The Hierarchy of Engagement: Why We Pay Writers

The Hierarchy of Engagement: Why We Pay Writers

In today's digital age, engagement has become a crucial metric for companies. The Hierarchy of Engagement, consisting of three levels, provides a framework for understanding how products can evolve and create virtuous loops that make them self-perpetuating.

The first level of the hierarchy is growing engaged users. Companies strive to attract and retain users who are actively engaged with their product. This requires creating a seamless user experience and providing value that keeps users coming back. By focusing on growing engaged users, companies can build a strong foundation for their product.

The second level of the hierarchy is retaining users. Once companies have attracted engaged users, it is important to keep them around. Retention strategies such as personalized recommendations, exclusive content, and loyalty programs can help companies ensure that their users remain loyal and continue to engage with their product. Retaining users is crucial for long-term success and creating a sustainable business model.

The third level of the hierarchy is self-perpetuating. At this stage, a company's product has become so valuable and ingrained in users' lives that it creates a virtuous loop. Users not only continue to engage with the product but also become advocates, spreading the word and attracting new users. This self-perpetuating nature is the ultimate goal for companies and signifies that their product has become an indispensable part of users' lives.

While the Hierarchy of Engagement provides a valuable framework, it is important to acknowledge the challenges faced by the journalism industry. The internet has brought about tremendous possibilities for journalism but has also disrupted its business model. Traditional revenue streams have been eroded, making it difficult for journalists to earn a living from their work.

Recognizing this, Substack, a platform for independent writers, came up with a program called Substack Pro. This program allows writers to absorb more risk, ensuring they get paid for a year of work regardless of how their publication performs. Substack Pro aims to show that the platform is trustworthy and reliable, creating a sustainable model for writers in the digital age.

Under Substack Pro, writers agree to let Substack keep 85% of the subscription revenue in the first year, with the deal flipping after that year, allowing the writer to keep 90% of the revenue. This structure allows Substack to take on most of the risk, providing financial security for the writers. In return, the writers' work contributes to the quality of the Substack ecosystem, creating a win-win situation.