Breaking the Pricing Taboo: How to Price a Newsletter and Rethink Free Models
Pricing Strategies for Your Own Paid Newsletter & Private Community on Substack
In a world where subscriptions is breaking us free from the advertisement-driven web, setting the right price for a newsletter has become a tantalizing puzzle. Charge too much, and you risk sending potential readers fleeing. Undervalue your work, and you might find yourself laboring for less than you need to keep the lights on.
As Substack (the platform we’re running this very newsletter on) continues to carve its path through the digital landscape, it has provided a fertile ground for newsletter creators to flourish. However, there's a new wave of unconventional wisdom that challenges the status quo—a paradigm shift that suggests charging less might just be the key to unlocking unprecedented growth, while charging more builds brand and a small but strong fan base.
In this journey, we'll explore the uncharted territories of newsletter pricing. We'll navigate through the treacherous waters of subscription models, diving headfirst into the world of "pay what you want," free content, and pricing strategies that defy convention. It's a path less traveled, but one that holds the promise of redefining how we think about monetizing newsletters, membership sites, communities, and the web as a whole.
Keep reading as we break the pricing taboo, challenge the norms, and discover how unconventional pricing can reshape the future of your own paid newsletter. Buckle up for a thought-provoking exploration of pricing strategies that dare to be different
Price Points for General Substack Newsletters
The typical price range for newsletters on Substack is between $5 and $20 per month. The $5 price point is the lowest pricing available because Substack does not permit you to charge less (you may technically offer your newsletter for less than $5 by implementing a discount, but $5 is the least as far as base price is concerned).
If you are an expert in your field and provide niche guidance to a supportive audience of readers, you can charge more than $20 per month. Petition, which costs $49 per month (or $500 per year), is a good illustration of this.
Include Substack's Fees
Another aspect to consider when setting the cost of your newsletter is the fees that Substack assesses to its newsletter authors.
What does this look like in practice, then?
Using our early test newsletter as an example, we would receive $42.75 (14.5 percent of the total payment received in fees) from a reader who paid $50 for annual membership to that newsletter.
It might not seem like much, but if you want to increase your Substack audience significantly, this amount can make a significant difference.
Therefore, you must choose a newsletter subscription pricing that would cover your needs after deducting Substack and Stripe fees.
Of course, increasing the cost of your newsletter is one option, but depending on your audience, even a modest price increase may result in cancellations of subscriptions.
Remember that newsletter rates are flexible, so that you can alter them over time is essential. So, if you need help choosing between two prices, go with the less expensive one and think about it again once you start receiving subscription payments.
And oh, speaking about pricing…
Thank You for Your Early Support – Enjoy 50% Off an Annual Subscription!
We want to express our heartfelt gratitude for being one of our early backers and joining us on this incredible journey. Your support has been instrumental in shaping our newsletter and private community.
To show our appreciation, we're excited to offer you an exclusive discount: 50% off when you purchase an annual subscription to our newsletter and private community! This special offer is our way of saying thank you for believing in us from the beginning.
By opting for an annual subscription, you not only save significantly, but you also ensure uninterrupted access to our premium content and community for an entire year. It's the perfect way to stay engaged and get the most out of your experience with us.
Limited time offer – this deal is valid for 1 month only.
Offering Early Supporters Promotional Prices
Offering a sizable discount to your early subscribers (yep, you have a live example just above!) is one of the most successful Substack newsletter price techniques we've utilized.
It can be done by reducing the cost for every potential newsletter subscriber. But there are other ways to achieve it as well: