Katy Huff: Lessons From $15M+ of Sponsorship Sales
Nov 13, 2024
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Katy Huff, co-founder of MadRev and an ex-sales star at The Hustle, delves into the art of newsletter sponsorship sales. She shares invaluable tips on understanding audience demographics and the importance of effective media kits. Katy discusses strategies for securing your first sponsors and emphasizes the significance of insertion orders for clarity in deals. Additionally, she contrasts the pros and cons of working with major brands versus smaller companies, providing insights on optimizing relationships and pricing tactics.
Understanding audience demographics is crucial for effectively targeting potential advertisers and enhancing sponsorship success.
Presenting engaging metrics like open rates and past campaign performances is essential to build credibility and attract advertisers.
Deep dives
Understanding Your Audience
Knowing the demographics and characteristics of an audience is essential for selling sponsorships in newsletters. Identifying the type of content consumed by the readership helps in targeting potential advertisers effectively. Collecting data through surveys can provide insights into income levels, age, and industry involvement, which are all valuable when pitching to sponsors. Offering potential advertisers a clear picture of the audience leads to more informed decision-making on their part.
Key Metrics for Advertisers
Advertisers are particularly interested in metrics such as open rates and click-through rates, which signal the health of the newsletter's audience. A healthy open rate is considered to be around 40%, with 50% or higher being an excellent indicator of audience engagement. Additionally, gathering and presenting data on past campaign performances, including cost per click and renewal rates, can enhance credibility with potential sponsors. Providing this information not only showcases the newsletter's value but also helps advertisers gauge expected outcomes.
Acquiring Your First Sponsor
To secure the first sponsorship, it is advisable to leverage existing subscriber lists and remove generic email domains to focus on business contacts. Reaching out to companies currently sponsoring competitor newsletters can be an effective strategy for generating interest. Utilizing LinkedIn to connect with potential sponsors and emphasizing the newsletter's audience fit can improve outreach success. Engaging early through simple emails and follow-ups can greatly enhance the chances of converting inquiries into sponsorship deals.
Pricing and Renewals
Setting pricing for sponsorships should be based on calculated cost per click and audience value, with rates ranging from $1 to $20 depending on the niche and advertiser goals. It's recommended to start with lower prices to attract initial sponsors while aiming to bundle ads to increase total revenue. After fulfilling initial campaigns, it's crucial to establish a clear understanding of what success looks like to facilitate renewals. Additionally, follow-up communications and gathering feedback will not only help improve future campaigns but also identify opportunities for upselling or repeat business.
Katy Huff, the cofounder of MadRev, shares insights on how to sell newsletter sponsorships, audience understanding, advertiser expectations, sponsorship strategies, pricing, contract renewal, working with different brands, and more.
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