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- 👪 Co Reg Woes
👪 Co Reg Woes
In this issue of Newsletter Creator we discuss paid recommendations and ESP ad networks, life as a boostrapped operator and the future of newsletters
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Hey there 👋,
In this issue we discuss:
Paid recommendations and ESP ad networks
The reality of bootstrapped newsletter operators
The future of newsletters is bright
Cheers!
🍿 To Co-Reg or Not to Co-Reg
James Camp from the Nano Flips newsletter wins newsletter X impressions of the week (last week it was the mafia wars) with a post about ‘co-registration’ asking whether Convertkit and beehiiv creates artificial inventory through their paid recommendations features and respective ad networks:
Ok so Beehiiv and Converkit are both pushing co registration 1 click sign up between newsletters
Which is allowing lists to grow very fast - but all with the same people...
AND they are brokering ads for newsletters as well
Doesn't this just create artificial inventory for ad… twitter.com/i/web/status/1…
— James Camp 🛠,🛠 (@JamesonCamp)
7:04 PM • Aug 16, 2023
James was mostly concerned about having your ad shown to the same person multiple times without having a cap on it.
A lot of people responded, such as Jacob Donnelly from A Media Operator who wasn’t concerned about paid recommendations, as net new people are coming into the space from social, and you can remove the ones who don’t engage:
I have a few thoughts:
What many of these newsletters are doing is relying on 3rd-party paid growth (FB, Google, etc.) to drive people to their landing page and then using 1 click co-reg to monetize on the sign up. That means net new people are being introduced to the ecosystem.… twitter.com/i/web/status/1…
— Jacob Donnelly ☕️ (@JayCoDon)
7:10 PM • Aug 16, 2023
Michael Houck from Houck's Newsletter stated that a potential problem is that the demand for newsletter sponsorships may not keep up with the supply of new newsletter operators coming into the space:
@JamesonCamp This is likely correct, but James's concern is well-placed too.
The other factor is that companies who run newsletter ads have budgets. As the number and popularity of newsletters grows more advertisers will enter the space, but it seems likely that the number of newsletters… twitter.com/i/web/status/1…
— Michael Houck 💡 (@callmehouck)
1:54 PM • Aug 17, 2023
Louis from Sparkloop Upscribe (the paid recommendations platform which Convertkit acquired and uses) stated that people are misunderstanding recommendations:
Always amazing to me...
1. how badly people understand newsletter recommendations
2. How happy they are to confidently share complete-nonsense opinions on them anyway in the comments 🙃
Here's the truth about newsletter recommendations (paid or free):
→ For newsletter… twitter.com/i/web/status/1…
— Louis Nicholls 💫 (@louisnicholls_)
8:30 AM • Aug 17, 2023
His main points were that for recommendations to work there has to be an external traffic source of subscribers, and that there is no evidence that engagement is lower than subs you can acquire on social.
He sees recommendations as the first way that newsletters have been able to achieve discoverability, and that overlap between audiences is overblown, which we agree with:
@JamesonCamp agree, with my previous newsletters on substack, never had more than 10% audience overlap
— patey.eth (@RichardPatey)
2:29 PM • Aug 17, 2023
And Louis clears up the fact that this is not traditional co-reg, like what you see from bold.org, as subscribers are already newsletter readers and opt in to what they are subscribing to (at least on beehiiv, as on Substack the recommendations page is auto ticked and you have to unselect):
@MobyInvest@JayCoDon Thanks!
I think you're spot on that "traditional" co-reg is lower quality...
→ subscribers aren't necessarily newsletter readers
→ they often don't know what they're signing up for
→ they often don't even explicitly opt-in to your newsletter
We try and avoid equating… twitter.com/i/web/status/1…
— Louis Nicholls 💫 (@louisnicholls_)
9:29 AM • Aug 17, 2023
🥾 Boostrapping Founders
Manu from Stacked Marketer posted about the difficulties of scaling boostrapped newsletter businesses:
A few weeks ago I had a conversation with @aaditsh about newsletters and their operation.
I’d like to share 3 insights (on bootstrapped founders) that came up from his questions and our discussion:
1. The reality of bootstrapped founders:
Bootstrapped founders have to solve or… twitter.com/i/web/status/1…
— Emanuel Cinca (@emanuelcinca)
5:04 PM • Aug 17, 2023
He states that boostrapped founders need to learn to be 80% as good as any expert that they can’t initially afford to hire. But when you can hire, you should hire early, but also fire fast.
Fortunately at Wisdom Media, we have the luxury of hiring an all-star team of experts in newsletters, sponsorships, and acquisitions!
📰 Classifieds
Duuce is the #1 marketplace for buying & selling newsletters. See what your newsletter is worth with their free valuation calculator. Check it out
Sponsorships(.com) Newsletter Agency helps newsletter operators earn more revenue through sponsorships with top brands. Check it out
The Newsletter Is The Business is everything we know about launching, scaling and selling editorial newsletter businesses. Check it out
☝️ One More Thing
At Newsletters.co, we really feel that the newsletter business is in its infancy, and that we 10x from here.
Likewise, Wouter is excited about the future:
I'm really excited about the future of the newsletter industry.
There's going to be significantly more growth than you may expect.
Remember how some thought Podcasting had peaked after the Rogan $100M Spotify deal? Podcasting is up ~50% since!
Newsletters are their infancy!
— Wouter Teunissen 🥛 (@WouterTeunissen)
2:30 AM • Aug 18, 2023
Disclaimer: Not financial or business advice. This newsletter is strictly for information and education purposes. There are no affiliate links in this issue.