First let’s start out with some heavy hitter examples and their story:
Morning Brew and The Hustle have established themselves as highly successful email newsletter businesses, generating substantial revenue through their innovative business models. Morning Brew, with over 2 million subscribers, generates annual revenue exceeding $10 million. Their business model primarily revolves around sponsored content and advertising partnerships, where they collaborate with brands to feature relevant promotions within their newsletters. Additionally, Morning Brew offers native advertising opportunities, allowing brands to seamlessly integrate their content into the newsletter's format.
On the other hand, The Hustle boasts over 1 million subscribers and generates annual revenue surpassing $5 million. The Hustle monetizes its newsletter through a combination of sponsored content, targeted advertising, and partnerships. They collaborate with brands to showcase sponsored articles and include advertisements from relevant businesses within their newsletters. The Hustle's engaged audience presents valuable opportunities for companies seeking to reach a tech-savvy and business-oriented demographic.
Both Morning Brew and The Hustle have proven the viability of email newsletters as a lucrative business model, demonstrating that by delivering valuable content to a dedicated audience and strategically partnering with brands, it is possible to build profitable ventures in the newsletter industry.
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Morning Brew: In 2015, two ambitious entrepreneurs named Alex Lieberman and Austin Rief embarked on a mission to revolutionize the way young professionals consumed business news. They envisioned a daily newsletter that would cut through the noise and present finance and business updates in a fresh, engaging format.
With their target audience in mind—millennial professionals seeking concise and relatable business content—Lieberman and Rief poured their passion and knowledge into the creation of Morning Brew. They meticulously crafted each newsletter to deliver news with a conversational tone, injecting humor and pop culture references into their writing.
Their unique approach struck a chord with their audience, setting Morning Brew apart from traditional news outlets. The newsletter became a trusted source for business insights delivered in an entertaining, easily digestible manner.
But it didn't stop there. Morning Brew's growth was fueled by a viral referral system. Through their "Give 5, Get Brew" program, subscribers were incentivized to refer friends in exchange for exclusive rewards or merchandise. This referral system created an exponential loop, with each new subscriber bringing in more potential subscribers, driving rapid expansion.
To cater to a wider range of interests within their target audience, Morning Brew expanded its offerings. They introduced specialized newsletters focused on specific topics such as retail, emerging technology, and marketing. This expansion allowed them to reach a broader segment of their audience and provide even more targeted content.
Today, Morning Brew boasts millions of subscribers, a testament to the power of niche targeting, engaging content, and strategic growth initiatives. They have successfully established themselves as a leading player in the email newsletter industry.
The Hustle: In the same year that Morning Brew was taking flight, another visionary entrepreneur named Sam Parr had a similar goal—to disrupt the way business and tech news was consumed. Parr founded The Hustle, a daily newsletter designed to cater to entrepreneurs, business professionals, and tech enthusiasts.
The Hustle set out to deliver news with a no-nonsense, direct approach. Their content was concise and easily digestible, allowing busy professionals to stay informed without investing significant time. The newsletter adopted a conversational tone, delivering information in a way that resonated with its audience.
Parr recognized the importance of community building and sought to go beyond the digital realm. The Hustle organized events, conferences, and networking opportunities, providing an offline space for their audience to connect and engage with like-minded individuals. This offline engagement complemented their online presence, fostering a strong sense of community and loyalty.
Data played a crucial role in The Hustle's growth strategy. By analyzing open rates, click-through rates, and other metrics, they gained valuable insights into their audience's preferences. This data-driven approach allowed them to refine their content strategy, ensuring they delivered the most relevant and engaging news.
Strategic partnerships were also pivotal to The Hustle's success. By collaborating with established brands, publications, and influencers, they tapped into new networks and expanded their reach. These partnerships exposed The Hustle to fresh audiences, helping them grow their subscriber base.
Today, The Hustle stands as a testament to the power of concise, no-nonsense content delivered in an engaging tone. Their data-driven approach, community-building efforts, and strategic collaborations have positioned them as a leading force in the email newsletter landscape.
Both Morning Brew and The Hustle have proven that by understanding their target audience, delivering unique and valuable content, and employing innovative growth strategies, it is possible to build successful and influential email newsletter businesses that resonate with millions of subscribers worldwide.
How to create your own newsletter marketing business:
Determine Your Business Entity:
Before diving into the specifics of your email newsletter business, consider the legal and financial aspects. Decide on the type of business entity you want to form, such as a sole proprietorship, partnership, limited liability company (LLC), or corporation. Consult with a lawyer or tax professional to understand the implications and choose the most suitable option for your needs.
Find a Profitable Topic:
Identify a topic or niche for your email newsletter that aligns with your interests and has potential to attract an audience. Consider your expertise, passions, and the target audience's preferences. Look for gaps or opportunities within your chosen niche and aim to provide unique value.
For example, Morning Brew focuses on delivering business and financial news in a fun and engaging way, appealing to professionals seeking concise and engaging updates. The Hustle caters to the tech and business audience by providing easy-to-understand and relevant content.
Define Your Unique Selling Proposition (USP):
Determine what sets your email newsletter apart from competitors. Craft a unique selling proposition that clearly communicates the value and benefits readers will gain by subscribing to your newsletter.
For instance, Morning Brew positions itself as a newsletter that presents news with a humorous and relatable tone, making it entertaining while keeping readers informed. The Hustle stands out by delivering business and tech news in a concise format, saving readers time without sacrificing quality.
Build a Website:
Choose a domain name that reflects your newsletter's brand and topic. Consider using domain registration services like GoDaddy or Namecheap to secure your domain.
Select a website builder that suits your needs. Options like WordPress, Squarespace, or Wix offer user-friendly interfaces and customizable templates.
Design your website with a visually appealing layout, intuitive navigation, and a clear call-to-action to encourage visitors to subscribe to your newsletter. Include relevant information about your newsletter's content, benefits, and frequency of delivery.
Morning Brew's website features a clean design with clear subscription prompts, while The Hustle keeps their site simple yet engaging, displaying key information and a prominent sign-up form.
Choose an Email Marketing Software:
Selecting the right email marketing software is crucial for managing and delivering your newsletters. Consider the following options with varying cost ranges:
Low-cost: MailerLite, Mailchimp (free plan available), Sendinblue (free plan available)
Medium-cost: ConvertKit, AWeber, GetResponse
High-cost: ActiveCampaign, Drip, Campaign Monitor
Evaluate the features offered by each software, such as automation capabilities, segmentation options, templates, deliverability rates, and analytics.
Morning Brew uses a custom email platform tailored to their specific needs, while The Hustle leverages a combination of SendGrid and their in-house system.
Grow Your Subscriber List:
Implement strategies to attract subscribers to your newsletter:
Promote your newsletter on your website and social media platforms.
Offer incentives like exclusive content, free resources, or discounts for signing up.
Collaborate with influencers or guest writers in your niche to expand your reach.
Use lead generation techniques such as content upgrades or gated content.
Optimize your website for search engines to attract organic traffic.
Create Compelling Content:
Craft engaging and valuable content that resonates with your target audience:
Focus on delivering informative, actionable, and well-written articles.
Keep your content concise and to the point, ensuring it is easily digestible.
Use visuals like images, infographics
Compelling Content (continued):
Use visuals like images, infographics, or videos to enhance the visual appeal and engagement of your newsletters.
Incorporate storytelling, personal anecdotes, or case studies to make your content relatable and memorable.
Include a clear call-to-action (CTA) in each newsletter, directing readers to take desired actions such as visiting your website, purchasing a product, or subscribing to a premium offering.
Leverage the success of Morning Brew by adopting their engaging and conversational writing style, making complex topics accessible and enjoyable for readers.
Follow The Hustle's example of providing concise and easily digestible business and tech news to cater to time-conscious professionals.
Maintain a Consistent Publishing Schedule:
Determine the frequency of your newsletters and establish a consistent publishing schedule. This could be weekly, bi-weekly, or monthly, depending on the nature of your content and audience preferences.
Consistency builds trust and keeps your subscribers engaged. Use email marketing software to schedule and automate your newsletter deliveries, ensuring they reach your audience on time.
Monetize Your Newsletter:
There are various ways to monetize your email newsletter business. Consider these options:
Advertising: Sell ad space within your newsletters to relevant brands or advertisers. You can charge based on impressions, clicks, or a fixed fee. Morning Brew and The Hustle generate revenue through sponsored content and advertising partnerships.
Affiliate Marketing: Promote products or services as an affiliate and earn a commission for each sale or referral generated through your newsletter. Choose products or services that align with your audience's interests and needs. Morning Brew and The Hustle leverage affiliate marketing by recommending relevant tools, books, or services.
Premium Subscriptions: Offer a premium tier of your newsletter with exclusive content, in-depth analysis, or additional resources. Subscribers can pay a recurring monthly or annual fee to access these premium benefits.
Product or Service Promotion: Develop and sell your own products, courses, or services related to your newsletter's topic. For example, you could create ebooks, online courses, consulting services, or merchandise.
Track and Optimize:
Utilize analytics and tracking tools provided by your email marketing software to monitor the performance of your newsletters. Track metrics such as open rates, click-through rates, and conversions to assess the effectiveness of your content and monetization strategies.
Analyze the data to identify trends, understand subscriber preferences, and make data-driven decisions to optimize your newsletters.
Continuously test different approaches, subject lines, content formats, and CTAs to improve engagement and conversion rates.
Remember, building a successful email newsletter business takes time, dedication, and continuous adaptation. Be responsive to your audience's needs, provide value, and refine your strategies based on feedback and data analysis.