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media business

Newsletter Economics Deterioration

Timeframe: 2020-2024 ongoing decline, will continue as market matures

What's Changing

Value per newsletter subscriber has significantly declined due to market saturation and increased competition for attention

Driving Forces

Massive increase in newsletter supply

Beehive and Substack making newsletters easier to start

Advertiser budgets spread across more newsletters

Reader attention divided among more sources

Winners

  • Ultra-niche newsletters with engaged audiences
  • B2B newsletters with direct monetization
  • Newsletter platforms taking percentage of creator revenue
  • Physical/premium content experiences

Losers

  • Generic business newsletters
  • Ad-only monetization models
  • High subscriber count but low engagement newsletters
  • Late entrants copying 2017-2019 playbooks

How to Position Yourself

1

Focus on ultra-specific niches with high-value audiences

2

Build direct monetization beyond just advertising

3

Create premium experiences (physical, community, courses)

4

Target B2B rather than consumer audiences

Early Signals to Watch

CPM rates for newsletter advertisingNewsletter platform churn ratesSuccess stories shifting to non-advertising modelsConsolidation in newsletter space

Example Implementation

Instead of launching generic business newsletter, create quarterly physical magazine for specific industry with premium positioning and high-CPM advertising