Coffee With Cole: The Digital Writing Podcast
Episode: 6 Step Checklist To Build A $100,000+ Paid Newsletter On Substack
Host: Nicolas Cole
Release Date: November 1, 2024

Introduction

In this episode of Coffee With Cole, host Nicolas Cole delves into the strategic framework required to build and scale a successful paid newsletter on Substack. Drawing from his personal experience of establishing two high-revenue newsletters—Category Pirates ($200k/year) and Write with AI ($300k/year)—Cole breaks down a comprehensive six-step checklist aimed at helping writers launch and grow their own six-figure newsletters consistently.

1. Pick a Topic Attached to a Traffic Engine

[00:00]

Cole emphasizes the foundational step of selecting a newsletter topic that can be tied to a consistent traffic source. He explains that a successful paid newsletter often overlaps with free content channels, ensuring visibility and audience growth.

Notable Quote:
"The boring work is the moat. The secret is consistency." [00:45]

Key Points:

• Integrate Free and Paid Content: Write about the same topics on free platforms (e.g., social media, blogs) to drive traffic to the paid newsletter.
• Consistency is Crucial: Regularly produce content across both free and paid channels to build and maintain audience interest.
• Example: Write with AI leverages posts on X (formerly Twitter) to funnel readers to their Substack, maintaining daily engagement for nearly two years.

2. Make Your Newsletter Tangible

[04:30]

Cole introduces the concept of tangibility, arguing that readers place higher value on concrete, actionable content over abstract ideas.

Notable Quote:
"Readers value tangible ideas more than they value intangible ideas." [05:15]

Key Points:

• Define Tangible Assets: Transform abstract concepts into physical or digital assets that readers can hold, use, or reference.
• Enhanced Perceived Value: Tangible offerings make the newsletter feel more substantial and worthwhile.
• Examples:
  • Kindle Unlimited Book Trends: Provide heat maps of profitable keywords and content angles.
  • Russian Literature: Offer annotation guides for short stories or novels.
  • Kitchen Remodeling: Supply itemized purchase lists for different kitchen styles.

3. The One Free, One Paid Strategy

[15:20]

Cole outlines a dual-content strategy where writers consistently publish both free and paid newsletters to maximize reach and conversion.

Notable Quote:
"Your free content is what acts as the appetizer to your paid content, which is like the main course." [18:00]

Key Points:

• Leverage Substack’s Ecosystem: Utilize both Substack’s internal distribution and external traffic sources to grow readership.
• Balanced Content: Publish one free newsletter and one paid newsletter each week to engage and funnel readers effectively.
• Strategic Free Content: Pin high-value free newsletters to showcase the quality and encourage subscriptions.

4. Send Paid Snippets to Your Entire Free List

[25:10]

Cole discusses the importance of utilizing Substack’s paywall features to offer previews of paid content, enticing free subscribers to upgrade.

Notable Quote:
"It's a great way to soft sell and remind everyone on your free list, hey, by the way, if you want to keep reading, upgrade to paid." [27:45]

Key Points:

• Segment Your Audience: Substack automatically separates free and paid subscribers, allowing targeted content delivery.
• Paywall Previews: Share portions of paid content with free subscribers to spark interest without giving away the entire piece.
• Strategic Insertion: Place paywalls at points that maximize curiosity and compel readers to subscribe for the full content.

5. Put the Paywall Preview at a Cliffhanger

[35:00]

To optimize conversion rates, Cole advises placing paywalled content just before delivering the key tangible asset, creating a sense of FOMO (Fear of Missing Out).

Notable Quote:
"You drop the preview paywall right before the reader gets the tangible asset." [38:30]

Key Points:

• Strategic Placement: Insert the paywall before revealing the main value proposition (e.g., prompts, guides).
• Maximize Engagement: Trigger the desire to access the complete content by withholding the most valuable part.
• Result: Higher likelihood of free subscribers converting to paid ones when they experience the value firsthand.

6. Leverage Substack Notes

[45:50]

Cole highlights the utility of Substack’s Notes feature, akin to Twitter’s short-form posts, to broaden content distribution and attract new readers.

Notable Quote:
"Republish your short form content on Substack and introduce more people to your writing." [48:10]

Key Points:

• Expand Reach: Use Notes to share snippets or highlights from longer content, driving traffic back to the newsletter.
• Double-Dipping: Repurpose existing content (e.g., tweets) to maximize visibility without additional effort.
• Analytics Insight: Track how Notes convert free readers into paid subscribers to refine content strategies.

Common Questions and Answers

Cole addresses several audience questions, providing further clarity on newsletter strategies and common concerns.

1. Optimal Newsletter Length

[55:20]

Question: How long should a newsletter be considering the short attention span of readers?
Answer: Focus on delivering tangible assets rather than adhering to a specific word count. Value is determined by usefulness, whether in 400 words or 2000.

Notable Quote:
"Word count is a horrible measure of value. Just focus on giving the reader something that actually helps them." [56:00]

2. Charging Strategy for New Newsletters

[01:02:15]

Question: Would you start charging immediately or give it away for free?
Answer: Start charging immediately using the one free, one paid strategy to test what readers are willing to pay for. Free content should be focused on learning what the audience values through external platforms.

Notable Quote:
"Your newsletter is really just the doubling down of all of the things that you see working in your traffic engine." [01:03:00]

3. Concerns About Email Saturation

[01:05:30]

Question: Should you be worried about newsletters in general given the high volume of emails?
Answer: No. Focus on creating valuable, tangible content that your target audience seeks. Only those who need your content will engage, mitigating the fear of being lost in the inbox clutter.

Notable Quote:
"The people who need your content will read your emails and read everything from you, and the people who don't need your content won't." [01:06:10]

4. Improving Open and Click-Through Rates

[01:10:40]

Question: With a 40% open rate and a 5% click-through rate, how can these metrics be improved?
Answer:

• Open Rate: Enhance subject lines by making them more tangible and specific.
• Click-Through Rate: Ensure calls-to-action are clear and promise tangible benefits.

Notable Quote:
"The more tangible it is, the more the person is going to value it. The more they're going to click, the more they're going to take an action." [01:11:20]

5. Sustaining Long-Term Subscriber Engagement

[01:15:00]

Question: How do you combat diminishing returns experienced by long-term subscribers?
Answer: Ensure the tangible asset remains evergreen and continuously valuable. Subscribers should have an ongoing need for the assets provided, such as new prompts or updated guides.

Notable Quote:
"The infinite collectibility of the asset is what keeps long-term subscribers engaged." [01:16:30]

6. Accessibility for Beginners Across Ages

[01:20:50]

Questions:

• Can a woman in her 40s with no prior experience still thrive in this field?
• What topics could a 16-year-old write about in his newsletter? Do I need prior experience in a particular field to write about it?

Answer: Absolutely. Everyone possesses unique experiences and knowledge, regardless of age or background. The key is to surface and monetize these implicit insights by making them tangible and valuable to others.

Notable Quote:
"The most successful writers recognize that they have valuable knowledge and take it upon themselves to bundle it up, organize it, make it tangible, and monetize it." [01:22:40]

Conclusion

Nicolas Cole’s six-step checklist offers a strategic blueprint for writers aiming to build and scale profitable paid newsletters on Substack. By focusing on tangible content, balancing free and paid offerings, leveraging Substack's features, and maintaining consistent value delivery, writers can create sustainable, six-figure revenue streams. Additionally, Cole’s insights into addressing common challenges and his encouragement for writers of all backgrounds underscore the accessibility and potential of the newsletter medium in the digital age.

Key Takeaways:

• Consistency and Tangibility: Regularly produce concrete, actionable content tied to reliable traffic sources.
• Strategic Content Structuring: Utilize Substack’s features like paywall previews and Notes to optimize reach and conversions.
• Audience-Centric Approach: Focus on delivering continuous value tailored to subscriber needs to minimize churn and maintain engagement.
• Inclusivity for All Writers: Leverage personal experiences and knowledge, regardless of background or expertise level, to create meaningful and monetizable content.

This summary is intended to provide a comprehensive overview of the episode's content for those who have not listened to it. For the full, nuanced discussions and additional insights, listening to the episode is recommended.