Why We Pay Writers and the Importance of Having the Right People on the Bus

Why We Pay Writers and the Importance of Having the Right People on the Bus

In today's digital age, the internet has revolutionized the world of journalism. It has opened up new possibilities and expanded the scope of what is possible in terms of content creation and distribution. However, it has also disrupted the traditional business model of journalism, making it difficult for writers to monetize their work.

At Substack, we recognized this challenge and came up with a unique solution. We developed a program called Substack Pro, which allowed us to absorb more risk on behalf of the writers. Under this program, we guarantee that writers will get paid for a year of work, regardless of how their publication performs. This financial security provides writers with the confidence and stability they need to focus on their craft.

To ensure the success of our writers, we made our own success dependent on their success. In the first year, we keep 85% of the subscription revenue, and after that, the writer keeps 90%. This model allows us to take on most of the risk while still giving writers the opportunity to earn a significant portion of the revenue. It's a win-win situation that incentivizes writers to produce high-quality content that attracts and retains subscribers.

It's important to note that we see these deals as business decisions, not editorial ones. We don't commission or edit stories, and we don't manage the writers. The writers are the owners of their own publications, and we simply provide them with a platform and support. The only requirement we have is a commitment to a minimum publishing frequency to ensure that writers are actively engaged in their work.

When selecting writers for Substack Pro, we consider various factors. We look at the size of their audience, the level of engagement on social media, and the respect they receive from their readers and peers. We also assess the market opportunity for their publication and how well the subject is covered elsewhere. Diversity of thought is crucial to healthy discourse, so we aim to host a broad array of voices on the platform.

The idea of having the right people on the bus is not limited to the world of journalism. In his book "Good to Great," Jim Collins emphasizes the importance of building great organizations by having the right people in key positions. Collins suggests that before figuring out where to drive the bus, we should first focus on who should be on the bus.

Having the right people on the bus has several advantages. Firstly, if people are on the bus because of who else is on the bus, it becomes much easier to change direction. When the team is composed of talented individuals who trust and respect each other, they can adapt to new challenges and opportunities more effectively.

Secondly, if you have the right people on the bus, the problem of how to motivate and manage them largely goes away. When individuals are passionate about their work and aligned with the organization's mission, they naturally strive to do their best and deliver outstanding results. Motivation becomes an intrinsic drive rather than something that needs to be externally imposed.

Lastly, if you have the wrong people on the bus, it doesn't matter how great the direction is; you won't have a great company. Collins found that executive compensation was not a determining factor in taking a company from good to great. It's not about how you compensate your executives, but rather about having the right executives in the first place. The right people will do the right things and deliver the best results they're capable of, regardless of the incentive system.

In conclusion, both Substack's approach to paying writers and Jim Collins' concept of having the right people on the bus highlight the importance of aligning incentives and ensuring the right individuals are in key positions. For Substack, providing financial security to writers allows them to focus on producing high-quality content. For organizations, having the right people on board leads to better outcomes and eliminates the need for excessive management and motivation efforts.

Actionable Advice:

1. Prioritize finding the right people for your organization. Focus on their skills, values, and alignment with your mission rather than solely relying on external incentives.
2. Consider innovative business models that share risk and reward with your partners or employees. This can create a sense of ownership and motivation to succeed.
3. Embrace diversity of thought and voices. Encourage a broad array of perspectives to foster healthy discourse and challenge conventional thinking.

By embracing these principles, organizations can create a culture of excellence and innovation, leading to long-term success and impactful content creation.