A newsletter with an engaged audience is one of the most valuable assets a founder or marketer can build. But monetization is a double-edged sword. Done well, it increases the value of your newsletter for readers. Done poorly, it erodes trust and accelerates unsubscribes.
When to Start Monetizing
Not yet. That is the answer for most people reading this. Monetization should come after you have built a consistent, engaged audience. The threshold varies, but as a general rule:
Sponsorships: 2,000+ subscribers with 40%+ open rates Premium/paid tier: 5,000+ free subscribers with demonstrated engagement Product sales: Any list size, but only if the product is genuinely relevant Community: 1,000+ subscribers with high reply and engagement rates
Monetizing too early signals to readers that the newsletter exists to make money, not to provide value. Monetizing at the right time signals that the newsletter is valuable enough that others want to be associated with it.
Monetization Model 1: Sponsorships
The simplest model. Brands pay to reach your audience. You include a sponsored section in your newsletter.
Pricing benchmarks (2026): - 2,000-5,000 subscribers: $200-$500 per issue - 5,000-10,000 subscribers: $500-$1,500 per issue - 10,000-25,000 subscribers: $1,500-$3,500 per issue - 25,000-50,000 subscribers: $3,500-$7,500 per issue - 50,000+: $7,500-$15,000+ per issue
Best practices: - Only accept sponsors relevant to your audience - Write the sponsor copy yourself (or have Ted write it) in your voice - Clearly label sponsored content - Limit to one sponsor per issue - Never let sponsors dictate editorial content
Monetization Model 2: Premium/Paid Tier
Offer a paid subscription for premium content. The free newsletter continues as before. Paid subscribers get additional content, deeper analysis, exclusive frameworks, or early access.
What works as premium content: - Detailed teardowns and case studies - Exclusive data and benchmarks - Private community access - Templates, frameworks, and tools - Extended analysis beyond the free version
Pricing: $10-$30/month or $100-$300/year for most B2B newsletters. Higher for niche, high-value audiences.
Conversion rate: Expect 3-7% of free subscribers to convert to paid if your content is genuinely differentiated.
Monetization Model 3: Product and Service Sales
If you sell a product or service, your newsletter is a warm lead generation channel. This does not mean making every issue a sales pitch. It means building trust through valuable content and occasionally (10-20% of issues) connecting that content to what you sell.
The most effective approach: provide genuine value in the newsletter content, then offer your product or service as a natural extension. "I wrote about the problem. Here is how we solve it."
Monetization Model 4: Community
Build a paid community around your newsletter audience. Members pay for access to discussion forums, events, peer networking, and exclusive content.
This model works best when your audience derives value from connecting with each other, not just from your content. B2B operators, founders in a specific vertical, or professionals in a specialized field are ideal community candidates.
Pricing: $20-$100/month depending on the value density of the community.
The Ted Approach to Monetization
Ted helps clients implement monetization strategies on the Growth and Scale plans. This includes writing sponsor copy that sounds native to your voice, creating premium content for paid tiers, and building content strategies that naturally drive product and service sales without compromising editorial integrity.