How to Make Money With a Newsletter

Most people think growing a successful newsletter is all about subscriber counts and open rates. However, the real opportunity lies in understanding a few key principles that seasoned operators use to build valuable assets.

Here’s what actually moves the needle.

Bigger isn’t always better

There’s a counterintuitive truth in the newsletter business: growing too big can actually hurt your revenue. When Morning Brew crossed the million subscribers mark, their per-subscriber revenue dropped by 23%. Think of it like a party — there’s an optimal number of guests where conversations flow naturally. Add too many people, and the quality of interactions suffers.

The sweet spot is usually between 10,000 and 50,000 engaged subscribers. This is where your audience is large enough to generate meaningful revenue but small enough to maintain quality engagement. With this size audience, you can truly understand your readers’ needs, create targeted offerings and maintain the personal touch that keeps subscribers engaged.

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The new economics of growth

Growing your subscriber base doesn’t have to be expensive. Smart newsletter operators are turning traditional marketing on its head using tools like Beehiiv and Sparkloop. Here’s how: When someone subscribes to your newsletter, they’re shown recommendations for other newsletters. If they subscribe to those too, you get paid — usually $2-5 per referral.

This means that you could spend $3 to acquire a subscriber through Facebook Ads, and if that person subscribes to two recommended newsletters during signup, you’ve earned $4-10 — making a profit before sending your first email. Many operators are scaling to tens of thousands of subscribers this way, effectively getting paid to grow their audience.

Another powerful growth strategy is leveraging cross-promotions unexpectedly. Instead of using your newsletter audience to grow the same newsletter, use it to build entirely new assets. For example, if you run a tech newsletter and another publication approaches you for a cross-promotion, don’t promote your newsletter; ask them to promote your new course or consulting service instead.

This approach can transform standard promotional opportunities into significant revenue generators. While a typical newsletter cross-promotion might bring in a few hundred subscribers worth perhaps $1,000 in lifetime value, promoting a $997 course could land you 5-10 high-value customers, which hypothetically then generates $5,000-$10,000 from a single promotion.

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Beyond the newsletter

The most successful newsletter operators understand a fundamental truth that the newsletter itself isn’t the business, it’s the foundation for something bigger. Think of your newsletter as a powerful magnet that attracts the right people to your ecosystem of products and services.

This could mean creating courses that solve specific problems for your audience, building a community where subscribers connect and share insights, offering consulting services to your most engaged readers or developing digital products that extend your newsletter’s value. The key is understanding that your newsletter is often the beginning of the customer relationship, not the end.

The newsletter content builds trust and demonstrates expertise, while the real revenue comes from adjacent offerings. This isn’t about tricking subscribers; it’s about providing increasingly valuable ways to serve them.

Related: Newsletters Aren’t Dead — And They Can Help You Make Money. Here’s How Newsletters Are Providing a Unique Opportunity for Entrepreneurs

Make every message count

Understanding how people interact with their inbox is crucial. Think about your own email behavior — when you subscribe to five newsletters, you might read them all. But with twenty newsletters? You start scanning subject lines more quickly and paying less attention to each sender.

This reality makes audience engagement particularly fascinating. Subscribers who come through paid channels typically stay engaged longer than organic subscribers. Why? Because they’ve already demonstrated through their initial interaction that they value curated inbox experiences. These subscribers often create dedicated folders, set up filters and engage more actively with content.

The timing of your emails also matters more than most realize. Morning readers are more likely to make purchases, while evening readers tend to engage more deeply with content. Smart operators use this knowledge to their advantage and share different types of content at different times to maximize impact.

Measuring what matters

Traditional metrics like open rates and click rates tell only part of the story. The real value lies in understanding the nuances of subscriber behavior. Some subscribers might never click through a link but read every word you write, while others engage across multiple platforms and consistently purchase high-ticket items.

This understanding has profound implications for structuring your newsletter business. Success comes from identifying these different behavioral patterns and creating appropriate pathways for each segment. Some subscribers might be perfect for advertising-based revenue, while others are better suited for premium offerings.

Related: How To Start An Email List And Succeed From Day 1

Building long-term value

When The Hustle sold to HubSpot, only 40% of the valuation was based on revenue. The majority of the value came from what investors call “community capital” — the audience’s proven willingness to take action, whether that’s purchasing products, attending events or advocating for the brand.

This shows that modern newsletter businesses are not just publications; they’re community assets that appreciate in value over time. A highly engaged audience of 50,000 subscribers who consistently take action is often worth more than a passive audience of 500,000.

The newsletter space is changing fast, but this creates opportunity. While most creators chase subscriber numbers, you can focus on building something more valuable – an engaged audience that grows in value over time. Start with these fundamentals, apply them consistently, and you’ll be ahead of most other newsletter operators.