Newsletter Publishers, What's Your Subscriber LTV?
Want to know exactly how much each newsletter subscriber is worth to your business? Not a rough estimate or industry average – your actual number.
I'll show you how to calculate it in the next 2 minutes.
It all comes down to something called LTV (Lifetime Value).
Don't let the business jargon scare you off – it's just a fancy way of saying how much money you make from the average subscriber while they're on your list.
Why is this one number so important?
Because once you know your LTV, you unlock a superpower: knowing exactly how much you can spend to get new subscribers while staying profitable.
Higher LTV = more options for growing your list.
Here's the quick math to figure out your LTV:
First, calculate your Revenue Per Subscriber (RPS): Take your total revenue over a period (like 6-12 months) and divide it by (number of subscribers × number of months).
That gives you your monthly revenue per subscriber.
Then multiply that by how long subscribers typically stay with you.
If your average subscriber sticks around for 42 months and generates $0.26 per month, your LTV is about $11 per subscriber.
Let's say your LTV is $11. That means you could spend up to $10 to acquire each new subscriber and still make money.
You could run Facebook ads, sponsor other newsletters, or try premium lead magnets that less valuable newsletters can't afford.
So how do you make each subscriber worth more?
That's where proper monetization comes in.
One of the biggest opportunities is making sure your sponsor inventory is always filled – empty slots are just money left on the table.
We built Wellput to solve exactly this problem.
Wellput helps you fill those empty sponsor slots and boost your subscriber LTV.
When each subscriber is worth more, you can invest more in growth, which means...you guessed it, faster growth and a more valuable newsletter business.
Want to see how much more your list could be worth?
And keep reading Newsletter Sponsorship Insider each week for more strategies on turning your newsletter into a thriving business.
We're not just here to help you publish – we're here to help you profit.