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Let& #39;s talk about how to price newsletter ads.
Most people don& #39;t feel like they get good answers on this.
Partly because it depends on a lot of factors.
I& #39;m going to show you the factors. And also give some concrete numbers...
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🧵" title="Thread" aria-label="Emoji: Thread">
Most people don& #39;t feel like they get good answers on this.
Partly because it depends on a lot of factors.
I& #39;m going to show you the factors. And also give some concrete numbers...
As a reminder, your free newsletter is ready for ads when you have 2 of these 3:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> A big audience
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> High engagement
https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> Readers willing to spend $$$
Of those 3, the last is probably the most important.
Of those 3, the last is probably the most important.
A big audiencehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> High engagementhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> Readers willing to spend $$$Of those 3, the last is probably the most important." title="As a reminder, your free newsletter is ready for ads when you have 2 of these 3:https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> A big audiencehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> High engagementhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> Readers willing to spend $$$Of those 3, the last is probably the most important." class="img-responsive" style="max-width:100%;"/>
There are a few popular ways to charge for ads:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Cost Per Send (CPS)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Cost Per Click (CPC)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> Cost Per Open (CPO)
We& #39;ll dig into each in a sec, but first, a crucial vocab term..."CPM"
We& #39;ll dig into each in a sec, but first, a crucial vocab term..."CPM"
When we talk about ad prices, we use the term "CPM".
It just means the cost for 1,000 of something.
For example, if you charge $0.01 for every person who opens the email, your CPM (cost per thousand) is $10
1,000 x $0.01 = $10 CPM
Using CPM just makes discussions easier.
It just means the cost for 1,000 of something.
For example, if you charge $0.01 for every person who opens the email, your CPM (cost per thousand) is $10
1,000 x $0.01 = $10 CPM
Using CPM just makes discussions easier.
Okay, let& #39;s dig into those pricing models
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Cost Per Send (CPS)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Cost Per Click (CPC)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> Cost Per Open (CPO)
For each, we& #39;ll look at...
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍" title="Daumen hoch" aria-label="Emoji: Daumen hoch"> Pros
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👎" title="Daumen runter" aria-label="Emoji: Daumen runter"> Cons
https://abs.twimg.com/emoji/v2/... draggable="false" alt="📈" title="Tabelle mit Aufwärtstrend" aria-label="Emoji: Tabelle mit Aufwärtstrend"> Sample pricing chart - NOTE: I use a $50 CPM to keep the math simple. Might be a little high (but not impossible)
For each, we& #39;ll look at...
This is a VERY common way to start, and some major newsletters (like Morning Brew) still use this at scale.
Cost Per Send (CPS): You charge based on the number of emails you send.This is a VERY common way to start, and some major newsletters (like Morning Brew) still use this at scale.https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍" title="Daumen hoch" aria-label="Emoji: Daumen hoch"> Your revenue is predictable.https://abs.twimg.com/emoji/v2/... draggable="false" alt="👎" title="Daumen runter" aria-label="Emoji: Daumen runter"> Clients pay for emails that are sent but not opened." title="https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Cost Per Send (CPS): You charge based on the number of emails you send.This is a VERY common way to start, and some major newsletters (like Morning Brew) still use this at scale.https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍" title="Daumen hoch" aria-label="Emoji: Daumen hoch"> Your revenue is predictable.https://abs.twimg.com/emoji/v2/... draggable="false" alt="👎" title="Daumen runter" aria-label="Emoji: Daumen runter"> Clients pay for emails that are sent but not opened." class="img-responsive" style="max-width:100%;"/>
This one is less common in newsletters.
Cost Per Click (CPC): You charge based on the number of readers who click an ad.This one is less common in newsletters.https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍" title="Daumen hoch" aria-label="Emoji: Daumen hoch"> Clients feel more comfortable paying only for performancehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👎" title="Daumen runter" aria-label="Emoji: Daumen runter"> Revenue unpredictable. Also not paid for all the brand awareness you create (only clicks)." title="https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Cost Per Click (CPC): You charge based on the number of readers who click an ad.This one is less common in newsletters.https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍" title="Daumen hoch" aria-label="Emoji: Daumen hoch"> Clients feel more comfortable paying only for performancehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👎" title="Daumen runter" aria-label="Emoji: Daumen runter"> Revenue unpredictable. Also not paid for all the brand awareness you create (only clicks)." class="img-responsive" style="max-width:100%;"/>
Common for mature newsletters to graduate to this.
Cost Per Open (CPO): You charge based on the number of readers who open the email.Common for mature newsletters to graduate to this.https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍" title="Daumen hoch" aria-label="Emoji: Daumen hoch"> Clients don& #39;t pay for unseen emails, and you still get paid for creating brand awarenesshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👎" title="Daumen runter" aria-label="Emoji: Daumen runter"> Revenue / client cost can be unpredictable." title="https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> Cost Per Open (CPO): You charge based on the number of readers who open the email.Common for mature newsletters to graduate to this.https://abs.twimg.com/emoji/v2/... draggable="false" alt="👍" title="Daumen hoch" aria-label="Emoji: Daumen hoch"> Clients don& #39;t pay for unseen emails, and you still get paid for creating brand awarenesshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👎" title="Daumen runter" aria-label="Emoji: Daumen runter"> Revenue / client cost can be unpredictable." class="img-responsive" style="max-width:100%;"/>
Newsletters charging on CPC or CPO usually set a timeframe for measuring (~7-14 days).
Reasons newsletters don& #39;t start with those:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Tracking / Reporting takes resources young newsletters often don& #39;t have.
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> It& #39;s helpful to have past open/click data to estimate client costs.
Reasons newsletters don& #39;t start with those:
So how do you pick a price?
Well, first, remember those 3 key factors:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Audience size
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Engagement rates (opens/clicks)
https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> Readers willing to spend $$$
Your ad rates should reflect how much your advertisers can earn from reaching your unique audience.
Well, first, remember those 3 key factors:
Your ad rates should reflect how much your advertisers can earn from reaching your unique audience.
Audience sizehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Engagement rates (opens/clicks)https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> Readers willing to spend $$$Your ad rates should reflect how much your advertisers can earn from reaching your unique audience." title="So how do you pick a price?Well, first, remember those 3 key factors:https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Audience sizehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Engagement rates (opens/clicks)https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> Readers willing to spend $$$Your ad rates should reflect how much your advertisers can earn from reaching your unique audience." class="img-responsive" style="max-width:100%;"/>
Unfortunately, there& #39;s no "newsletter industry standard" for pricing.
If you look at the old rate card for Morning Brew, at one point their primary ad CPM was ~$15 on ~2m sends.
By contrast, Dance Business Weekly has CPMs closer to $200 on ~15k people.
Lots of variability
If you look at the old rate card for Morning Brew, at one point their primary ad CPM was ~$15 on ~2m sends.
By contrast, Dance Business Weekly has CPMs closer to $200 on ~15k people.
Lots of variability
In the end, it& #39;s usually a process like this:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Snoop on the competition
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> Set a price you think someone will pay for
https://abs.twimg.com/emoji/v2/... draggable="false" alt="3️⃣" title="Tastenkappe Ziffer 3" aria-label="Emoji: Tastenkappe Ziffer 3"> Adjust from there as you grow
You& #39;re price is always in flux. You will change it based on the customer, time of year, ad inventory, etc...
You& #39;re price is always in flux. You will change it based on the customer, time of year, ad inventory, etc...
If this is your first time selling ads, there are some sample emails here: http://bit.ly/3tBRSYf
They">https://bit.ly/3tBRSYf&q... show how Sam sold the first ads at the Hustle.
Copying those is probably your best bet. Tweak pricing until you sell out. Then increasehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="😉" title="Zwinkerndes Gesicht" aria-label="Emoji: Zwinkerndes Gesicht">
They">https://bit.ly/3tBRSYf&q... show how Sam sold the first ads at the Hustle.
Copying those is probably your best bet. Tweak pricing until you sell out. Then increase
" title="If this is your first time selling ads, there are some sample emails here: https://bit.ly/3tBRSYf&q... show how Sam sold the first ads at the Hustle.Copying those is probably your best bet. Tweak pricing until you sell out. Then increase https://abs.twimg.com/emoji/v2/... draggable="false" alt="😉" title="Zwinkerndes Gesicht" aria-label="Emoji: Zwinkerndes Gesicht">" class="img-responsive" style="max-width:100%;"/>
If you want more, go ahead and follow me ( @damn_ethan)
Over the next few days I& #39;ll be breaking down newsletter ad sales, including:
-Sales Lifecycle
-Finding clients
-Key questions for sales calls
-Common objections and how to handle them
-and more...
Over the next few days I& #39;ll be breaking down newsletter ad sales, including:
-Sales Lifecycle
-Finding clients
-Key questions for sales calls
-Common objections and how to handle them
-and more...
