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6 Steps to Securing a Sponsor for Your Email Newsletter
Tips for negotiating the best deal for your email newsletter sponsorship
TG & Brandon Storey
February 15th, 2024
Email newsletters are on the rise—and those paying attention want a piece of the action.
Why?
Because they’re not just an effective way to communicate with an audience. They’re a revenue-generating opportunity second to none.
Creators have earned over a million dollars in sponsored ad revenue through the beehiiv Ad Network (since it launched a few months ago).
The reason brands are willing to pay so much to advertise in newsletters? They’re able to reach niche audiences by leveraging the relationship between the creator and the subscribers.
In fact, the average newsletter open rate in 2023 was 38.69%, meaning if a creator has a daily newsletter with a list of 10,000 people, advertisers can effectively promote their products to 3,869 people every day.
If you’re a writer or you’re new to the writing game and thinking of starting your own income-generating newsletter, then you’re in the right place.
Newsletter creators have increasingly adopted email newsletter sponsorships to earn a livable income, in addition to other monetization methods like paid subscriptions, and Boosts.
Selling ads can be a great way to monetize your newsletter and provide additional value to your subscribers. In this blog post, we'll go over some key tips and strategies for getting a sponsor for your email newsletter so you can build a stable income from your newsletter.
Email sponsorships are a type of advertising where a company pays to have their product or service featured in an email newsletter.
Email sponsorships can be an effective way for companies to reach potential customers and drive sales.
Email newsletters are quickly becoming one of the most sought-after places to advertise. One reason is because the return on investment (ROI) is so good.
This means if brands invest $1,000 into email marketing, they can expect an average return of $36,000 in sales.
The newsletter may be focused on a specific topic, such as fashion or technology, and the sponsorship allows the company to showcase their product to a targeted audience.
A sponsored email newsletter typically includes a brief description of the company’s product or service, along with a call to action encouraging the reader to learn more or make a purchase.
Newsletter operators can leverage sponsorships to add new income streams to their newsletter business. While many newsletter operators are skeptical of placing invasive advertisements in their content, sponsorship slots are a form of digital real estate sold to brands that align with a creator’s audience’s values, interests, and needs.
In other words, sponsors typically add more value to the reader’s experience with the right product-audience fit.
Within the beehiiv Ad Network, your unique niche newsletter is matched with relevant sponsors that have audiences aligned with yours — and it’s all done in just a few clicks.
Unlike standalone ads like banner ads or pop-up ads, newsletter sponsorships are typically integrated into the surrounding content, similar to YouTube sponsorships.
A YouTube creator who does this well is Mr. Beast — AKA Jimmy Donaldson. He naturally weaves sponsored ads into his content so it hardly feels like an annoyance or inconvenience to sit through. Rather, he typically makes the sponsored ad sections quite entertaining and engaging.
For example, Jimmy ordered pizza via Uber to a super yacht in one video and explained how he credits ZipRecruiter for his ability to afford a blimp by hiring great talent.
So, back to newsletter-specific sponsorships.
How do you integrate them into your newsletter content?
Up next, we’ll cover a few real newsletter sponsorship examples you can use as a reference when determining how to integrate sponsored ads into your content.
Now that you know how valuable newsletters are for brands, how much you can earn as a creator, and how sponsorship works, let’s take a look at what a sponsored email newsletter actually looks like.
1. The Rundown AI
First up, let’s take a look at one of the top AI newsletters around — The Rundown AI. This is a daily newsletter that covers the latest in Artificial Intelligence, including up-to-the-minute news, tools, tactics, and more to get the most out of AI.
In this newsletter, Rowan Cheung includes two spaces for his sponsor — a header graphic at the top, and a larger ad partway through his newsletter content.
Rowan does a great job of implementing a simple, yet beautiful design for his sponsor, OctoML, that doesn’t seem invasive at all. In fact, the sponsored content flows well with the rest of the newsletter – and in this example, Rowan is advertising a free OctoML event which is a relevant value-add for his subscribers.
You can see this entire Rundown AI newsletter post here to see exactly how it fits in within the rest of the newsletter content.
2. Young Money by Jack Raines
Young Money by Jack Raines is a finance, investing, and careers newsletter targeted at young people. In it, Jack shares his unique view of the world of finance with a unique twist of storytelling, humor, and illustrations.
In this sponsored newsletter ad, Jack Raines partners with Rainbook, starting with the headline “Today’s Young Money is brought to you by Rainbook!”
This is a great example of a typical sponsored ad. Many newsletter creators will use a similar framework for their newsletters by simply placing the sponsored ad right at the top of the newsletter as an introduction.
Jack’s example here is a great case of how to go a bit more in-depth with a sponsored ad. Typically, the more space you give a sponsor, the more you can charge, allowing you to maximize revenue earned.
3. The B-Side
The B-Side is a local newsletter based in Boston that takes a unique approach to news for Gen Zs in the city. It’s an easy-to-consume daily newsletter that offers a bite-sized, refreshing take on the fun (and important) stuff happening around the Boston area.
In this sponsored ad, The B-Side partners with Flexcar, a car-sharing tech company that allows Boston locals to have access to a vehicle without the hefty fees of full car ownership.
The B-Side does a good job of integrating it naturally by placing it about halfway through their content – and they insert the ad into a sponsored ad slot they have templated into their newsletter, making it easy to switch different brands into the “Together with x” section.
Additionally, The B-Side also mentions their sponsor once more right at the very end with a special shoutout, giving the brand a second opportunity to promote their service to The B-Side subscribers, something that can certainly be added as an upsell to potential sponsors.
Read the rest of the B-Side newsletter post here.
Key Considerations Before Diving into Newsletter Sponsorships
Chances are, you’ve been dedicating plenty of time to creating an engaging newsletter for your audience. Or, you’ve simply been researching the best strategies in preparation to launch a newsletter for the first time.
Sponsorship is one of the most popular paths to monetize a newsletter since it can provide a solid income stream for creators and allow them the freedom and flexibility to turn their creations into a living.
While sponsorships are an incredible opportunity to cash in on your hard work, they can be challenging to navigate.
Here are a few considerations to keep in mind:
If you aren’t using an ad marketplace, it can be a real challenge to get in touch with potential brands to form partnerships with.
Once you’ve found a partner, collaborating can be overwhelming, especially when it comes to creating and scheduling ads. It requires a ton of back-and-forth communication in order to finalize a deal and plan ads.
Finding common ground when it comes to creativity can be difficult to navigate, and in some cases you may have to give up the majority, if not all, of your creative control over the ad creative (and even your newsletter content) in some cases.
In some cases, some deals end up being lopsided, and many can fall apart due to miscommunication.
By reaching out to form partnerships with brands directly, you risk these potential pitfalls as nothing is guaranteed.
In order to avoid these pitfalls, it’s best to use a marketplace like the beehiiv Ad Network to find partners to collaborate with. By relying on the vetted beehiiv marketplace of both newsletter creators and brands, you can drastically decrease the odds of a bad collaboration.
Leveraging the beehiiv Ad Network to kick off your newsletter monetization gives you the ability to create long-lasting partnerships with brands who align with your vision, your values, and give you the creativity to create meaningful content (that also provides a healthy income).
Want the easy path to landing your first sponsor? Learn more about the beehiiv Ad Network here.
Step #1: Nail Your Content Strategy
First and foremost, it's important to make sure that your email newsletter is high-quality and provides value to your subscribers. No one is going to want to sponsor a newsletter that doesn't have a strong following or that doesn't offer valuable content. So, before you start reaching out to potential sponsors, make sure that your newsletter is in tip-top shape.
Step #2: Identify Potential Sponsors
Once you have a high-quality newsletter, you can start looking for potential sponsors. There are a few different ways you can go about this. One approach is to reach out to companies that are related to the content of your newsletter but aren’t competitive.
For example, if your newsletter is about gardening, you could reach out to companies that sell gardening supplies or provide gardening services. These companies may be interested in sponsoring your newsletter because it will give them exposure to a targeted audience of potential customers. This would be considered a great win/win opportunity.
Another approach is to reach out to companies that you already have a relationship with. If you already have a business or blog, you may have worked with other companies in the past. These companies may be interested in sponsoring your newsletter because they already know and trust you. Additionally, sponsoring your newsletter may be a way for them to show their support and help grow your business.
Step #3: Gather Data and Metrics
Next, you need to gather all your newsletter metrics. Having clarity here will be very important in order to back up your desired sponsorship rate. This varies, but will typically be based on a sliding CPM rate. (Cost per thousand subscribers you have on your newsletter).
Here are 8 metrics you should have a great pulse on:
The number of subscribers you have
The open rate of your emails
The click-through rate of your emails
The engagement rate of your emails (e.g. likes, shares, comments)
The demographics of your subscribers (e.g. age, gender, location)
The content and topic of your emails
The value that sponsoring your email newsletter can provide to the sponsor (e.g. exposure to a targeted audience, increased brand awareness)
The terms of the sponsorship (e.g. duration, type of sponsorship, compensation)
Having these metrics at hand will help you to effectively communicate the value of your email newsletter to potential sponsors, and will also be useful for negotiating the terms of the sponsorship.
By being aware of these key metrics, you can make a compelling case for why a company should sponsor your email newsletter and ensure that you get the best deal possible.
Step #4: Reach Out
Once you have identified some potential sponsors & you know your metrics, it's time to reach out to them. When reaching out to potential sponsors, it's important to be professional and to clearly explain the value that your newsletter can provide.
Here is a quick email template you can use to reach out to sponsors:
###
Subject: Sponsorship opportunity for [Newsletter Name]
Dear [Sponsor],
I'm writing to introduce you to [Newsletter Name] and to inquire about the possibility of sponsoring our email newsletter.
[Newsletter Name] is a [description of newsletter] and is targeted towards [target audience]. Our newsletter has [number of subscribers] subscribers, and our emails have an average open rate of [open rate] and a click-through rate of [click-through rate]. Our subscribers are primarily [demographics of subscribers].
We believe that sponsoring [Newsletter Name] would provide valuable exposure for your company to a targeted audience of potential customers. In addition to promoting your products or services in our newsletter, we can also offer [additional sponsorship benefits, such as a discount code or a giveaway].
We are open to discussing different types of sponsorship and are flexible on the terms. If you're interested in learning more, I'd be happy to schedule a call to discuss the details further.
Thank you for considering this opportunity. I look forward to hearing from you.
Best regards,
[Your Name]
###
Ensure you explain what your newsletter is about, who your subscribers are, and why a sponsorship would be beneficial for the sponsor. You should also be prepared to provide some statistics about your newsletter, such as the number of subscribers you have and the open and click-through rates. This will help the sponsor understand the reach and impact of your newsletter.
One company that does this well is The Milk Road. They have a simple Google form to capture inquiries on their website alongside reaching out to key sponsors they want. They also have put together a slick sponsorship slide deck to show the benefit a sponsor would receive from the partnership.
In addition to explaining the value of your newsletter, it's also important to be clear about what you're asking for from the sponsor.
Are you looking for a one-time sponsorship, or are you looking for a longer-term partnership?
What kind of sponsorship are you looking for? For example, are you looking for the sponsor to provide a discount code for your subscribers, or are you looking for the sponsor to provide a product or service that can be given away as a prize?
Being clear about what you're asking for will make it easier for the sponsor to say yes.
Step #5: Negotiate Terms
Once you have reached out to potential sponsors and have explained the value of your newsletter, it's time to negotiate the terms of the sponsorship.
This can be a bit tricky, as you want to make sure that the sponsor gets value from the sponsorship, but you also want to make sure that you're fairly compensated for your efforts. A good approach is to start by asking for what you want and then being prepared to negotiate.
For example, if you're looking for a one-time sponsorship, you could ask for a certain amount of money and then be prepared to negotiate down to a lower amount if necessary.
Step #6: Follow Through
Once you have secured a sponsor for your email newsletter, it's important to follow through on your end of the bargain.
This means promoting the sponsor's products or services in your newsletter and providing any other benefits that you agreed to. It's also important to communicate with the sponsor on a regular basis to provide updates on the sponsorship and to discuss any potential changes or improvements.
Four common mistakes we often see during this process that you can keep top of mind to avoid are:
Not having a high-quality email newsletter: Before you start looking for a sponsor, make sure that your email newsletter is well-designed, provides valuable content, and has a strong following. A sponsor is more likely to be interested in supporting a successful and popular newsletter.
Not researching potential sponsors: Don't just blindly reach out to companies that are related to your newsletter's content. Take the time to research potential sponsors and make sure that they would be a good fit for your newsletter. Consider their target audience, their product or service offerings, and their overall brand image.
Not explaining the value of your newsletter: When reaching out to potential sponsors, be sure to clearly explain why sponsoring your newsletter would be beneficial for them. Provide statistics about your newsletter, such as the number of subscribers and the engagement rates, and explain how a sponsorship would give them exposure to a targeted audience of potential customers.
Not being clear about the terms of the sponsorship: When negotiating the terms of the sponsorship, be sure to be clear about what you're asking for. Are you looking for a one-time sponsorship or a longer-term partnership? What kind of sponsorship are you looking for (e.g. a discount code, a product giveaway)? By being clear about your expectations, you'll be more likely to secure a sponsor and avoid misunderstandings.
Securing a sponsor for your email newsletter can be a great way to monetize your newsletter and provide additional value to your subscribers. By following the tips and strategies outlined in this blog post, you can successfully find and negotiate with a sponsor for your email newsletter.
Whether you're looking for a one-time sponsorship or a longer-term partnership, there are plenty of opportunities to explore, especially within the beehiiv Ad Network.
So why wait? Start reaching out to potential sponsors today and take your email newsletter to the next level with a free trial at beehiiv!
This blog was originally published on December 23rd, 2022, and has been updated for accuracy and relevance.
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