Three business models you can use on Substack
Here are three ways you can make money from content on Substack.
1/ You can sell subscriptions.
2/ You can get sponsors.
3/ You can use affiliate links.
Wait, are you sure I can use sponsors and affiliate links?
Yes. According to https://substack.com/going-paid you can add affiliate links and advertising. Here is an excerpt:
Can I use affiliate links in my emails?
Yes. Substack is entirely focused on subscriptions, so we don't build any additional functionality to support affiliate links or advertising, but you are free to use them.
What are the benefits of affiliate links and sponsorship over subscriptions?
You don’t need to put content behind paywalls. Not having paywalls will let you reach more people and will increase the virality of your content.
Won’t this annoy my subscribers and make them leave?
Not necessarily. You can keep attracting subscribers by using sponsors that align with their interests. For example, if your newsletter is about living a natural and organic lifestyle then selling natural soap with no chemicals is likely to do well. Why? Because it is aligned. In fact your subscribers will appreciate your telling them about products they love.
How do I convince sponsors to advertise?
With both sponsorships and affiliate links, revenue is tied to performance. Performance depends on how well the product you are advertising sells. This depends on how much value it provides your audience. It all boils down to alignment.
Why are big publications like the New York Times using paywalled content?
Because their market is less focused it is harder to find alignment. As a small creator you have a very narrowly focused market. You can define your audience much better. This means you know who they are and what products they are likely to like and buy.
This sounds interesting. How can I find more?
1/ Subscribe to this newsletter (it’s free).
2/ Follow me on Twitter at https://twitter.com/asimjalis
3/ Email me any questions or comments that you have.