Beehiiv vs. Substack: Best for Sponsor Communication

Beehiiv and Substack are two popular platforms for newsletter creators, but they differ significantly when it comes to managing sponsor communication. Here's a quick breakdown:

• Beehiiv: Offers built-in tools like an ad network, advanced analytics, automated workflows, and segmentation features. These tools simplify sponsorship management, from finding sponsors to tracking performance. Beehiiv does not charge platform fees beyond standard Stripe costs, making it more cost-effective for creators.
• Substack: Focuses on a subscription-based model and emphasizes direct reader relationships. Sponsorships must be managed manually, and the platform lacks advanced tools for sponsor communication or detailed analytics. Substack takes a 10% cut of subscription revenue, which can impact earnings.

Quick Comparison

Beehiiv is ideal for creators looking to scale sponsorships with robust tools, while Substack is better suited for those prioritizing simplicity and direct audience relationships.

Substack vs. Beehiiv: The Realities of Building a Newsletter Empire

Beehiiv Sponsor Communication Features

Building strong, long-term sponsor relationships requires effective communication, and Beehiiv makes that process seamless with its mix of automation tools and analytics. From initial outreach to tracking performance, Beehiiv simplifies sponsor communication every step of the way.

Analytics Tools and Ad Network

Beehiiv’s built-in ad network takes the hassle out of managing sponsorships. It automates everything - sourcing sponsors, handling creatives, generating reports, and even processing payments.

The network operates on CPM (cost per mille) or CPC (cost per click) models, ensuring advertisers only pay for meaningful engagement through verified click tracking. If you're on a paid plan, you’ll receive at least four ad opportunities per month, with the potential for more as campaigns grow.

"beehiiv is special, a one-stop shop to get in front of millions of readers - email historically has been a tough channel to do at scale."

• Adam Singer, VP Marketing, AdQuick

Beehiiv’s 3D analytics system provides a detailed breakdown of performance metrics, including referrals, ad revenue, Boosts revenue, subscriber sources, and engagement stats. Campaign data is easily accessible through the Reports tab on the Ads dashboard, and automated email updates keep both creators and sponsors in the loop.

The numbers speak for themselves - newsletters using Beehiiv collectively earned $1,230,881 last month, highlighting the platform’s ability to connect creators with lucrative sponsorships.

These advanced analytics also support precise audience targeting and seamless integration with third-party tools.

Audience Targeting and Third-Party Integrations

Beehiiv’s segmentation tools let creators deliver sponsor content to the right audience every time. Whether it’s dynamic segments that update in real time, static segments for capturing a specific moment, or manual segments for full control, the platform offers flexible targeting options.

For instance, AdQuick, an out-of-home advertising platform, used Beehiiv’s Ad Network in March 2025 to effectively reach key decision-makers. This success led to the network accounting for 15% of AdQuick’s total marketing budget.

"Even getting conversations started is a win. On top of that, beehiiv also provides us with in-depth newsletter sponsorship metrics that are great."

• Adam Singer, AdQuick

Beehiiv integrates with tools like HubSpot, Google Sheets, Stripe, Facebook Lead Ads, and Typeform, making it easier to manage sponsor communication and streamline workflows. These integrations, combined with its targeting features, ensure creators can engage their audience effectively while keeping operations smooth.

Automated Workflows and Contact Management

Beehiiv’s automation tools take the grind out of managing sponsor communication. Advanced triggers and actions respond to user behavior and custom events, creating tailored experiences without the need for manual follow-ups.

For example, Richard Patey of Digital Asset Investor uses Beehiiv’s workflows to sell digital products through his newsletter. By setting up personalized funnels, he maximizes acquisition costs with affordable products before scaling up to sponsorships and premium offerings.

"Automations are pretty sick...the automation is super powerful, and I actually need to invest more time in it."

• Jason Levin, Memelord Tech

Saeed Ezzati from Superpower Daily also saves hours each week by automating reengagement campaigns and list maintenance. Beehiiv’s system supports API integrations, webhooks, and no-code tools like Zapier and Make, allowing creators to design sophisticated workflows without needing technical skills.

For creators ready to take their sponsor communication to the next level, these automation features are available on the Scale plan, starting at $43 per month when billed annually.

Substack Sponsor Communication Features

Substack, which surpassed 5 million paid subscriptions by 2025, focuses on delivering high-quality content and fostering strong reader relationships rather than following traditional advertising models. Below is a closer look at how Substack handles sponsor communication, including its strengths and challenges.

Direct Messaging and Subscription Integration

Substack's direct messaging feature, marked by a "Send a message" button (which can be limited to paid or founding members), is primarily designed to enhance reader engagement. However, it also serves as a potential avenue for sponsor discussions.

The platform's subscription-first approach encourages creators to weave sponsorships into their paid content strategies. A notable example is The Generalist, which reported sponsorships accounting for 20% of its revenue in 2021. By 2022, sponsored content had become its primary revenue stream. Similarly, Packy McCormick of Not Boring used audience surveys to assess how subscribers felt about ads. This feedback allowed him to introduce sponsored content while maintaining trust and strong relationships with his readers.

Basic Reporting

Substack provides standard newsletter metrics, offering limited insights into audience engagement. Despite this, many newsletters on the platform perform well, with average open rates of 40–50% and click-through rates of 20–30% for at least one link.

While creators can manually incorporate sponsored content into their newsletters, Substack lacks built-in tools for sponsorship management or automated reporting. As a result, many creators rely on external marketplaces or direct outreach to manage sponsorships effectively.

Sponsor Communication Limitations

Substack's approach to sponsorships comes with some notable constraints. Beyond the limited analytics, the platform faces challenges in supporting more advanced sponsorship workflows. As Substack CEO Chris Best explained:

"If you reduce advertising to a bargain where the audience is a commodity to be sold off, that is in opposition to the reason Substack exists in the first place."

Substack also enforces guidelines that restrict publications primarily focused on advertising external products, driving traffic to third-party sites, or distributing offers and promotions. Additional hurdles include the platform's fee structure - a 10% cut of subscription revenue, plus Stripe fees of 2.9% and $0.30 per transaction - and the absence of a public API or open-source framework, which limits integration with sponsorship management tools.

Christina Loff, Head of Lifestyle Writer Partnerships at Substack, underscores this commitment to creator-audience relationships:

"We're laser-focused on helping creators own their relationships with audiences, build their businesses, and make money from direct subscriptions. While we appreciate that brands are starting to see the magic of Substack, we always advise that success comes from bringing a strong, original perspective - not just using the platform as another promotional tool."

For creators aiming to implement advanced sponsorship workflows or track detailed campaign performance, these limitations often necessitate supplementing Substack with external tools.

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Beehiiv vs. Substack: Feature Comparison

Beehiiv and Substack cater to creators in different ways, especially when it comes to working with sponsors. Beehiiv takes a more comprehensive approach to monetization, while Substack sticks to a simpler, subscription-focused model. These differences can be crucial for small businesses in the U.S., depending on their goals.

One major difference lies in how each platform helps creators generate revenue. Beehiiv offers a variety of options, including paid subscriptions, an integrated ad network, paid referrals, and one-time payments. This flexibility gives creators more ways to structure deals with sponsors. Substack, on the other hand, relies almost entirely on paid subscriptions, which can limit options for sponsorships.

Beehiiv also stands out with its advanced analytics. It goes beyond basic metrics, offering insights like clicks, purchases, A/B testing results, referral tracking, ad revenue, and subscriber sources. These tools are incredibly useful for optimizing campaigns and creating detailed sponsor reports. Substack’s analytics, while adequate for smaller publishers, are more limited in scope.

Cost is another key factor. Substack takes a 10% cut of subscription revenue, whereas Beehiiv doesn’t charge commission fees beyond Stripe’s transaction costs. This difference can significantly impact how much creators earn from sponsorships.

Key Feature Comparison Table

Beehiiv’s automation tools also make it easier to manage sponsor relationships. Features like subscriber segmentation and automated sequences allow creators to deliver targeted sponsor content. Substack, however, lacks these advanced targeting and personalization options, functioning more as a straightforward email-sending platform.

Performance tracking is another area where Beehiiv shines. The platform automatically tracks impressions and clicks for sponsor placements and generates detailed reports at the end of campaigns. This level of automation eliminates the need for manual reporting.

The financial benefits of Beehiiv are clear from its results. In 2024, its Ad Network generated $3,726,453.84 for newsletters, and one user reportedly earns up to $4,000 per month with a marketing-focused newsletter. These examples highlight the platform’s earning potential.

Ultimately, Beehiiv’s feature-rich approach often makes it the go-to choice for U.S.-based small businesses looking for advanced tools and monetization options. Substack, however, remains a solid option for creators who value simplicity and a direct connection with their audience.

Building Long-Term Sponsor Relationships

Creating strong, lasting partnerships with sponsors requires effective performance tracking, clear communication, and tools that support growth. This is where the differences between Beehiiv and Substack become especially relevant. These factors play a big role in shaping sustainable sponsor relationships.

Performance Tracking and Communication History

Beehiiv offers advanced analytics that help creators maintain and strengthen sponsor relationships. Its 3D analytics dashboard provides detailed newsletter performance reports, covering metrics like click-through rates, engagement patterns, and audience behavior. These insights make it easy to show sponsors how their campaigns are performing.

API access on Beehiiv takes things further by enabling third-party integrations. This means creators can track interactions across multiple channels, maintain detailed communication histories, and build custom reports that sponsors value. This flexibility allows creators to adjust their tracking and reporting methods as their partnerships grow.

Substack, on the other hand, provides only basic metrics like open rates, click-through rates, and unsubscribes. While this simplicity may work for creators with modest sponsor needs, it often falls short for those seeking more in-depth campaign analysis.

The absence of an API on Substack adds another layer of difficulty. Without integration options, creators must rely on manual processes to compile reports and track sponsor interactions. While manageable for simple partnerships, this approach becomes cumbersome as relationships grow more complex.

Consistent and detailed reporting is key to long-term sponsor relationships. Beehiiv’s automated tools save creators time by handling tracking and reporting, allowing them to focus on building stronger partnerships. In contrast, Substack creators often find themselves manually piecing together metrics, which can undermine the professional image sponsors expect.

Growth Support for U.S. Newsletter Creators

Beyond performance tracking, financial structures have a big impact on how creators scale their sponsor relationships. Beehiiv users can earn more because the platform doesn’t take a percentage of their revenue. In fact, creators can potentially keep up to $11,652 more annually compared to Substack users. This difference becomes increasingly important as newsletters grow and command higher sponsorship rates.

Substack’s 10% cut of subscription revenue can be a hurdle for creators trying to reinvest in their content and audience growth. For small U.S.-based businesses operating on tight budgets, this model can make it harder to scale sponsor relationships effectively.

Creators who have switched to Beehiiv often notice a significant difference. For example, Ryan Broderick of Garbage Day shared his experience:

"After moving to beehiiv, I feel like I went from someone who just writes newsletters to someone who is building a real and sustainable media business".

Similarly, Seamus Hughes of CourtWatch said:

"Switching to beehiiv gave us more control, flexibility, and profitability - it's exactly what we needed to scale".

Beehiiv also offers multiple revenue streams to help creators diversify their sponsor partnerships. Beyond traditional newsletter sponsorships, the platform includes an ad network, referral programs, and boost features. This variety allows creators to offer sponsors a range of options, from simple mentions in newsletters to full-scale multi-channel campaigns.

The platform’s built-in ad network simplifies the process of finding and managing sponsors. This automation becomes increasingly valuable as newsletters grow and need more sophisticated sponsor management.

Substack’s straightforward approach appeals to creators who want to maintain direct relationships with their audience. However, its focus on paid subscriptions limits opportunities for offering sponsors more creative or diverse partnership options. While Substack newsletters boast an impressive 50% average open rate, this engagement doesn’t always translate into sponsor deals without additional tools.

For U.S.-based creators aiming for long-term growth, Beehiiv’s pricing model offers more predictability. The platform provides a free plan for up to 2,500 subscribers, with advanced features available starting at $49 per month. Transaction fees are limited to Stripe’s standard 2.9% + $0.30 per transaction, making it easier for creators to predict earnings and plan for future growth.

As newsletters expand, technical capabilities become critical for sponsor relationships. Beehiiv’s segmentation tools, A/B testing features, and customization options allow creators to deliver targeted sponsor content. These features help ensure sponsor satisfaction, even as audiences grow and diversify, keeping partnerships effective over time.

Conclusion

When it comes to sponsor communication for U.S.-based newsletter creators, Beehiiv stands out. Its range of tools, including a built-in ad network generating nearly $1 million monthly (a 3.5x increase), gives it a competitive edge.

One standout feature is Beehiiv's Direct Sponsorship tool, which simplifies key tasks like managing rate cards, coordinating inventory, handling invoicing, and tracking performance - all for just $10 per ad placement. As Beehiiv co-founder and CEO Tyler Denk points out:

"More people can make money by putting an ad that is relevant to their audience in their newsletter than charging $5, $10, $20 per month for their content. It takes very differentiated content to be able to charge for it".

Substack, however, takes a different path. With a strong focus on reader relationships, it boasts 5 million paid subscriptions. But its lack of tools for sponsor management leaves creators without the resources to effectively handle advertising. Substack’s CEO, Hamish McKenzie, has expressed caution about advertising, stating:

"If you do it in the wrong way, you can really screw things up".

The financial outcomes also set these platforms apart. For creators focused on growth and revenue, Beehiiv’s advanced features make a big difference. Its automation, segmentation options, and detailed analytics help build professional sponsor relationships. On the other hand, Substack’s 10% revenue cut can eat into earnings - Beehiiv users report making $11,652 more annually.

Ultimately, your choice depends on your goals. Beehiiv is ideal for creators aiming to scale and monetize through sponsorships, while Substack caters to those relying on simplicity and paid subscriptions. As Michael Nadeau of The DeFi Report explains:

"Beehiiv is set up for somebody who's running a serious business where Substack is a great tool for people to be independent publishers, but it's more of a starter type of tool".

With 51% of marketing decision-makers planning to prioritize email marketing investments by 2025, having the right tools for sponsor communication is more critical than ever. For a deeper dive into how these and other platforms compare, visit Newsletter Platform Comparison to find the best fit for your business needs.

FAQs

How does Beehiiv's ad network simplify sponsor communication compared to Substack?

Beehiiv simplifies the process of working with sponsors through its integrated ad network. This built-in marketplace connects creators directly with advertisers, making it easier to earn revenue from free subscribers. It also supports seamless collaboration with other newsletters for cross-promotions - all handled within the platform.

On the other hand, Substack takes a more hands-on approach, requiring users to manage sponsor relationships manually. While functional, this method can be more time-intensive and harder to scale compared to Beehiiv's streamlined tools for managing and expanding sponsorship opportunities.

How do the costs of Beehiiv and Substack compare for managing newsletter sponsorships?

Beehiiv’s pricing starts at $49 per month for its basic plan, while the Max plan, priced at $96 per month, offers advanced monetization features and removes Beehiiv branding. Substack takes a different approach, charging a 10% commission on all paid subscription revenue, along with standard payment processing fees.

If your revenue model leans heavily on sponsorships, Beehiiv’s fixed pricing might make budgeting simpler. In contrast, Substack’s percentage-based fees grow alongside your earnings, which could be a consideration for creators with fluctuating income.

How can Beehiiv's automation and integrations make sponsor relationship management more efficient?

Beehiiv's automation tools make managing sponsor relationships much easier. They handle tasks like personalized communication, follow-ups, and tracking engagement automatically. This means you can respond to sponsors more quickly and interact with them more effectively.

With its integration options, Beehiiv lets you manage sponsorships all in one place. You can create custom storefronts, manage inbound requests, and design branded proposals directly on the platform. These features simplify the process of booking and negotiating with advertisers, saving you time and keeping everything organized.

By blending automation with user-friendly integrations, Beehiiv helps you strengthen sponsor relationships while keeping your workflow efficient.