About this episode: This week I had the pleasure to talk to a very interesting individual who knows a lot about newsletter sponsors, Pete Codes. Pete runs two newsletters with a total of 6k subscribers and is earning $1400 per month via sponsorships! In this episode, we’re going to dive into his method of achieving this awesome revenue milestone, how we can apply his methodology to our newsletters, and the mindset you’ll need to land high paying sponsors consistently.
Be sure to check out Pete’s new course on how to monetize your newsletter. You can find it here.
We’re also onboarding newsletters for the newsletter referral program software we’re building. If interested in putting your newsletter on the best growth engine, then send an email to email@example.com.
Show Notes & Insights:
- Newsletters that target customers who are willing to spend money to make money will have a much easier time selling sponsor slots for a higher price. Newsletters that target hobbies are going to have a harder time selling sponsors for a higher price. The ROI for the sponsor just isn’t there.
- Some topics just aren’t built well enough or have enough support to derive their income from sponsors. That doesn’t mean that topic can’t generate revenue. There’s always paid premium options and memberships.
- The larger your network, the easier it is to find sponsors.
- When finding sponsors first start with who is your audience. Then figure out what companies are interested in reaching that audience. From there, reach out to those companies and provide them with the reasoning as to what they want to sponsor your newsletter.
- If your newsletter grows 20%, price your ads 20% higher. You’re delivering more value to people.
- If you don’t ask, you won’t get it. Reach out and simply ask if a company is interested in sponsoring your newsletter. The worst that can happen is they say now. You should be getting out of your comfort zone.
- A really easy formula to find newsletter sponsor price is 5% of your total subscribers. So with a 4k list size, an average sponsor price would be roughly $200.
- Ask as much as you think you can get. Keep raising the prices until companies start declining.
- Cold outreach to potential sponsors will feel uncomfortable at first, like anything new. Think of it as you’re doing them a favor since you’re giving them a chance to reach their target audience in an intimate setting. That’s really valuable and is worth the price!
- It’s remarkable how comfortable you’ll get with asking for money once you do it for long enough.
- One big plus to sponsorships versus premium newsletters is that you’re not producing more content, yet it’s still scalable.
- Monetizing your newsletter through sponsors is like B2B. You’re selling to other businesses. Businesses have more money than consumers.
- One big con of a sponsorship based newsletter is that you need to put more effort into sales. You’ll need to do prospecting and sales.
- Paid newsletters can be more viable than sponsored newsletters as a monetization strategy. It all depends on what niche you’re writing in. Before you choose one, do the analysis. Really think about your customer and potential sponsors. If you can’t think of any companies that would want to get in front of that audience, perhaps you should stick to a paid newsletter and provide content for the super fans.
- EmailOctopus is better than MailChimp since it’s much cheaper, the user interface is a lot cleaner, and a lot simple to navigate.
Newsletter + Guest Info:
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