"Building User Habits and Supporting Writers: A Path to Retention and Sustainable Journalism"

"Building User Habits and Supporting Writers: A Path to Retention and Sustainable Journalism"

In the times of COVID-19, the importance of retention has become even more critical for businesses. To create great retention, it is essential to build and deepen user habits over time. Habit building is a science that involves understanding user motivations, cognitive and physical friction, rewards, and more. However, it's important to note that revenue retention is an output of usage and should not be the sole focus. Instead, businesses should concentrate on improving the core inputs of retention: Activation, Engagement, and Resurrection.

In the realm of journalism, the internet has brought about a paradigm shift, changing the scope of possibility for writers. However, it has also disrupted the traditional business model of journalism, leaving writers uncertain about their financial stability. Substack, a platform that supports independent writers, recognized this challenge and introduced a program called Substack Pro. This program aimed to absorb more risk on the writer's behalf by guaranteeing payment for a year of work, regardless of how the publication performed.

Unlike traditional tech startups that prioritize aggregating an audience before establishing a business model, Substack focused on creating a trustworthy and reliable model from the start. The success of Substack was tied to the success of its writers, creating a symbiotic relationship where both parties benefited. In the first year, Substack kept 85% of the subscription revenue, providing writers with financial security. After the first year, the writer's share increased to 90% of the subscription revenue.

By taking on the majority of the risk, Substack aimed to build a strong ecosystem where writers felt supported and valued. They emphasized that these deals were business decisions, not editorial ones, as Substack did not commission or edit stories. The writers remained the owners of their publications, with Substack acting as a platform for them to showcase their work. The only requirement was a commitment to a minimum publishing frequency, ensuring that writers were actively engaged in their publications.

To select writers for the Substack Pro program, Substack considered various factors, including the writer's audience size, engagement on social media, and the respect they garnered among readers and peers. They also assessed the market opportunity of the publication by evaluating the subject they covered and how well it was addressed elsewhere. Substack aimed to host a diverse array of voices, recognizing that a diversity of thought is essential for healthy discourse.

In supporting writers and fostering sustainable journalism, Substack recognized the importance of the free press. They acknowledged that writers who say anything important may not always be universally loved but still deserve support. History has shown that heroes can be mistaken for villains and vice versa, and it is the role of the free press to shed light on different perspectives and challenge prevailing narratives.

In conclusion, building user habits and supporting writers are crucial elements in achieving retention and sustainable journalism. To improve retention, businesses must focus on the core inputs of Activation, Engagement, and Resurrection. Platforms like Substack exemplify how taking on financial risk and providing a supportive ecosystem can empower writers and contribute to a diverse and thriving media landscape.

Actionable Advice:

1. Understand user motivations and minimize friction points to build strong habits that lead to retention.
2. Prioritize the success of your users or contributors, as their success will ultimately impact your own.
3. Foster a diverse range of voices and ideas to encourage healthy discourse and challenge prevailing narratives.

By implementing these strategies, businesses and platforms can create long-term value, retain users, and support the vital role of journalism in society.