Beehiiv vs Substack: Transaction Fees Compared
Choosing the right newsletter platform can save you money. Beehiiv and Substack both charge platform fees and use Stripe for payment processing, but Beehiiv's Pro Plan offers lower fees for creators with higher revenue.
Key Takeaways:
- Substack charges a flat 10% platform fee on all subscriptions.
- Beehiiv's Pro Plan charges 8%, saving creators more as revenue grows.
- Both platforms have Stripe fees: 2.9% + $0.30 for domestic transactions and 3.9% + $0.30 for international transactions.
- Beehiiv Pro saves $100/month on $5,000 revenue and $200/month on $10,000 revenue compared to Substack.
Quick Comparison:
| Revenue Level | Substack Fees | Beehiiv Pro Fees | Monthly Savings with Beehiiv Pro |
|---|---|---|---|
| $5,000 | $645.30 | $545.30 | $100 |
| $10,000 | $1,290.30 | $1,090.30 | $200 |
Who should choose which?
- New creators: Substack is better for audience growth with its discovery tools.
- Growing/established creators: Beehiiv Pro offers better savings and advanced features for scaling.
Want to keep more of your earnings? Beehiiv Pro is the better choice for higher revenues.
Fee Structure Comparison
Beehiiv Fees
Beehiiv uses a tiered fee system: Growth Plan charges 10%, while the Pro Plan charges 8%. On top of that, Stripe's processing fees apply:
- Domestic transactions: 2.9% + $0.30
- International transactions: 3.9% + $0.30
Substack Fees
Substack applies a flat 10% platform fee on all subscriptions. Stripe's processing fees are the same as Beehiiv's:
- Domestic transactions: 2.9% + $0.30
- International transactions: 3.9% + $0.30
Platform Fee Differences
Here's a quick breakdown of how the fees compare:
| Fee Type | Beehiiv | Substack |
|---|---|---|
| Platform Fee (Basic/Growth) | 10% | 10% |
| Platform Fee (Pro) | 8% | N/A |
| Domestic Payment Processing | 2.9% + $0.30 | 2.9% + $0.30 |
| International Payment Processing | 3.9% + $0.30 | 3.9% + $0.30 |
For example, if you're making $10,000 in monthly revenue, Beehiiv's Pro Plan saves you 2%, which means an extra $200 in your pocket. These differences can significantly affect your overall earnings, especially as your subscriber base grows.
Both platforms are upfront about their fees, with no hidden costs beyond the platform and payment processing charges. Deciding which platform to use often depends on the size of your newsletter and your future growth plans.
Cost Analysis
Revenue Examples
Let’s break down how revenue outcomes differ between Beehiiv Pro and Substack at various subscription levels.
For $5,000 in monthly revenue (domestic transactions):
| Platform | Platform Fee | Stripe Fee (2.9% + $0.30) | Total Fees | Net Revenue |
|---|---|---|---|---|
| Beehiiv Pro | $400 | $145.30 | $545.30 | $4,454.70 |
| Substack | $500 | $145.30 | $645.30 | $4,354.70 |
At this level, Beehiiv Pro saves you $100 per month, which adds up to $1,200 annually.
For $10,000 in monthly revenue (domestic transactions):
| Platform | Platform Fee | Stripe Fee (2.9% + $0.30) | Total Fees | Net Revenue |
|---|---|---|---|---|
| Beehiiv Pro | $800 | $290.30 | $1,090.30 | $8,909.70 |
| Substack | $1,000 | $290.30 | $1,290.30 | $8,709.70 |
Here, the savings with Beehiiv Pro double to $200 per month, or $2,400 annually.
Cost Thresholds
The fee differences between Beehiiv Pro and Substack become more apparent as revenue grows:
- Under $2,500/month: The cost difference is minimal, typically less than $50 per month.
- $2,500–$5,000/month: Beehiiv Pro starts to stand out, saving $50–$100 monthly.
- Over $5,000/month: Beehiiv Pro offers more pronounced savings, exceeding $100 per month.
Growth Cost Impact
As your revenue scales, the cost advantage of Beehiiv Pro becomes more noticeable. Here’s how the savings stack up:
| Monthly Revenue | Beehiiv Pro Savings vs Substack |
|---|---|
| $5,000 | $100/month |
| $10,000 | $200/month |
| $15,000 | $300/month |
| $20,000 | $400/month |
The higher your revenue, the more you’ll save with Beehiiv Pro, making it a strong option for creators aiming to grow their newsletters.
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Beehiiv vs Substack: Newsletter creators NEED to know the differences!
Other Cost Factors
Besides transaction fees, there are additional expenses that can impact your overall costs.
Platform Features
Beehiiv and Substack each bring their own set of features that can influence your expenses. Beehiiv includes tools like analytics, domain customization, API integrations, and team collaboration, which are geared toward helping you scale. Substack, on the other hand, focuses on community-building with features like discussion tools, native podcast hosting, and a mobile app for readers.
Additional Fees
Creators might also face extra charges, such as fees for international transactions, chargebacks, currency conversions, or minimum payout thresholds. Payment failure handling also varies between platforms, so it’s essential to check the latest fee details before making a decision.
Payment Processes
The way payments are processed can differ significantly. Beehiiv offers frequent payouts, supports multiple currencies, and automates tax documentation, which can save time. Substack has slower payout schedules and requires manual tax reporting. These differences can affect how you manage your cash flow and administrative tasks.
Conclusion
Fee Comparison Results
After analyzing the numbers, it's clear that Beehiiv offers a more budget-friendly fee structure for most creators. With fees as low as 8% under its Pro Plan, Beehiiv outpaces Substack's flat 10% fee, which also includes standard Stripe charges (usually 2.9% + $0.30 per domestic transaction). This difference can lead to notable savings over time, especially as your revenue grows.
Platform Choice Guide
The choice between Beehiiv and Substack largely depends on your revenue and goals. Here's a breakdown:
For New Creators ($0–$1,000/month)
- Substack's marketplace and discovery tools are great for building an initial audience.
- Its built-in network effects can help you attract your first subscribers.
- Best suited for those prioritizing audience growth over immediate savings.
For Growing Creators ($1,000–$5,000/month)
- Beehiiv Pro's lower fees start to make a difference, saving you more as revenue increases.
- Advanced analytics and automation tools help streamline scaling efforts.
- A solid choice for creators with an established audience looking to maximize earnings.
For Established Creators ($5,000+/month)
- Beehiiv Pro's fee structure delivers significant cost savings at higher revenue levels.
- Features like API access and custom domains add extra value.
- Ideal for creators managing larger newsletters who want to keep more of their earnings.
Choosing the right platform depends on where your newsletter is today and where you want it to go. Beehiiv Pro is a smart pick for those focused on financial efficiency, while Substack might be better for creators who need its discovery features to grow their audience. For a deeper dive into newsletter platforms and tools like email marketing and monetization, check out Newsletter Platform Comparison.
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