IncomeWikiRevision 1
Newsletter Business
@namkyu · Sep 1, 2026, 8:51 AM
Added newsletter monetization, platforms, growth, metrics, and risks.+25,353−0
A newsletter business builds an audience through recurring email content and monetizes that audience through paid subscriptions, sponsorships, affiliate offers, products, services, or other revenue streams.
Unlike email marketing for an existing business, a newsletter business treats the publication and its subscriber base as the core asset.
A newsletter can begin as a one-person operation with little upfront cost, but its long-term value depends heavily on audience quality, retention, trust, and the ability to consistently publish useful content.
Item | Details |
|---|---|
Business model | Media business, subscription business, sponsorships, affiliate revenue |
Main asset | Email subscriber list and audience relationship |
Common niches | Business, technology, finance, careers, local news, industry research, hobbies |
Coding required | No |
Common platforms | beehiiv, Substack, Kit |
Free starting options | Yes |
beehiiv free limit | Up to 2,500 subscribers |
Substack publishing cost | Free for free publications |
Substack paid subscription fee | 10% of each paid transaction plus payment processing |
Canonical Markdown
1
A newsletter business builds an audience through recurring email content and monetizes that audience through paid subscriptions, sponsorships, affiliate offers, products, services, or other revenue streams.2
3
Unlike email marketing for an existing business, a newsletter business treats the publication and its subscriber base as the core asset.4
5
A newsletter can begin as a one-person operation with little upfront cost, but its long-term value depends heavily on audience quality, retention, trust, and the ability to consistently publish useful content.6
7
# Quick Facts8
9
10
| Item | Details |11
| -------------------------------------- | ------------------------------------------------------------------------------ |12
| Business model | Media business, subscription business, sponsorships, affiliate revenue |13
| Main asset | Email subscriber list and audience relationship |14
| Common niches | Business, technology, finance, careers, local news, industry research, hobbies |15
| Coding required | No |16
| Common platforms | beehiiv, Substack, Kit |17
| Free starting options | Yes |18
| beehiiv free limit | Up to 2,500 subscribers |19
| Substack publishing cost | Free for free publications |20
| Substack paid subscription fee | 10% of each paid transaction plus payment processing |21
| Substack minimum paid price | $5/month or $30/year for U.S. dollar Stripe accounts |22
| beehiiv paid subscription platform fee | 0% on eligible paid plans |23
| Main difficulty | Building and retaining an audience |24
| Difficulty | Beginner to advanced |25
26
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# How a Newsletter Business Makes Money28
29
A newsletter does not need millions of subscribers to become a business.30
31
Revenue usually comes from one or several of the following models.32
33
## Paid Subscriptions34
35
Readers pay for access to some or all newsletter content.36
37
Common paid content includes:38
39
- Industry analysis40
- Investment research41
- Career information42
- Specialized data43
- Premium tutorials44
- Exclusive interviews45
- Market intelligence46
- Member-only reports47
48
A publication may combine:49
50
- Free subscribers51
- Paid subscribers52
- Higher-priced founding or supporter plans53
54
For example:55
56
1,000 paid subscribers × $10/month = $10,000/month gross subscription revenue57
58
This is before platform fees, payment processing, refunds, taxes, and other costs.59
60
The difficult part is not enabling subscriptions.61
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It is creating content readers believe is worth paying for repeatedly.63
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# Free and Paid Newsletter Structure65
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A newsletter can use several models.67
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## Fully Free69
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Every subscriber receives the same content.71
72
Revenue comes from:73
74
- Sponsorships75
- Affiliate links76
- Products77
- Services78
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This can maximize audience growth because there is no paywall.80
81
## Freemium82
83
Most readers receive free content while paid subscribers receive additional material.84
85
For example:86
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**Free**88
89
- Weekly newsletter90
- Public articles91
92
**Paid**93
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- Full reports95
- Additional issues96
- Data97
- Member discussions98
- Premium resources99
100
This model allows the free audience to continue growing while monetizing the most engaged readers.101
102
## Fully Paid103
104
Most useful content requires a subscription.105
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This can work when the information has strong professional, financial, or specialized value.107
108
It is usually harder for a new publication because potential subscribers have less opportunity to evaluate the writer first.109
110
# Sponsorships111
112
A sponsor pays to reach the newsletter's audience.113
114
An advertisement may appear as:115
116
- Dedicated sponsorship117
- Header ad118
- Native text placement119
- Product recommendation120
- Classified listing121
122
Newsletter sponsorship value depends on more than total subscriber count.123
124
Advertisers may evaluate:125
126
- Audience niche127
- Geographic location128
- Open rate129
- Click activity130
- Subscriber quality131
- Purchasing power132
- Professional roles133
134
A small newsletter read by a valuable niche can sometimes attract sponsors even without a massive audience.135
136
For example, an industry newsletter read by decision-makers can be more commercially valuable than a much larger general-interest audience.137
138
# Direct Sponsorship Sales139
140
A newsletter can sell sponsorships directly.141
142
The publisher handles:143
144
- Finding advertisers145
- Pricing146
- Campaign dates147
- Creative approval148
- Placement149
- Reporting150
- Payment151
152
Direct sponsorships provide more control but require sales work.153
154
Create a simple media kit containing:155
156
- Newsletter topic157
- Subscriber count158
- Audience description159
- Geographic distribution160
- Open and click metrics161
- Sponsorship formats162
- Previous advertisers163
- Contact information164
165
Do not inflate subscriber or engagement numbers.166
167
# Advertising Networks168
169
Some newsletter platforms provide built-in advertising marketplaces.170
171
beehiiv currently provides an Ad Network that allows eligible publishers to browse available advertiser campaigns and insert advertisements into newsletters.172
173
This reduces direct sponsor outreach.174
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However, available campaigns and revenue depend on factors such as:176
177
- Audience178
- Geography179
- Advertiser demand180
- Newsletter category181
- Engagement182
183
An ad network should not be treated as guaranteed income.184
185
# Affiliate Marketing186
187
A newsletter can earn commissions by recommending products or services.188
189
Examples include:190
191
- Software192
- Books193
- Courses194
- Financial products where permitted195
- Business tools196
- Consumer products197
198
The publisher receives a commission when qualifying subscribers purchase through an affiliate link.199
200
Affiliate offers work best when the product naturally fits the newsletter.201
202
Repeatedly promoting unrelated products can reduce trust.203
204
# Paid Recommendations205
206
Newsletter platforms can also pay publishers for recommending other newsletters.207
208
For example, beehiiv's Recommendations Network allows publishers to receive or purchase verified subscriber recommendations.209
210
This creates another possible revenue stream from audience growth.211
212
Kit also provides paid recommendations between creators and newsletters.213
214
Paid recommendations should be clearly separated from editorial recommendations where necessary to preserve reader trust.215
216
# Products and Services217
218
A newsletter can be an audience-building channel for another business.219
220
Possible products include:221
222
- Courses223
- Templates224
- Books225
- Research reports226
- Communities227
- Events228
- Consulting229
- Coaching230
- Software231
232
In this model, the newsletter itself may remain free.233
234
The audience generates revenue when subscribers purchase higher-value products or services.235
236
# Choosing a Newsletter Niche237
238
A strong niche should have enough useful information to publish repeatedly.239
240
Examples include:241
242
- AI industry news243
- SaaS244
- Real estate245
- Local business news246
- Careers247
- Investing248
- Marketing249
- Cybersecurity250
- Healthcare industry news251
- Creator economy252
- E-commerce253
254
A niche can be narrow.255
256
For example:257
258
Broad:259
260
Technology261
262
More specific:263
264
AI tools for marketing agencies265
266
Even more specific:267
268
Weekly AI automation opportunities for small marketing agencies269
270
Specific positioning can make it easier for potential readers to understand why they should subscribe.271
272
# Choosing the Reader273
274
Define who the publication is for.275
276
For example:277
278
- SaaS founders279
- Software developers280
- Marketing managers281
- Restaurant owners282
- Freelancers283
- Investors284
- College students285
286
This affects:287
288
- Topics289
- Language290
- Frequency291
- Sponsors292
- Pricing293
- Products294
295
Trying to write for everyone can make the newsletter less useful to any specific reader.296
297
# Content Formats298
299
A newsletter does not need to consist only of long essays.300
301
Formats can include:302
303
- News summaries304
- Curated links305
- Original analysis306
- Interviews307
- Case studies308
- Industry data309
- Tutorials310
- Lists311
- Commentary312
- Job listings313
- Deals314
- Local events315
316
A repeatable format reduces production difficulty.317
318
For example:319
320
**Weekly SaaS Newsletter**321
322
1. Biggest story323
2. Five industry updates324
3. One useful tool325
4. One case study326
5. Sponsor327
6. Recommended resource328
329
Readers learn what to expect each week.330
331
# Publishing Frequency332
333
Common schedules include:334
335
- Daily336
- Several times per week337
- Weekly338
- Biweekly339
- Monthly340
341
More frequent publishing creates more opportunities for engagement and advertising but requires more work.342
343
Choose a schedule that can realistically be maintained.344
345
Consistency is more valuable than publishing daily for two weeks and then stopping.346
347
# Subscriber Growth348
349
The first major challenge is acquiring subscribers.350
351
Common methods include:352
353
- Existing website traffic354
- SEO355
- Social media356
- Creator partnerships357
- Cross-promotion358
- Referral programs359
- Paid advertising360
- Lead magnets361
- Communities362
- Recommendations363
- Events364
365
There is no single required acquisition channel.366
367
A newsletter business should understand where new subscribers come from and what each acquisition method costs.368
369
# Referral Programs370
371
A referral program rewards subscribers for bringing new readers.372
373
Rewards can include:374
375
- Exclusive content376
- Digital products377
- Community access378
- Merchandise379
- Recognition380
381
For example:382
383
Refer 3 subscribers → bonus guide384
Refer 10 → premium report385
Refer 25 → merchandise386
387
Referral programs work best when readers already find the newsletter valuable enough to recommend.388
389
# Paid Subscriber Acquisition390
391
Publishers can also pay to acquire subscribers.392
393
For example:394
395
Paid recommendation cost = $2 per verified subscriber396
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1,000 subscribers × $2 = $2,000 acquisition cost398
399
This can make sense if each subscriber is eventually worth more than the acquisition cost.400
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Do not purchase growth without understanding:402
403
- Subscriber quality404
- Retention405
- Engagement406
- Revenue per subscriber407
408
Cheap subscribers who never read the newsletter may have little value.409
410
# Newsletter Metrics411
412
Important metrics include:413
414
- Total subscribers415
- Subscriber growth416
- Unsubscribes417
- Delivery rate418
- Open rate419
- Click rate420
- Paid subscribers421
- Free-to-paid conversion422
- Churn423
- Revenue424
- Revenue per subscriber425
426
No single metric tells the entire story.427
428
A large list with poor engagement can be less valuable than a smaller highly engaged audience.429
430
# Paid Subscriber Churn431
432
Paid subscription businesses need to track cancellations.433
434
For example:435
436
Start month with 1,000 paid subscribers437
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50 cancel during the month439
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Monthly subscriber churn = 5%441
442
High churn means the newsletter must continuously acquire new paying subscribers just to maintain existing revenue.443
444
Reducing churn can be as important as acquiring new subscribers.445
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# Revenue per Subscriber447
448
A useful high-level measure is revenue divided by the audience size.449
450
For example:451
452
$5,000 annual revenue453
454
10,000 average subscribers455
456
= $0.50 annual revenue per subscriber457
458
Different newsletter models can have dramatically different revenue per subscriber.459
460
A premium financial newsletter may earn far more per subscriber than a broad entertainment newsletter.461
462
# Minimum Entry Setup463
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A newsletter can be started without a large upfront investment.465
466
467
| Requirement | Example | Starting cost |468
| -------------------- | --------------------------------------- | ---------------: |469
| Computer | Existing computer | Already owned |470
| Newsletter platform | beehiiv Launch | $0 |471
| Alternative platform | Substack | Free to publish |472
| Writing software | Built-in editor | Included |473
| Website | Included with many newsletter platforms | $0 possible |474
| Domain | Optional initially | Varies |475
| Design | Platform templates | $0 possible |476
477
478
A newsletter can therefore start at nearly $0 if the publisher already owns a computer and uses a free platform.479
480
Paid costs become more important as the audience grows and the business requires:481
482
- Advanced analytics483
- Automations484
- Advertising485
- Custom branding486
- Paid subscription features487
- Multiple publications488
489
# Newsletter Platform Costs490
491
## beehiiv492
493
beehiiv currently offers:494
495
496
| Plan | Price |497
| ---------- | -----------------------------------------------------------------------: |498
| Launch | $0/month |499
| Scale | $43/month when billed annually at the currently displayed starting tier |500
| Max | $96/month when billed annually at the currently displayed starting tier |501
| Enterprise | Custom |502
503
504
The Launch plan currently supports:505
506
- Up to 2,500 subscribers507
- Unlimited email sends508
- Newsletter509
- Website510
- Podcast511
- Campaign analytics512
- Recommendation Network513
- Custom domains514
- API access with limitations515
516
Scale adds monetization features including:517
518
- Ad Network519
- Paid recommendations520
- Paid subscriptions521
- Digital products522
- Automations523
- Advanced analytics524
525
beehiiv currently takes **0% of paid subscription revenue** on its eligible paid plan, excluding payment-processing fees.526
527
Pricing can increase with subscriber count.528
529
## Substack530
531
Publishing a free Substack newsletter is currently free regardless of subscriber count.532
533
When paid subscriptions are enabled, Substack charges **10% of each paid transaction**.534
535
Stripe payment-processing fees also apply.536
537
For standard U.S. card transactions, Substack currently lists Stripe charges including:538
539
- 2.9% + $0.30 credit-card processing540
- Additional recurring billing fee541
542
The publisher chooses the subscription price.543
544
For U.S.-dollar Stripe accounts, Substack currently requires at least:545
546
- $5/month547
- $30/year548
549
This model has no fixed platform subscription for publishing but becomes increasingly expensive as subscription revenue grows.550
551
## Kit552
553
Kit provides newsletter and creator-business tools including:554
555
- Email556
- Paid newsletters557
- Digital products558
- Creator recommendations559
- Sponsorships560
- Automations561
562
Kit currently supports paid newsletter subscriptions and digital-product payments.563
564
Its current commerce transaction pricing is approximately:565
566
3.5% + $0.30 per transaction567
568
This includes its stated payment-related transaction fee structure.569
570
Kit also offers paid recommendation and newsletter sponsorship tools.571
572
# Practical Workflow573
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## 1. Choose the Audience575
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Define exactly who should subscribe.577
578
Avoid:579
580
"Anyone interested in business."581
582
Better:583
584
"Independent SaaS founders trying to grow without a large marketing team."585
586
Specificity helps with content and promotion.587
588
## 2. Choose the Promise589
590
Explain what the subscriber receives.591
592
For example:593
594
"Every Monday, get five practical AI tools for running a small marketing agency."595
596
A strong promise answers:597
598
- What?599
- For whom?600
- How often?601
- Why useful?602
603
## 3. Choose the Format604
605
Create a repeatable structure.606
607
For example:608
609
- Main story610
- Three useful links611
- One case study612
- One tool613
- Sponsor614
615
Repeatable formats reduce weekly decision-making.616
617
## 4. Choose a Platform618
619
Consider:620
621
- Free subscriber limit622
- Subscription fees623
- Advertising tools624
- Website625
- Automations626
- Referral system627
- Analytics628
- Export options629
630
Starting on the perfect platform matters less than actually publishing consistently.631
632
## 5. Create the Signup Page633
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Include:635
636
- Newsletter name637
- Clear description638
- Who it is for639
- Example value640
- Frequency641
- Signup form642
643
Avoid vague descriptions such as:644
645
"Subscribe for updates."646
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## 6. Publish Initial Issues648
649
Before aggressively promoting the newsletter, publish several strong issues.650
651
New visitors should be able to see what they will receive.652
653
## 7. Acquire the First Subscribers654
655
Start with channels already available.656
657
Examples:658
659
- Existing audience660
- Social accounts661
- Website662
- Communities663
- Professional network664
665
Do not spam unrelated communities with signup links.666
667
## 8. Measure Engagement668
669
Watch:670
671
- Opens672
- Clicks673
- Replies674
- Unsubscribes675
- Growth676
677
Direct reader replies can be especially useful because they reveal what people actually value.678
679
## 9. Improve the Content680
681
Identify:682
683
- Most-clicked topics684
- Most-replied-to topics685
- Issues that produced unsubscribes686
- Topics subscribers request687
688
Use this information to improve future issues.689
690
## 10. Monetize691
692
Monetization can begin when there is enough audience trust.693
694
Possible first revenue source:695
696
- Paid subscription697
- Sponsor698
- Affiliate offer699
- Product700
- Service701
702
There is no required subscriber threshold.703
704
A narrow professional newsletter may monetize earlier than a broad entertainment newsletter.705
706
# Example Newsletter Business707
708
## Weekly Industry Newsletter709
710
**Audience:**711
712
Owners of small e-commerce brands.713
714
**Free newsletter:**715
716
- Weekly platform updates717
- One advertising example718
- One useful tool719
- One short case study720
721
**Possible monetization:**722
723
- E-commerce software sponsorships724
- Paid industry reports725
- Affiliate tools726
- Consulting727
- Paid membership728
729
The same newsletter can eventually support several revenue streams.730
731
# Costs732
733
Potential expenses include:734
735
736
| Cost | When it applies |737
| ---------------------- | ------------------------------------ |738
| Newsletter platform | Audience growth or advanced features |739
| Domain | Custom publication domain |740
| Payment processing | Paid subscriptions |741
| Platform revenue share | Depending on platform |742
| Subscriber acquisition | Paid growth |743
| Writers | Expanding content production |744
| Research | Premium data sources |745
| Design | Branding and creative |746
| Advertising sales | Sales staff or commission |747
748
749
The business can remain very lean until the publication grows.750
751
# Risks / Things to Know752
753
## Building an Audience Takes Time754
755
Newsletter software is easy to set up.756
757
Subscriber acquisition is much harder.758
759
The platform does not automatically create an audience.760
761
## Subscribers Can Leave762
763
An email list is not permanently owned attention.764
765
Readers can:766
767
- Unsubscribe768
- Stop opening769
- Change addresses770
- Mark messages as spam771
772
Continued value is required to maintain engagement.773
774
## Paid Subscribers Can Cancel775
776
Subscription revenue is recurring only while readers remain satisfied.777
778
Track churn.779
780
Do not assume current monthly recurring revenue will continue indefinitely.781
782
## Platform Fees Matter at Scale783
784
Substack's 10% platform fee may be inexpensive while revenue is low.785
786
At higher revenue levels, fixed-fee newsletter platforms can have very different economics.787
788
Compare platform costs as the business grows.789
790
## Sponsorship Revenue Can Fluctuate791
792
Advertiser demand changes.793
794
A newsletter should not assume every issue will have a sponsor.795
796
Direct sponsorship sales also require outreach and relationship management.797
798
## Audience Trust Is Easy to Damage799
800
Too many promotions or irrelevant sponsorships can reduce engagement.801
802
A newsletter depends heavily on reader trust.803
804
## Paid Growth Can Create Low-Quality Subscribers805
806
Buying subscriber acquisition does not guarantee readers will remain engaged.807
808
Measure retention and behavior by acquisition source.809
810
## Content Production Becomes a Commitment811
812
A newsletter business requires repeated publishing.813
814
Choose a schedule that can be maintained for months or years rather than only during the initial launch period.815
816
# Frequently Asked Questions817
818
## What is a newsletter business?819
820
A newsletter business builds an email audience around recurring content and monetizes that audience through subscriptions, advertising, affiliate offers, products, services, or other revenue streams.821
822
## Can I start a newsletter for free?823
824
Yes.825
826
Substack allows free publishing without charging publishers for free subscribers.827
828
beehiiv currently provides a free Launch plan for up to 2,500 subscribers.829
830
## Do I need a website?831
832
No.833
834
Platforms such as beehiiv and Substack include publication pages that can function as the newsletter's website.835
836
A separate website can be added later if needed.837
838
## How does a newsletter make money?839
840
Common revenue sources include:841
842
- Paid subscriptions843
- Sponsorships844
- Affiliate marketing845
- Paid recommendations846
- Digital products847
- Services848
849
A newsletter can use several models simultaneously.850
851
## How many subscribers do I need to make money?852
853
There is no fixed requirement.854
855
The number depends on:856
857
- Audience value858
- Monetization model859
- Engagement860
- Subscription price861
- Sponsor demand862
863
A small specialized professional audience may generate revenue with far fewer subscribers than a broad consumer publication.864
865
## How much should I charge for a paid newsletter?866
867
There is no universal price.868
869
Substack currently requires at least $5/month or $30/year for U.S.-dollar Stripe accounts.870
871
The appropriate price depends on the value and uniqueness of the content.872
873
## Does Substack take a fee?874
875
Yes.876
877
Substack currently charges publishers 10% of paid subscription transactions.878
879
Stripe payment-processing and recurring billing fees also apply.880
881
Free publications can be published without paying Substack a platform fee.882
883
## Does beehiiv take a percentage of subscription revenue?884
885
beehiiv currently advertises a 0% take rate on paid subscriptions on eligible paid plans.886
887
Stripe payment processing still applies.888
889
## Should I use beehiiv or Substack?890
891
Substack can be simple for creators who want to begin publishing and turn on paid subscriptions without paying a fixed platform fee.892
893
beehiiv provides more built-in growth, advertising, analytics, automation, and newsletter-business tools.894
895
The better choice depends on the monetization model and audience size.896
897
## Should I start paid subscriptions immediately?898
899
Not necessarily.900
901
Some publications monetize immediately because the information has clear professional value.902
903
Others grow a free audience first and introduce paid content later.904
905
## How often should I publish?906
907
Choose a frequency that provides enough value and can be maintained consistently.908
909
Weekly is common, but daily, biweekly, and monthly newsletters can also work.910
911
## Is a newsletter different from email marketing?912
913
Yes.914
915
Email marketing usually supports another business.916
917
In a newsletter business, the publication and its audience are themselves the main product or business asset.918
919
## Can a newsletter become a large media business?920
921
Yes.922
923
A newsletter can expand into:924
925
- Multiple publications926
- Sponsorship sales927
- Paid subscriptions928
- Podcasts929
- Communities930
- Events931
- Research932
- Courses933
- Software934
- Other media products935
936
The email audience can serve as the distribution foundation for additional products.937
938
# Sources939
940
- [Substack — How Much Does Substack Cost?](https://support.substack.com/hc/en-us/articles/360037607131-How-much-does-Substack-cost) — Current publishing cost, 10% paid subscription platform fee, Stripe processing fees, and payment structure.941
- [Substack — How Do I Set Up a Paid Publication?](https://support.substack.com/hc/en-us/articles/360037459952-How-do-I-set-up-a-paid-publication) — Current paid subscription setup and minimum U.S.-dollar subscription prices of $5/month and $30/year.942
- [Substack — How Can Readers Pay for a Subscription?](https://support.substack.com/hc/en-us/articles/18687769631252-How-can-readers-pay-for-a-subscription-on-my-Substack-publication) — Current payment methods and creator transaction fees.943
- [Substack — How Do Payouts Work?](https://support.substack.com/hc/en-us/articles/360037833691-How-do-payouts-work-on-Substack) — Current Stripe payout process and paid-publication payment information.944
- [beehiiv — Pricing](https://www.beehiiv.com/pricing) — Current Launch, Scale, Max, and Enterprise pricing, subscriber limits, email sends, paid subscriptions, Ad Network, and monetization features.945
- [beehiiv — Newsletter Monetization](https://www.beehiiv.com/features/monetization) — Current paid subscriptions, Ad Network, programmatic advertising, sponsorship storefront, and publisher monetization features.946
- [beehiiv — Ad Network](https://www.beehiiv.com/ad-network) — Current native newsletter advertising marketplace and publisher monetization system.947
- [beehiiv — Paid Recommendations](https://www.beehiiv.com/support/article/14492963616279-Using-Boosts-to-grow-your-audience) — Current paid recommendation system for purchasing verified newsletter subscribers.948
- [Kit — Pricing](https://kit.com/pricing) — Current newsletter plans, paid newsletters, digital products, subscriptions, sponsorships, paid recommendations, and commerce transaction fees.