Can you sell airtime on your "podcasts"?

[soundsandsports]

I want to start selling spots on my "audio shows". I upload the shows to http://www.chirbit.com (maybe you've heard of that site...)

I do one show a day, Monday through Friday, and each show is about ten minutes long, so I don't burn out my current listeners. These shows can be downloaded as MP3s, which can be put on an Ipod & therefore are technically "podcasts".

I do two segments on each show, with one 30 or 60 second promo for my shows or my "Audio Network" in between segments. I can make my shows longer with more content, but I'd like to make my shows longer with ACTUAL spots.

Mainly I want to know how selling podcast time works...

Do I have to get a business license to sell 30 second spots, and how much "profits" could I make before I have to pay taxes?

 

[Goat Rodeo Cowboy]

One of the problems of starting up a "micro business" is that you sometimes need the advice of an attorney and they are likely to charge you the same rate (per hour) that they would charge a more robust, established business.

A "business license" is normally a local thing and I suspect a lot of people selling some Avon out of their hall closet and other "low profile" businesses may sneak along for awhile. I would hope your city or your county would cut you a bit of slack in the beginning. Do they charge a business license fee to the guy or the gal sitting at home writing a book? Do they expect a business license from a person who goes out now and then making inspirational, motivational speeches to Rotary Clubs, Lions Clubs, etc?

I believe you live in a state that does not levy an income tax. You are likely to owe Federal taxes when you reach the Federal threshold. Do you have a "day job"? Do they deduct taxes from your paycheck and do you file a tax return each year? If so, you will find (or your tax preparer will find) a place on your Income Tax Return for miscellaneous income. Legitimate expenses of producing your podcast can be subtracted from your income which would result in a "Net Income from your miscellaneous business". Maybe the rules have changed. In the past you could actually operate AT A LOSS for up to three years and reduce the amount of income from your day job and the tax saving would help provide cash to make your start-up business work.

Maybe you know a lawyer through your church or civic activities who would, for free, give you the elevator speech version of what you need to know.

Check with your local library to see if they have books written for people such as yourself who are starting up an enterprise. If they don't, see if Barnes and Noble has an affordable book, or maybe a special edition publication on the magazine rack that answers a lot of your questions.

 

[Goat Rodeo Cowboy]

Another thought: Find someone locally who has a "D.J. Business". He/she has faced all these questions and may be willing to share some advice. I would expect local government would demand a business license for a DJ while they might look past someone sitting a home... doing something not so locally visible.

The DJ may offer some comments on "insurance". Setting up equipment in a public place where people could trip on a wire, or one of those "speakers on a stick" could tumble and bonk someone in the head looks to me like an enterprise where a liability policy should be in place. Maybe even a Worker's Compensation policy. I am hard pressed to visualize what your risks might be that should be insured but if you have a friend who writes insurance for small businesses, ask for some advice.

 

[JeeperOne]

You're going to have a hard time selling people onto the idea of buying time on only a 10 minute podcast. In fact, most podcasts typically run about 30 minutes (That's really closer to the attention span of the average listener/viewer)

You'd be better off downloading all the promos off of PodcastPickle & running those instead

Cheers