Serial community builder Greg Isenberg launched his newsletter/community You Probably Need A Robot earlier this year and has already grown it to a super impressive 60K subs.
He recently received an offer of $635K to acquire it which he’s been debating taking:
Someone offered me $635k to buy @youneedarobot
- 60,000 newsletter subscribers - Agency that helps with AI/automation - 15k+ Discord - Free/paid course called 5 tool 5 days that just launched - @latecheckoutplz owns 100% of it - Launched 90 days ago
According to his Passionfroot page, he has a 49% open rate for 30K opens. He doesn’t have pricing on his page, but AI is a hot niche right now with a lot of sponsors, and you can command high CPMs.
He also doesn’t have packages, so I’m going to assume a combined CPM of $70 for both the main sponsored placement and his secondary ‘featured’ placement. And let’s assume he sells out 50% of all inventory.
That works out at ~$4K per weekly send or $200K a year.
In the email sign off, it mentions Greg as well as a Lexi and Jordan writing the newsletter, so let’s assume that total profit is ~75% so it makes ~ $150K in profit from sponsorships a year.
Seeing as he’s launched a paid course I think a conservative assumption would be that it makes 50% of sponsorship revenue for an additional $100K a year, all profit. So we would be at $250K profit a year which makes the offer a 2.5x profit multiple.
Newsletter valuations are not particularly sophisticated yet (I’m helping to improve this) but if we go to the Duuce newsletter valuation calculator and round up to $30K/m in revenue it comes out with a valuation of $457K making the offer sound very reasonable:
💯 All In on Newsletters
Scott Oldford, the founder/CEO of The Wisdom Group, of which one arm is Wisdom Media (which this newsletter now belongs to) wrote a great thread on how he went all in on newsletters.
There’s almost 20 newsletters now within Wisdom Media now and I am constantly updating the Passionfroot storefront with ad packages!
But Scott made the point that newsletters and media properties in general (which I feature within the Acquire The Web newsletter - also now part of Wisdom Media!) are only one piece of the puzzle:
A year ago, I decided I was going to go "all" in on newsletters.
By the end of July, we'll own 20 of them... But... owning newsletters and media is only one step of the puzzle...
Scott has also now acquired the newsletter marketplace Duuce, a way for newsletter creators to grow at audienceswaps.com and a place to discover newsletters and find community at newsletters.co which I’m involved in and you’ll be hearing a lot more about soon…
Duuce is the #1 marketplace for buying & selling newsletters. See what your newsletter is worth with their free valuation calculator. Check it out
The Newsletter Is The Business is everything I know about launching, scaling and selling editorial newsletter businesses. Check it out
🚀 No Code Exits
The Duuce marketplace is actually built on Bubble, a no-code tool which many makers use, and there’s a thriving online M&A market for these startups:
Talked to @peter_4sure from @acquiredotcom about the opportunities for building and selling No-Code products
A whole new business model for makers who love to build, but don't really fancy marketing and sales
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Disclaimer: Nothing in this email is business advice and I am not a professional business adviser. I send weekly updates on the creator economy and what I'm doing personally - consider it informational and for entertainment purposes only. This newsletter is monetized through sponsorship and product revenue.