Newsletter

How Profitable Is A Newsletter? (Updated for 2024)

Pat Walls

•

Updated: October 9th, 2024

So you want to start a newsletter?

And the first question that came to your mind was, “well, are newsletters actually profitable?”

Especially considering:

You could start a newsletter with as low as $19
Based on our data, newsletters generate an average of $2.65M per year
You could see gross margins as high as 99% with newsletters

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a newsletter.

Let’s dive in!

Yes, a newsletter is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $2.65M per year with an estimated gross margin of 40%, you could expect to recover your investment within 11 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your newsletter.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your newsletter is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

If you’re wondering if a newsletter is worth it, the answer is a big YES. With newsletters, you have the potential to earn $2.65M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a newsletter to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful newsletters case studies.

Examples Of Profitable Newsletters

Here are a few examples of profitable newsletters, and a few more details about them:

1. Workspaces ($24K/year)

Ryan Gilbert came up with the idea for Workspaces when he noticed Twitter users sharing pictures of their new setups during the pandemic. Wanting to preserve these inspiring workspaces, he started a newsletter that now has over 9,000 subscribers and generates $2,000 per month from sponsorships. He recently joined YC startup Loops as Head of Content and continues to publish Workspaces while exploring new marketing initiatives.

Is it profitable? Yes
How much money it makes: $24K/year
How much did it cost to start: $500

How I Built A $24K/Year Newsletter Side Hustle That Shares Remote Workspaces And Got Acquired

The founder of Workspaces, a newsletter giving readers a behind-the-scenes tour of entrepreneurs' new desk setups, was making $2,000 per month from sponsorships and was recently acquired by YC startup Loops, with 9,000+ subscribers and open rates around 60%.

Read this case study

Read by 5,691 founders

2. SelectSoftware Reviews ($40.5K/year)

Phil Strazzulla, founder of SelectSoftware, came up with the idea for his business after building a personal brand in the HR space through a weekly whiteboard video series. He realized that HR professionals were struggling to choose the right software for their needs, and saw the opportunity to create an online review site, similar to NerdWallet or WireCutter, for HR software. With organic search traffic growing at 30% per month and revenues hitting $1k per month, SelectSoftware has gained traction in the market.

Is it profitable? Yes
What's the gross margin? 99%
How much money it makes: $40.5K/year
How much did it cost to start: $50

This VC Taught Himself How To Code And Is Bootstrapping His Own Startup

VC-turned-entrepreneur Phil Strazzulla, who previously built a successful b2b SaaS business, shares how he bootstrapped an online review site for HR software into a viable business with over $1k monthly revenues in just 3 months through organic search traffic growth and selling high intent leads.

Read this case study

Read by 17,683 founders

Learn more about starting a newsletter:

Where to start?

-> How much does it cost to start a newsletter?
-> Pros and cons of a newsletter

Need inspiration?

-> Other newsletter success stories
-> Marketing ideas for a newsletter

Other resources

-> Newsletter tips

With a newsletter, you can make an average of $2.65M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $19. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 11 months.

Based on our data, average weekly revenue for a newsletter ranges around $55.3K. As such, you could see monthly revenues of $221K.

To know if your newsletter achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your newsletter.

How much do newsletters owners make?

The income of a newsletter owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established newsletter is about $55.3K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a newsletter owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Generally speaking, a newsletter can expect profit margin of around 40%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a newsletter, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, newsletter owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, newsletter owners can ensure long-term sustainability and profitability for their business.

The salary of a newsletter owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established newsletter, in a prime position, might see an average weekly salary around the ballpark of $22.1K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a newsletter may be a promising business to start - but the success of your newsletter mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable newsletter.

Part of

Starting A Newsletter: Everything You Need To Know

‹

›