Content Is Profit Podcast: Newsletters 101 Part 3 – How To Build & Monetize Them with Ethan Brooks

Release Date: January 10, 2025
Host(s): Luis and Louise from BIZBROS
Guest: Ethan Brooks

Introduction

In the third installment of the "Newsletters 101" series on the Content Is Profit podcast, hosts Luis and Louise from BIZBROS engage in a comprehensive discussion with guest Ethan Brooks. The episode delves into the intricacies of building and monetizing newsletters, offering valuable insights for both budding and seasoned content creators.

Starting a Newsletter: Free vs. Paid

Luis kicks off the conversation by posing a fundamental question: "Should newsletters be free or paid?" (00:54). Ethan Brooks responds by emphasizing that the answer largely depends on individual circumstances but provides a structured framework to approach this decision.

Ethan explains the Audience-Product Model, breaking it down into:

• Free Audience: Monetized via ads or affiliate deals.
• Low-Price Front-End Products
• High-Price Back-End Products

He shares a success story of a business broker who launched a paid newsletter offering early access to business listings, instantly generating over $10,000 per month in subscription revenue (05:35). Ethan underscores the importance of leveraging existing distributions channels like podcasts or social media to ensure successful monetization when starting with a paid model.

Notable Quote:
"The shorter the line is between your paid product and how your audience makes money, the more likely you are to be able to pull it off as a business." — Ethan Brooks (04:30)

Monetization Strategies

Ethan outlines various monetization strategies based on the type of newsletter:

1. Ads and Affiliate Deals: For free newsletters, integrating display ads and affiliate links can generate revenue. Ethan illustrates this with an example where collating advertisers from multiple newsletters can create a valuable sellable asset.

2. Paid Subscriptions: He suggests that if you possess a pre-existing audience, launching a paid newsletter can be lucrative. However, the content must offer greater value than free offerings to justify the cost.

Luis and Louise further explore the necessity of delivering unique value to sustain a paid model, pointing out that simplistic approaches like Patreon support often fail to scale unless the content provides substantial benefits.

B2B Newsletters: Advantages and Models

The conversation shifts to B2B (Business-to-Business) newsletters, where Ethan argues that B2B newsletters are particularly advantageous due to higher price points associated with business products.

He cites an example of a photo booth business newsletter with a niche audience that commands high subscription rates despite a small subscriber base. Ethan explains that the narrow focus allows for precise targeting, making the newsletter an authoritative source within that industry.

Notable Quote:
"The price tag's just a lot higher. And so the beauty of the newsletter is really that one, it's going to build you authority. Two, it can become a revenue, like a serious revenue stream for your company." — Ethan Brooks (12:31)

Growth Strategies: Time, Money, Audience

When discussing growth levers, Ethan identifies three primary strategies:

1. Time: Leveraging organic growth tactics such as SEO, PR, and social media outreach.
2. Money: Investing in paid advertising like PPC, influencer partnerships, and sponsored content.
3. Audience: Utilizing the existing audience for referrals and word-of-mouth marketing.

Ethan advises starting with the lever that you have the most access to. For many startups, time is the most accessible, emphasizing the importance of manual outreach and leveraging personal networks before investing in paid strategies.

Notable Quote:
"There are effectively three levers for growth that you can pull as a media company: Time, money, and audience. And the one that you pull is basically going to come down to which one you have most access to." — Ethan Brooks (15:04)

Editorial Strategies: Types of Newsletters

Ethan categorizes newsletters into four main types, as inspired by Dan Osinsky:

1. Utility: Provides essential information that directly helps the reader (e.g., how-to guides, industry reports).
2. Wants: Delivers content that readers find enjoyable or entertaining (e.g., daily news digests with a light tone).
3. Personality: Centers around the author's opinions, insights, and personality (e.g., expert opinions, personal anecdotes).
4. Identity: Connects with readers based on shared identities or interests (e.g., "Today's Cats" for cat enthusiasts).

Each type serves different purposes and appeals to varying audience motivations. Ethan advises creators to first define their desired outcome—whether it's building influence or generating revenue—and then align their editorial strategy accordingly.

Notable Quote:
"If influence is your most important outcome, then you're going to want to think through that lens first." — Ethan Brooks (24:43)

Building Authority and Setting Realistic Expectations

Ethan emphasizes the importance of authority building through consistent, high-quality content. He highlights that B2B newsletters benefit from the inherently higher value of business-centric content, making monetization more feasible.

He also cautions against unrealistic expectations by sharing examples of highly successful newsletters, such as Sean's Milk Road, which achieved rapid growth due to pre-existing audience and significant resources. Ethan advises new creators to set achievable goals and understand the time and effort required to build a substantial subscriber base.

Notable Quote:
"You write a bad newsletter, it's just not going to work." — Ethan Brooks (31:07)

Examples of Successful Newsletters

Throughout the episode, Ethan shares several real-world examples to illustrate effective strategies:

• Business Broker's Newsletter: Early access to business listings generating $10k+/month.
• Cody Sanchez's Contrarian Thinking: Grew to 10,000 subscribers in 30 days through manual outreach (17:04).
• Milk Road by Sean: Rapid growth to 150,000+ subscribers in six months, leveraging Sean's large social media following and podcast popularity.
• Glow Reel: A weekly newsletter for BIPOC women, providing underrepresented stories and building a dedicated niche audience.

These examples underscore the diversity of successful newsletter models and the importance of niche targeting and leveraging existing platforms.

Notable Quote:
"She's writing this incredible newsletter, and it's very similar to the Hustle in, like, structure, voice, topics that they cover, but it's all from this other perspective." — Ethan Brooks (28:27)

Q&A and Practical Advice

Louise and Luis pose additional questions addressing the niche specificity and operational aspects of newsletter creation.

1. Industry vs. Expert-Based Newsletters: Ethan recommends defining the desired outcome before choosing the type. Utility and identity-based newsletters are generally easier to monetize and scale compared to personality-driven ones, which often rely on the author's existing influence.

2. Building and Managing Content Teams: Ethan outlines the importance of having dedicated researchers and writers. He suggests starting with personal outreach and gradually scaling by hiring talent as the newsletter grows.

Ethan also introduces the concept of tapping into underrepresented markets, highlighting opportunities for newsletters that cater to specific demographics or interests, such as the Spanish-speaking market or BIPOC women.

Notable Quote:
"What you're saying is a perfect reflection of your understanding and just the vast amount of opportunity in this space." — Ethan Brooks (28:02)

Conclusion

In conclusion, the episode offers a robust framework for building and monetizing newsletters, tailored to both individual and B2B contexts. Ethan Brooks provides actionable strategies, backed by real-world examples, emphasizing the importance of niche targeting, value-driven content, and leveraging existing networks for growth. Hosts Luis and Louise encourage listeners to introspect on their passion and value proposition, ensuring sustainable and scalable newsletter ventures.

Final Takeaway:
"Setting more realistic standards and giving people the roadmap to actually achieve it, because it's totally doable for those who know what the actual equation is." — Ethan Brooks (31:56)

Call to Action

Luis and Louise wrap up the episode by inviting listeners to share their newsletter ideas and engage with the Content Is Profit community on social media. They encourage subscribing to stay tuned for future episodes in the series.

Stay tuned for Part Four of the Newsletter Segment on the Content Is Profit podcast!