Substack generates 1 in 3 new subscriptions on the platform

The challenge, or opportunity, for companies like Substack is to figure out how to help creators reach new audiences and grow without having to compromise on ownership. The aggregators of the early internet unlocked great power for creators through building central gathering places. We are doing the same with the Substack app and features—like Reco... See more

This might seem pretty small and trivial of a thing to base a network effect on, but it might work. Substack has said readers are 2.5x more likely to become a paying subscriber to one Substack newsletter if they’re already a paying subscriber to another.

Needless to say, competing in the “newsletter” category made life easier. It wasn't perfect: most of the writers we acquired this way did not start paid subscription newsletters, and we generated no revenue off them. But still, it was absolutely worth it. The “newsletter” positioning served as a wedge, and generated a viral distribution loop where ... See more

To be a platform rather than just a tool, Substack needs to answer the following question: as another new creator joins the Substack, how does it become better for all the other creators as well?

 Substack needs some network effects to keep authors tied to the platform, even if they can leave at any moment.  The best way to achieve that is through cross-promotion tools that allow authors to constantly gain new readers that they wouldn’t gain otherwise. That makes their presence on Substack truly valuable.