He Makes $1 Million with 1,500 Email Subscribers - Here's How

TL;DR

Nathan shares insights on creating profitable newsletters.

Transcript

Did you say you're running a 1 million ARR with a thousand person list? Yeah, if you're going to buy a newsletter, like you want to be really careful about it. It's definitely easy to build just like a list that doesn't have any quality behind it and then sell it and hope for the best. The leverage in the newsletter is that like it comes from you a... Read More

Key Insights

• Nathan emphasizes the importance of a strong monetization strategy for newsletters, suggesting that having a clear plan for revenue generation is crucial before even acquiring subscribers.
• He highlights the power of small, niche-focused newsletters, sharing examples of individuals making significant income with relatively small subscriber lists by targeting specific, high-value audiences.
• Nathan discusses the potential pitfalls of buying newsletters, warning against acquiring lists without established monetization or high-quality engagement, and stresses the value of sales relationships.
• He introduces the concept of the 'media mullet,' where newsletters are supported by ad revenue upfront but supplemented by high-value products or services in the background.
• Nathan advises that creators, journalists, business owners, and those willing to experiment are best suited for starting newsletters, while highlighting the importance of patience and a strategic approach.
• He shares that paid newsletters are challenging and often require a large, engaged audience or unique, high-value content to succeed, often relying on organic growth rather than paid ads.
• Nathan suggests that focusing on tools or niches within a larger industry can be a successful strategy for B2B newsletters, using the example of creating content around popular software like Figma.
• He stresses the importance of being an opportunist and experimenting with different ideas, suggesting that committing to being a founder and exploring various ventures can lead to success.

Questions & Answers

Q: How did Nathan get into the newsletter space?

Nathan entered the newsletter space after running a successful mobile app portfolio. He was inspired by the potential of newsletters as profitable businesses after observing others in the industry. His first clients were The Neuron and Julius, both of whom had established newsletters, which helped him gain a foothold in the industry.

Q: What advice does Nathan give for buying a newsletter?

Nathan advises caution when buying newsletters, emphasizing the importance of ensuring the list has established monetization and high-quality engagement. He warns against acquiring lists without these elements and highlights the value of sales relationships, which can be more important than the number of subscribers.

Q: What is the 'media mullet' strategy?

The 'media mullet' strategy involves having an ad-supported newsletter upfront while offering high-value products or services in the background. This approach allows for diversified revenue streams and can significantly enhance the profitability of a newsletter business. Nathan cites examples like The Hustle and Blockworks, which successfully implemented this strategy.

Q: Who should start a newsletter according to Nathan?

Nathan suggests that creators, journalists, business owners, and those willing to experiment are best suited for starting newsletters. He emphasizes the importance of having a clear monetization strategy and being patient, as building a successful newsletter often takes time and strategic effort.

Q: What challenges exist for paid newsletters?

Paid newsletters face significant challenges, often requiring a large, engaged audience or unique, high-value content to succeed. Nathan notes that most successful paid newsletters rely on organic growth rather than paid ads, and they need to offer something that subscribers can't easily find elsewhere, such as exclusive insights or breaking news.

Q: What is Nathan's perspective on niche-focused newsletters?

Nathan believes that niche-focused newsletters can be highly profitable, even with small subscriber lists. By targeting specific, high-value audiences, these newsletters can generate significant income. He shares examples of individuals making millions with niche newsletters, emphasizing the importance of understanding and serving a specific audience.

Q: How can one grow a B2B newsletter effectively?

Nathan suggests focusing on tools or niches within a larger industry as a strategy for B2B newsletters. By becoming the go-to resource for a specific tool or niche, such as Figma, newsletters can attract a targeted audience. He also highlights the importance of understanding the industry's dynamics and leveraging trade shows and conferences for growth.

Q: What is Nathan's advice for those experimenting with newsletters?

Nathan encourages experimentation and opportunism, suggesting that individuals commit to being founders and explore various ventures. He advises setting a timeline and budget for newsletter initiatives to quickly determine viability, allowing for pivoting to new ideas if initial attempts don't succeed. This approach helps avoid wasting time on unproductive ventures.

Summary & Key Takeaways

• Nathan May shares his journey of building a successful newsletter business, emphasizing the importance of monetization strategies and targeting niche audiences. He discusses the challenges and opportunities within the newsletter industry, highlighting the potential of small, focused lists.

• He provides insights into buying newsletters, advising caution and stressing the value of established monetization and sales relationships. Nathan also introduces the concept of the 'media mullet,' combining ad revenue with high-value products or services.

• Nathan outlines the types of individuals who are likely to succeed with newsletters and discusses the challenges of paid subscriptions. He suggests focusing on tools or niches within industries as a strategy for B2B newsletters and encourages experimentation and opportunism.