Is Stability All We Really Need?
Inspired by metrics from one of my favourite newsletters.
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Every so often, a random statistic gives you pause for thought.
Recently, I received an email from one of my favourite newsletters — Garbage Day. Its central message is all “about having fun online”, and they deliver every time.
“Garbage Day is for folks that remember growing up in the west wild of AIM and Kazaa and message boards and know that, even though it’s probably politically destabilized most of the planet, the internet can still good and fun.”
This particular edition was a little different. Instead of the usual focus on a recent notable development on the interwebs, Garbage Day owner Ryan Broderick featured a breakdown of their newsletter metrics:
“Right now, Garbage Day has 68,809 subscribers, an average open rate of 42%, and a clickthrough rate of 21%. Over on the Garbage Day Discord, there are 2,051 total users, sending around 20,000 messages a month, with around 300–400 active users during peak times.”
Just under 70,000 subscribers is pretty incredible! That’s almost ten times the size of my email lists combined, and their open rate is well above average. A 21% CTR is also massive, if industry averages are to be believed (2–5%).
Ryan went on to say that around 5% of Garbage Day’s subscribers are in their paid tier, which is pretty standard for most newsletters these days.
But his next line really made me stop in my tracks:
“Between [paid subscriptions], ad revenue, and a few editorial partnerships we have right now, we’re at a place where we’re at least stable.”
Stable?
I did a quick calculation, and if 5% of Garbage Day’s 68,809 subscribers (3,440 people) paid the $5 monthly fee, they’d generate $17,200 per month, which equates to $206,400 a year.
Even if all 3,440 of those subs opted for the cheaper $45 per year option, they’d still bring in $154,800 on an annual basis. And that doesn’t include income from ad revenue ($300 per slot, soon to upgrade to $600) and editorial partnerships.
Maybe it’s just me, but if my newsletter was generating numbers like that every year, I’d be dancing on the ceiling.
Of course, I know there are plenty of admin costs involved in these things, whether you’re charged up front or have a service fee syphoned off somewhere in the process. The more money you make, the more you stand to lose. Add that to the general cost of living in 2024 and “stable” might be the best anyone can hope for.
But still, I found myself reading those metrics more than a little enviously. I know I’ve got a long way to go and my publications have made significant strides over the last few months, but I’d like to think a six-figure return from work I can do at home in my pyjamas would be worth more than just stability. Ryan isn’t the first big newsletter owner I’ve heard speaking about their project in those terms, either.
It makes me wonder at what point stability starts to look more like profitability. When do online creators, who are clearly already very successful, start to view themselves as such?
Towards the end of the email, Ryan adds:
“As for the long-term future of Garbage Day, it’s less certain, but, also, not something I’m super stressed about.”
I have every one of my fingers and toes crossed they keep going for a long time to come, because their work is absolutely top class. If you’re looking for a well-oiled newsletter to model yours on, Garbage Day is the perfect candidate.
They’ve certainly inspired me to keep plugging away, at the very least.
What would stability look like for you as a creator/solopreneur?
It depends on what they mean with stable: breaking even? Or "making a comfortable leaving off of it?"
Anyway, this is a reminder of a couple of usually ignored truths:
- very large media businesses have huge costs compared to solo businesses,
- financial success is relative.
Stable sounds about right, David; if you add taxes and overheads such as staff (even if it’s the occasional contractor), marketing costs, etc, it all adds up. And if the owner lived in London, that would make him less than stable, in fact.. Not enough to quit other income streams.
But, oh my, it is an impressive number of earnings coming from a newsletter!