Substack Newsletter

How Profitable Is A Substack Newsletter? (Updated for 2024)

Pat Walls

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Updated: October 6th, 2024

So you want to start a substack newsletter?

And the first question that came to your mind was, “well, are substack newsletters actually profitable?”

With a market size of $7.5B - there’s plenty of business to go around.

Especially considering:

You could start a substack newsletter with as low as $145
Based on our data, substack newsletters generate an average of $511K per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a substack newsletter.

Let’s dive in!

Yes, a substack newsletter is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $511K per year with an estimated gross margin of 65%, you could expect to recover your investment within 7 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your substack newsletter.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your substack newsletter is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

If you’re wondering if a substack newsletter is worth it, the answer is a big YES. With substack newsletters, you have the potential to earn $511K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $7.5B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a substack newsletter to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful substack newsletters case studies.

Examples Of Profitable Substack Newsletters

Here are a few examples of profitable substack newsletters, and a few more details about them:

1. Startups.fyi ($96K/year)

Jaisal's had keen interest in new online ventures and methods of online income generation. While on Twitter, he stumbled upon the "build in public" phenomenon, where entrepreneurs openly shared their revenue and other crucial business metrics.

This transparency and community engagement inspired him to leverage his prior experience with newsletters. Combining this with a fascination for these startups' stories, Jaisal launched a unique newsletter, initially seeding it with a selection of promising startups, all showcased on a simply designed website he created on Webflow.

Is it profitable? Yes
How much money it makes: $96K/year
How much did it cost to start: $145

How Jaisal Rathee Built Startups.fyi to $60K ARR in 12 Months

Discover how Jaisal Rathee leveraged the "build in public" movement to create a free newsletter featuring real-life online startups, scaling it to over 1,000 subscribers through Twitter and Product Hunt, and generating an impressive $8,000 per month through sponsorships, promoted listings, and affiliate deals.

Read this case study

Read by 350 founders

2. Money Talk ($1.92K/year)

Qin Xie, a journalist and editor based in London, launched her reader-funded newsletter, Money Talk, during her furlough period due to the pandemic. After coming across a post about the future of journalism on Substack, she saw an opportunity to write about personal finance, a topic she was already familiar with and interested in. With low overhead costs and a desire to equip herself and others with knowledge on handling finances during a recession, she quickly launched the newsletter and has received positive feedback and early success.

Is it profitable? Yes
How much money it makes: $1.92K/year
How much did it cost to start: $0

On Starting A Reader-Funded Newsletter About Personal Finance

Qin Xie launched Money Talk, a reader-funded newsletter on personal finance, in May 2020, and made £100 in the first month, chiefly promoting it on LinkedIn.

Read this case study

Read by 6,275 founders

After leaving his job at Airbnb, Lenny started thinking about what he learned there and what he could do next. He wrote his thoughts on Evernote and ended up publishing it on Medium.

His writing got a lot of attention, even from the big boss at Airbnb! He was surprised that his story could make money and that people liked what he had to say.

This made him want to write more, and that’s how he started his newsletter.

A snapshot of Lenny's initial Post on Medium

Is it profitable? Yes
How much money it makes: $492K/year

How Lenny Rachitsky Built Lenny's Newsletter to $500K ARR in 12 Months

Lenny's Newsletter grew from 0 to 1000 subscribers by leveraging Twitter and guest posting strategies, with pricing tiers starting at $15/month, generating an average of $41K/month and $492K/year in revenue since its inception in 2019.

Read this case study

Read by 580 founders

Learn more about starting a substack newsletter:

Where to start?

-> How much does it cost to start a substack newsletter?
-> Pros and cons of a substack newsletter

Need inspiration?

-> Other substack newsletter success stories
-> Marketing ideas for a substack newsletter

Other resources

With a substack newsletter, you can make an average of $511K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $145. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 7 months.

Based on our data, average weekly revenue for a substack newsletter ranges around $10.6K. As such, you could see monthly revenues of $42.6K.

To know if your substack newsletter achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your substack newsletter.

How much do substack newsletters owners make?

The income of a substack newsletter owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established substack newsletter is about $10.6K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a substack newsletter owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Generally speaking, a substack newsletter can expect profit margin of around 65%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a substack newsletter, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, substack newsletter owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, substack newsletter owners can ensure long-term sustainability and profitability for their business.

The salary of a substack newsletter owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established substack newsletter, in a prime position, might see an average weekly salary around the ballpark of $6.92K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a substack newsletter may be a promising business to start - but the success of your substack newsletter mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable substack newsletter.

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Ing A Substack Newsletter: Everything You Need To Know

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