Newsletter Monetization Model

A newsletter business model focused on building a large subscriber base and monetizing through advertising.

Key Points:

• Simple Math Behind the Model:

  • Build a spreadsheet showing newsletter subscribers growing 5-10% per month
  • Maintain flat CPMs (cost per thousand impressions)
  • Over time, this growth compounds to generate hundreds of thousands or millions in monthly revenue

• Revenue Sources:

  • Primary: Advertising (for The Hustle, $1.8M of $2.2M total revenue in 2017 came from ads)
  • Secondary: Events (The Hustle made $400K from events in 2017)

• Initial Growth:

  • The Hustle: Grew to 250,000 subscribers by end of 2017
  • Morning Brew: Reached 100,000 subscribers by end of 2017

• Profitability:

  • Can be profitable early with minimal staff (The Hustle started with just 2 people)
  • Morning Brew founders were able to take $60K salaries each once they reached $300K in revenue

• Funding Approach:

  • Both founders recommend raising as little money as possible for media ventures
  • Sam Parr: "If I were starting today I would not raise funding at all"
  • Austin Rief: "For a media venture... raise as little as humanly possible"

• Key Challenges:

  • Ad sales requires being more "button up" and professional than expected
  • Cash flow management (accounts receivable can take 30-120 days)
  • Timeline expectations (what seems like a 1-year plan can take 9 years to execute)