Account Director Aly Crea discussed the ins and outs of Substack, its evolution and how professional services firms can benefit from it.
Read the webinar transcript below.
Good afternoon, everyone, and welcome to the Substack webinar. Thank you all for tuning in. I know people are just signing on right now, but I’m going to get started in just a couple of seconds so we can stay on time. For those of you who are just joining, a little bit of background: I’ll be giving a crash course in 30 minutes or less on Substack—the platform, what it is, why you should be using it (or at least know about it), and whether your firm should incorporate it into your marketing strategy.
I’m Aly Crea, an Account Director with Berbay Marketing & PR, and for nearly 30 years, we’ve specialized in working with professional service firms. We act as your outsourced marketing department and public relations team.
A few housekeeping items: please drop any questions in the chat, and I will do my best to answer them throughout the presentation. My contact information is also available, so feel free to email me if you have any questions or would like to chat afterward. Secondly, we are recording this webinar and will be providing the recording to everyone after the presentation concludes.
Thank you again for joining, and I will get started.
For those of you who are not familiar with Substack, it is an online platform that allows writers, journalists, and content creators to publish long-form content, such as essays, articles, and analysis, in the form of a newsletter directly to an audience. It helps build a subscription-based business. It’s kind of like a hybrid blogging and email marketing platform, giving writers control over their content and their audience. Subscribers receive updates directly via email.
The mission behind the platform, when it was launched in 2017, was to support independent journalism and creative expression. It offers a paid subscription model, meaning readers can subscribe to premium content for a fee, or there are options for free newsletters as well. It’s been especially popular among independent writers and journalists who want to build a community without relying on traditional media or social media.
Substack handles the technical aspects, like email distribution and payments, allowing writers to focus on creating content. Fundamentally, it’s an email-based platform—subscribers receive new posts directly in their inboxes.
I want to touch on the monetization opportunities because, as I mentioned, it is a subscription-based platform. Content creators can charge fees for their content. For context, there are more than 177,000 writers who get paid on Substack currently. The top 10 authors collectively make $25 million per year, and the top 27 highest-earning newsletters generate at least $22 million in subscription revenue. So, it’s a huge revenue generator.
Substack is a powerful platform because of the revenue it can provide. As a marketing agency, we’re always keeping an eye on emerging trends and technologies, and Substack is definitely one to watch. There are a few key reasons why Substack is at the top of the list.
The first reason is its growth. While Substack launched in 2017, it really started gaining traction around 2021. That year was pivotal for traditional media, as newsrooms were significantly impacted by the shifting media landscape and the COVID-19 pandemic. Many publications were consolidated or even slashed entirely, and Substack became a viable option for journalists not only to continue writing but also to earn money. As of January of this year, the platform has hit 3 million paid subscribers and has an estimated 49 million unique visitors—showing huge growth.
The second reason is the evolution of the platform. Initially, Substack was intended for writers and journalists seeking independent publishing and a way to connect directly with their audiences. It still serves this purpose, but it has now become a go-to platform for niche media ventures, smaller companies, and influential journalists. We’re not yet seeing major companies fully adopt the platform—it’s still early days for that—but we are seeing high-profile individuals such as CEOs, executives, and academics using Substack to build brand recognition and position themselves as thought leaders. Essentially, it’s become another marketing channel for distributing and monitoring content.
The third reason is its mainstream adoption among journalists. Substack has become a key tool for connecting with resources directly, and journalists are increasingly using it to build relationships and find opportunities. The final trend we’ve noticed is the demand for non-ad-based media models. Newsletters, particularly through platforms like Substack, are leading the charge, and that’s one of the key reasons for Substack’s increase in popularity.
Now, let’s talk about some of the features of Substack that contribute to its direct audience capability. I think of Substack as an all-in-one publishing platform. It provides a website, email newsletter capabilities, community features, and more. Here are a few specific features that make Substack unique:
Comment feature: When a subscriber receives an email newsletter, they can comment directly on it. Those comments go straight to the author or content creator, enabling direct interaction between the writer and their audience.
Discussion threads: This feature is similar to Reddit’s message boards. Writers can start conversations, post questions, and subscribers can participate, ask questions, and interact with one another. It fosters a community atmosphere around the content.
Podcast hosting: Substack also allows creators to upload MP3s directly to the platform and publish episodes. These can be offered for free or to subscribers, depending on the creator’s preferences.
Substack also offers podcast hosting, allowing creators to charge based on their audience’s interest. It’s a really easy way to distribute podcasts, and there are new features that have recently launched. One of these features is live streaming, where you can host a live stream on Substack and promote it using the newsletter feature. There’s also a live chat feature, which allows for immediate reactions and conversation during a live session. It functions like a group chat for subscribers.
Another important feature is content tiers. Substack operates on a subscription-based model, but you can offer different access levels. You can provide various tiers of content or perks, so it’s up to you whether you want to monetize your Substack and how in-depth you want to go with offering different levels of content.
Many of you may currently use platforms like MailChimp, Constant Contact, or HubSpot, which are more traditional email marketing platforms. You might be wondering how Substack differs from these platforms. MailChimp, Constant Contact, and HubSpot are all great platforms with many capabilities, but the biggest differentiator is Substack’s direct-to-audience capability. Substack allows creators to build an audience around a specific topic, something traditional email marketing platforms don’t offer. Additionally, Substack is an all-in-one platform, offering the ability to distribute newsletters, host podcasts, run live streams, and facilitate conversations—all in one place. This is a key feature that sets Substack apart.
However, there are some limitations with Substack. The platform has less sophisticated analytics, so you won’t have access to advanced marketing tools. You cannot segment your email list by customer, there is no A/B testing, and the analytics are limited to basic email opens and click-through rates. Substack also offers limited customization options for newsletters, so it’s not ideal if you want to heavily brand your content. The platform focuses more on content rather than customization.
When comparing Substack to Medium, another online publishing platform, there are some key differences. Medium was launched in 2012 and allows users to read, write, and publish content. If you’re interested in starting on a platform like Substack or Medium but don’t yet have an audience, Medium offers a built-in audience. By using Medium, you can tap into this existing network and grow your own following. Substack, on the other hand, requires you to build your own audience from scratch. While Substack gives you the opportunity to grow a loyal subscriber base, it also means you’ll need to create a digital marketing strategy to make that happen.
Substack has many benefits, but it also comes with limitations. If you’re considering whether Substack should be part of your marketing plan, you should ask yourself a few key questions: How complex are your marketing needs? Do you have a specific audience that you want to target?
If you answer yes to having a complex marketing strategy, Substack is likely not going to be a fit for you. It offers very straightforward tools that may not be sufficient for what you need. Similarly, if you’re trying to cast a wide net or reach a non-targeted audience, Substack may not be the best platform for your needs.
That said, I want to talk about how Substack can still be a useful tool for firms, even though it hasn’t yet been widely adopted. The platform offers several benefits, the first of which is as a content marketing and client engagement tool.
One example is that Substack can help reinvigorate underutilized email lists. If you have a substantial email list but struggle with engagement, Substack could be the tool to help. It offers a tailored and personalized approach to content delivery, and you can import any list into Substack and send tailored content directly to your contacts. However, it’s important to remember that quality content is key—it’s not about quantity.
Another use for Substack is to promote firm content such as events or webinars. With Substack, recipients and creators can facilitate comments and conversations, which can significantly bolster engagement.
Additionally, Substack can help foster better client relationships. The personalized newsletter approach can be sent to both current and prospective clients, leading to deeper connections. Posts can solicit comments, turning them into larger conversations, which could potentially lead to referrals or new relationships.
Substack can also be used as an internal communications tool. With its all-in-one platform, including features like comments, threads, newsletters, and live chat, companies can keep employees and stakeholders updated. It can also be used to keep clients informed about client alerts or other company updates.
Another primary way firms can use Substack is to showcase thought leadership. This platform allows individuals to publish commentary on niche topics, such as highlighting an emerging practice area by publishing in-depth pieces. Through this, you can start to build an audience around a specific topic and begin developing your personal brand as an expert in that area.
Finally, Substack can serve as a tool to connect directly with journalists. We’ve discussed how Substack has become a viable option for journalists, particularly those who have left traditional media and are looking to publish independently while earning a living. Freelance journalists, or any reporter working with PR professionals, often seek to build relationships with potential resources directly. Substack makes it easier for them to stay in front of such resources.
However, Substack is not yet a place where media sources are rushing to, and it’s not something we think is imperative for you to subscribe to right now. It may, however, become a new access point for earned media hits down the line. While it’s growing, using it as a media tool requires caution, as the rules for working with the media still apply, and there are many nuances involved. For example, journalists are often constrained to cover only a specific beat or subject matter.
To editorial guidelines and restrictions, in the Substack world, journalists who have left traditional media can write about anything they want, which presents a new frontier. That said, it’s important to proceed with caution because anything published could be seen by potential clients, other companies, or even competitors.
If PR and media are part of your current marketing mix, Substack could be another tool to explore for finding opportunities. Due to its rapid growth, there’s an opportunity to carve out a niche and establish yourself as a thought leader on the platform. However, the big question is: should you incorporate Substack into your marketing strategy?
As you’ve learned, Substack is fundamentally an email-based platform, and you’ll need to build a subscriber base. Unless you have highly compelling content that people love to share organically, you’ll need to develop a digital marketing strategy to promote your newsletter and attract subscribers. Here are a few things you should be thinking about if you want to successfully launch and grow your Substack:
- Define your audience and your niche: Substack is not meant for casting a wide net; it’s about tailored, personalized connections. If you don’t have a specific audience in mind, Substack may not be the right platform for you.
- Leverage your current marketing efforts: You don’t need to reinvent the wheel when planning a digital marketing strategy for your Substack. To successfully launch and grow your Substack, promote it consistently across all your social media channels, firm newsletters, and by updating your website to include opt-in forms. Use SEO best practices by incorporating key terms in your writing to improve search rankings. Consider paid advertising (e.g., LinkedIn or Facebook ads) to boost visibility, as your Substack won’t grow on its own without a thoughtful plan.
Consistency is key, and your marketing plan should be integrated across all your marketing channels.
From our perspective, there are pros and cons to using Substack. It might be premature for your firm to incorporate it now, but it’s essential to understand how the platform works. There is a growing demand for direct-to-audience content that fosters community engagement, and Substack is gaining traction quickly. The platform is evolving, and it’s definitely something to keep an eye on.
I hope this 30-minute crash course has given you a better understanding of what Substack offers. If anyone at your firm or a client asks about it, you’ll now have a better grasp of how it works and what to consider.
Thank you for tuning in. I’ve provided my contact information, and I’m happy to connect with you afterward.
