What are the pros and cons of starting a podcast?
A podcast has a few pros and cons, which you should be aware of before getting started.
Here are the high level benefits and drawbacks of a podcast:
|• Flexibility||• Low margins|
|• Meaningful business connections||• Time commitment|
|• High customer retention rates||• Difficult to build trust with your customer|
|• Quick build time||• Impatient customers|
|• Unlimited income potential||• Difficult to scale|
|• Gain exposure and experience||• Learning Curve|
|• Control of workload||• Equipment Breakdowns|
|• Predictable income stream||• Technical issues can be frustrating|
|• Higher likelihood of getting referrals||• More challenging to earn passive income|
|• Simple business model|
|• Greater Income Potential|
|• You get to do something you truly love|
|• Express your opinions|
|• Strong Demand & Relatively Recession Proof|
|• You get to inspire others|
|• You establish yourself as an expert|
|• You can work from anywhere!|
|• Results and revenue happen quickly!|
You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
• Meaningful business connections
You never know who you will meet or get to work with for your podcast. This could be the start of an incredible business opportunity!
• High customer retention rates
Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your podcast becomes an integral piece of their every day lives.
• Quick build time
The average time it takes to build your product is quick - typically around 3 months. This will allow you to bring your product to market faster.
• Unlimited income potential
With your podcast, there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.
• Gain exposure and experience
This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!
• Control of workload
With a podcast, you get the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.
• Predictable income stream
With a podcast, your income stream is typically predictable based on the number of customers you have signed up. This makes financial planning and outlooks much more seamless!
• Higher likelihood of getting referrals
The podcast is all about referrals, which is a very effective way of attracting and retaining customers. It's critical that you have a great referral program in place that incentivizes your customers to tell their friends about your product.
• Simple business model
A podcast has the advantage of a simple business model, which makes launching and building the business more seamless.
• Greater Income Potential
When you start your own podcast, you have the ability to make as much money as you want. You no longer work for someone else where at any point, you could be let go or get a pay cut.
• You get to do something you truly love
With starting a podcast, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.
• Express your opinions
With your podcast, you have the ability to get your point across and express your opinions to a large audience, which can be very empowering.
• Strong Demand & Relatively Recession Proof
The demand for podcast is increasing year over year and the business is known to be relatively recession proof.
• You get to inspire others
Your podcast is an outlet that encourages and inspires others, which can help you get through the challenging parts of starting a business.
• You establish yourself as an expert
Starting a podcast helps to establish yourself as an expert in your niche. In return, people are more likely to trust you, refer you to friends/family, and support your business.
• You can work from anywhere!
Not only can you start your podcast from home, you can also run your business from anywhere in the world. This is the entrepreneur dream.
• Results and revenue happen quickly!
Unlike other businesses, it can be relatively quick to start seeing results and revenue for your podcast. As long as you follow all the steps to validate your idea before launch, you are likely to see immediate results and ROI.
• Low margins
The gross margins for your podcast are typically around 72%, which can make it more challenging to incur new expenses and maintain profitability.
• Time commitment
With starting a podcast, all responsibilities and duties will be in your hands. Although this is not necessarily a negative thing, it's important to understand that your work-life balance may be a bit unbalanced at times. This can place a strain on friends and family and add to the pressure of launching a new business.
• Difficult to build trust with your customer
With a podcast and any online business, there is little physical interaction, which means it can be a lot more difficult to establish trust and clout with your customers. You'll need to go the extra mile with your customer to grab their attention as soon as they reach your site + assure them that your brand is legit and trustworthy.
• Impatient customers
Your podcast may offer an engaging user experience for your customer, but it's important to note that customers expect a lot when it comes to your product, and are more likely to become impatient with you and your product if there are any errors or bugs.
• Difficult to scale
With a podcast, it can be challenging to find ways to scale. Check out this article that discusses scaling your business and the challenges that come with it.
• Learning Curve
When you start your own business, you no longer have upper management to provide you with a playbook for your roles and responsibilities. You should know the ins and outs of every aspect of your business, as every decision will come down to you.
• Equipment Breakdowns
Starting a podcast involves quite a bit of expensive equipment. Over the years, your equipment will be damaged, will break down, and will need repairing which can be expensive. It's important you prepare for these expenses and try to avoid damages/wear & tear as much as possible.
• Technical issues can be frustrating
A big part of starting your podcast is the ability to work through technical issues. If you struggle with the technical side of things, you may want to consider outsourcing this responsibility to save yourself the time and frustration.
• More challenging to earn passive income
One of the disadvantages of starting a podcast is that it's much more challenging to make passive income. Typically, the amount of revenue you bring in is limited by the amount of time you have in the day and there is a ceiling to your earning potential.