4 Ways To Make Money From A Personal Newsletter Business
Hey - Stephen here,
I've been asked a few times why I started a newsletter 'business'. Sometimes, I ask myself the same question.
In 2017, Pat Walls at Starter Story asked me for an interview. It was an interview for his newsletter he'd just launched.
When video format exploded on Social media, I thought Pat's business might struggle. I even said this to him at the time.
His business now generates over $1M p/y
I was very wrong. It's now 2024, and the newsletter is making a comeback.
But how does it make money?
What we'll cover
Overview
A digital newsletter is an email distributed to subscribers. Typically, the subscribers are interested in a topic, and the newsletter contains industry news, trends, tips, or personal insights.
It's a simple exchange of value. The newsletter provides free value in exchange for your attention.
However, what we see today slightly differs from the past because the newsletter is intertwined with the personal brand (which I'll discuss in another letter). It also helps to generate leads and find jobs.
So what's the point if it doesn't make immediate money?
After doing some research, I found multiple ways the top thought leaders make money from their letters, but to do so, they need to focus on delivering a quality product to their subscribers.
Distribution
To consider monetising a newsletter, you need a content plan that delivers relevant content to your audience. You can do that through 'distribution.'
Distribution is publishing content across various online platforms to reach a wider audience.
For instance, I use LinkedIn to distribute my ideas and content to a broader audience. I've put a plan in place to do this daily.
You should have a plan to deliver quality. What's your area of expertise, and can you talk about it for hours? A deep understanding of a topic or industry will make delivering quality much more effortless.
I chose online marketing and business as my area of expertise.
Design
Here's a scenario.
Imagine receiving two holiday options—one holiday to a log cabin next to the northern lights and another to a busy landfill.
Which one would you choose?
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Consider how you represent your newsletter to your subscribers.
A good design represents a good experience.
I've implemented this with a minimalist design.
How to Monetise a Newsletter
So far, I've noticed four strategies to monetise a newsletter.
Subscription
Free, freemium and paid. Paid is the one we'll look at. For a paid subscription to work, the newsletter tends to be more established with a loyal subscriber base.
For instance, If I start charging for my newsletter today, I'd be writing alone, but 5 to 6 years from now, I might be able to charge a small fee to join in exchange for more value. Even with a ￡1 subscription fee and a subscriber list of 5000, it is enough to earn a full-time income.
Sponsorship
Sponsorships are an important part of the newsletter economy, and it makes total sense. It's the process of a business paying you to advertise its products or services to your readers.
Sponsorship can be integrated into the content, for example, an entire newsletter on 'how I used Shopify to start my e-commerce store' or as external links at the beginning or end of the letter. A good sponsor will pay thousands of pounds to advertise to your subscribers, and it's one of the reasons why large newsletters remain free.
Digital Products
Creating and selling a digital product to your audience is the difference between a 6 and 7-figure newsletter. The reason why it's such a good idea is because once the digital product is available, it's available forever. It doesn't need to be manufactured or stored, and with an email list large enough, it doesn't have to be expensive.
If only half a subscriber list of 100,000 buys a digital product for ￡10… You do the math.
Physical products
Physical products are a little more time-consuming, but the value of producing them with your branding is priceless. It provides a subscriber with a piece of YOU in their home. Typically, this is done in book form, but other times, it's done as merchandise or productivity tools. Physical products are a good test of your audience.
I am still determining which strategy I will use in the future. For now, I plan to provide free value.
Before I wrap up,
Here are a few tips for launching and growing your newsletter
A newsletter is a great cost-efficient way to earn a second income. Why not give it a try yourself?
P.S
I'm giving away a free copy of The Advertiser's Playbook, which goes deep into how to utilise paid ads to make money for your business.