Growth In Reverse Podcast Episode Summary

Episode Title: Creators Are Flocking to Substack—but Should You Join Them?

Release Date: June 4, 2025

Hosts: Chenell Basilio and Dylan Redekop

Introduction

In this episode of Growth In Reverse, hosts Chenell Basilio and Dylan Redekop delve into the burgeoning migration of content creators to Substack. With the platform gaining significant traction among influential figures in the newsletter space, the hosts aim to dissect the reasons behind this trend, evaluate the platform's strengths and weaknesses, and help listeners make informed decisions about whether Substack aligns with their newsletter growth and monetization strategies.

Understanding Substack

Substack has evolved from a straightforward blogging and email service provider into a comprehensive content ecosystem. Initially designed for newsletters and blogs, Substack now offers features such as podcasting, video hosting, and a social media-like platform called "Notes."

Dylan [05:11]: "What is Substack? Is it an email service provider? Is it a blogging platform? Is it a social media platform? What is it?"

The platform's expansion into multiple content formats positions it as an all-in-one solution for creators seeking to consolidate their content distribution channels.

Recent Migration of Creators to Substack

The past few weeks have seen a notable influx of prominent creators joining Substack. Noteworthy figures such as Justin Welsh, Codie Sanchez, and Jay Clouse have either migrated their existing newsletters or launched new paid tiers on the platform.

Chanel [01:15]: "So Justin Walsh has moved over. He actually created a new email list on Substack. So he has a newsletter with like 170,000 people, the Saturday Solopreneur."

This wave of migration is attributed to Substack's creator accelerator program, which offers financial incentives to attract established creators.

Dylan [03:28]: "Substack is essentially creating a fund for creators just like kind of TikTok did with their fund... I think some of these creators were definitely enticed with some financial incentive."

Features and Benefits of Substack

All-in-One Platform: Substack allows creators to manage newsletters, blogs, podcasts, videos, and social interactions within a single interface. This integration simplifies content management and distribution.

Dylan [05:30]: "It's definitely become more of an all in one platform. So you can do everything from just use it as a blog post site... but you can also just have a newsletter and quote, unquote blog post."

Ease of Use: The platform is likened to "Shopify for newsletter writers," offering a user-friendly setup that minimizes the need for technical expertise.

Dylan [16:06]: "You just create an account, and I like equating it to kind of like the Shopify for E-commerce... it can pretty much be up and running within 30 minutes."

Monetization Options: Substack simplifies the process of launching paid newsletters by handling payment processing through integrations like Stripe. This feature lowers the barrier to entry for creators looking to monetize their content.

Dylan [18:06]: "You don't have to mess around with a payment processing platform. They set up the tiers for you."

Concerns and Risks

Despite its advantages, Substack presents several risks and limitations that creators must consider:

Platform Dependency: Relying solely on Substack means putting all your content and subscriber data within one platform, which poses risks such as account lockouts, data breaches, or unfavorable changes in platform policies.

Chanel [07:29]: "I don't know what to think of it... It just makes me nervous to put all your eggs in one basket."

Limited Control and Flexibility: Substack lacks advanced email marketing features like detailed segmentation, tagging, and automation, which are available in dedicated Email Service Providers (ESPs) like Kit or Beehive.

Dylan [32:31]: "You can't plug in APIs to Substack to do things the way they might want to do them, and they can't segment and automate the way they might want to with another ESP platform."

Revenue Sharing: Substack takes a 10% cut of paid newsletter revenues, which can be substantial for creators with large subscriber bases.

Dylan [19:14]: "If you are thinking Substack sounds great, ... just know that they will be taking 10% of your revenue."

Account Termination Risks: Instances like Cody Sanchez’s account shutdown for operating memberships outside Substack highlight the platform’s strict adherence to its terms of service, potentially jeopardizing creators' operations without prior warning.

Chanel [23:40]: "She had started her own, like, membership outside of Substack... they just completely shut down her account."

Pros and Cons Breakdown

Pros:

• Integrated Content Management: Consolidates various content forms into one platform.
• Ease of Setup: Minimal technical barriers for launching a newsletter.
• Monetization Simplified: Easy implementation of paid tiers and subscription models.
• Brand Recognition: Substack as a recognized name may enhance credibility and attract subscribers.

Cons:

• Revenue Share: The 10% fee can impact profits, especially for high-earning newsletters.
• Limited Marketing Tools: Absence of robust email marketing features like advanced analytics and segmentation.
• Platform Dependency Risks: High reliance on Substack’s stability and policy framework.
• Subscriber Quality: Recommendations may lead to high subscriber counts but lower engagement rates.

Chanel [13:20]: "The recommendations are a great way to grow a bigger list, but not necessarily the bigger, better list."

Personal Experiences and Strategies

Both hosts share their approaches to mitigating Substack's limitations:

Hybrid Model Usage: Instead of relying entirely on Substack, Chanel and Dylan use it alongside their primary ESP (e.g., Kit). They manually transfer subscribers from Substack to their main platform to maintain control over their email lists and ensure higher engagement rates.

Chanel [32:31]: "I'm just porting those people over to Kit... that's the way I feel comfortable doing it."

Content Repurposing: To avoid over-reliance on Substack, creators are encouraged to repurpose content across multiple platforms. This strategy ensures content availability even if Substack experiences issues.

Chanel [10:02]: "I would also be repurposing that content to other platforms... to make sure that, you know, if God forbid, something got deleted from Substack, you have it on somewhere else."

Data Backup: Regularly exporting and backing up subscriber lists and content to prevent data loss.

Chanel [08:43]: "Definitely downloading my email list weekly... back up your lists on a semi regular basis."

Future Outlook and Recommendations

The hosts discuss Substack’s potential trajectory, likening the current growth phase to early stages of platforms like LinkedIn and Twitter, which later faced saturation.

Dylan [35:02]: "There’s still grass to be eaten there. But I think that we will see it kind of grow in that way. But it might also get overly saturated with creators in a short time..."

Recommendations for Creators:

• Assess Control Needs: Determine if the convenience of Substack outweighs the need for advanced marketing tools and platform independence.
• Start Hybrid: Utilize Substack alongside other platforms to balance ease of use with control and flexibility.
• Backup Regularly: Ensure all subscriber data and content are backed up independently of Substack.
• Monitor Platform Changes: Stay informed about Substack’s policy updates and feature changes to adapt strategies accordingly.

Dylan [32:31]: "Do you want control or do you not want control? If you want control, then maybe Substack isn't right for you."

Notable Quotes

• Chanel [01:15]: "So Justin Walsh has moved over... there’s just a lot of people moving over and yeah, it's pretty wild to see like all in one. It felt like all at the same time."

• Dylan [03:28]: "Substack is essentially creating a fund for creators just like kind of TikTok did with their fund... I think some of these creators were definitely enticed with some financial incentive."

• Chanel [07:29]: "It just makes me nervous to put all your eggs in one basket."

• Dylan [19:14]: "If you do start a paid newsletter with Substack, they do take a cut, 10%."

• Chanel [23:40]: "They just completely shut down her account. So she could not send emails, she could not access her email subscriber list... she was like, no, thank you, I am out."

Conclusion

The episode provides a comprehensive exploration of Substack's appeal and pitfalls for newsletter creators. While Substack offers an integrated platform with monetization features that simplify the growth process, it also presents significant risks related to platform dependency and limited marketing capabilities. Chenell and Dylan advocate for a balanced approach, encouraging creators to use Substack in conjunction with other tools to maintain control and maximize engagement. As Substack continues to evolve, staying informed and adaptable will be key for creators navigating this dynamic landscape.

Join the Conversation: The hosts invite listeners to share their own experiences with Substack and engage in discussions through their Substack pages and the Growth Reverse Pro community.

Links and Resources:

• Substack Creator Accelerator Announcement: [Link]
• Growth Reverse Pro Community: [Link]
• Upcoming Conference in Boise: Information about the Kits, Craft, and Commerce conference where the hosts will be recording a live podcast.