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In the last two weeks, I published two issues on starting up with newsletters and how to write really good content in emails—based on the questions I received from different communities.

This is the last issue in the Ask Me Anything about Newsletters series.

We will talk about GROWTH AND MONETIZATION by breaking down how Cognition grows and makes money.

Before we get started (you know the drill), say hi to our sponsors 👋 

Is this you?

• I want to convert subscribers to a paid offering

• I want to package my best ideas into a product

• I want to learn how to TEACH the things I know really well

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Questions are lined up. Lessgoooooo!

Growth

Every time I think of this question, I think of how I started Cognition with ~1500 followers across all socials. In retrospect, I feel you need to build decent social capital aka rented audience before you start a newsletter aka owned audience.

Newsletters don’t have an algorithm, and that’s the good and bad part about them. Your content is not controlled by the platform, but it also means your good content does not get amplified like your viral social media posts.

As a creator, the ideal path is:

1. Build social capital (communities, social media, etc.) - Rented Audience

2. Build email list (newsletters, waitlist, updates, etc.) - Owned Audience

3. Make money (ebooks, courses, ads, etc.) - Monetised Audience

The transition from rented to owned audience is similar to promotion in a job. My mistake was to build the rented and owned audience together instead of going all in on social media and then quickly growing the newsletter.

Newsletters are a level up. Newsletters are premium. Running a newsletter without building a rented audience will only burden you.

PS: This is in the context of organic growth; and if you want me to give a number, 5000 followers across all socials is a good place to start a newsletter.

(A) simple solution would be to talk as much as possible about your niche. Your posts should clearly show what niche you work in. Over time, this will help people resonate your brand with a particular niche.

(B)eing active in relevant communities helped me market Cognition to the right people. I bet I acquired at least 100 subscribers from the Fueler community (check them out; I love Fueler.)

I wish I could say more about this, but honestly, these two simple actions are effective and enough.

PS: Simple, not easy.

One thing I have learned over the years is you don’t always need to innovate. Proven methods already exist.

All you need to do is: Build something people want → Aggresively ship and promote → Review, Iteratate → Repeat.

Ex: Referral program is a proven method. Vickypedia is doing okay. Now I need to determine if there is a better referral reward and test it against the current one.

Monetization

I try to make money from almost everything I do or at least it should indirectly contribute to the revenue. It’s just my approach - If I am investing time, effort, and providing value, why not give it at the right price?

Cognition made ~$1200 in the last six months with a small, engaged email list.

Our revenue came from:

• Cohort ($60 per person, limited to 15 members)

• Beehiiv Ad Network (sponsorships in PPC model ranging from $1.6-$3.2 per click)

• Consultation calls ($18 per hour)

Honestly, it’s not a lot - but I am happy to be on the most ideal path i.e., making money while providing the true value for it. Plus I am sure the numbers keep increasing as we reach more readers.

In addition, we are building diversity by choice. We don’t want to rely solely on sponsors. Considering that the Cognition newsletter will forever be free for our readers, we are building as many productive experiences as possible around the newsletter - to make money out of.

I am sharing numbers because there are many elevated numbers on the internet. I want you to have a clear picture of what early-stage newsletters under 1000 subscribers can make - provided you establish authority and are useful.

There are three types of sponsorship deals:

1. Commissions: You place an ad for free. If someone makes a purchase via your link, you get a commission. Such deals are good for affiliate marketing on YouTube but don’t work for early-stage newsletters. Avoid them at all costs.

2. Pay-per-click: You place the ad for free, and you get paid a certain amount every time your readers click on the ads. This is the model I am currently operating on.

3. Slot bookings: This is the ideal situation. You get paid to place an ad - and advertisers get to decide based on your previous data and your relationship with your audience. There is no pressure on your end to perform. If your readers trust you and your advertiser’s product is good, it more or less gives good returns.

Answering the question, you can get PPC deals even with less than 100 subscribers as they’re charged per unique click. But to get the slot bookings, you must grow upwards of 3000 subscribers based on niche.

PS: This is a rough estimate based on what I observed, not an absolute metric.

You will find signs if you look for them. Speaking to your readers regularly will help you get there sooner.

A good metric I follow: If someone asks for something more than thrice, you can turn the answer into a product, service, or experience.

I started consultation calls after three of my readers emailed me asking, “I want to pick on your brain; do you have a calendly link where I can book a consultation?”

The moment I noticed the interest, I added consultation calls to the email footer. Acting fast is the key to monetization.

Well, I have answered all the questions. I hope this was useful.

If you enjoy reading Cognition, please share it with your friends. It’d mean the world to me.

Until next time!

Love,
Vikra