Newsletters 101 Part 5: How To Build & Monetize Them with Ethan Brooks
Jan 12, 2025
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Ethan Brooks, a newsletter monetization expert, shares invaluable insights on transforming newsletters into profit-generating machines. He presents a three-part framework for ad sales, emphasizing the importance of understanding audience engagement. Listeners learn how to determine fair ad pricing while maximizing revenue potential. The discussion covers essential tools to streamline workflow and the benefits of catering to niche markets. With practical examples, Ethan illustrates how to monetize effectively, even with smaller audiences.
The three-part monetization framework for newsletters—premium, downsell, and loss leader—helps structure effective ad sales strategies for varying budgets.
Utilizing affiliate marketing and engagement metrics can drive revenue even for newsletters with smaller audiences, proving size is not the only factor in monetization.
Deep dives
Monetization Strategies for Newsletters
There are three primary monetization strategies for newsletters. The first approach involves utilizing free products that generate revenue through ads or affiliate deals. The second strategy focuses on front-end products, which are lower-priced subscriptions, while the third encompasses back-end products, which are higher-priced subscriptions. This model encourages a funnel effect, where a free audience can be nurtured into paying subscribers, showcasing varying ways to effectively monetize content.
Leveraging Affiliate Marketing
Affiliate marketing serves as a powerful early monetization strategy, particularly for newsletters with smaller audiences. Because affiliate deals compensate based on performance rather than audience size, creators can start generating income even with a limited subscriber base. Platforms like ShareASale, Commission Junction, and Rakuten provide opportunities for creators to connect with companies willing to pay commissions for sales resulting from their referrals. Successful examples demonstrate that newsletters may generate significant revenue through affiliate links, regardless of their audience size.
Audience Size and Engagement Insights
The size of an audience required for effective monetization varies significantly, influenced by both audience engagement and purchasing behavior. For general news audiences, building a subscriber base of 70,000 to 80,000 is often seen as necessary for ad sales, while niches with higher spending power may allow monetization with fewer subscribers. Engagement metrics, such as click-through rates and purchasing habits, play a critical role in determining the success of monetization efforts. In essence, having a smaller, highly engaged audience can be just as lucrative, if not more so, than a larger, less engaged one.
Effective Ad Selling Techniques
Selling ads can be simplified through a strategic approach that categories ad products into premium, downsell, and loss leader options. This tiered system allows advertisers to choose based on budget and needs, maximizing revenue opportunities. Early-stage advertisers might start with a simple cost-per-send model, eventually transitioning to cost-per-click or cost-per-open models as their audience grows. Ultimately, having a clear understanding of value and pricing plays an essential role in successfully monetizing newsletter content while ensuring mutual benefit for both creators and advertisers.
Want to sell ads like a pro and streamline your newsletter process?
This final episode is your roadmap. We unpack the exact frameworks to pitch and close ad deals, structure your pricing, and create irresistible ad packages.
Plus, we explore the tech stack that keeps your newsletter efficient and scalable—from platforms to referral tools. Whether you’re handling it solo or building a team, these tips will save you time, money, and headaches.
Key Takeaways:
The 3-part framework for ad sales: Premium, downsell, and loss leader.
How to calculate ad rates that leave everyone happy.
Tools and platforms that simplify your newsletter workflow.
Don’t leave ad money on the table.
Hit play and turn your newsletter into a money-making machine!