In this issue we discuss:
Paid recommendations and ESP ad networks
The reality of bootstrapped newsletter operators
The future of newsletters is bright
🍿 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:
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:
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:
Louis from Sparkloop Upscribe (the paid recommendations platform which Convertkit acquired and uses) stated that people are misunderstanding recommendations:
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:
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):
🥾 Boostrapping Founders
Manu from Stacked Marketer posted about the difficulties of scaling boostrapped newsletter businesses:
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.
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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:
Disclaimer: Not financial or business advice. This newsletter is strictly for information and education purposes. There are no affiliate links in this issue.