How Newsletters Make Money

Welcome to Trends, a weekly newsletter with the zestiest business trends and actionable insights for entrepreneurs. Summary Great Margins: Newsletters are a simple yet profitable business (e.g., Ben Thompson’s Stratechery is estimated to gross between $6-7m.) Ads or Subs: Core newsletter business models include ad-supported (The Skimm, Morning Brew) and subscription-based (Stratechery, 2PM) Newsletter Media Firms Hitting 9-Figure Valuation: Notable media companies built through newsletter have hit multi-million dollar valuations. (The Athletic was acquired by the NYT for $550m.) Multiple Business Lines: Media firms that begin as a newsletter can extend into other offerings (e.g., premium research, e-commerce, community forums, networking tools, podcasts) Secret Sauce: Newsletters have a number of strengths vs. traditional media including a direct relationship with end users, higher engagement, and lean operating costs What’s Next: Opportunities include B2B content niches and tools that provide curation (bundling) or paywall services Bob Pittman—the creator of MTV, former CEO of Six Flags, Time Warner, AOL, and Century 21 Real Estate, and now current CEO of iHeartMedia—has had a hell of a career.Welcome to Trends, a weekly newsletter with the zestiest business trends and actionable insights for entrepreneurs. Summary Great Margins: Newsletters are a simple yet profitable business (e.g., Ben