It’s time. You’re ready to monetize your newsletter! It’s an incredible feeling that you’ve built a brand so good that others are willing to pay to be associated with you.
Of course, there are a few different newsletter business models for creating revenue, but perhaps the most common and best understood is finding a company to sponsor your newsletter.
Let’s first discuss what exactly that means, and then we’ll explore strategies for attracting newsletter sponsorships.
What is a Newsletter Sponsor?
Companies can pay you for space in a newsletter in a few different ways. The most common method you’ve likely seen is having a block of content inside your newsletter’s body dedicated to your sponsor.
Here’s what that looks like:
Another method is to have your entire email sponsored by a single company. You’ll see this at the top of their newsletter:
Or, some newsletters offer more natural ad placements. This text appears as if it’s organic content, but it’s actually a sponsored ad:
Have An Awesome Newsletter to Attract Sponsors
The most important step to land a sponsor is to have a stellar newsletter. This is why at first, your best bang-for-your-buck activity is to grow subscribers and have the best content you can create.
And yes, you need to have both. The subscribers part is obvious: no one will pay you to advertise if you’ve got 50 people on the list.
If you have a healthy subscriber count but little engagement, that doesn’t make you an attractive target for a sponsor, either. You need a newsletter content strategy that results in high opens and clicks, because that’s what your sponsors want to see before committing.
Finally, of lesser importance but still a factor, is the visual quality of your newsletter. Even with subscribers and great content, some advertisers will be hesitant to have their beautiful ad show up in a messy newsletter. While that’s not priority #1, it’s probably a good idea to nail down a clean design before getting sponsors.
Truthfully, it can be as simple as James Clear’s 3-2-1 newsletter that’s sent to over 3 million subscribers each Thursday:
You almost can’t go too simple—but you can go overboard on your design.
How much can you make with sponsors?
Unfortunately, possible earnings vary so much that pinpointing an exact number is hard. If you’re in B2B, you’ll be able to charge a lot more than a general interest newsletter because your audience is more willing to spend.
There are a few different models that newsletters use to determine their pricing.
CPM
This is the cost per thousand impressions, a common metric used to determine what advertisers will pay. Let’s say you have 10,000 people on your list, which means 10,000 potential impressions.
However, your advertiser will likely want to know your open rate. A 40% open rate means you have 4,000 impressions.
Companies often pay between $10 - $30 per thousand, so you could charge $40 - $120.
Or, your advertiser may prefer to pay you for each click on their ad. They’ll pay a decent amount per click ($1 - $5), meaning this can be a more lucrative model if you have an especially engaged audience.
Set Rate
Set rate means that you charge a specific amount to each advertiser. You’ll still inform the sponsor about your subscribers, opens, and clicks, but you the rate doesn’t vary with that information.
This model can work well in the early stages of your newsletter. If you’re not sure of a good rate to charge, pick a number—say, $25. If a few advertisers bite and get good results, you can charge higher prices.
Or, you could be like Dense Discovery and charge a flat rate even when you’re a bigger newsletter. They mention that their ad space sells out quickly, so that’s enough social proof to companies that they’re worth advertising in.
Flat rates are simpler for both parties to understand. They don’t require math and confirming current subscriber count and open rates. No matter how many are on the list, the rate is the rate.
Dense Discovery’s example can also give a (very) rough estimate of potential earnings.
They send out once per week to 36,000 people, earning $599 from their main sponsor and $396 from their four classified spots. That’s roughly $4,000 per month, or about $0.11 per subscriber. Undoubtedly, they have other monetization strategies, but that appears to be what they earn from sponsors.
What Should You Look For in a Sponsor
In the early days, you may take the first person who offers you money. However, it’s a good idea to be a bit more discerning to set yourself up better in the long run. Here are a few things to look for:
- Interest Alignment - If you offer a golf newsletter and your sponsor sells solar panels, they likely have a poor experience, and your subscribers might be confused.
- Ongoing Relationship - Repeat sponsors are your best bet to make consistent money, so give priority to them even if you have to negotiate a discount.
- Experience With Newsletter Ads - They already understand how the game works, including pricing models and what types of content they want to include in your newsletter.
- Accepting of Your Price- Companies who balk at your price and try to negotiate you down may not be worth it (unless they’re negotiating a discount for a long-term relationship). Usually, they’ll end up being more trouble than they’re worth.
Preparing to Reach Out
You’re ready to monetize, and you think your newsletter has enough engaged subscribers to be worth a sponsor’s ad dollars. Let’s put a few things in place before you start reaching out.
Gather Newsletter Information
Have your subscriber count, open rate, click rate, and how often you send on hand. If you’ve previously had sponsors, try to gather their success stories. At the very least, have their names on hand. Mentioning previous sponsors by name is powerful social proof—even if your target sponsor hasn’t heard of them.
Create an Advertising Page
Put together a page on your site that talks about audience demographics, your rates, and provides the information you gathered in the previous steps. A page like this makes you look more professional.
How to Find Sponsors for Your Email Newsletter
Here are the most common and profitable ways to find sponsors:
- Ask Your Audience - You’d be surprised by how often people on your list are interested. After all, if you’re a prominent newsletter in your niche, it makes sense that other professionals in the same field would already be subscribed.
- Reach Out to Your Perfect Partners - In many cases, you’ll already have an idea for companies that would make a great partner. Perhaps there are tools that you already use and talk about in your newsletter. It’s also easier to reach out, as you can speak knowledgeably about their company’s offering when pitching a sponsorship.
- Work With a Broker - Some websites act as brokers that pair sponsors with relevant newsletters. Try Who Sponsors Stuff and Paved.
- Post in Newsletter Directories - Newsletter directories can help you get found by advertisers. It’s a passive strategy, but since it only requires a one-time set-up with each site, it’s worth the time. Here’s a list of several directories to try.
- Attract Sponsors Through Growth - Honestly, this is one of the best long-term strategies. As you begin to grow, sponsors will naturally reach out to you! It’s especially effective if they see other sponsors in your newsletter or find your sponsor page on your site.
Email Template for Sponsor Outreach
When reaching out to sponsors, you’re going in cold most of the time. Some sound advice with cold emails is to:
- Be concise.
- Hold your prospect’s attention.
- Avoid pushiness.
In other words, be short, interesting, and laid-back! Here’s a good starting point for your template:
Hi [name],
My name is […] and I write [newsletter title], the go-to [daily/weekly/monthly] newsletter for [target demo]. It currently has [XXX] subscribers and counting, and I’m hoping to bring in sponsors with a similar [vision/goal/purpose] to me. I can offer [concise overview of sponsorship package] for sponsors looking to expand their target audience.
I was wondering if you’d be interested in jumping on a call for a quick chat?
In the meantime, if you want to know more about my newsletter, my brand, and its audience, you can take a look at [links].
I am looking forward to hearing back.
Thanks,
[name]
Edit the template to make it relevant to your business, and add any other information you think your prospect will want to know.
You’ll also likely have the opportunity to approach companies that you have an existing relationship. For example, you may meet someone at a conference, or they’ve emailed you to tell you they love your newsletter and work in the industry
In those cases, you can rely on your existing rapport and ask for a call to discuss a potential business partnership. That’s usually enough to pique the interest of someone you already have a relationship with.
The Easiest Way to Find Newsletter Advertisers
While still a relatively new feature, some email marketing companies with a focus on newsletters can automate the process of finding newsletter sponsors.
For example, Letterhead’s Revenue tool can use programmatic ad fill that finds and inserts relevant sponsors into your newsletter—providing you with autopilot revenue. Ready to see it in action? Schedule a demo today.
