How to Set Your Per-Episode Pricing to Ensure That You Reach Your Annual Income Goal?

How to set your per-episode pricing for your podcast production/editing services to ensure that you reach your annual income goal? In short, decide how much money you’d like to earn per year doing podcast production/editing, and then work the math backwards to determine how much you have to charge per episode. Then, secure enough clients at that rate.

Here’s the detailed method:

Decide how much money (gross revenue) you’d like to earn per year from your production services. Then divide by 12 to determine your monthly gross income goal.
Decide how many total hours per week you’re committed working on podcast production. Then multiply by four to determine how many hours per month you’re committed to working.
Figure out the average amount of hours it takes you to produce one average episode (average length, average number of participants, average mixing time, average attention to editing detail, average time for ancillary tasks like tagging, posting, etc. — this will require research and testing, and/or reviewing how long previous episodes have taken you to produce).
Figure out how many podcasts episodes you’re able to produce each month by dividing the total hours per month you’re able to work by the amount of time it takes you to produce one average episode.
Figure out how many episodes you’re able to produce per month by dividing your total available monthly working hours by the amount of time it takes you to produce one average episode.
Figure out how much you need to charge clients per one average episode by dividing your monthly gross income goal by the number of episodes you’re able to produce per month.
Then, secure enough clients at that per-episode rate.

And now you know what to charge clients to ENSURE that you realize your yearly income goal! (as long as you secure enough clients at that rate)

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2 Responses

Clive Maloney says:

June 9, 2020 at 3:54 am

While this model ensures you hit your income goal, you also need to consider your overall pricing strategy. Are you looking to be a premium service or perhaps charge near the going rate? Who are your clients and will they pay what this equation tells you to charge?

If, for example, you want to make a million pound in year one, but only want to work 1 hour per week, that’s probably not going to happen.

I’m not suggesting you shouldn’t use this model (you absolutely should), but you also need to think about your overall pricing strategy and apply some common sense.

Keep up the good work Chris. I’ve been reading your posts for nearly a year now and always watch out for them.

Reply
1. Chris Curran says:
  
  June 9, 2020 at 12:05 pm
  
  Yeah, I assumed using common sense was a given 😉
  
  Reply

How to Set Your Per-Episode Pricing to Ensure That You Reach Your Annual Income Goal?