Are there any risks involved with buying a podcast?
Buying a podcast is a great business decision. It’s a great way to boost your income, dip your toes into hosting a podcast, or build out a network. But with every business decision, it’s not without risks.
Keep reading to educate yourself on the potential risks of buying a podcast and prepare for any bumps in the road.
The Value May Decline
As with any asset, there’s a chance it may decrease in value after purchasing.
To prevent this from happening, make sure you’re actively marketing the podcast after you purchase it. Talk to the original host to learn what kind of marketing they’ve been doing to grow the show and what works and what doesn’t. Remember, the goal isn’t only to retain the current community but also to market the show and grow the audience size.
Additionally, you can ensure that the podcast is monetized as quickly as possible. The original host may have existing relationships with brands and advertisers to give you a head start, but if you still need to, get ads on your new podcast as soon as possible.
You May Lose Listeners
If you plan on changing hosts, you’ll want to make sure there is a transition period so that the show does not lose listeners.
Remember, the magic of podcast advertising works because the listeners like and trust the host. If you don’t include a transition phase and change the host one day, you’ll alienate the audience the original host worked so hard to build.
Make sure the audience knows the host is changing, and ideally, bring the new host on the show with the current host for a few episodes to help with the handover.
You Overpayed For the Podcast
Just like anything else, there’s a risk you overpay for your new podcast. To ensure that doesn’t happen, look at the existing revenue and audience size and base your purchase price on these two elements.
At The Podcast Broker, our goal is to help both buyers and sellers get the best deal possible. To learn about the different ways hosts may determine the value of their podcast, check out our earlier blog post, “Determine the Value of Your Podcast.”
Purchasing a podcast can indeed be a savvy business move, offering opportunities to increase income, delve into podcast hosting, or expand your network. However, as with any business decision, it’s crucial to be aware of potential risks. By educating yourself on these risks and taking proactive measures to address them, you can maximize the potential of your podcast investment while minimizing uncertainties.
If you’re looking to sell your podcast, send us a message and someone from The Podcast Broker can assist you.
