How To Build A $200k/Year Paid Newsletter

Name: How To Build A $200k/Year Paid Newsletter
Uploaded: 2024-07-17T13:00:23.000Z
Duration: 1 h 38 min 27 s

How to Build a Successful Paid Newsletter

Introduction to Building Paid Newsletters

The speaker shares their experience of building two successful paid newsletters, achieving multiple six figures in recurring revenue.

The first newsletter, "Category Pirates," became a top five business newsletter on Substack within a year; the second is "Write with AI," which recently reached $200,000 annually.

Differences Between Free and Paid Newsletters

Discussion on the differences between free and paid newsletters, emphasizing that not all topics are suitable for subscription models.

Free newsletters typically monetize through ads or digital products. The speaker prefers digital products over sponsorships due to better control and potential profitability.

Monetization Strategies for Free Newsletters

To monetize free newsletters effectively, one must build trust with subscribers and guide them towards purchasing digital products or courses.

The speaker critiques reliance on sponsorships and affiliate marketing, arguing that creating one's own product is more beneficial than promoting others'.

Evolution of Paid Newsletters as a Business Model

Paid newsletters are a relatively new concept; the speaker recalls attempting to start one in 2018 before tools like Substack existed.

Substack's emergence revolutionized the paid newsletter landscape by providing specialized tools for creators.

Understanding Pricing and Product Differentiation

As paid newsletters are still evolving, there’s no established pricing model; creators must navigate this uncertainty while determining their value proposition.

Growing two successful paid newsletters has shown the speaker that they differ significantly from free models aimed at selling other products.

Understanding Paid Newsletters: A Comprehensive Guide

The Concept of Paid Newsletters

The speaker emphasizes that a paid newsletter should not be viewed as a traditional newsletter; instead, it is akin to an evergreen book that continuously provides value.

Readers often desire more depth and follow-up information after finishing a book, which is the gap that paid newsletters aim to fill by offering ongoing insights on specific topics.

A paid newsletter allows for continuous engagement with readers, resembling a collaborative writing process where feedback can shape future content.

Differentiating Free and Paid Newsletters

Free newsletters serve as attention assets and trust-building tools, while paid newsletters are the actual product being sold to consumers.

Transitioning from free to paid requires understanding the shift in relationship dynamics; readers must perceive clear value in what they are paying for.

Challenges of Subscription Models

With subscription models (monthly or yearly), creators must consistently demonstrate value to retain subscribers, effectively reselling their worth with each new piece of content.

Simply charging for content does not guarantee payment; if readers do not engage with free material, they are unlikely to pay for premium offerings.

Successful Newsletter Types

The speaker identifies two primary types of successful paid newsletters: those based on researched curation and those that provide unique insights or expertise.

Researched curation involves aggregating valuable information on specific topics, allowing subscribers to benefit from expert analysis without having to conduct research themselves.

Value Exchange in Paid Newsletters

Subscribers pay for the effort put into curating and interpreting information. This creates a direct value exchange where the quality of insights justifies the cost.

Understanding the Value Exchange in Paid Newsletters

The Importance of Research and Delivery

The speaker emphasizes the necessity of in-depth research on a topic, leading to interesting conclusions that are shared regularly with subscribers as part of a value exchange for payment.

Quality of writing is secondary to delivering value; even poor writing can succeed if it meets the audience's needs effectively.

Types of Paid Newsletters

Researched Curation

One successful model for paid newsletters involves providing researched curation, where readers pay for the writer's time and effort in gathering information on specific topics.

Pricing strategies depend on the subject matter; different topics attract different audiences willing to pay varying amounts.

Original Thinking

Another effective model is original thinking, where readers gain insights and industry expertise that they cannot easily access elsewhere.

This type of newsletter offers behind-the-scenes knowledge and accelerates readers' understanding by sharing valuable lessons learned from experience.

Challenges in Newsletter Success

If a newsletter does not fit into either researched curation or original thinking, it may struggle to find success. Many creators fail because they do not clearly define their value proposition.

A common pitfall is focusing too much on personal branding rather than addressing how content helps solve specific problems for readers.

Misconceptions About Writing Talent

The speaker argues that many writers mistakenly believe their talent alone will attract subscribers; however, it's crucial to focus on what value they provide instead.

Personal branding often leads individuals to overestimate their appeal; true interest lies in content that addresses reader needs rather than individual accolades.

Learning from Outliers

While outliers exist who defy conventional rules (e.g., unique writing styles), they should not be used as primary examples for replicating success due to their rarity.

The speaker shares personal experiences with monetizing writing through various avenues, emphasizing practical strategies over luck or exceptionalism.

Understanding the Path to Successful Paid Newsletters

Monetizing Writing Experience

The speaker shares their extensive experience in monetizing writing, having self-published 10 books and achieved multiple six-figure earnings. They emphasize that success did not come from luck but through understanding frameworks and patterns.

Categories for Paid Newsletters

When considering starting a paid newsletter, it should fall into one of two categories: researched curation or original thinking. Original thinking is recommended for industry experts with significant information advantages.

Criteria for Starting a Paid Newsletter

For those lacking expertise or pattern recognition, the researched curation route is advised. The speaker notes that transitioning between these approaches is possible based on one's growth and audience engagement.

Business Model Insights

The speaker views paid newsletters as high-margin businesses that can provide ongoing subscription revenue. They describe it as an "infinite game," where passion for the topic sustains long-term engagement.

Importance of Repeatability in Topics

A successful paid newsletter must focus on infinitely repeatable topics. This means selecting subjects that allow continuous content creation without running out of material, akin to a never-ending book.

Example of Topic Selection Challenges

The speaker reflects on an idea for a newsletter about self-publishing but realizes this niche lacks rapid developments compared to finance, which has constant updates and trends. This highlights the importance of choosing dynamic topics for sustained interest.

What Makes a Paid Newsletter Successful?

Exploring Topic Viability

The speaker reflects on the time frame for exploring topics, noting that some subjects may not be suitable for frequent updates. They emphasize the need for a topic that can sustain interest over time.

A key consideration is whether the topic allows for continuous new information. Fields like finance and politics are highlighted as examples where constant developments occur.

Writers should choose topics they are passionate about to ensure they can generate content indefinitely without running out of ideas.

Tangibility in Content Creation

Successful paid newsletters often promise tangible benefits rather than vague promises. This tangibility is crucial for attracting and retaining subscribers.

Examples from financial newsletters illustrate how providing concrete assets, such as reports or frameworks, enhances perceived value.

The speaker shares their approach with AI prompts as tangible assets in their newsletter, emphasizing the importance of offering something that readers can utilize directly.

Creating Objective Outcomes

It’s important to focus on objective outcomes rather than subjective ones when defining what readers will gain from a newsletter. Subjective outcomes lead to varied interpretations among readers.

The speaker explains that subjective phrases can dilute word-of-mouth marketing because each reader interprets them differently, leading to inconsistent messaging about the newsletter's value.

By framing outcomes objectively—such as providing tools to achieve specific career advancements—the message becomes clearer and more universally understood among potential subscribers.

Understanding the Challenges of Building a Paid Newsletter

The Complexity of Word of Mouth Marketing

When multiple people mirror the same message, it accelerates word-of-mouth marketing. This concept is often challenging for individuals to grasp.

Expectations vs. Reality in Business

Many entrepreneurs desire high-margin businesses that allow flexibility and authority but are surprised by the challenges involved. They expect effortless success without understanding the effort required.

Skill Development Over Quick Fixes

It's essential to view building a paid newsletter as a skill-building process rather than seeking quick answers. Mastery leads to ongoing success in creating valuable products.

Price Anchoring for Value Proposition

A successful paid newsletter must be price anchored to tangible benefits, whether solving existing problems or enhancing intangible aspects like happiness and fulfillment.

Making Intangibles Tangible

To effectively price anchor, one must translate intangible benefits into concrete outcomes, demonstrating how they can save money or improve life quality through specific examples.

The Importance of Reader-Centric Value

Readers are primarily interested in how content will benefit them personally. Pricing should reflect this value rather than just charging for access to writing.

Addressing Objections with Practical Examples

Common objections arise from uncertainty about quantifying benefits. However, using estimates (napkin math) can help articulate potential savings or improvements effectively.

Case Study: Yoga Membership Pricing Strategy

An example illustrates how to price anchor yoga routines by considering customer pain points—like low back issues due to sitting—and offering affordable at-home solutions.

Comparative Cost Analysis

By comparing costs between traditional yoga memberships and a more accessible online solution, one can highlight significant savings while providing tailored content that fits busy lifestyles.

Understanding the Essentials of a Paid Newsletter

Key Insights on Building a Successful Paid Newsletter

The ability to complete tasks quickly (in 15 minutes) is crucial, and this skill comes from repeated practice across various industries. This highlights the importance of experience in mastering newsletter creation.

Doubts about price anchoring often stem from a lack of skill rather than industry limitations. It's essential to recognize that all niches can benefit from effective pricing strategies.

Four critical criteria for a successful paid newsletter include:

It must be infinitely repeatable.

It should promise tangible assets rather than intangible benefits.

Outcomes need to be objective for better performance.

It should be price anchored to either an upside or downside mitigation.

New writers often struggle with the mindset shift required for success; they must focus on what potential readers care about instead of assuming their writing will automatically attract interest.

A general rule of thumb is to give your newsletter at least six months before assessing its potential. Early indicators can help gauge future success, as seen with past projects like Category Pirates and With AI.

Evaluating Newsletter Performance

If after six months the newsletter generates minimal revenue, it may indicate issues such as lacking a traffic engine or not meeting established criteria for success.

Many individuals have strong traffic engines but fail when launching newsletters due to unmet criteria. Stress testing these elements is vital for long-term viability.

Consistency over time is key; avoid premature conclusions about your newsletter's performance within short time frames like two weeks or three months.

Advanced Strategies in Newsletter Publishing

An advanced publishing model developed during the creation of Category Pirates involved producing long-form content that evolved into valuable archives over time, which could later be repurposed into books.

Initially priced at $20/month or $200/year, the paid newsletter aimed for extensive original content weekly but shifted to bi-weekly due to reader capacity and engagement levels.

The realization that valuable content was buried in archives led to insights on how similar topics could create thematic collections over time, effectively forming book-like compilations from newsletters.

By following these structured insights and understanding the nuances discussed, aspiring newsletter creators can enhance their chances of building successful paid offerings while avoiding common pitfalls.

Self-Publishing Insights

The Self-Publishing Process

The speaker discusses the evolution of their self-publishing approach, initially accidental but later refined to focus on specific topics over extended periods (6-12 months).

They mention creating books by compiling previously published paid newsletters, with titles like "Category Design Toolkit" and "A Beginner's Guide to Marketing."

Each book is a collection of edited newsletter content, ensuring coherence and clarity for readers unfamiliar with the original context.

Monetization Strategies

This method allowed for double monetization: first through the paid newsletter and then via print and e-books, leading to significant revenue growth.

Many writers overlook this opportunity due to misconceptions about reader interest or the effort required for self-publishing.

Simplifying Self-Publishing

A brief guide on starting self-publishing includes creating a KDP account on Amazon and using formatting tools like Reedsy.

Initial costs can be manageable (around $1000), especially if funded by successful newsletters; high-quality projects may require more investment.

Benefits of Self-Publishing

Successful projects like "Snow Leopard" have generated substantial income (over $100K), showcasing the potential profitability of self-published works.

The ease of print-on-demand services means no upfront inventory costs; Amazon handles printing and distribution while authors receive royalties.

Recommendations for Writers

The speaker encourages writers to consider self-publishing as an extension of their content creation efforts, particularly those with paid newsletters.

They advise against jumping straight into paid newsletters for beginners; instead, starting with free content can build an audience before monetizing through courses or coaching.

Building a Portfolio

Over time, developing a portfolio that includes a paid newsletter can enhance credibility and provide funding opportunities for future projects.

The speaker emphasizes writing in public as a way to refine ideas and frameworks while building an engaged audience.

Future Plans

The speaker shares plans to publish their own book based on insights from their personal newsletter titled "The Art and Business of Writing," inviting others to follow along in this journey.

Studio Updates and Audience Engagement

Studio Soundproofing Plans

The speaker expresses gratitude for positive feedback regarding the studio's sound quality, indicating that improvements are on the way with soundproofing scheduled for next week.

Excitement is conveyed about acquiring sound panels to enhance the recording environment, suggesting a commitment to improving audio quality.

Audience Interaction and Content Creation

The speaker invites audience participation by encouraging viewers to submit specific questions or topics they want explored in future recordings.

Emphasizes a personal approach to content creation, likening it to having coffee with viewers, which highlights a desire for connection and engagement.

Mentions reviewing comments from previous videos as a primary source of inspiration for new content, showcasing an interactive relationship with the audience.