Newsletters continue to grow in popularity as an essential tool for businesses, creators, and entrepreneurs to directly connect with their audience. Unlike social media platforms that rely on ever-changing algorithms, newsletters provide a direct, frictionless way to reach customers and engage readers. In this article, we’ll explore actionable strategies for building and monetizing your newsletter, as well as insights into what works, what doesn’t, and how to stay ahead in this competitive field.
Drawing on the experiences of newsletter expert Nick Connelly, we’ll break down everything you need to know - whether you’re starting from scratch or looking to amplify your existing newsletter’s success.
Why Newsletters Are a Powerful Tool
At their core, newsletters are about control. Social media and search engine algorithms dictate when and how your audience sees your content. With an email list, you bypass these unpredictable systems, creating a direct line to your subscribers. Newsletters are especially effective for businesses and creators seeking to:
- Build an engaged audience
- Monetize their expertise or content
- Generate multiple revenue streams, including ads, affiliate marketing, or paid subscriptions
Connelly likens starting a newsletter business to following a simple three-step framework:
- Grow an audience.
- Send valuable content that fosters engagement.
- Monetize by selling ads, offering paid subscriptions, or providing services.
Simple in theory, but as Connelly emphasizes, execution is where the challenge lies. Let’s dive into the tactics and strategies to overcome these hurdles.
Step 1: Choose the Right Newsletter Niche
The first decision you’ll make is selecting your niche, which will define your content, audience, and monetization opportunities. Here’s how to identify the best niche for you:
Start with Your Expertise and Interests
Think about your background, skills, or areas of passion. A niche you’re familiar with or genuinely interested in will make it easier to consistently create engaging content. For example, Connelly leveraged his experience in B2B sales to create "The Follow-Up", a newsletter tailored to sales professionals.
Research Market Potential
Ask yourself:
- Are there newsletters in this space already succeeding?
- Are advertisers actively spending in this niche?
- What’s the maximum revenue potential for newsletters in this category?
Connelly advises subscribing to competing newsletters to see who advertises regularly. If certain advertisers appear frequently, that’s a good indication the niche is profitable.
Avoid Low-Leverage Niches
While local newsletters may seem like an easy entry point, Connelly warns they can be challenging to monetize. Local businesses often have limited budgets, making ad sales a tough grind. "You’re playing business on hard mode", he says. Instead, focus on niches with higher-ticket advertisers, such as B2B or specific industries.
Step 2: Build and Grow Your Audience
Once you’ve selected your niche, the next step is to grow your subscriber base. Connelly recommends starting organically to validate your concept before investing in paid growth strategies.
Organic Growth Strategies
Leverage Social Media
Find the platform where your target audience spends the most time. For example:
- X (formerly Twitter): Ideal for niches like tech, AI, and marketing.
- Reddit: Great for niche communities where users are already engaging with your topic.
- YouTube or Instagram: Use short-form videos to capture attention and funnel viewers to your newsletter.
Network and Collaborate
Reach out to up-and-coming newsletters in your niche and offer to write guest pieces or collaborate. This helps build credibility and exposes you to new audiences.
Cold Outreach
If your niche involves professionals (e.g., sales, marketing, startups), consider cold-emailing individuals who would find value in your content. Tools like Apollo.io can help you build targeted email lists.
Test Paid Growth
Once you’ve validated your newsletter idea with a small organic audience, you can begin scaling with ads.
Facebook Ads
Connelly has found success acquiring subscribers for $1.50–$2 per subscriber via Facebook ads. He recommends looking at the Facebook Ads Library to find inspiration from successful newsletters. For instance, review the ads of popular newsletters like Morning Brew or The Hustle to see what’s working for them.
Use Lead Magnets
A lead magnet - such as a free template, guide, or resource - can significantly boost ad performance. Instead of directly advertising your newsletter, offer something of immediate value that also subscribes users to your content. For example, "Download these top 50 cold email templates" works better than a generic call to subscribe.
Step 3: Master Monetization
Monetizing your audience is where hard work pays off, but it requires deliberate planning. Here are the primary revenue streams for newsletters:
1. Advertising Revenue
Sell ad placements to brands that want to reach your audience. Advertising rates are typically determined by CPM (cost per 1,000 impressions).
- CPM Variability: Consumer-oriented newsletters generally charge $20–$50 CPM, while B2B newsletters command higher CPMs, ranging from $100–$500.
- Best Practices: Encourage advertisers to offer lead magnets (e.g., free downloads or trials) to maximize engagement and click-through rates.
2. Paid Subscriptions
Offer premium content for a monthly fee. This works well for newsletters delivering specialized, high-value insights - such as industry analysis or exclusive templates.
3. Affiliate Partnerships
Earn a commission by recommending products or services to your audience. This works especially well if you have a niche audience that aligns with specific brands or tools.
Pro Tips for Newsletter Success
Leverage AI to Scale Content Creation
Connelly highlights a groundbreaking strategy: using AI avatars to create short-form videos that promote your newsletter. Tools like HeyGen allow you to clone your likeness and voice, saving you hours of on-camera time. Pair this with a team of editors to produce multiple videos daily for platforms like TikTok, Instagram, and YouTube Shorts.
Focus on Content Quality
The key to long-term success is consistently delivering engaging, valuable content. Whether you’re writing about B2B sales, marketing, or fitness, make sure each email provides actionable insights.
Start Small and Test
If you’re unsure about your niche or business model, test multiple ideas with small investments in Facebook ads. Analyze which ideas resonate most with your audience before committing fully.
Key Takeaways
- Start with a niche you’re passionate about and knowledgeable in. Build on your strengths to create content that resonates with your target audience.
- Validate your concept organically before investing in paid ads. Leverage free platforms like X and Reddit to find your first subscribers.
- Use Facebook Ads strategically. Monitor successful campaigns through tools like the Facebook Ads Library and incorporate lead magnets to boost conversion rates.
- Monetize with high-leverage revenue streams. Focus on ad sales, paid subscriptions, and affiliate marketing rather than low-ticket offers.
- Avoid low-leverage niches like local newsletters. Target industries with higher budgets and demand, such as B2B or specialized fields.
- Leverage AI for content creation. Use tools like HeyGen to automate video marketing and free up your time for strategic tasks.
- Trust is key to engagement and monetization. Offer valuable content and lead magnets to build credibility and foster long-term relationships with your audience.
Conclusion
Starting, growing, and monetizing a newsletter can be one of the most rewarding ventures for small business owners, marketers, and creators. By following a strategic approach - choosing the right niche, leveraging organic and paid growth, and optimizing monetization - you can build a sustainable, scalable newsletter business.
With the right mindset and tools, newsletters offer unparalleled potential for audience engagement and income generation. As Nick Connelly puts it, "Newsletters are the most straightforward business model I’ve ever seen - simple in concept, but powerful in execution."
Start small, stay consistent, and watch your newsletter turn into a thriving business.
Source: "How to Build a $1M Newsletter in 9 Months" - Nikonomics, YouTube, Aug 11, 2025 - https://www.youtube.com/watch?v=m-0zclHr9x4
Use: Embedded for reference. Brief quotes used for commentary/review.
