In this brief guide we will teach you exactly how different radio stations make an income. First of all we will look at the different types of radio stations as each business model uses a different technique to profit from their online radio venture.
The main internet radio businesses are:
- Hobby & Professional Broadcasters
- Retail & Businesses
- Religious Groups (profit free)
- Education & Schools (profit free)
Religious groups and schools are in almost all cases profit free radio services, so lets cover the broadcasters and businesses:
Hobby & Professional Broadcasters
The internet radio hobbyist loves music. He/She has a passion for a specific genre and more often than not loves to be heard. Sadly hosting a radio station to play your favourite music and be a DJ can be expensive for some and for those who don’t want to keep investing for zero profit, there are a few methods to use to turn this around. Many private radio venturers are now making a living from what started as a bedroom hobby.
- Accept donations on site using paypal. Its so easy to create a paypal account, anybody can do it. Well paypal has a free option to collect donations. They provide a button for your website which allows a listener to send your internet radio station money to cover costs of expenses. If you state on your website that your radio station is a non-profit venture and funds are required to keep the station alive… Well guess what… Everyone who loves your radio station and comes to listen each day is guaranteed to donate a small amount each month. If done right, radio stations can pay for their radio hosting, web hosting, buy new music, and have something left over for themselves using this method alone.
- Google adsense is a fantastic service which is also known as PPC (Pay per click). The whole idea of adsense is to place a small code on your website which generates links or banner based adverts on your radio station website. The code uses content from your website to find the ads from advertisers which match your websites genre. The real magic however starts when someone clicks on an add… Most clicks are worth $2-3 dollars now. So if your radio station has 1000 visitors/listeners pass by throughout the whole day, and say 5% of those visitors click on one of the sponsored adwords links each day. That would be 50 clicks per day which would generate you aprox $125 per day. The google adwords service is free to set up and anyone can do it. The service can be found under the ads section on google.
- On air advertising applies to professional broadcasters and developed radio stations the most. When your radio station has a good amount of traffic, people will pay for you to advertise them on air. The amount will greatly vary depending on how big or small your internet radio station is. A great marketplace to sell advertising space for your radio station, if your a small is fiver.com, or even ebay. If you have a good looking website with a respectable amount of traffic people will pay anything from $5 – $50 per played advert.
Retail & Businesses
In store and office radio has become an important part of the way that many businesses operate. A radio service can reflect a highly professional company image to buyers, it can improve customer experience, and it can help market new products. Recent studies have shown a 20% increase in sales for store owners who play an internet radio station throughout their store. The primary goal is to create what businesses call a “good shopping atmosphere or climate”. This is accomplished by finding the perfect music genre to suit the “atmosphere”. For example a toy store would be best suited to play pop music, while a furniture store would be best suited with jazz or lounge music, and perhaps a classic American diner could play classic rock from the 60s. The secondary goal is to market products via in store radio to increase sales. One example of this would be a computer store that specialises in selling hardware and software to play on air ads regarding the latest promotions i.e. “when you spend $50 in store today, Norton antivirus is half price”… Its a great way to get the message across. You don’t need to rely on huge advertising posters to be placed across the store in order to let the customer know your latest deals. As mentioned previously retail radio will increase sales by 20%.
So thats the first collection of internet radio money making tips from Citrus3. If you have any questions regarding any of the methods mentioned above please contact us from our website. To set up your own internet radio station visit us at Citrus3.com