Why Some Podcasters Are Rethinking Their Sponsorship Strategy

When I started podcasting in 2012, selling ads seemed like the obvious path to monetization. But after running multiple shows and talking with thousandas of podcasters through Transistor, I've learned that sponsorships aren't always the magic bullet people think they are.

When Creator Science's Jay Clouse recently announced he's scaling back podcast sponsorships in 2025, it highlighted a growing tension in the podcasting world: the trade-off between immediate ad revenue and creative freedom.

The real cost of podcast sponsorships

Back when I was doing the Product People podcast, I experimented with sponsorships. What I discovered matches what many of our Transistor customers report: managing sponsors takes way more work than most people realize.

Here's what nobody tells you about podcast sponsorships:

• You're basically running a mini ad agency (contracts, tracking, reporting)

• Your publishing schedule is dictated by sponsor deadlines

• You spend hours on admin work instead of making your show better

• There's constant pressure to maintain specific download numbers

In particular, I didn't enjoy the pressure to publish an episode (even if it was mediocre) to meet my obligations to an advertiser. As Jay explains:

I don't want the publishing schedule to be dictated by timelines with sponsors.

What's working instead?

What's particularly interesting about Clouse's approach is his discovery that promoting his own products in ad spots can be significantly more profitable. During a test run, he found that promoting his Creator HQ product generated 3x more revenue than a traditional sponsor spot would have.

This reminds me of my conversation with Nathan Barry (founder of Kit) on the Build your SaaS podcast. He told me:

The best marketing channel is the one you own. When you build your own audience and promote your own products, you're building a sustainable asset.

Finding Your Balance

If you're thinking about your podcast's business model, here are some approaches I've seen work well:

1. Selective Sponsorships

Instead of taking every sponsorship opportunity, focus on longer-term partnerships that align with your show's schedule and values. This might mean fewer sponsors but more meaningful relationships.

2. Diversified Revenue Streams

• Create and promote your own digital products

• Develop premium content or membership programs

• Offer consulting services in your area of expertise

• Build email lists and other owned marketing channels

3. Optimized Processes

Before scaling up sponsorships, ensure you have efficient systems in place for managing relationships and deliverables. Without these, sponsorships can quickly become overwhelming.

Jay Clouse interviewed Justin Moore on how to manage the sales process with advertisers:

The power of creative freedom

"I'm really excited to get back to creating some of my own projects again and not feel like I'm answering to someone at all," Clouse shares. This freedom to create without constraints often leads to better content and, ironically, more opportunities for sustainable monetization.

What should you do?

Here's my advice after watching thousands of podcasters go through this journey:

Start small. You don't need to make any drastic changes. You could:

• Calculate the true ROI of your sponsorships, including time costs

• Test promoting your own product in one ad spot

• Try one month without sponsors

• Focus on building your email list

The beauty of podcasting is that it's your show – you get to decide how to run it.

Cheers,
Justin

Looking to start or grow your podcast? Transistor provides the reliable hosting and analytics you need to focus on what matters most – creating great content on your own terms.