Substack.
Substack is a platform (founded 2017) that enables writers to publish newsletters and monetize them via subscriptions, without needing coding or external email tools . It combines blogging and email distribution into one simple system: you write, they handle hosting, distribution, payment, and some analytics .
Getting Started (UK writers)
- Sign up for free at Substack.com. No fee to publish even if you have thousands of subscribers.
- Choose your niche (e.g. finance, tech, creativity, personal development)—narrower focus helps retain paying readers .
- Publish 3+ free posts first, then launch paid tiers with premium content locked.
Monetization Options
A) Paid Subscriptions
- Standard splits: 90% to you, 10% to Substack, plus Stripe fees (≈ 2.9% + $0.30 per transaction, recurring fee ≈ 0.5%).
- If paying annually or per month, Substack sends payouts within ~48hrs to your bank .
B) Tiered and Founding Member Options
- Offer free basic content, and higher-priced tiers such as “Founder’s Membership” with exclusive perks (like early access, behind‑the‑scenes, member-only chats) .
C) Donations & Tips
- Enable the “Support this publication” button for voluntary reader contributions. Especially helpful in early days.
D) Affiliate Marketing
- Promote products or services relevant to your niche using affiliate links, with transparency. Works well alongside free newsletters .
E) Sponsored Content / Ads
- You handle direct brand deals yourself. Rates vary—from $100 for a mention to $20,000 for major deals. Substack doesn’t take cut of ad revenue.
- Many high-tier writers now spend time negotiating and managing ads, though it’s considered time-consuming .
F) Services, Courses & Merch
- Sell your own digital products, workshops, coaching, or branded merchandise via your Substack audience.
🇬🇧 UK-Specific Tax & VAT Considerations
- Substack does not automatically remit VAT for you in the UK or EU, unlike some platforms.
- UK VAT may technically apply even with a few paid subscribers, though threshold rules vary. Stripe offers tools to collect VAT but you remain responsible to register and remit the tax .
- Some sources suggest newsletters (as periodicals) may be VAT-exempt in the UK unless you include live events or similar content .
📈 Growth & Conversion Insights
- Typical conversion rates from free → paid subscribers hover around 5–10%, though personal anecdotes report as low as 1.5% depending on content quality and perks offered. “My conversion rate is pretty low (1.5%) … I started offering ‘behind the scenes’ content … full transcript … interview analysis…”
- Another UK user reported: “Started about a year ago. Turned paid subs on on month 6 (about 1000 free subs). Now, I make about 1.5 k/year, not including paid promotions.”
- Quality niche newsletters—even small ones—can convert consulting or coaching interest into income .
Best Practices to Maximize Monetization
- Consistent publishing schedule (e.g. weekly)—this builds trust and habit in readers .
- Clear, engaging subject lines and short readable paragraphs mixed with visuals help retention .
- Deliver genuine, differentiated value, especially in premium posts or subscription tiers.
- Cross-promote with other Substack writers, guest post, or use Substack’s own Recommendation network .
- Leverage social media, Reddit, LinkedIn, TikTok, etc., to drive new free and paid subscriptions.
Feature Overview & Limitations
- ✅ Own your email list—Substack lets you export your subscriber list anytime .
- ✅ Minimal setup, no tech knowledge needed.
- ✅ Substack Defender offers legal defense support for writers facing legal issues.
- ❌ Lacks advanced email automation, segmentation, or design customization compared to platforms like WordPress or Ghost .
- ❌ Support is limited, often via AI-only chatbot—human support can be hard to reach.
Summary Table
| Feature | Details (UK Context) |
|---|---|
| Platform Fee | Substack keeps 10% |
| Payment Processor | Stripe (~2.9 % + $0.30 + 0.5 % recurring) |
| VAT Handling | Stripe can collect VAT, but writer/register is responsible for remittance |
| Paid Subscription Prices | Custom per creator (commonly $5–$10/month or yearly tiers) |
| Monetization Streams | Subscriptions, tips, affiliate, sponsored content, merch/services |
| Support | AI chatbot; legal help via “Defender” program |
| Strengths | Simple setup, direct audience access, list ownership |
| Limitations | Minimal design/automation tools, VAT/admin complexity |
