Building a Lucrative Newsletter Business

Matt McGarry has an impressive track record, having worked with prominent newsletters like The Hustle, The Milk Road, and 1440. These newsletters boast millions of subscribers and generate substantial revenue. Here's a summary of his Step-by-Step Guide for Aspiring Entrepreneurs.

Building a Lucrative Newsletter Business
Photo by Brett Jordan / Unsplash

Building a Lucrative Newsletter Business: A Step-by-Step Guide for Aspiring Entrepreneurs

Hey Digital Startup Lifestylers, have you ever considered building a profitable online business centered around a newsletter? You absolutely should. Successful newsletters have been acquired for millions, even hundreds of millions of dollars! In this post, we will delve into actionable steps you can take to establish and grow a thriving newsletter business, leveraging valuable insights shared by Matt McGarry, a newsletter expert.

Matt McGarry has an impressive track record, having worked with prominent newsletters like The Hustle, The Milk Road, and 1440. These newsletters boast millions of subscribers and generate substantial revenue. He's even built his own successful newsletter business, generating seven figures in under two years! Needless to say, this guy knows newsletters.

Why Email Newsletters?

  • Email newsletters are a powerful way to own your audience. Unlike social media platforms, you have direct access to your subscribers, free from algorithmic manipulation. You control the content and the communication channel, fostering deeper connections.
  • Newsletters are a cost-effective way to start a business. All you need is a laptop and an internet connection to get going.
  • Newsletters offer diverse monetization opportunities. You can generate income through sponsorships, selling your own products or services, or affiliate marketing.

Choosing the Right Niche

  • Go hyper-niche. This allows you to stand out, attract sponsors more easily, and effectively target your audience with products and services.
  • Dive deep. Instead of broadly covering “business," for example, go deeper into "marketing," and then even further into "social media marketing for e-commerce brands." This level of specificity helps you establish expertise and attract a highly engaged audience.

To identify your lucrative niche, ask yourself:

  • What skills, experience, or interests do you possess that can translate into valuable content?
  • Is there a growing audience with a need you can address?
  • Are there advertising and product opportunities within this niche?

Crafting an Irresistible Offer

Your newsletter offer is your value proposition – why should people subscribe?

  • Solve a problem. Identify a pain point your target audience experiences, and clearly articulate how your newsletter provides the solution.
  • Use the Jobs to Be Done framework. What concrete job does your newsletter do for your ideal reader? How does it help them achieve their goals and desires?
  • Examples: The Assist helps women become better managers, while Anticitizen provides resources for those seeking greater financial and geographical freedom.

Creating Compelling Content

  • Develop a newsletter template with sections designed to engage your audience. Include elements like an introduction, curated content, a main content section featuring original insights, an outro, and even a poll to gather reader feedback.
  • Leverage AI tools for efficiency and quality. ChatGPT is great for refining and editing, Claude excels at writing original content, and Perplexity is a powerful research tool.
  • Repurpose your newsletter content. Turn each issue into multiple social media posts and a blog post for increased visibility and audience growth.

Growing Your Subscriber Base

  • Implement a “one reward referral program.” Offer a valuable digital product (like a cheat sheet or template) in exchange for a single referral. This incentivizes word-of-mouth marketing and attracts high-quality subscribers.
  • Consider paid advertising on platforms like Meta. With compelling ad creative, you can acquire subscribers cost-effectively and even profitably.

Monetizing Your Newsletter

  • Sell sponsorships. Even with a small list, you can secure sponsorships from companies seeking to reach your specific audience.
  • Offer paid recommendations for other newsletters. Platforms like SparkLoop and Beehiive make this easy to automate.
  • Incorporate tripwire offers on your thank you page. Sell low-priced, high-value products to capitalize on initial subscriber enthusiasm.
  • Generate leads for sponsors seeking specific demographics. Collect valuable subscriber data through surveys and sell leads to interested advertisers.
  • Promote affiliate offers on your thank you page. Focus on offers that pay per lead or click for easier conversions.
  • Create custom content for sponsors. Develop high-quality, sponsored posts that benefit both your audience and the advertiser.

Leveraging Email Automation

  • Utilize email automation to engage and convert subscribers without constant manual effort.
  • Essential sequences to implement: welcome sequence, winback sequence, trigger sequence (activated by specific subscriber actions), and sales sequence.

By consistently applying these strategies, you can transform your newsletter from a passion project into a highly profitable online business, achieving the Digital Startup Lifestyle you aspire to.