The company has strategically cultivated its community funding model to achieve financial independence and sustainability. By avoiding reliance on external funding, they have established a robust business model that is not swayed by market fluctuations. The business's strong position allows them to fulfill their mission regardless of external circumstances. Initially offering programs like minimum guarantees to kickstart the platform, the company successfully created a strong network effect where writers are attracted to join and engage in independent publishing. This approach has eliminated the need for continual capital injection to sustain growth, indicating a successful and sustainable funding model for the business.
Last week, Elon kicked off a feud with both Substack and his very own former Twitter Files ingénue (and Substack star), Matt Taibbi. Kara and Nayeema break down the battle of the bros before turning to an interview with those at the center of the storm: Substack co-founders Chris Best and Hamish McKenzie.
The two address questions about Substack Notes (which Elon dubbed, and they deny, is a “Twitter clone”), the challenging business model of newsletters and their stance on free expression. Somehow, they manage to avoid uttering the name “Elon.” Kara doesn’t shy away though.
Questions? Comments? Email us at on@voxmedia.com or find us on Twitter @karaswisher and @nayeema
Learn more about your ad choices. Visit podcastchoices.com/adchoices