The Power of Substack: Why We Pay for Quality Information and Understanding Mental Models in UX

Kazuki

Hatched by Kazuki

Jul 20, 2023

4 min read

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The Power of Substack: Why We Pay for Quality Information and Understanding Mental Models in UX

Introduction:

In a world where time and attention are limited resources, the need for filtering and trusting information becomes crucial. Just as we are willing to pay for high-quality food, clothes, and cars, the demand for high-quality information is also on the rise. This is where platforms like Substack come into play, offering a space for writers to share their expertise and insights while providing readers with valuable content. In this article, we will explore the concept of Substack, its revenue model, and the importance of mental models in user experience (UX) design.

Substack: A Platform for Quality Information:

Substack operates on a revenue model that takes a 10% cut of subscription revenue. The success of the platform relies on increasing writers' revenue, which can be achieved by three main factors: increasing the number of readers who pay for a subscription, increasing the average number of subscriptions that paid readers have, and increasing the average cost per subscription. By focusing on these levers, Substack aims to attract more writers and provide them with the tools to reach a larger audience.

Building Discovery Tools for Substack:

To cater to the needs of both writers and readers, Substack is likely to incorporate discovery tools, such as a recommendation engine, into its product roadmap. These tools would help writers gain a larger audience, while readers can discover more high-quality content that aligns with their interests. Additionally, bundling could be a strategy employed by Substack and writers to generate more revenue. By offering bundled subscriptions, casual fans may be encouraged to make a purchase, further supporting the growth of the platform.

The Psychology of Paying for Products:

Understanding mental models is essential in designing a user-friendly experience. Mental models are beliefs that users hold about a system, such as a website. By recognizing these mental models, designers can create interfaces that align with users' expectations and behaviors. According to Mental Notes, a renowned resource on mental models, users tend to follow the patterns of similar others in new or unfamiliar situations. This highlights the importance of designing intuitive interfaces that are familiar to users, making it easier for them to navigate and interact with the platform.

The Fear of Loss and the Power of Action:

Another aspect of mental models is the aversion to loss. As humans, we dislike losing or letting go of what we already have, even if there is potential for greater gain. This insight can be utilized in UX design by creating a sense of ownership or exclusivity for users. By offering premium or exclusive content through paid subscriptions, Substack can tap into users' fear of missing out and encourage them to become paid subscribers.

The Power of Breaking Down Complex Activities:

Complex activities can be overwhelming for users, leading to inaction. However, by breaking down these activities into smaller, manageable tasks, users are more likely to take action. This principle can be applied to the subscription process on Substack. By simplifying the steps required to subscribe and highlighting the benefits of doing so, users are more likely to convert from free to paid subscribers.

Actionable Advice:

  • 1. As a writer on Substack, focus on building a loyal and engaged audience. Engage with your readers through comments, newsletters, and social media to establish a strong connection.
  • 2. Offer exclusive content or perks to your paid subscribers to create a sense of value and exclusivity. This can incentivize readers to upgrade their subscriptions and support your work.
  • 3. Invest in creating a visually appealing and user-friendly interface for your Substack publication. Consider the mental models of your target audience and design an experience that aligns with their expectations.

Conclusion:

Substack provides a platform for writers to share high-quality information and monetize their expertise. By understanding the revenue model and the importance of mental models in UX design, both writers and readers can maximize their experience on the platform. With the inclusion of discovery tools and the utilization of psychological insights, Substack has the potential to revolutionize the way we consume and pay for information in the digital age. So, whether you're a writer or a reader, Substack offers an opportunity to be part of a community driven by quality content and meaningful connections.

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