Substack changed how writers think about newsletters. No monthly fees, no technical setup, just start writing. The platform handles everything in exchange for a percentage of paid subscriptions.

That simplicity is both the appeal and the trap.

What is Substack?

Substack is a publishing platform that combines newsletters, podcasts, video, and community features. Writers publish content that gets delivered to subscriber inboxes and appears on their Substack publication page.

The platform provides:

  • Newsletter publishing and delivery
  • Web hosting for all content
  • Payment processing for subscriptions
  • Basic analytics
  • Community features (notes, chat, comments)
  • Discovery through the Substack network

Pricing Model

Free to Use (With Catches)

Substack has no monthly fees. You can publish unlimited content to unlimited free subscribers without paying anything.

Revenue Share on Paid Subscriptions

Enable paid subscriptions and Substack takes:

  • 10% of revenue - Substack’s platform fee
  • 2.9% + $0.30 per transaction - Stripe payment processing
  • 0.7% billing fee - For subscribers after July 2024

What You Actually Keep

On a $5/month subscription:

  • Gross: $5.00
  • Substack (10%): -$0.50
  • Stripe (2.9% + $0.30): -$0.45
  • Billing fee (0.7%): -$0.04
  • You keep: ~$4.01

On a $50/year subscription:

  • Gross: $50.00
  • Substack (10%): -$5.00
  • Stripe (2.9% + $0.30): -$1.75
  • Billing fee (0.7%): -$0.35
  • You keep: ~$42.90

The 10% compounds. A publication earning $10,000/month loses $1,000 to Substack alone.

iOS App Pricing

Subscribers who pay through the iOS app trigger Apple’s in-app purchase fees (up to 30%). Substack automatically raises prices for iOS to compensate, but you can disable this feature.

Key Features

Publishing

Clean, distraction-free editor focused on writing. Add images, embeds, and basic formatting. No templates or design customization—every Substack looks similar.

Substack Notes

Twitter-like feed for short-form content. Share thoughts, links, and updates between newsletter editions. Your notes appear to subscribers and followers.

Substack Chat

Group messaging for paid subscribers. Creates community spaces around your publication. Good for engagement, requires active moderation.

Podcast and Video

Upload audio and video directly. Subscribers can listen/watch in the app or on your publication page. Basic hosting included.

Discovery Network

Substack promotes publications through:

  • Recommendations between newsletters
  • Category browsing
  • Search within the platform
  • Featured publications

Some writers get meaningful subscriber growth through network effects. Others see minimal impact.

What Substack Lacks

No Automation

No drip sequences, welcome series, or triggered emails. Every subscriber gets the same content at the same time. Want to send a 5-email welcome sequence? Not possible.

Limited Segmentation

Can’t segment subscribers by behavior, tags, or custom fields. Everyone is either free or paid. No targeting based on engagement, interests, or actions.

No A/B Testing

Can’t test subject lines, send times, or content variations. Ship and hope.

No Integrations

Limited API access. No native connections to:

  • CRM systems
  • E-commerce platforms
  • Zapier/automation tools
  • Analytics platforms

No Landing Pages

You get a publication page. That’s it. No custom landing pages for different offers or audiences.

No Exit Strategy

Substack lets you export your email list. But your content, analytics history, and subscriber relationships stay on Substack. Migration means rebuilding.

Who Should Use Substack?

Ideal for:

  • Writers focused on writing (not marketing)
  • Hobbyists who don’t plan to monetize
  • Beginners testing newsletter viability
  • Authors building an audience pre-launch
  • Anyone valuing simplicity over features

Not ideal for:

  • Growth-focused newsletter operators
  • Publishers earning significant revenue
  • Anyone needing automation
  • Businesses with existing marketing stacks
  • Creators wanting brand customization

The 10% Question

Substack’s revenue share looks reasonable at $500/month. It looks painful at $50,000/month.

At $1,000/month revenue:

  • Substack takes: $100/month = $1,200/year
  • Alternative (Beehiiv Max): $109/month = $1,308/year
  • Roughly equivalent

At $10,000/month revenue:

  • Substack takes: $1,000/month = $12,000/year
  • Alternative (Beehiiv Max): $109/month = $1,308/year
  • Substack costs 9x more

The crossover point is around $1,200/month in revenue. Below that, Substack’s simplicity justifies the fee. Above that, you’re paying a premium for fewer features.

Substack vs Alternatives

vs Beehiiv: Beehiiv charges flat monthly fees and offers more growth tools (boosts, referrals, ad network). Makes sense for growth-focused operators.

vs ConvertKit: ConvertKit has automation, landing pages, and integrations. Better for course creators and businesses. Higher starting costs.

vs Ghost: Ghost is self-hosted or managed, with no platform fee on revenue. More technical but more control.

vs Buttondown: Minimalist alternative with better pricing ($9/month flat). Fewer features but cleaner revenue split.

The Bottom Line

Substack excels at one thing: getting writers writing. Zero friction to start, zero cost until you monetize, zero technical complexity.

If you want to focus purely on content and accept limitations on growth and customization, Substack works well. The 10% fee is the price of simplicity.

If you’re building a business around your newsletter—planning to monetize significantly, grow aggressively, or integrate with other tools—Substack’s limitations become constraints. The fee that seemed reasonable becomes expensive as revenue grows.

Start on Substack if you’re testing an idea. Plan your exit strategy before the 10% starts hurting.