Substack is a platform that allows individuals and businesses to create and monetize newsletters. It’s a good option for those who want to build a content-based business because it is easy to use and supports both free and paid subscriptions.
Pros of Using Substack to Build a Content Business:
One of the main benefits of using Substack is that it takes care of the technical aspects of running a newsletter, such as email deliverability and subscriber management. These tasks have a steep learning curve initially and require a review of any constantly changing email newsletter best practices. Leaving these tasks with Substack means that you can focus on creating and curating content for your audience.
When it comes to monetization, Substack charges a 10% fee on all paid subscriptions, while Stripe, the platform’s payment processor, charges an additional 2.9%. While this fee may seem like a major cut of your revenue, it’s important to remember that Substack handles all of the backend work and makes it easy for you to build your audience and start making money from your newsletter.
Substack also allows you to use your own custom domain, which can help you establish your brand and build trust with your audience. If you already have a brand and an audience on another platform, you can bring your own subscriber list to the platform, which means that you don’t have to start from scratch in terms of building an audience.
In summary, Substack
- Is an easy-to-use platform that handles the back-end aspects of running a newsletter
- Keeps it simple by allowing monetization through paid subscriptions
- Gives the option to use your own custom domain
- Allows bringing your own subscriber list
- Offers a variety of tools to help you grow your audience and engage with your followers
Cons of Using Substack to Build a Content Business:
There are a few things you need to keep in mind when using Substack to build a content business. For one, you will need to write quality articles frequently, because users are paying for a subscription. This means that you will need to be consistent and reliable when it comes to publishing content.
Additionally, your options for monetization are limited to paid subscriptions, so you can’t include affiliate or sponsored links in your newsletter. Furthermore, Substack charges a fee of 10% and an additional 2.9% fee is charged by the payment provider Stripe. So, if you are making 10,000$, almost 1,300$ will be subtracted from your paycheck and you will only be paid 8,700$.
Another thing to consider is that building a successfully paid newsletter requires a strong personal or business brand. With so many options available including free options, you will need to be able to convince users that your content is worth paying for. Furthermore, Substack paid subscription feature is not available in all countries, so make sure to check the availability in your country.
In summary, Substack
- Limits the monetization options to paid subscriptions
- Takes a 10% fee on all paid subscriptions, Stripe takes 2.9%
- Requires a strong personal or business brand, and a clear value proposition for your audience
- Doesn’t support all countries for a paid subscription
- Requires a consistent approach, having to publish content on a regular basis
- Has limited design and layout options, limited analytics and data, and limited integration options
Is Substack Suitable for New Writers?
There are specific benefits for new writers when using Substack to build a content business. Some of these benefits include:
- Low barrier to entry: Substack is a user-friendly platform and requires no technical expertise to set up and start publishing content. This makes it possible to build a business for new writers who may not have experience with the website development and email marketing.
- Establishing an audience: Substack allows you to build your own subscriber list, which can be a great way for new writers to establish an audience. This benefit is particularly beneficial for writers who are just starting out and may not have a large following on social media or blogs. If you are an established email marketer, you can bring your own subscriber list to the platform, which means that you don’t have to start from scratch in terms of building an audience.
- Monetization opportunities: Substack allows for monetization through paid subscriptions, which can provide an opportunity for new writers to make money from their writing. This can be especially beneficial for writers who may not have a lot of experience with monetization or who may not have a large audience yet.
- Build a brand: Substack allows you to use your own custom domain to help you establish your brand and build trust with your audience. If you need to move out of Substack, the custom domain will also make it easy for you to take your brand with you to some other platform.
- Learn from experienced writers: Substack has a large community of writers who have experience building successful newsletters on Substack. New writers can learn from their experiences and strategies.
- Feedback and engagement: Substack has a built-in commenting system that allows your readers to give you feedback on your content and engage with you. This can be a great way for new writers to improve their writing and align with the audience’s interests.
Overall, Substack can be a great platform for new writers to build an audience, monetize their writing, and establish their brand. However, it’s important to remember that building a successful and paid newsletter requires creating a strong personal or business brand, and delivering consistently with a clear value proposition for your audience.
Is Substack Good for Established Writers and Content Brands?
Substack can be a good option for established writers and brands, but it will depend on their specific needs and goals. Here are a few potential benefits and drawbacks for established writers and brands:
Pros:
- Monetization opportunities: Substack let users monetize their writing through paid subscriptions, which can become a reliable revenue source for established writers and brands.
- Building a loyal audience: By using Substack, established writers and brands can build a loyal audience who are interested in their specific content and are willing to pay for it.
- Branding and credibility: Substack allows you to use your own custom domain. This can help you establish your brand and build trust with your audience and is especially beneficial for established writers and brands who already have a strong reputation in their field.
- Reach a new audience: Substack provides established writers and brands a new platform to reach a new audience and expand their readership.
Cons:
- Monetization is limited: The monetization options on Substack are limited to paid subscriptions. So established writers and brands may not be able to make money from other sources, such as affiliate or sponsored links.
- Limited design options: Substack has limited design options for the newsletter templates. So established writers and brands may not be able to fully customize their newsletters to match their existing brands.
- Limited analytics and data: Substack provides limited analytics and data compared to other platforms. So established writers and brands may not be able to track their audience engagement and growth as effectively.
- Limited integration options with other platforms: Substack has limited integration options with other platforms, which can be a drawback for established writers and brands who are looking to expand their reach and audience.
In summary, Substack can be a good option for established writers and brands, but it depends on their specific needs and goals. Substack can be a great platform to help them monetize their writing and expertise and to reach a new audience. But the monetization options are limited, and Substack might not be the best option if they are looking to expand their reach and audience. Additionally, the limited analytics and data, and the limited design options may not work for those that already have a strong established brand and should keep the same design across all their platforms.
Who is Substack Suitable for?
There are certain groups of people who will find Substack suitable for their needs. These include:
- Writers and brands who are looking to monetize their expertise through paid subscriptions: Substack allows for monetization through paid subscriptions. So writers and brands looking to make money from their content may find it suitable.
- Writers and brands who just want to focus on writing: Substack is a user-friendly platform that requires no technical expertise to set up and publish content, making it accessible for those who are new to the field and for those who would only like to spend time writing.
- Writers and brands who are looking to establish a loyal audience: Substack allows you to build and own your subscriber list, which is a great way to develop a loyal audience.
- Writers and brands who are looking to establish their brand: Substack allows you to use your own custom domain which can help you build your brand and establish trust with your audience.
- Writers and brands who are looking to improve and grow: Substack has a built-in commenting feature that allows your readers to give you feedback. This can be a great way for writers to listen to the readers and improve their writing.
Who is Substack not Suitable for?
There are certain groups of people who are unlikely to find Substack suitable for their needs. These include:
- Writers and brands who are looking for more than a paid newsletter: Substack primarily allows for monetization through paid subscriptions. So, writers and brands looking to make money through affiliate or sponsored links may not find it suitable. Substack also has limited integration options, analytics and data, and limited design options. So writers and brands that are looking to expand beyond a simple and paid newsletter may not find it suitable.
- Writers and brands with a strong visual component: Substack has limited design options for the newsletter templates. So, writers and brands with a strong visual component to their content may not find it suitable for their needs.
- Writers and brands in unsupported countries: Substack paid subscription feature is not currently available in all countries. So, the platform will not work for the writers and brands in these unsupported countries.
Final Words
Overall, Substack is a solid platform for those who want to build a content-based business. It offers an easy-to-use interface, handles technical aspects of running a newsletter, and allows for monetization through paid subscriptions.
It is worth noting that building a successful and paid newsletter is not easy, it requires a lot of hard work and a strong personal or business brand, as well as a clear value proposition for your audience.
Remember you are competing against something that is always difficult to compete against, which is free content. However, Substack can be a great platform to help you monetize your writing and expertise, but you should weigh the pros and cons and check suitability against your goals, and current and future business requirements before making a decision.
