What is Substack, how does it work and what is it used for

Nowadays, where the democratization of publishing has led to an oversaturated media landscape, Substack emerges as a beacon of hope for independent writers and content creators looking to steer their own ships. Founded in 2017 by Chris Best, Hamish McKenzie, and Jairaj Sethi, Substack is a platform that allows writers and creators to send digital newsletters directly to subscribers. Its streamlined approach to publishing has made it an increasingly popular choice amongst journalists, experts, and enthusiasts across various fields. Here’s an inside look at how Substack is changing the game for independent publishing.

The core idea behind Substack is simple yet powerful: it provides a space where writers can focus on creating content and building a direct relationship with their audience without the need for intermediaries. By prioritizing direct subscriptions, Substack flips the traditional ad-based revenue model on its head. Creators can offer free subscriptions or charge a fee, giving them control over their earnings and fostering a sense of community with their readers.

Substack can thus be seen as a type of membership platforms, as it allows writers and authors to offer subscription-based content to their audience.

It is reshaping the media industry by empowering journalists and writers to take control of their careers. In an era where media outlets are downsizing and freelance opportunities are unpredictable, Substack provides a viable alternative. Some high-profile journalists and writers have left established publications to start their own Substack newsletters, betting on the loyalty of their readership for a steadier income.

How Substack Works

Substack’s user-friendly interface allows writers to set up a newsletter within minutes. The platform handles the technical aspects of email distribution, subscription management, and payment processing, leaving creators to concentrate on their writing. The platform supports various types of content, including written articles, podcasts, and even video, making it versatile and appealing to a wide range of creators.

1. Registration and Profile Creation

To start a Substack newsletter, creators first sign up and create a profile. During this process, they choose a name for their newsletter, customize their Substack URL (e.g., mynewsletter.substack.com), and set up a profile that includes a bio and a profile picture.

2. Customization

Substack provides options to customize the look and feel of the newsletter and landing page. Creators can select a theme, customize colors, and upload logos or images to align with their branding.

3. Writing and Publishing

The platform offers an editor that is straightforward to use, similar to blogging platforms like WordPress. Creators can write their posts directly in the editor, format text, embed images, videos, tweets, and other media. Once the content is ready, they can either publish immediately or schedule it for a later date and time.

4. Email Delivery

Upon publishing, the newsletter is sent directly to the email inboxes of all subscribers. Substack manages the distribution, ensuring that emails are delivered efficiently and are optimized to avoid spam filters.

5. Web Publishing

In addition to email delivery, each newsletter issue is also published on the creator's Substack webpage. This allows non-subscribers to read content that the creator has chosen to make public.

6. Subscriber Management

Substack provides tools for managing subscribers, including analytics that show subscriber growth, engagement rates, and other key metrics. Creators can export their subscriber lists at any time, ensuring they retain ownership of their audience data.

Monetization on Substack

One of the most attractive features of Substack is its monetization model. Creators can choose to offer their newsletters for free, charge for subscriptions, or have a mix of both free and paid content. Substack makes it easy to set up a payment structure, where creators can decide on the price of subscriptions (typically monthly or annual rates).

Substack takes a 10% cut of subscription fees, with payment processors taking an additional 2.9% plus $0.30 per transaction. This straightforward revenue-sharing model allows writers to potentially earn a significant income if they amass a dedicated subscriber base.

Substack integrates with payment processors like Stripe to handle all financial transactions securely. When subscribers decide to pay for a newsletter, they enter their payment details directly on the Substack site, and the platform takes care of the billing cycle.

Community Building and Engagement

Substack enables subscribers to actively engage with content by commenting on newsletter issues, which not only sparks lively discussions but also helps in building a strong sense of community between the writer and their audience. Additionally, creators have the option to initiate conversation threads, inviting their readers to participate in more personal and in-depth discussions, further cementing the sense of community.

To offer added value to dedicated supporters, creators can provide exclusive content to their paying subscribers, which can include subscriber-only posts, comments, and community threads. This exclusivity incentivizes readers to become paying subscribers.

Substack also arms creators with detailed analytics, offering a deeper understanding of their audience's preferences and behaviors. These insights are invaluable for creators looking to tailor their content to suit their readers' tastes, optimize their publishing schedule for maximum engagement, and strategize on how to expand their subscriber base. By harnessing this data, creators are better equipped to deliver content that resonates with their audience and fosters a strong, vibrant community.

The Challenges Ahead

Despite its growing popularity, Substack is not without challenges. The platform has faced criticism for its hands-off approach to content moderation, raising concerns about the spread of misinformation. Creators using Substack should be also aware of the challenges associated with building a paid subscriber base. It often requires considerable effort in marketing and audience building to reach a sustainable number of paying subscribers.

Additionally, the platform's simplicity may be limiting for those who desire more customization and control over their content and presentation.

The Future of Substack

Looking ahead, Substack shows no signs of slowing down. The platform continues to innovate, recently introducing features like community threads and discussion options to enhance interaction between writers and subscribers. As it evolves, Substack has the potential to redefine the relationship between content creators and their audiences, carving out a new paradigm for independent publishing.

Conclusion

Substack's rise reflects a broader trend toward independent, subscription-based content models that prioritize creator autonomy and reader support. By providing the tools for writers to monetize their work directly, Substack is not only championing a new era of independent publishing but is also challenging the traditional media ecosystem. Whether it becomes a mainstay or a stepping stone in the evolution of digital media, Substack has already made an indelible mark on the way content is created, distributed, and consumed.