How Much Does It Cost To Start An Email Newsletter Business? (In 2024)
Looking to start an email newsletter business?
But curious about:
- how much it costs to start an email newsletter business?
- what are the typical email newsletter business startup costs?
- or the actual cost of starting email newsletter businesses?
Well, we have the data to prove it, supported by real email newsletter businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting an email newsletter business?
Based on our data reported by actual email newsletter business founders, the average cost of starting an email newsletter business is between $100 and $500,000.
Additionally, our data shows that the the median startup costs for an email newsletter business are around $500.
Remember, though, not all email newsletter businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of email newsletter businesses
Real World Examples: How much does it cost to start an email newsletter business?
We asked real email newsletter business founders and business owners how much it actually cost to get started?
Here is what they said:
Ryan Gilbert
Founder of Workspaces ($2K/month)
"The costs of running this newsletter are as close to $0 as you could possibly get."
Ryan Gilbert is the founder of Workspaces, a newsletter business that started in 2020 and was acquired by YC startup Loops.
Shaan Puri
Founder of The Milk Road ($125K/month)
"Milk Road started as a Google Doc that the co-founders emailed to friends. They created a simple logo of a milk bottle on Canva and acquired the domain for $2000."
Shaan Puri is the co-founder of Milk Road, a daily crypto newsletter and website that provides tools, analysis, and news to help readers stay updated on cryptocurrency.
Philip Rivers
Founder of Tetra ($200K/month)
Regarding financing, this business didn't require much capital to get started. It mainly needed my intellectual property and hard work. There was no need for credit cards or loans. The only initial costs were for domain hosting, Squarespace, Google business email, and the cold outreach software I was using at the time, which I believe was Mailshake.
Phil Rivers is the founder of Tetra, an email marketing agency for growing e-commerce and digital product businesses that has grown to a team of 15 with $200k MRR and over $200,000,000 in sales generated for clients.
Ida Jakobson
Founder of The Mallorcan ($2.45K/month)
"I quickly designed a landing page on Squarespace and got an email template setup in Email Octopus. This took less than a week and under $100 to get started."
Ida Jakobson is the founder of The Mallorcan, a local media brand focused on Mallorca, Spain, that generates $2.5k per month in sponsorship and advertising revenue.
Justin Duke
Founder of Buttondown ($75K/month)
"Buttondown was very much a nights-and-weekends project for the first few years; it takes a lot of up-front effort to launch a SaaS, especially one in such a competitive space where there are a lot of table stakes."
Justin Duke is the founder of Buttondown, a newsletter software service that started as a side project while he was an engineer at Stripe and has grown into a full-time business.
Druce
Founder of Stacked ($60K/month)
"When we first started, we didn’t have much budget – we only had a 3D camera, limited writing experience, and grueling effort to try and get as much awareness as possible. Essentially, we started with around $10,000."
Druce is the co-founder of Stacked, a real estate media company that started in early 2017 with a focus on helping buyers and sellers in Singapore through comprehensive editorial content and videos.
Casey Woodard
Founder of KickFlips ($4K/month)
"In true entrepreneurial fashion, I figured that if I was going to practice web design, I may as well get paid for it. Thus, I reached out to a handful of local companies to redesign their website. That first week, I redesigned a local artist’s website for $1,000, which acted as the initial funding for KickFlips."
Casey Woodard is the founder of KickFlips, an email newsletter and Discord community that helps people make money by flipping limited-edition sneakers and other profitable items.
Phaiboon Trikanjananun
Founder of Taximail ($120K/month)
"The MVP took just 2 weeks to build and cost only $400. I registered the domain and it cost $12.99. It really didn't cost much."
Phaiboon Trikanjananun is the founder of Taximail, an email marketing and automation platform that serves over 5,000 reputable organizations and continues to grow globally.
Brett Owens
Founder of Afluencer ($2K/month)
"Re: financing, this is my third company and I’ve bootstrapped all three. The first one I loaded up the credit cards. Startup two we had three co-founders and we all worked for free for a few years. Startup three it’s just me, and working for free isn’t enough. :) So it is out-of-pocket cash from me to fund the operation."
Brett Owens is the founder of Afluencer, an influencer marketing platform that matches brands with influencers and has grown rapidly since its inception.
Luciano Viterale
Founder of Ticker Nerd ($4K/month)
"The business started in October 2020... Within a week we made over $1,000 in sales, charging $49 for lifetime access."
Luc is the founder of Ticker Nerd, a monthly subscription service for investors that analyzes trending stocks.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful email newsletter businesses that you can learn from.
Starting an email newsletter business - what you should know:
When starting an email newsletter business, several factors can significantly impact your costs.
Email Marketing Platform Costs
Choosing the right email marketing platform is crucial. Free plans exist, such as Mailchimp's plan for up to 500 subscribers. However, pricing can soar once your list grows. For example, options like ConvertKit and Mailchimp can cost anywhere from $29 to $100+ per month, depending on the number of subscribers and features you need.
Content Creation Expenses
Creating high-quality content can be either cost-effective or expensive, depending on your approach. Doing it yourself saves money but takes time. Hiring freelance writers may cost between $50 to $150 per article, depending on expertise and length. Professional design work for email templates can add another $200 to $500 upfront.
Marketing and Subscriber Acquisition
To grow your subscriber list, you'll likely need to invest in marketing. Tactics like social media ads or Google Ads can cost between $0.50 to $2.00 per click. For a robust email list, a few hundred dollars in marketing spend per month may be necessary, though some prefer organic growth strategies to minimize costs.
Additional Tools and Integrations
Don't overlook costs for other tools and integrations. Analytics platforms and CRM (Customer Relationship Management) tools can tack on another $10 to $50 monthly, depending on the features required. Additionally, if you need a custom domain or website, expect to pay about $10 to $20 annually for the domain and $3 to $15 per month for hosting.
Potential Costs of Starting an Email Newsletter Business
Starting an email newsletter business involves a variety of costs, including software tools, labor, and other essential expenses.
Cost Item | Description | Estimated Cost |
---|---|---|
Email Marketing Software | Software to send newsletters and manage subscribers. | $20-$50/month (basic plans) |
Custom Domain Name | Purchase and renewal of a custom website domain. | $10-$20/year |
Web Hosting | Hosting for a website to promote the newsletter. | $5-$10/month (shared hosting) |
Landing Page Builder | Tool to create landing pages for sign-ups. | $20-$50/month |
Design Software | Tools like Canva or Adobe for creating designs. | Canva: Free-$12.95/month, Adobe Suite: $20.99-$52.99/month |
Content Management System | WordPress or other CMS for content management. | Free to $25/month (hosting+plugins) |
Freelance Writers | Hiring freelance writers for content creation. | $0.10-$0.50/word or $50-$200/article |
Proofreading Services | Hiring proofreaders to ensure quality content. | $20-$50/hour |
Graphic Designers | For professional newsletter graphics and layouts. | $25-$75/hour |
Social Media Tools | Tools for managing social media promotion. | $10-$50/month |
Legal Fees | Incorporating your business, trademarking, etc. | $500-$1,000 one-time |
Accounting Software | For managing finances and bookkeeping. | $10-$30/month |
Advertising Costs | Promoting the newsletter to gain subscribers. | $0.50-$5 per click (PPC advertising) or $100-$500/month for social media ads |
Email List Purchase | Buying targeted email lists (if legally compliant). | $0.03-$0.10 per email |
Analytics Tools | Software to track and analyze newsletter performance. | $10-$40/month |
Survey Tools | For gathering subscriber feedback. | $0-$25/month |
Copywriting Services | Professional copywriting for marketing materials. | $50-$150/hour |
Marketing Consultant | Hiring a consultant to plan your marketing strategy. | $100-$300/hour |
This table lists the primary expenses to budget for when starting an email newsletter business, ranging from basic tools to professional services.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.