- The Newsletter Business
- 🦨 Stink Bids
🦨 Stink Bids
Lowball offers have made me double down on The Newsletter Business...
Hey there 👋,
I’d taken my name off this newsletter last week as was open to selling it for a non-negotiable $10K quick sale, so I could focus on crypto which has been printing.
But all that happened was that I got hit by stink bids (way lower than the market value) which is ironically something you see in crypto, as this old Patrick McKenzie tweet explains:
Stink bid is a term of art meaning that one could not reasonably believe that is the price something would go for if it is fairly valued.
— Patrick McKenzie (@patio11)
Sep 27, 2022
These bids (offers) were insulting enough to make me completely reevaluate the decision to sell.
I’ve realized I’ve built a great audience here (thank you) who appreciates the content, as the metrics from last week’s issue shows:
In fact the sponsor last week got 150 clicks…
Plus this is actually a business, and I should have valued it as such, seeing as that’s what I advocate with my The Newsletter Is The Business product.
So I’m back playing the game of letters.
And like Manu from Stacked Marketer, I’m a poker player and know my edge in this space, having built, operated and sold more than most (and now as an investor in beehiiv):
I’ve been running @stackedmarketer for almost 6 years. Started from 0 and we hit $715,000 in revenue in 2023.
These are some controversial opinions I hold about newsletters:
1. MOST newsletters are NOT a business (even if they are making some money)
I think this might be the… twitter.com/i/web/status/1…
— Emanuel Cinca (@emanuelcinca)
Jan 25, 2024
And I know my numbers.
This is direct newsletter business revenue since inception of the newsletter, launched as Letter Meta back in October:
If I simply maintain the $2200/m in profit over the next 12-18 months, then if I were to choose to sell again, I can attach a 24x-36x monthly profit multiple for $50K-$80K.
And if I grow the subscriber base to 10K subs, and the market reasonably values an engaged subscriber at $3-$5 per open, I can get to a six figure exit like I did with the Website Investing publication.
I will have better buyers at that price point who are in a position to pay a market rate:
Stop selling to people who can’t afford what you sell.
— Josh Spector (@jspector)
Jan 31, 2024
🗞️ Industry News
Practical AI newsletter on beehiiv gets acquired Link
Google & Yahoo new security changes means if you’re using a custom sending domain on beehiiv, will need to add a DMARC policy Link
⚒️ Letter Ops
Getting coached on newsletter sponsorships Link
Red Ventures hiring newsletter editor Link
Future hiring email ops Link
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Disclaimer: Not financial or business advice. This newsletter is strictly for information and education purposes. There are affiliate links to beehiiv and others in this issue.