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How To Sell Your 7-Figure Email Newsletter
Maximize Profit with These Top Tips
Ever dreamed of selling a 7-figure email newsletter business?
I’ve got good news and bad news.
The bad news– it’s not (usually) a get-rich-quick kind of business. It does require time and effort. The good news– with the right strategy and knowledge, it can be done.
Consider The Milk Road newsletter, a crypto newsletter that launched on beehiiv in January 2021 and sold just 10 months later. Although it happened quickly, the team put a lot of work into creating high-quality content and experimenting with acquisition strategies to build a newsletter worth acquiring.
Or look at Inverse Kramer, an investing newsletter that also launched, scaled, and sold within a year. Its founder was looking for a platform that could help him quickly convert a large X (Formerly Twitter) audience into a newsletter audience.
Inverse Kramer’s anonymous creator chose beehiiv because he loved the time-saving drag-and-drop interface and its ability to quickly capture subscribers from tweets. The beehiiv ad network helped him start creating revenue right away, and he was able to attract the attention of a larger company, which bought the newsletter less than a year later.
The Inverse Kramer founder told us: “I think [acquisitions] are going to be more and more common as the industry progresses with creators.” And there’s no reason you can’t be part of that future.
In this article, I'll provide you with all the tips and tricks you need to successfully build and sell a 7-figure email newsletter business. From understanding the market to creating an attractive offer, I'll show you how to maximize your profits and get the best deal possible.
Let's get started!
The amount of money you can make from your email newsletter depends on many factors, from the size of your list to your niche to analytics like conversion and open rates.
For example, a subscriber list of 1,000 people interested in your products or niche market could bring in $5,000 a month with the right affiliate system in place.
The possibilities don't stop there– in fact, they are endless.
With a much larger subscriber base and top-notch content, an email newsletter could bring in millions of dollars in annual revenue. Ultimately, the size and quality of your subscriber base will make all the difference in your top-line revenue.
Yes, email newsletters can absolutely be profitable.
Take a look at Saaeed Ezzati, for example. He launched his Superpower Daily newsletter in late 2022, alongside his Superpower ChatGPT Chrome extension. Five months later, he was earning a six-figure salary from the newsletter, using a three-pronged approach of beehiiv boosts, the beehiiv ad network, and sponsorships.
Another way to earn a profit with newsletters is through affiliate income — including beehiiv’s own affiliate program, which pays a 50% commission for referrals. Partners earn a 50% commission for 12 months on all revenue they refer. So if you refer 5 people per month, you could earn $20,000 per year.
If your network or readership includes people who might want to launch their own lucrative newsletter business, it’s a perfect fit for you.
That’s how Matt McGarry has been earning passive income from his newsletter, and as a top performer in the program, he also won a paid-in-full Bahamas getaway.
Here are a few things to take into account when determining how much you can make from email newsletters:
What is the cost of your subscription?
What price do you offer to potential advertisers?
What is the size of your current email list?
What type of content do you publish?
A newsletter's value is based on various factors, like how many subscribers you have, how engaged they are with your content, and how you make money from your newsletter.
It's common for a successful newsletter with a large and engaged subscriber base to be sold for a multiple of 5 to 10 times its annual revenue.
So, if you're making $100,000 a year from your newsletter, it could potentially sell for $500,000 to $1,000,000.
But of course, it's not just about the revenue, other factors that could influence the price are:
What niche are you in
The team behind the newsletter
Who Buys Them?
Email newsletters can be purchased by various buyers looking to expand their reach and access to a specific target audience. These buyers can include businesses and entrepreneurs in the same industry, investors, media companies, digital marketing agencies, and strategic buyers.
How Do I Monetize My Email Newsletter?
There are plenty of ways to monetize your newsletter and start seeing some serious cash flow. Email newsletters can make money through various methods, such as advertising, affiliate marketing, sponsorships, and more.
Here's a quick rundown on the three most common ways email newsletters make money:
Advertising: Email newsletters can make money by selling ad space to businesses. This can include banner ads, sponsored content, or sponsored product placements.
Affiliate marketing: Email newsletters can also make money by including affiliate links in their content. These are special links that track any sales made from clicks on the link, and the newsletter publisher earns a commission on those sales.
Sponsorships: Email newsletters make money by partnering with a company or brand to create content or other types of campaigns. This usually involves a brand paying for visibility or being included in a newsletter.
There are other ways, like:
Audience Data (advanced)
You can read more about monetizing your newsletter with these five tactics.
8 Steps To Sell Your Email Newsletter Business
Step 1: Build a Large And Engaged Subscriber List
Start by identifying your target audience and creating content that speaks to them. Building a large and engaged subscriber list is crucial to monetizing and increasing the newsletter's value. Subscribers bring potential revenue, and engagement increases monetization chances.
How do you go about building a large and engaged subscriber list?
There are a few key strategies you can use, such as:
Using opt-in forms: You can add opt-in forms to your website, social media profiles, and blog posts to capture new subscribers.
Hosting giveaways: Running giveaways or contests can effectively grow your email list by offering a desirable prize to entice new subscribers.
Using social media: Promote your newsletter on your social media platforms, share the content, and use social media to grow your email list by attracting more readers to your website.
Check out Roland Frasier’s story. He scaled his audience from zero to 32,000 subscribers in just 90 days, largely by using beehiiv’s built-in tools. Frasier says, “With beehiiv, it's really easy to expand your reach. I feel like it was created by people who have newsletters. So it has the tools built in that you’re already going to need.”
Use a combination of social media, SEO, referrals, recommendations, and other channels to promote your newsletter and attract new subscribers. Meanwhile, keep in touch with your subscribers, ask for their feedback, and ensure you create content that resonates with them.
Subscribers alone are not enough, though. It's also important to provide valuable content and to encourage readers to share their thoughts, ideas, and feedback. That way, readers will have a reason to stay engaged and keep coming back for more.
Engagement is a really important factor that buyers will look at closely.
Step 2: Develop a Clear Monetization Strategy
Now that you have a substantial subscriber base, it's time to start thinking about monetization. There are several ways to monetize an email newsletter, and you'll want to explore the different options available to you.
Research and test different monetization methods, such as:
Selling advertising space
Selling products or services
Offering a premium subscription
Step 3: Create A Track Record Of Consistent Revenue
Keep your financial records in good order, document your revenue and expenses, and create financial statements. This information will be helpful to potential buyers as it gives them an idea of your newsletter's potential revenue and growth.
Step 4: Network With Potential Buyers
Attend industry events and trade shows, join online forums and communities for newsletter publishers and marketers, and contact other newsletter publishers to inquire about potential buyers or investors.
Step 5: Hire A Business Broker
Selling a business can be a complex process. Most people will find it helpful to hire a business broker to assist them throughout the process.
Look for a reputable broker, like Empire Flippers.
You can sign a contract and work with them to determine your newsletter’s value and prepare a sales package.
Step 6: Determine the Value of Your Newsletter
The valuation of an email newsletter business is determined by a combination of factors, including the average net profit and the business multiple.
It's essential to clearly understand your business' financials and analyze subscriber data regarding the number of subscribers, subscription model, niche/target audience, and click-through rate.
Valuation = Average Net Profit x Business Multiple
The valuation of an email newsletter business is a complex process determined by a combination of factors. One of the critical components of this valuation is the average net profit, which is the income that the business generates after accounting for expenses such as email service provider subscription fees, hosting fees, and domain fees.
Another important factor in determining the value of an email newsletter business is the business multiple.
This metric takes into account several different elements related to the newsletter's subscribers, such as:
Number of subscribers
Subscription model (recurring or one-off lifetime subscriptions)
Customer acquisition cost (CAC) and Customer lifetime value (LTV)
Click-through rate (CTR)
To calculate the value of your email newsletter business, it is essential to understand your business' financials, including expenses, and to analyze the subscriber data regarding these factors.
Step 7: Prepare a Sales Package
A good sales package will include all the important information about your newsletter, such as subscriber numbers, revenue, growth potential, and any other relevant information that might interest potential buyers.
If you already hired a broker, they can provide some guidance here. You may also consider hiring someone to put together a stunning pitch deck to showcase your business and really seal the deal.
Step 8: Negotiate And Close The Deal
Once you have a potential buyer, it's time to start the negotiation process. Work with your business broker to come up with a fair and reasonable offer for both parties.
Be prepared to negotiate on price, terms and conditions, and other important details. Once both parties are happy with the deal, it's time to close the sale.
Putting It Into Practice
Selling a 7-figure email newsletter business is doable with the right approach.
Remember, the keys to success:
Build a large and engaged subscriber base
Develop a clear monetization strategy
Create a track record of consistent revenue
Network with potential buyers
If you're looking for an easy and efficient way to manage your email newsletter, why not try beehiiv?
beehiiv is a powerful tool that can help you grow your subscriber base, improve your open rates, and increase your revenue.
So, why wait?
Sign up now and see the difference beehiiv can make for your business!