4 ways to maximize your newsletter revenue 🚀
As your newsletter grows, so do your opportunities for monetization through sponsorships.
But how do you price your sponsorship spots?
We get this question all the time from our newsletter partners at Wellput, so we thought we’d break down the factors to consider in today’s newsletter 👇
Understanding Your Options
Let's start by reviewing the four most common options (and the pros & cons of each):
Flat Fee: You charge advertisers a set amount regardless of performance.
Pro: Predictable income and simplicity.
Con: Advertisers are typically more hesitant to move forward, and you’re potentially undervaluing your newsletter if it performs well.
Cost Per Mille (CPM): Charging based on every thousand impressions.
Pro: Familiar to advertisers from other digital media.
Con: Email open rates can be unreliable metrics, and you need a relatively large audience (or a very valuable niche) to generate significant revenue.
Cost Per Click (CPC): Advertisers pay for each unique click their ad receives.
Pro: Aligns your interests with the advertiser's 🤝.
Con: Relies on your audience consistently clicking ads, and potential discrepancies in click tracking.
Cost Per Acquisition (CPA): You're paid when a reader makes a purchase.
Pro: Can be lucrative if your audience converts well.
Con: Highest risk if conversions are low 😬.
Factors to Consider
Now, when thinking through which of the above models to test, it will be helpful to answer the following questions:
How engaged are your audience? Do they typically interact with ads?
How much time do you want to spend on ad sales?
Does your newsletter focus on a specific niche that aligns well with certain products?
Are you prioritizing steady income or willing to take risks for potentially higher rewards?
Are you working with long-term partners or one-off campaigns?
If you're new to sponsorships, consider starting with CPC (Cost Per Click) or CPA (Cost Per Action) models. These approaches allow you to learn what works for your audience and provide valuable data to potential advertisers.
As you gather insights on your open rates, click-through rates, and audience behavior, you'll be better positioned to negotiate more lucrative deals. You can then transition to long-term partnerships based on flat fee or CPM models, which often provide more predictable income once you've proven your newsletter's performance.
For newsletters with a strong track record of driving purchases, a CPA model could be profitable. However, if you go this route, it’s important to ensure you negotiate fair attribution windows (7-30 days) to capture delayed conversions.
Pro Tip: Mix and Match
Here’s the most important takeaway:
Don't feel confined to a single model!
Offer different pricing options based on the campaign or advertiser. Some newsletters successfully use hybrid models, combining a lower flat fee with performance-based bonuses.
The "right" pricing model is the one that fairly values your newsletter's impact while meeting advertiser needs.
Now, if you're looking to simplify the process of finding and managing quality sponsorships, that’s exactly what we do at Wellput.
We work with newsletter publishers to fill sponsorship inventory with premium brands you choose, all on a cost-per-click model.
It's free to join, there's no obligation to participate, and our service complements any existing direct sales efforts.
We’ll help you optimize your sponsorship strategy while you focus on creating great content 🤝
Interested in trying it out? Try Wellput totally risk-free.
