6 Comments

I’ve only worked in programmatic contexts and never had the right frameworks / vocabulary for talking about this stuff, so this post was extremely useful for me! I think you know where my priors are here: I’d love to be in a ~70% subscription / 30% β€œother revenue” world, with eg Meetings and direct sales / sponsorship type ad revenue helping expand the number of ways you can make money on Substack.

Very lucidly explained and presented man!

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Great article. I wonder if comparing LTV between paying and β€œfree” is right in a hybrid model. The LTV of a subscriber will be higher, but the absolute number is a fraction of the audience. I don’t understand extracting no value from people who aren’t paid subscribers. The complexity and tension is real, but that’s media. I just believe it’s common sense to make money in multiple ways and use ads as a reasonable value exchange with 90%+ of your audience.

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I think the ideal revenue mix is actually 50% subscriptions and 50% advertising.

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