. So there is value to the podcast from the people who responded to the quiz. 

But what else? I know that it is in my best interest of myself to make the guests sound as good as possible. But what is that worth? The value of anything must be more than the current cost of the thing. The podcast costs about $55 a month to run, because of the RSS host and the video recording platform. However, the value of the lessons in each episode far exceeds $55. The value of my time spent finding and engaging with guests and editing the content far exceeds $55.

I love chatting with guests, and I do that for free. If someone offered to pay me $400, would that make the podcast valuable? No. I still had to determine the value of the podcast because there was an opportunity cost to recording that interview and not doing seven other things at the moment. It turns out, the value of a podcast is the value you give it.

Does my value have to be tied to money? The dictionary says that the value of something is determined by its supply and demand. So for every new podcast episode, I have 3 lawyers ask to be on the show. That shows demand, right? But what is that worth? 

It turns out, the value of a podcast is the value you give it.

Well, it is worth guests waiting 3 months from the time we record their episode until we release it, because that is my current turnaround rate. That shows supply, too, right?

I am on a quest to find books that help me value my time and my contribution to the career and podcasting space. 

I record videos where I say things like, I’m just a tattooed lawyer, Ohioan, who is making a contribution, and y'all listen.’ Is that incorrect? Should I say, of course, you are listening because I created this show, duh. Is that it?

I started writing this blog because there is no simple way to determine the value of a podcast or its host. Many creators see paid sponsors and partnerships as signs that their content is valuable, but I would argue that this is incorrect. Your content had to be valuable before there was a literal price attached, or no one would have offered to pay for the podcast or acquire it within their podcast network.

We need to get a little technical, but whether you are running your podcast like a business or not, you need to know a few business metrics: your monthly burn, your effective hourly rate, your cash machine number, and your wealth gap.

• Monthly burn is the amount of money spent to run your podcast.

• Effective hourly rate is how much money you bring in with your podcast divided by how much time you spent on tasks related to your podcast.

• Cash machine number is the money you earn from your assets, such as existing podcast-related products like your newsletter or website ads.

• The wealth gap number is the gap between what you earn from your podcast and what you spend on podcast-related tasks.

As I said before, for a long time, my podcast was in the red, which meant that even the $55 I spent on it was money I did not have because I was not earning anything from it. I believe companies and brands knowing the podcasters are not making anything from their podcasts is what keeps brands using outdated metrics like cost per mille (per every thousand) downloads. While this may feel unfair, it is not. The world is unfair and these brands want to know that their products are being heard by hundreds of thoudands of ears.

Every podcaster must remember that there is money to be made for your podcast; it might not come from the big boys. Mom-and-pop shops and businesses have the money you want; you probably don't need a 6-figure deal. You probably wouldn't know how to ask for that, but you can ask for a 3-figure deal, and that will cover the car note coming up in a few weeks. 

So valuing your podcast is tied to money, experience, and confidence. But ultimately, it is tied to the effort and attention you put into the podcast. 

Happy podcasting! 

Kyla