How to Create a Successful Newsletter Business: Insights from Matt McGarry

I recently came across a brilliant guy called Matt McGarry. Turns out, he is basically the ‘Newsletter Growth Guy’. It’s evident when you visit Newsletter Operator.

In a recent podcast episode featuring Matt McGarry, founder of Newsletter Operator, he shared a comprehensive blueprint for building and scaling a newsletter business.

Drawing from his extensive experience, including the incredible success story of The Milk Road, Matt laid out actionable steps for anyone looking to dive into the world of newsletters.

The Rise of Newsletters

Matt’s journey highlights how newsletters have emerged as a powerful medium for content creators and entrepreneurs.

Matt himself has been an integral part in the growth of Hustle, The Milk Road, and more.

They are a unique way to directly connect with an audience, bypassing the algorithms of social media.

Take The Milk Road for instance, a newsletter focused on cryptocurrency, which was sold for seven figures after amassing over 250,000 subscribers in less than a year.

This success story isn’t just a one-off; it’s a testament to the potential of newsletters in niche markets.

A Robust Blueprint for Building and Monetizing Newsletters

Matt McGarry shared a detailed blueprint on how to build, grow, and monetize a newsletter. Here’s a step-by-step guide, enriched with insights from his journey:

1. Identify Your Niche and Audience

  • Start with a Focused Niche: Matt emphasizes the importance of zeroing in on a niche that you are both passionate about and knowledgeable in. Whether it’s tech, finance, wellness, or even a micro-niche like “NFT trends,” the key is specificity. For example, The Milk Road specifically targeted crypto enthusiasts and investors.
  • Define Your Ideal Reader: Understand who your audience is, what they care about, and what kind of content they are looking for. Create a reader persona that guides your content strategy.
  • Learn about creating your Value Proposition.

2. Craft Compelling Content

  • Quality over Quantity: Matt stressed that the success of a newsletter lies in the value it provides. Avoid fluff and ensure each edition delivers actionable insights. He mentioned how The Milk Road used humor and a casual tone to make complex topics like crypto accessible and engaging.
  • Use the Right Tools: For writing, tools like Substack or Beehiiv can streamline the process and help you focus on content creation. Matt’s team at The Milk Road used Beehiiv due to its robust features tailored for newsletter creators.

3. Build and Grow Your Subscriber Base

  • Leverage Paid Acquisition: Matt revealed that they spent over $150,000 on Facebook ads to grow their subscriber base. While this might not be feasible for everyone, starting with a smaller budget on platforms like Facebook, Google, or LinkedIn can help you get in front of the right audience.
  • Cross-Promotions and Partnerships: Collaborate with other newsletters or podcasts to tap into existing audiences. Matt mentioned how they partnered with other crypto-related media to cross-promote The Milk Road.
  • Lead Magnets: Offer something valuable in exchange for an email sign-up, such as a free eBook, a toolkit, or exclusive content. This can significantly boost your subscriber growth.

Do you know the best KPIs for your newsletter growth? Learn to set up KPI metrics for efficiency and growth.

4. Monetize Strategically

Matt laid out various monetization strategies, each suited to different stages of your newsletter’s growth:

Here’s our blog on Pricing Strategy.

  • Sponsored Posts: Once you have a substantial audience, reach out to brands that align with your niche. For The Milk Road, they secured sponsors from crypto companies who were eager to reach their audience.
  • Affiliate Marketing: Promote products or services you believe in and earn a commission on sales. Matt highlighted the importance of choosing affiliates that resonate with your readers to maintain trust.
  • Paid Subscriptions: If your content is highly valuable and unique, consider adding a paid tier. Platforms like Substack make it easy to offer premium content for subscribers willing to pay for deeper insights.
  • Product Sales: Create and sell digital products like eBooks, courses, or exclusive reports. Matt mentioned considering these options as additional revenue streams that complement the core newsletter offering.

5. Optimize and Scale

  • Use Analytics to Drive Decisions: Regularly review your open rates, click-through rates, and unsubscribe rates. Matt’s team use tools like SparkLoop to track referrals and growth.
  • A/B Testing: Experiment with subject lines, content formats, and call-to-actions to see what resonates best with your audience. Continuous testing and iteration are key to optimization.
  • Engage with Your Community: Build a loyal community by responding to emails, hosting webinars, or creating a private Discord channel for your subscribers. Engaged readers are more likely to share your newsletter, fueling organic growth.

Best Practice: Be Authentically You

Authenticity is a recurring theme in Matt’s advice. He stressed that sharing personal experiences, challenges, and even failures makes your content more relatable and trustworthy. Here’s how to weave authenticity into your newsletter:

  • Transparency: Share behind-the-scenes stories, your thought process, and even the mistakes you’ve made along the way. Matt noted that being open about struggles can endear you to your audience and build a deeper connection.
  • Personal Touch: Use a conversational tone and make your readers feel like they’re part of an exclusive club. The Milk Road’s success was partly due to its witty and approachable voice, making readers look forward to each edition.
  • Consistency: Stick to a regular publishing schedule and maintain your unique voice throughout. Whether it’s weekly or bi-weekly, consistency builds anticipation and reliability.

Final Thoughts

Matt McGarry’s journey with different successful stories and his insights into building a newsletter business serve as a masterclass for aspiring newsletter entrepreneurs. By following this robust blueprint—identifying a niche, crafting valuable content, growing your audience through strategic methods, and monetizing effectively—you can carve out your own success story.

For more on Matt McGarry’s expertise, visit Newsletter Operator or follow him on Twitter at @JMatthewMcGary. His approach is a blend of strategic acumen and genuine passion, making him a beacon for anyone looking to succeed in the newsletter space.

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