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RJ Youngling's avatar

Should email sub growth be your core marketing strategy than paid marketing should be your main channel. Especially sponsorships of newsletters that have “geometric similarity” (similar shapes).

Expect to pay $1-$5 per sub.

By far, the most efficient way to grow a following. When calculating time invested CAC, social media becomes significantly less attractive.

The one exception is YouTube because it has the potential to be such a strong flywheel that it justifies the upfront expenditure.

Also remember that newsletters have a default state of NEGATIVE growth! I.e. with every broadcast you churn subscribers. There is not a single person who grows their newsletter by writing newsletters. Ergo, you must have a top of funnel channel that drives subs to your newsletter.

A newsletter is a middle of the funnel tool with two functions:

i. Create mental availability: being one of (preferably the first) to come to mind when a prospect is considering buying from your category.

ii. Establish your authority: convince people who are on the fence that you’re the go-to-guy for their market problem.

You now know what took me many years to understand/internalize and still exceedingly few people know this.

They think newsletters are top of funnel which is why they get nowhere.

Contrast this to YouTube where you can absolutely grow by merely making Good capital G content (content that ‘they’ not ‘you’ think is good).

That is because YouTube has a distribution engine built into its business model. The incentive structure is such that what’s best for YouTube aligns reasonably well with what’s best for you; getting eyeballs on your content and keeping them on it for as long as possible.

YT makes money by showing people ads. YTers can monetize by getting a portion of that revenue but much more interesting is to monetize that attention yourself on the backend.

The fact that they’re invested in getting you attention (assuming Good capital G content) is a unique feature that no other platform has. On almost every other platform, you’re in charge of not only creation but also distribution. Which is a wildly unattractive proposition if you really think about.

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RJ Youngling's avatar

Agree with most of it except changing the default state. That’s most likely a non starter. Similar to how we see loyalty (repeat purchasing) among FMCG consumers increase as a function of market penetration but not the other way around.

Does that mean we’ve proven that it can’t happen? No. But it does imply that it’s unlikely and the marketing efforts for a large fmcg biz are probably better spent on increasing market penetration instead of loyalty.

People just don’t share newsletters. No matter how good they are. And the occasional anomaly isn’t enough the be measurable when compared to the churn of .5-1%

So in my opinion that would be a misallocation of marketing resources. They should be on the TOFU channel instead assuming churn is around industry average.

The second thing I’d slightly disagree with is using the newsletter for qualitative market research.

I think it’s very useful if your nl is large enough and if you can email a survey / ask a question, why not?

But the issue is that it needs to be well-designed (asking ppl about problems instead of solutions- would you like X - is bad for example) and it can be difficult to get enough people to reply.

My preference for smaller solopreneurs is another form of qualitative market research called digital ethnography. Basically go to online hangouts where your audience “bitches and moans” about their “expensive problems” and then research what they’re currently buying in order to fix said expensive problems.

That’ll also inform your: copywriting, positioning, price, pricing architecture, features, and can give you a lead pool for the first set of customers.

But overall agree w your assessment.

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