Like clockwork, every Wednesday morning, Russ Thornton, an Atlanta-based advisor who specializes in helping women with retirement planning, publishes a financial newsletter called “Wealthcare for Women” on Substack.
Substack is an online platform that makes it easy for authors to publish and distribute digital newsletters efficiently at no cost (as Thornton does) or make people pay for the content by paying a subscription fee (as most advisors do that publish to Substack) . For finance-related newsletters, some content is offered at no cost, while subscribers pay $10-$30 per month for access to premium content.
Launched in 2017, Substack has developed a large audience. As of March 2024, it claims more than 20 million monthly active readers, with around 10% representing paying subscribers. Over 17,000 writers get paid on Substack, with top earners generating annual five and six figure payouts. A select few generate annual revenues in the millions.
Thornton, a self-described techie, has been online since the beginning of his career. He produced an early email newsletter and then moved on to blogging. “I've seen the value in sharing my thoughts online to make me more discoverable and make it easier for prospects to understand how I'm thinking about financial matters,” says Thornton.
Substack appealed to Thornton because he wanted to streamline his online writing practice. “What I see Substack doing is giving me the benefit of a blog and newspaper in one. It provides a community of writers and readers around me, which increases my discoverability,” he notes. “Most of what we do happens when money is in motion (eg divorce, death, retirement). I believe that publishing on Substack increases the likelihood that it will be top of mind when a reader has a money event in motion.”
Thornton has decided not to pay for the content it provides. He is excited to build additional touchpoints with clients and prospects while developing a growing digital community as a thought leader on women's retirement issues. Giving away content also has an additional benefit: it reduces compliance concerns.
Money making content
Morgan Ranstrom, co-founder and financial planner at Minneapolis-based Trailhead Planners, is grateful that enough Substack readers subscribe to his “Pull With Purpose” newsletter to generate annual income in the low five figures.
“Substack was an easy way to go from zero to 60 on a consolidated site and monetize my writing,” says Ranstrom. Publishing on Substack saved Ranstrom the trouble of setting up his own blog or email service. The platform is conducive to the longer, more analytical essays he prefers to write, for which platforms such as Twitter (now X) and Instagram are unsuitable.
Substack is a prime example of the power of the network effect, where every new user makes the platform more valuable to every other user. “Substack allowed me to expand my network; I have met many great people; plus it was an easy way to grow my client base as well as monetize my writing,” says Ranstrom. He tries to post two or three times a month.
Newsletters on Steroids
The Internet has made traditional newspapers obsolete. By 1980, there were over 600 investment newsletters delivered by mail with subscriptions of up to $500 a year (about $1,500 adjusted for inflation). These newspapers promised investors tools and knowledge to gain an edge in the markets. Only a handful, like The Bowser Report, a digital publication that recommends low-priced stocks, retain paying subscribers.
Eventually, all publications switched to email. Now, Substack is replacing traditional investment-related email newsletters. The publishing trend is away from newsletters sent to select mailing lists maintained by advisors. Substack's tools make publishing easy and relieve advisors of the complexity of managing mailing lists. The platform's analytics provide detailed insights into the open rate of posts and which posts convince readers to read for free or upgrade to a paid subscription.
Substack uses the “freemium/premium” business model, in which the basic features of a product or service are offered to users at no cost, while additional or advanced features are offered for a fee. Paid subscribers typically receive exclusive content and the ability to leave comments and join communities of like-minded subscribers. Because all participants are paying members, Substack's comment sections are free of the spam and trolling that plagues many online platforms.
While the range of topics and approaches at Substack is vast, the most successful Substacks (as measured by subscribers and revenue) have several elements in common. Publishing consistency may be the most important thing, says Thornton, who decided to publish every Wednesday morning.
“Whatever cadence you choose, being consistent is critical. I like to think I'm becoming a bit of a fixture on my reader's Wednesday mornings,” he says.
The do's and don'ts advisor
Advisors who share financial information have special requirements when publishing on Substack (or anywhere else). Each post must have a disclosure link that takes readers to the advisor's approved disclosure page. Compliance must also review each post before it is published. Here are some other dos and don'ts reported by advisors who publish on Substack.
Do
- Be consistent in publishing;
- Write like you speak;
- Keep it short (500-800 words);
- Make it easy to share content (social media sharing);
- Include a call to action (subscribe, ask questions, calendar link);
- Make sure all discovery links are present;
- Have a system to capture ideas for future posts.
not
- Delay. Just go for it;
- Think too much;
- Try to impress;
- Work to please everyone;
- Publish before compatibility reviews.
Substack's most successful newsletter, “Letters from an American” by Professor Heather Cox Richardson, about the history of today's politics, is published daily. With hundreds of thousands of paying subscribers, the newsletter has generated annual profits of $5 million. Most of the 20 most popular Substacks are published every day.
Passion is also key. The best substacks are written by authors who are passionate about their topics, have a specific point of view, and stick to the topic at hand. Many of the most popular Substacks indulge in “shop talk”. Readers like to peek behind the curtain. If you can reveal the mechanics of your world to readers, a significant number will pay $5 a month for the privilege. A sure loser approach is to write a Substack that tries to please everyone.
Five Recommended Advisor Newsletters at Substack
Of the thousands of papers published on Substack, dozens deal with various aspects of finance, investment, trade and economics. To experience what Substack has to offer, advisors can't go wrong with these five newsletters.
Wealth care for women
Author: Russ Thornton
Frequency: weekly
Cost: free
Description: Focused on helping women prepare for and transition smoothly into retirement, care for their families, protect their wealth, and lead great lives.
example: Should I rebalance my portfolio?
Counselor Brinker
AUTHOR: Bob Brinker
Frequency: Weekly
The cost: Free or $25 per month/$300 per year
Description: Quantitative and technical analysis of emerging market trends, monetary policy and related topics.
example: FOMC Meeting and Key Economic Indicators
Noah's opinion
AUTHOR: Noah Smith
Frequency: 5 times a week (3 free; 2 for subscribers)
The cost: Free or $10 per month/$100 per year
Description: Finance, technology, geopolitics and culture from an economic perspective.
example: Market rate housing will make your city more affordable
adviser
AUTHOR: Reese Harper
Frequency: Weekly
The cost: Free or $15 per month/$99 per year
Description: Financial advice, financial literacy, client management, trust, parenting.
example: Stop comparing, start living: Real wealth is being alive
Overcoming
AUTHOR: Matthew C. Klein
Frequency: Weekly
The cost: $30 per month / $330 per year
Description: Data-driven market analysis on global trade and financial flows, macroeconomic balances and demographics plus data visualizations.
example: Why haven't the tariffs done anything?