How To Grow A Newsletter Business (From Scratch)

Summary

In this video, the creator shares the journey of growing their newsletter, 'Profit Snack,' which targets online business owners, from its inception eight months ago to generating $17,396 in revenue. The discussion covers four growth phases, including organic marketing, influencer partnerships, and paid ads, as well as a rebrand that cost $30,000. Financial insights reveal a total spend of $140,000 with a current revenue stream, emphasizing the importance of engagement over subscriber count. The creator also offers advice for newsletter owners and their commitment to quality content and advertiser results.

Takeaways

• 📈 The newsletter 'Profit Snack' has generated $17,396 in revenue in the last 30 days and has been built over eight months.
• 🛠️ The creator took a 3-4 month break from YouTube to focus on team development and e-commerce business growth.
• 🔄 The newsletter underwent a rebrand from 'Synthetic Mind' to 'Profit Snack', focusing on online business owners rather than AI-specific content.
• 🚀 Four stages of growth were identified: organic guerrilla marketing, organic traction, automated influencer partnerships, and paid ads.
• 💰 High initial growth costs amounted to $140,000, with team expenses accounting for $25,000 of that.
• 🔄 A significant number of unengaged subscribers were removed, reducing the list to 65,000 engaged subscribers.
• 📉 The rebrand led to unsubscribes and negative feedback, but also a more passionate and engaged audience.
• 💡 The business model is based on selling ad space at a 35 CPM rate, tied to open rates, not just subscriber numbers.
• 📊 Currently, the business does not require additional cash injection and is self-sustaining with a break-even point reached.
• 👥 The team has been streamlined, reducing monthly team expenses to $5,000, focusing on efficiency and quality.
• ♻️ The creator emphasizes the importance of organic growth, advertiser results, and audience engagement for long-term success.

Q & A

What was the revenue generated by the newsletter in the last 30 days?

The newsletter generated $17,396 in revenue in the last 30 days.

How long has the creator been building the newsletter?

The creator has been building the newsletter for about eight months.

What is the primary target audience for the newsletter?

The primary target audience for the newsletter is online business owners.

What was the original focus of the newsletter before the rebrand?

The original focus of the newsletter was on artificial intelligence with an emphasis on its business applications and the companies funding it.

What is the name of the newsletter after the rebrand?

After the rebrand, the newsletter is called 'Profit Snack'.

What was the first growth phase of the newsletter referred to as?

The first growth phase was referred to as 'Organic Gorilla Marketing'.

What platform was used to automate the influencer outreach process during the third growth phase?

The platform used to automate the influencer outreach process was called 'Spark Loop'.

What is the current open rate for the newsletter subscriptions not from Spark Loop?

The current open rate for the newsletter subscriptions not from Spark Loop is between 45% to 48%.

What is the average cost per subscriber acquired through Twitter ads currently?

The average cost per subscriber acquired through Twitter ads is about $1.30 to $1.50.

What was the total amount spent on the newsletter's growth?

The total amount spent on the newsletter's growth was $105,000.

What is the current team expense per month after trimming back the team?

The current team expense per month is about $5,000 after trimming back the team.

What is the repeat advertiser rate for the newsletter?

The repeat advertiser rate for the newsletter is around 30 to 35 percent, with a goal to increase it to 70 percent.

What is the payback period for subscribers acquired for two dollars on average?

The payback period for subscribers acquired for two dollars on average is about five to six months.

What is the newsletter's approach to selling ad space?

The newsletter sells ad space based on a 35 CPM, which is tied to open rates rather than the number of subscribers.

What is the estimated annual revenue if the growth spending stops?

If the growth spending stops, the estimated annual revenue would be about $140,000 to $150,000.

What is the main reason for the name switch and rebrand of the newsletter?

The main reason for the name switch and rebrand was to shift focus away from AI as the central theme and to create a more passionate and engaged audience.