Creators Are Flocking to Substack—but Should You Join Them?

Key takeaways

Substack is evolving from a simple newsletter tool to a comprehensive creator platform, raising questions about its reliability and sustainability.
The introduction of Substack's Creator Fund may provide financial incentives for creators, yet it also calls into question the motivations behind migrations.
While Substack offers an all-in-one solution, creators should be cautious about data control, platform dependency, and the impact of recommendations on subscriber quality.
It's essential for creators to maintain engagement with their audience and consider a hybrid approach by integrating other platforms for backups and audience connection.
Establishing best practices, such as backing up content and subscriber lists, is crucial to mitigate risks when utilizing platforms like Substack.

Summary

Understanding Substack: Is It Right for You?

In this episode, the hosts Chanel and Dylan dive into the recent trend of creators flocking to Substack. They analyze the platform’s evolution, questioning its identity as an email service provider, blogging platform, or a full-fledged creator ecosystem. As multiple well-known creators embark on the Substack journey, the conversation explores motivations behind this migration and the potential implications for newcomers to the platform. Instead of dictating whether one should join Substack, the hosts aim to present a balanced view, allowing listeners to make informed choices.

The Influence of Substack’s Creator Fund and Financial Incentives

The hosts highlight the emergence of Substack’s Creator Fund, drawing parallels with platforms like TikTok and YouTube that incentivize creators. This fund may be playing a role in luring established creators to migrate and set up paid newsletters. The discussions around financial incentives illustrate a broader concern regarding Substack's long-term reliability and sustainability. As Substack continues to adapt and grow, the potential for creators to be financially enticed raises questions about the motivations behind their shifts.

Pros and Cons of Substack as a Platform

Chanel and Dylan discuss the all-in-one capabilities of Substack, including its newsletter, blogging, social media, and podcasting functionalities. They highlight the platform's appeal, especially for those looking for a straightforward setup. However, the conversation does not shy away from addressing the drawbacks, including data control issues, potential low email open rates, platform dependency, and the 10% revenue cut that Substack takes from creators. They acknowledge the convenience while cautioning creators not to put all their eggs in one basket.

Maintaining Engagement & Subscriber Quality

Another critical theme in the podcast revolves around subscriber quality versus quantity. The hosts explore how Substack's recommendation system could lead to inflated subscriber counts, but these may not reflect genuine engagement. They emphasize the need for cleaning up subscriber lists and maintaining a direct connection with followers, contrasting the ease of gaining subscribers through recommendations within Substack while noting the complicated nature of audience engagement beyond just numbers.

Future of Substack and Best Practices

As the conversation evolves, the hosts encapsulate their personal approaches and best practices towards using Substack. They advocate for a hybrid model, encouraging creators to maintain presence on multiple platforms. Maintaining backups of subscriber lists and content is advised to mitigate risks associated with overdependence on a single platform. The hosts also reflect on their treatment of Substack as merely one tool in the larger creator ecosystem, pushing listeners to explore growth avenues beyond Substack’s offerings.

Show notes

“You can pretty much do anything on Substack—which is good and also makes me nervous.” – Chenell Basilio

We've seen a wave of creators flocking to Substack over the last month and couldn’t help but wonder... what’s really going on here?

In this episode, Chenell & Dylan unpack the why we believe this migration is happening. Are creators just chasing the next shiny thing, or is Substack genuinely offering something new and powerful?

We dive into the benefits, red flags, and the not-so-obvious consequences of going all in on the platform. We cover how Substack is evolving from a newsletter tool into a full-blown creator ecosystem, and whether that’s a blessing or curse—or a bit of both? If you've been thinking about launching (or leaving) a Substack, this episode is your guide to making an informed decision—minus the hype.

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KEY TAKEAWAYS

Why big-name creators like Justin Welsh, Dan Koe, and Jay Clouse are experimenting with paid Substack newsletters
Substack’s Creator Fund and how it might be influencing the migration
What makes Substack’s all-in-one platform appealing—and the tradeoffs you make using it
Our concerns about data control, platform dependency, and reach
How recommendations and native distribution can supercharge growth (but also create subscriber quality issues)
Whether Substack’s 10% revenue cut is worth it for smaller vs. larger creators
Substack’s limitations when it comes to API access, segmentation, automation, and list hygiene
How we personally use Substack (or don’t), and what we’d do differently if we started newsletters there today

LINKS MENTIONED

Chenell on Substack
Dylan on Substack
Substack's Creator Fund announcement
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FOLLOW ON SOCIAL

Chenell: Twitter | LinkedIn | Substack
Dylan: LinkedIn | Bluesky

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Thanks to Tim Forkin for editing these episodes.