The Business Model for the Plug: Advertising and Sponsorships

Sherrell Dorsey is the founder and CEO of The Plug, a publication and community for news, insights and analysis on trends in Black innovation. The Plug features stories that show the substantive ways Black people engage with the innovation economy, including analyses of modern technologies.

On today’s show, Sherrell shares about building an audience and growing The Plug. We talk about sponsorships, The Plug’s revenue model, and her background in journalism and how she brings that into her current work. We also talk about choosing a niche, staying consistent, and much more.

Sherrell has worked in marketing and consulting for companies such as Uber, Tresata, MarketSource, and Build The Good. Sherrell has also worked as a correspondent for Fast Company, Essence, Next City, and Black Enterprise. She earned her master’s degree in data journalism from Columbia University.

In this episode, you’ll learn:

• How to grow your subscribers when first starting out
• Different strategies for monetizing your newsletter
• The right way to include advertising in your newsletter
• Tradeoffs between having a team and working as a solopreneur

Links & Resources

• Clay Hebert
• Monica Melton
• Farnam Street
• Shane Parrish
• Ryan Holiday
• Daily Stoic
• James clear
• Uber
• Google Fiber
• Microsoft
• Fast Company
• The Root
• Black Enterprise
• GoDaddy
• theSkimm
• Signal
• Bloomberg Terminal
• Business Insider
• The Moguldom Nation

Sherrell Dorsey’s Links

• Follow Sherrell on Twitter
• The Plug
• The Plug newsletter
• HBCU newsletter
• TPinsights.com

Episode Transcript

00:00:00 Sherrell:

I think that we’ve gotten into this very fast pace, and this idea of constant information and voices in your head. I don’t know that more information is making us a better society. I think that this idea of community and grappling with ideas, calling things out or bringing things to attention, but having something meaningful to say really outweighs just being visible all of the time. 

00:00:31 Nathan:

My guest today is Sherrell Dorsey. Sherrell is the founder of The Plug, which is a newsletter, and really a publication at this point, about the black tech ecosystems and all the interesting things that black and brown founders are doing in technology and business. She started in 2016, and she’s built it up to have a full-time team of five people now.

I’m so impressed with what she’s built. We get into talking about sponsorships, the revenue model, how she built the audience, her background in journalism, and how she brings that into what she’s doing now. I actually grew up in tech and some of the ecosystems that she was a part of that inspired her.

We talk about choosing a niche and staying focussed there. We talk about consistency. There’s really a lot of things in this episode. I love what she’s doing and how she’s built this niche business into something that now employs full-time journalists. At a time when a lot of other publications are dwindling, she’s growing.

So, let’s dive into the episode.

Sherrell, welcome to the show.

00:01:35 Sherrell:

Thank you so much for having me.

00:01:37 Nathan:

I actually want to start talking about experimentation. We’re going to jump around a little bit. You like to run a lot of experiments, and you’ve taken an approach on experimentation where you’re doing it at a stage in the business where you have a lot going on. A lot is working. This is a point where I see a lot of content creators freak out and stop experimenting because they’re like, “This is what my audience likes. I have to show up in exactly this way.”

So, they don’t experiment. Even at this level of success, you’re like, “No, experimentation is a core part of what we’re doing.”

Could you talk about that, and some of the experiments that you run, and then your mindset around it?

00:02:12 Sherrell:

We’re constantly challenging ourselves as a team, and trying not to get bored. Part of our experimentation may have more to do with the attention deficit issues that we have as a team, as a collective. Maybe not as much as our audience, but we also assume that they also have attention issues.

Let’s be honest, there’s so much competing for our audience’s attention, right? I mean, outside of the inbox, theres social media, there’s the day-to-day of all the crazy, all the push notifications. So, for us, experimentation really is at the core of challenging ourselves to face something new and interesting, and really tapping into what.

The sort of timeliness of news, and really finding a way to put it into our voice and share some of our opinions as well. Even with running The Plug’s weekly briefing experimentation is really even just how I got started. The Plug for me was an experiment. I was getting up at 5:00 AM, pulling together a newsletter, wanting to cover diverse voices in tech.

Doing it just as this labor of love, and also nerdiness and curiosity, and it started to grow. Then I said, well, maybe I can do this every single day. Then I did it every day. Then at some point we realized, hmm, are people having inbox fatigue? What if we slow things down and really make people cherish every single sentence that we’re writing in our newsletters, and giving them a long and deep side of slow conversations on Monday mornings as they’re starting their day.

We’ve seen those questions that we’re asking kind of manifest in this idea of experimenting with just our curiosity. We’ve seen that well, I mean, honestly, Nathan, we’re getting 45% to 48% open rates on every single newsletter, and it has been pretty consistent.

When we were in the daily phase, we were starting to see those open rates go down. People just didn’t even have enough time to read. So, again, we start with the question, “Well, what if, or how do we personally sort of engage with our news and with our information, and how do we create a moment of almost intimacy with our audience and our subscribers?” Where instead of just having the breadth, we can actually have the depth.

00:04:40 Nathan:

Yeah. I want to talk about the consistency and the schedule later in the episode, but let’s go there right now because I think a lot of...