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How to value your newsletter with the Newsletter Crew

Yaro Bagriy
Yaro Bagriy

About this episode: In today's episode, we have 3 amazing guests from the Newsletter Crew community. Our first guest is Chris Osborne who was on episode 7 and has 4 newsletter acquisitions under his belt. He's definitely the guy I look up to when it comes to selling your newsletter. Our second guest is Ivy Lee the founder of LetterXchange.com, an online marketplace for buying newsletters. LetterXchange has been really pushing the bounds on newsletter evaluations. Our final guest is Jonas the founder of Duuce.com, another amazing marketplace that connects newsletter sellers and buyers. These 3 are some of the most well-versed people within the newsletter valuation space currently and I'm excited to have them on the show.

Episode Sponsor: EmailOctopus
"EmailOctopus has the flexibility to design great-looking newsletters that stand out. The best part is it's free until 2,500 subscribers."
Join the Newsletter Crew
Want to run a more successful newsletter? Join the community and connect with successful newsletter creators who can help.
Typical Formats for Newsletters
In this post I’m going to give my thoughts on format, based on what I’ve seen out there in the wild over the past few months of actively looking.

Show Notes & Insights:

  • When you go about selling your newsletter, you can't price it simply based on the subscriber count, revenue, and open rate. There's so much more than goes into it. Take into account the amount of time you spent on the format of the newsletter. Take into account the years of experience you have in a certain niche to come up with that rock-solid idea.
  • Sell your newsletter for what you think it's worth. Find a buyer who values it as much as you do. They'll take care of it much better.
  • Sell your newsletter for a price that you wouldn't regret a year from now if you had the time, energy, or dedication to keep with it.
  • Your domain, growth projection, and the niche of your newsletter all should go into pricing the newsletter. Catchy domain, high growth, and profitable niche all command a higher price.
  • If your newsletter is generating substantial revenue then you can price your newsletter with a discounted cash-flow model or other various standard newsletter models.
  • For pre-revenue newsletters, the niche and domain are very important in deriving a fair-price for it.
  • Understand why the buyer is interested in purchasing your newsletter. Known this is crucial in being able to find the right price. Price it at what they think it's worth. If they're really interested in getting into the niche your newsletter covers, perhaps they're willing to give a bit extra cash for it.
  • If you're pre-revenue your audience growth, engagement and niche are super important when pricing your newsletter for sale. That essentially means you don't need to go from 0 to 1 in terms of revenue to get a great price for your newsletter.
  • If you can show a great growth trajectory you don't need to worry about revenue.
  • On average a subscriber is worth around $2.87/year for a newsletter with ad-based monetization. This is a great number to at least get some sort of value on your newsletter. From there you can start your journey to find a more true price.
  • A premium paid newsletter has a much higher average price per subscriber compared to an ad-based newsletter.
  • Always price your newsletter on the future projections of it. What will it be making in a year or two from now? It's up to the creator themselves to sell the future of that potential.
  • The audience you choose to cater to for your newsletter will play a crucial role in how much it's going to sell for.
  • List size is interesting, but if your newsletter is making 10x compared to another newsletter with the same list size and even the same niche, then it's going to be worth much more.
  • Subscriptions based newsletters can fetch a higher multiple when selling, but an ad-based newsletter can grow much faster.

Newsletter + Guest Info:

Patreon: if you’re interested in supporting the show, become a patron here https://www.patreon.com/newslettercrew. We’ll be reading the supporters each week.

Podcast

Yaro Bagriy

Podcast host & community manager


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