Welcome! I'm Simon Owens and this is my media industry newsletter. If you've received it, then you either subscribed or someone forwarded it to you. If you fit into the latter camp and want to subscribe, then you can click on this handy little button:

Hey folks! Today I’m answering questions from readers. If you have a question you want me to answer in a future newsletter, leave it in this thread.

Can you make real money on a paid newsletter while only writing part-time?

The first question comes from Arpit Choudhury

Do you believe that folks who are not full-time writers/journalists can make decent revenue from a paid Substack publication?

Let me simplify your question a little bit: Can you work on a paid newsletter part-time and still make decent money? 

We’ll define “part-time” as a maximum of 10 hours a week and “decent money” as a minimum of $2,000 a month. And let’s say, for the sake of this argument, that your full-time job doesn’t involve journalism.

So, can a writer generate between 200 and 400 paying subscribers while working on their newsletter for only 10 hours a week?

It would be extremely difficult to pull this off. When I launched my paid newsletter in February 2020, it was after six years of building up my free list, and I more or less worked on the paid version on a full-time basis. Even then, it took me until November 2020 — a full nine months — before I hit my first 100 paying subscribers.

Even with all my advantages, I still found it immensely challenging to grow my paid list. Subscription economics are brutal, mostly because it’s extremely difficult to get a reader to turn over their credit card information, especially when you’re competing with so much free content.

That’s not to say that the feat would be impossible — and of course there are always outlier cases one can point to — but you probably won’t see anything close to overnight success if you pursue this path.

In fact, you’d probably be better off if you embrace business models other than paid subscriptions. With only 10 hours to work with, you should maximize the time spent on creating free content that will help you build your audience. For roughly six years, I leveraged my free content to drive leads for my consulting business. You could also monetize through advertising or affiliate marketing.

Paid subscription models require a tremendous amount of work and experimentation. If your time is limited, then don’t burn yourself out on such an uphill climb. 

What do you think?

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Quick hits

Digital news sites don't really benefit much from the increase in campaign ad spending during election years. Most of that ad spend goes toward video. [Digiday]

This author pitched her book idea to TikTok, and after the video generated millions of views, she landed a massive book contract. [Guardian]

"Adblockers typically don’t convert when encountering an adblock wall. Instead they just get annoyed at the intrusion and head off to find alternative content sources." [Spiny Trends]

A New York Times bestselling author is serializing a story on Kindle Vella and letting her Patreon subscribers vote on potential plot twists. This is a neat way to collaborate with an audience. [SLJ]

The Recommendations feature is Substack’s “moat,” the biggest reason writers will stick around even if it means paying 10% of revenue into perpetuity. [Twitter]

What are the best ways to measure newsletter performance?

The next question comes from Ryan Heafy:

We're hearing that some newsletter publishers are evolving the calculation of [click-through rate]. We have historically tracked CTR as Total Clicks / Total Opens (Impressions), but in many instances with newsletters, there are repeat opens so it suppresses the CTR. (Example: If a bot is pinging one newsletter repeatedly, it may increase total opens(impressions) and therefore negatively impact the CTR).

We're hearing that some publishers are using both of the following in reporting to clients now, or on marketing materials: CTR = Total Clicks / Unique Opens and CTOR = Unique Clicks / Unique Opens. The challenge with varying reporting is in the analysis from various media buyers. We're seeing an advertiser compare 2 different newsletter brands and seeing higher performance from one over the other, simply because of the way in which they are calculating performance. We also see challenges on local and regional levels with less sophisticated buyers. What is the generally accepted practice? What are most people using to showcase newsletter performance? What do you believe are the top 5 metrics that should be shared to showcase newsletter performance?

Let’s start with some context: Newsletter measurement has always been difficult, mainly because the newsletter is consumed on a website that’s not owned by the actual publisher. As a result of this dynamic, newsletter publishers have been limited to three main reporting metrics:

1. Total number of email subscribers: This is pretty self-explanatory

2. Open rate: Most email service providers insert a customized invisible pixel in every newsletter, and when the reader opens the email it automatically pings the ESP’s server. The open rate is simply the number of unique opens divided by the total number of email subscribers.

3. Click-through rate: ESPs take all the links you include in your newsletter and replace them with customized links that are generated for each email address. That way, when someone clicks on the link, it pings the ESP’s server in such a way that the ESP knows who clicked on the link (or rather, which email address they use) and which exact link they clicked on. The click-through rate is usually measured as the total number of unique clicks divided by the unique number of opens.

Of course, all of these metrics have flaws. The number of total subscribers is misleading because it doesn’t account for all the people who signed up for the newsletter but never opened it — or abandoned their email address entirely. If you run a B2B newsletter, for instance, then you probably have a higher-than-average rate of abandoned email addresses because of people leaving their jobs. ...