The newsletter business model is hot, and justifiably so.
When you master the art of building and nurturing your newsletter audience, you're staring at a potentially lucrative stream of sponsorship revenue.
But you can also monetize in so many other ways:
Events and webinars
And newsletter businesses have become sellable assets (see next section), based on a value per subscriber and a multiple of your revenue.
beehiiv is the fastest-growing newsletter platform as it enables you to quickly launch, monetize and scale in ways not possible before. You can track subscriber acquisition with UTM parameters and can monetize with their in-built ad network, as well as paid recommendations engine Boosts.
Letter Operators is currently running an offer to set up a new beehiiv account for just $199. It even includes a copy of The Newsletter Is The Business ($147 value).
Daniel Vassallo, founder of smallbets.co, caused a stir on X this week when he urged potential entrepreneurs not to join Y Combinator (YC).
This is a pretty controversial opinion to put it mildly. For the uninitiated YC is the most prestigious ‘accelerator’, providing seed capital, mentoring and connections to start-ups in exchange for equity. Companies such as Reddit, AirBNB, Coinbase, DoorDash and Stripe are all alumni.
It’s a long post (or whatever X calls its new long format) but in essence, his argument is that the chances of success are actually small (50 successful companies out of 4000 past participants).
Those 50 successes are great for YC - they more than pay for all the failures - but not a great bet for entrepreneurs. It’s one big all-in bet (or as Daniel says “YC teaches you to try to be a visionary. When you fail… Oopsie! Tough luck.”)
You’re much better at making small bets on lots of things and then doubling down on the (probably small number) of successes.
Anyway, here’s his post:
WHY YOU SHOULD NOT JOIN Y COMBINATOR
YC seems like a reasonable proposition. They give you some money to help you start your business, and they promise you access to a community of people that can help you along the way. In exchange, they only ask for a small amount of equity.… twitter.com/i/web/status/1…