How Substack is Changing the Game for Content Creators
The Substack phenomenon and what it means for Medium.
Newsletter platforms have become powerful tools for writers and creators to connect directly with their audience.
Amidst this evolving landscape, Substack and Medium have positioned themselves as leading platforms, offering unique features and opportunities for content creators.
However, Substack, with its distinctive approach to newsletters, is increasingly seen as giving Medium a run for its money. This rise prompts an exploration of what sets Substack apart, its inception, and how it's reshaping the content creation and consumption paradigm.
Substack's Rise to Popularity
Founders and Vision
Substack was founded 2017 by Chris Best, Hamish McKenzie, and Jairaj Sethi.
They envisioned making it simple for writers to directly monetize their audiences and free themselves from the constraints of traditional publishing and advertising models.
Best, previously the co-founder of Kik Messenger, McKenzie, a former journalist, and Sethi, a tech entrepreneur, saw an opportunity to empower writers through a subscription model emphasizing direct relationships between creators and their subscribers.
User Experience
Substack simplifies starting a newsletter, offering an intuitive interface for writing, publishing, and managing subscriptions.
Unlike Medium, which operates on a broader content platform model, Substack focuses solely on newsletters, allowing for deeper engagement and community building.
Its straightforward design emphasizes content, making it appealing for readers and writers seeking a clutter-free reading and writing experience.
Monetization Model
One critical reason for Substack's popularity is its monetization model.
Substack allows creators to set up paid subscriptions for their newsletters quickly. This direct-to-consumer approach lets writers retain a significant portion of their earnings, contrasting with Medium's partner program, which distributes earnings based on reader engagement and subscription revenue.
Substack's model has attracted high-profile journalists and writers seeking greater financial independence and control over their work.
Community and Niche Markets
Substack has become a haven for niche communities and topics that may not be suitable for larger platforms like Medium.
From politics and global affairs to personal development and specialized hobbies, creators have found success by catering to specific interests and fostering a loyal subscriber base.
This ability to thrive in niche markets underscores Substack's appeal, as it offers a space for diverse voices and underserved topics.
Comparison of Features: Substack vs. Medium
The table below offers a side-by-side comparison of key features between Substack and Medium, shedding light on why Substack might be considered superior by many content creators:
Revenue Generation Models
Both Medium and Substack have distinct revenue generation models, reflecting their different approaches to content creation and distribution:
Medium offers a Partner Program, which allows writers to earn money based on the engagement their stories receive from Medium members.
Substack makes money by charging a 10% fee on subscription revenues generated by the writers and payment processing fees. This model directly ties Substack's earnings to the success of its writers, incentivizing the platform to support writers in growing their subscriber bases. Writers on Substack have the flexibility to offer free or paid subscriptions to their newsletters, allowing them to monetize their content as they see fit.
Analysis
Substack's model offers a clear advantage for creators focused on monetizing their audience directly through subscriptions.
The platform's emphasis on email distribution ensures that newsletters land directly in subscribers' inboxes, fostering a personal connection and higher engagement levels.
Moreover, Substack's creator-centric approach gives individuals complete control over their content and its promotion, contrasting with Medium's algorithmically curated feeds, which may not always align with creators' visibility goals.
Top-Earning Substackers
Substack's platform has enabled a range of writers to achieve significant financial success, carving out lucrative niches. Here are a few notable examples:
Luke O’Neil—With his newsletter "Welcome to Hell World," O’Neil covers politics, culture, and personal stories, demonstrating how a focused approach to current events and societal issues can captivate a dedicated readership willing to support independent journalism. However, as of 2022, O’Neil moved to another platform. You may check him out here.
Heather Cox Richardson - A historian offering insightful analysis of American politics through "Letters from an American," Richardson exemplifies how expertise in a specific domain can translate into a substantial subscriber base looking for depth and perspective not readily available in mainstream outlets.
Sinem Günel - Focusing on personal development and productivity, Günel's "Sinem’s Medium Letter" highlights the demand for content that aids personal and professional growth, proving that self-help and empowerment niches are as lucrative as ever on platforms like Substack. I have used her paid services and learned a lot about the art of writing and the science behind it. Thanks
These creators exemplify Substack's financial potential and illustrate the diverse topics and approaches that can lead to success.
Market Dynamics and Future Outlook
Substack's ascent indicates a broader shift in content consumption and creation. The platform's success challenges traditional digital publishing models and prompts competitors like Medium to reconsider their strategies.
The newsletter publishing space is expected to continue evolving, with platforms likely to introduce new features and models to attract and retain both creators and readers.
The emphasis on direct relationships between writers and audiences will persist, influencing how content is created, distributed, and monetized.
Final Thoughts
Substack's rise is a testament to the changing landscape of digital publishing, where creators seek greater control over their work and closer connections with their audience.
Through its focused approach, direct monetization model, and empowerment of niche communities, Substack is indeed giving Medium a run for its money.
As the market evolves, the success of platforms like Substack will likely inspire further innovation, offering content creators and consumers alike more tailored and engaging digital experiences.
Connect with me on Twitter, read more engaging blogs on Medium, sign me up for my Substack Newsletter and subscribe to my YouTube channel.