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.

It is important to note that Substack does not commission or edit stories, nor do they hire or manage writers. The writers are the owners, and they write for their own publications. Substack's only requirement is a commitment to a minimum publishing frequency to ensure that writers are actively engaged in their publications.

When selecting writers for Substack Pro, the platform looks at various factors such as the writer's audience size, engagement on social media, and the respect the writer garners from their readers and peers. Additionally, Substack assesses the market opportunity for a publication by evaluating what the writer covers and how well that subject is covered elsewhere. This approach allows Substack to host a broad array of voices and preserve diversity of thought, which is essential for healthy discourse.

The importance of a free press cannot be overstated. History has shown us that heroes can be seen as villains and villains as heroes. A diversity of thought and a range of perspectives are essential for a robust and inclusive society. By supporting writers who may face fierce opposition but contribute to important conversations, Substack Pro plays a role in upholding the principles of a free press.

In conclusion, the Hierarchy of Engagement provides a valuable framework for companies aiming to create self-perpetuating products. At the same time, Substack Pro offers a solution to the challenges faced by journalists in the digital age. By taking on the risk and providing financial security, Substack allows writers to focus on their craft and contributes to the diversity of voices in the media landscape.

Actionable Advice:

1. Focus on growing engaged users by creating a seamless user experience and providing value that keeps users coming back.
2. Implement retention strategies such as personalized recommendations and loyalty programs to ensure users remain loyal to your product.
3. Foster a diverse range of voices and support writers who may face opposition but contribute to important conversations.

By following these actionable pieces of advice, companies can work towards creating self-perpetuating products while also supporting the journalism industry in the digital age.