Email marketing

A Definitive Guide on What Is Substack and How It Works

A guide on what is Substack, how it works and how to launch and monetize your newsletter
Anastasia Ushakova
Anastasia Ushakova AI-free content
Updated: 24 December, 2025 / 77554 / 00 min

Content creation has evolved beyond traditional publishing models. There are unprecedented opportunities to connect directly with audiences. Among the platforms leading this revolution is Substack — but what is Substack exactly? 

In this guide, you’ll learn what Substack is, how it works, and how to start (and monetize) a newsletter.

TL;DR

Substack is an email-first publishing platform that lets writers publish a newsletter (and a simple website) and optionally charge for paid subscriptions.

  • What it is: A newsletter platform + blog-style archive in one place
  • How people read it: In email, on the web, or in the Substack app.
  • How writers make money: Mostly via paid subscriptions (plus optional extras like founding/support tiers).
  • Fees: Free to start; Substack typically takes a 10% platform fee on paid subscription revenue (plus payment processing fees).
  • Best for: Independent writers, journalists, and niche creators who want a simple setup and direct reader relationships.

What is Substack?

Substack is an American online platform that allows journalists, writers, and other content creators to publish newsletters and establish a subscription-based audience. 

It provides tools for authors to create and distribute their newsletters, manage subscriptions, and monetize content via subscriptions.

Creators can publish newsletters for free or behind a paywall, and Substack takes a cut of paid revenue.

While the platform is primarily text-based, it offers other formats for posts: Posts (writing), Podcasts, Video, Notes, and Chat, plus comments/community.

Substack home page

Since its launch in 2017, Substack has enjoyed steady growth. In 2025, the platform had over 5 million paid subscribers, according to The Substack Post.

Hundreds of prominent media figures, journalists, thought leaders, and writers use Substack, covering topics such as the arts, politics, fashion, current affairs, and sports. For example, American singer-songwriter Patti Smith shares poetry readings on the platform. Other prominent users of Substack include American journalist Seymour Hersh, writers Chuck Palahniuk and George Saunders.

Patti Smith’s Substack page

How does Substack work?

Substack connects writers with readers through email-first publishing. Authors can use the platform for personal writing or news, and send digital newsletters directly to a reader’s inbox. There are also tools for podcasts and group chat broadcasts.

Here’s what a post by British writer Bolu Babalola looks like on the Substack website:

Substack post by British writer Bolu Babalola

This is what the same post looks like as an email newsletter on the iOS Mail app: 

Email newsletter from Substack

Why people use Substack:

  • User-friendly interface. It is easy to get started, and you do not need any technical skills to use Substack.
  • Monetization opportunities. Substack offers options for creators to monetize their content through paid subscriptions, offering a direct source of revenue without relying on ads.

Limitations:

  • Limited customization. While Substack offers some customization options, creators have limited control over the design — creators can only change fonts and colors of their newsletters.
  • Revenue share. Substack charges users a 10% fee (not including credit card processing fees) on paid subscription revenue, which is often higher compared to its competitors. This also means that high earners will be paying a hefty sum to Substack — for example, if you earn $100,000, you’ll be charged at least $10,000 by the platform. Stripe also charges payment processing fees (including 2.9% + $0.30 per transaction and a 0.7% billing fee for recurring subscriptions).

Is Substack free?

Substack itself is free to use for writers and creators. They can sign up, create newsletters, and distribute content without initial expenses. If they opt for paid subscriptions on Substack, the platform takes a cut of 10% of the paid subscription revenue.

Free newsletters

A free subscription allows readers to receive newsletters or posts from a writer at no charge. If the content is offered for free, all subscribers will have access to it.

Paid newsletters

A paid subscription allows publishers to monetize their content. Subscribers pay a recurring fee, usually monthly or annually, to access exclusive content. The cost of a paid subscription varies, as the writers set it themselves, although most subscriptions cost between $5 and $15.

Cost item What you pay When it applies
Publishing on Substack $0 Always (even with unlimited free subscribers)
Substack platform fee 10% of each paid transaction Only if you enable paid subscriptions
Card processing (Stripe) 2.9% + $0.30 per transaction Only on paid transactions (credit/debit card)
Recurring billing fee (Stripe Billing) 0.7% for recurring subscriptions (noted in Substack help docs) Only on recurring subscription payments
Reader fees No extra fees charged by Substack Readers aren’t charged additional fees by Substack at checkout
iOS in-app payments (if enabled) Apple service fee applies (deducted from creator revenue) Only if you enable iOS in-app purchases

Who should use Substack?

While Substack is a useful tool, it’s not everybody’s cup of tea. It is a great fit for:

  • Independent writers and journalists — those who don’t want to rely on media outlets and publishers, but want to build direct subscriber relationships and monetize their work.
  • Thought leaders and niche experts — those who want to share deep insights, essays, or commentary with a targeted audience.
  • Creators — those tired of social media algorithms and looking for more intentional, long-form communication. 
  • Podcasters & multimedia storytellers — those who want to use more formats in one place.

Substack might not be the best option for you if:

  • You want advanced marketing features (like automation, CRM, sales funnels).
  • You need a highly customized website or blog.
  • Your business relies on visual-first content (like e-commerce, design portfolios).

How to use Substack

Substack is straightforward enough — follow the steps below to get started:

  1. Sign up for Substack

Your first step should be creating an account. Use your email address or your account on X (former Twitter). You will be ready to start setting up your profile after confirming your username and email address.

  1. Set up your profile

After verifying your email, you will be prompted to set up your Substack profile. This typically involves providing your name, creating a username, and adding a profile picture. Consider using your full name, or the name that most people know you by online, if you use a pseudonym.

  1. Choose a newsletter name and URL

Name your publication, write a one-sentence description of what readers will get, and confirm your URL.

When choosing a name, make sure it is relevant to the content of your future newsletters and is simple and memorable.

The summary of your publication should be as short and descriptive as possible, and should signal to your target readers why they might want to subscribe. 

Each Substack newsletter is given a unique domain: yourname.substack.com. Publishers may also choose to set up a custom domain name without the word “substack.” Adding relevant keywords can boost your Substack’s visibility in Google searches.

Here are some examples of catchy names, URLs, and descriptions by Substack users:

Climate change newsletter Heated on Substack
Heated, a climate change newsletter
Newsletter about dumplings on Substack
Above the Fold, a newsletter about dumplings
Newsletter featuring music recommendations on Substack
Flow State, a music recommendations newsletter
  1. Customize your newsletter

Customization is simple: colors, fonts, and layout, but advanced design control is limited. You have the option to personalize your Substack by choosing various colors for your publication’s background, selecting different fonts, and adjusting the publication layout. This simplicity is both an advantage and a drawback, as it limits customization options.

Customization options on Substack
  1. Set your subscription options

As we have established earlier in the article, creators can provide their content on Substack for free, or they can charge readers a recurring fee for access. Paid publications and subscription plans may be set up in Settings: 

Subscription options on Substack

You may want to publish some posts for free while hiding others behind a paywall. For example, British political activist Gina Martin provides one free newsletter a month, encouraging users to subscribe for more content.

Gina Martin’s newsletter

Additionally, authors have the option to publish a free preview of a paid post for free readers. This is what the paywall message looks like:

Paywalled post on Substack

If you have not turned on paid subscriptions on your Substack yet, you can use the Pledges tool to offer a way for your audience to express their support. Pledges let readers signal they’d pay if you turn on subscriptions later.

When readers subscribe to your newsletter, they will have an opportunity to pledge a yearly, monthly, or founding plan. You can change the suggested subscription pricing in settings:

Pledge system on Substack
  1. Create your first post

Once you create your publication, the next step is to publish your first post. Substack allows users to publish on the web, email, and their app simultaneously. Check out our guide on how to create an email newsletter

This is what the four types of posts  look like when viewed on the website:

Creating a text, video, podcast or discussion thread post on Substack
  1. Plan your content strategy

Planning a content strategy involves several steps, such as: 

  • Define your goals. Determine what you want to achieve with your Substack publication. Are you looking to inform, entertain, educate, or inspire your audience? This also applies to starting a business newsletter on Substack — while email newsletter subscribers have greater purchasing intent, it is important to bear in mind that Substack was not designed as a marketing tool and lacks the functionality for many business purposes.
  • Know your audience. Understand who your target audience is and what they are interested in. Conduct research and collect feedback by prompting your audience to comment on your posts, consider adding polls to your Substack posts, and analyze data to identify your readers’ preferences.
  • Plan a content calendar. Create a content calendar laying out the topics, themes, and publication schedule for your newsletters. 
  • Make use of marketing resources online. Substack itself offers many tools to independent writers. These include networking events,  posts promoting authors, and the sharing of best practices. If you are just getting started or if you would like to learn more about marketing, consider taking an email marketing course.
  1. Promote your newsletter

To thrive, your newsletter needs a steady flow of new subscribers. To get those:

  • Grow your community: include family, friends, and contacts on your subscriber list. If you already have one and want to transition from another platform, you can import your existing contacts by uploading a CSV file. 
  • Link to your publication: add your Substack URL to your email signature, personal website, and social media bios. On social media, post when you start your Substack and whenever you publish new posts. When posting on Substack itself, be sure to use buttons, email headers, and footers to ask readers to comment and share. 
  • Consistency is key: according to Substack’s data team, there is a strong correlation between posting frequency and publication growth. Therefore, you should post consistently, at least once a week. 
  • Work with others: collaborate with other writers via guest posts, guest features, interviews, and Q&As.
  • Use Substack features: Substack continues rolling out features such as recommendations and apps to help creators with growth and marketing. According to the platform, in 2022 it drove 40% of all free subscriptions and 12% of paid subscriptions, in comparison to 10% of free subscriptions the year before. Make sure to use these tools.
  1. Engage with your subscribers

The simplest way to engage with your subscribers is via comments — ask questions, and encourage your readers to leave comments on your posts and reply to each of them personally. 

The key to more in-depth engagement is knowing your audience and personalizing, to increase content relevancy. Criteria might include age, location, profession, and interests. 

When a new reader signs up for your subscriber list, they receive a “thank you” email from Substack. Use this space to reach out to your subscriber base by directly asking for information that is useful for you to know about your subscribers. Surveys and polls are also effective for collecting feedback.

Whenever possible, personalize your communication with subscribers by addressing them by name and acknowledging their support.

  1. Continuously improve and iterate

Once you have published a few newsletters, consider what steps you can regularly take to improve your Substack:

  • Refine your content. Focus on creating high-quality content that aligns with your audience’s interests, and routinely evaluate its relevance.
  • Engage with subscribers. Engage with subscribers by responding to comments, encouraging feedback, and integrating their input into your content strategy.
  • Publish consistently. Maintain a consistent publishing schedule to keep your subscribers engaged. 
  • Promote it. Promote your Substack newsletter across different channels, including social media and your website.
  • Experiment and iterate. Experiment with different publishing schedules and content formats to see what works best for your audience. Continuously iterate and refine your approach.

Tips for growing your Substack newsletter

Many of the steps mentioned above, such as social media promotion and collaboration with other writers, may be used to boost the growth of your Substack newsletter. For a more in-depth growth strategy, consider the following:

  • SEO optimization. Optimize your newsletter for search engines to improve discoverability and attract traffic. It is worth noting that Substack does not provide the same level of SEO customization as some other blogging platforms. For instance, users do not have the option to customize URL slugs. Substack itself suggests using your name in your Substack URL, writing a concise SEO title, and linking to your profile everywhere.
  • Subscriber segmentation. Substack’s subscriber segmentation categorizes users based on behavior and preferences, enabling targeted content delivery. The segmentation process involves tracking and analyzing various subscriber metrics such as open rates, click rates, and subscription status to create subscriber profiles.  Understanding subscribers’ interests enables creators to develop strategies for attracting and retaining subscribers. Targeted promotions and specialized content can be offered to specific subscriber segments.

Here’s an example of Substack’s filters and segmentation:

Substack mailing list filters and segmentation
  • Call to action: Well-crafted calls to action (CTAs) can turn passive readers into engaged participants. A successful CTA in a business newsletter should be succinct and striking. Additionally, a good CTA should align with the audience’s interests and the newsletter’s content. A CTA should be placed at the end of the newsletter content to encourage action.

How to make money on Substack

When trying to decide whether you should switch to paid subscriptions, first consider whether you can commit to posting consistently. The best way to convert your readers to fans is publishing free and paid newsletters frequently, and sticking to a schedule. Even if you would like to build a paid subscriber base, remember that free content is crucial to successful paid newsletters.

According to Substack, 5-10% of free subscribers convert to paying subscriptions, with 10% being a rate to aim for. Therefore, focusing on growing your overall subscriber base will result in higher earnings.

Main competitors

Substack is not the only tool for a meaningful distribution and monetization of content. Platforms such as Ghost, Patreon, and Medium also offer users opportunities to connect with their supporters, yet each of them serves a different purpose.

Ghost

Ghost is an open-source content management system (CMS) and blogging platform. It was founded in 2013 as an alternative to existing platforms like WordPress. Ghost offers tools to build a website, publish content, send newsletters, and offer paid subscriptions to members. It also features built-in analytics and performance monitoring tools. Ghost’s primary purpose is creating websites and managing different types of content, whereas Substack was specifically designed for email newsletter creation.

Ghost home page
Source: Ghost

Patreon

Founded in 2013, Patreon is a subscription-based platform that allows creators to provide different kinds of content to their supporters, known as “patrons”. Unlike Substack, which is primarily email-based, Patreon allows authors to share perks such as behind-the-scenes updates, video, and audio content, in addition to newsletters. Additionally, Patreon has several pricing plans, allowing creators to offer their patrons memberships with multiple tiers. 

Patreon home page
Source: Patreon

Medium

Medium is an online publishing platform that allows users to read, write, and share articles on a variety of topics. It offers writing tools for its creators and allows readers to follow writers and publications, receive recommendations, and engage with articles. Medium offers a membership program and a Partner Program for writers to earn money based on engagement. Medium’s primary difference from Substack is its broader audience.

Medium home page
Source: Medium

Substack vs Ghost vs Patreon vs Medium

Let’s compare all four:

Feature Substack Ghost Patreon Medium
Main purpose Newsletter platform for direct audience monetization Open-source platform for blogs & newsletters Membership platform for creator support & perks Publishing platform for long-form content & thought leadership
Best for Independent writers & niche newsletters Bloggers & businesses needing website control Multi-format creators with fan-based income Writers seeking visibility & broad audience reach
Audience ownership You own your subscriber list Full ownership, self-hosted Limited, Patreon controls platform & data Limited, Medium owns audience access
Ease of use Simple, beginner-friendly Requires technical setup & hosting Easy setup, more complex membership management Simple, publish-ready
Platform fees 10% of subscription revenue + Stripe fees 8–12% of your income, depending on your plan 5-12% platform fee + payment processing fees $5/month for Partner Program, Medium keeps revenue share

But of course, there are more options. Here’s a list of 10 other resources you could use instead of Substack in 2025. And while we are at it, try Selzy to stay in touch with your subscribers and fans — it’s as easy as building with Lego blocks!

What the future holds for Substack

Given the platform’s huge popularity in the newsletter realm, it is not surprising that Substack is seeking to expand into other formats. Substack has already launched an audio publishing tool for podcasts, as well as features for interacting with video content. The platform also introduced a new format of Substack.Notes for microblogging and resharing content. 

Alternatively, Substack may decide to add extra features to newsletters themselves, such as increasing personalization depending on the user’s location or interests.

Another possible direction for growth is analytics — the platform may roll out new tools to help writers optimize reach and grow.

Is Substack worth it for you?

If you’re a creator who works across different formats — a journalist, expert, writer, or influencer — Substack is definitely worth a try. You can use it as:

  • A personal blog, sharing fun facts and behind-the-scenes glimpses, like the British historian and writer Dan Jones.
  • An independent media outlet, as TV journalist and reviewer Miles McNutt does with his Episodic Medium Substack — where reviews come from a range of contributors.
  • A companion to your main outlet, offering a community feel, like LaineyGossip’s Substack, The Squawk.
  • A platform to showcase your expertise and share knowledge — for example, educator Peps Mccrea’s Evidence Snacks.

Like with any blogging platform, Substack works best when there’s a personal touch. If you’re looking to promote a brand rather than the person behind it, it might not be the right fit.

FAQ about Substack

Is Substack free?

Yes. Substack is free to use for publishing newsletters and building an audience. You only pay fees if you enable paid subscriptions, in which case Substack takes a percentage of your revenue.

How does Substack make money?

Substack makes money by taking a 10% platform fee from paid subscriptions, plus payment processing fees handled by its payment provider. Free newsletters don’t generate fees for Substack.

Do you own your email list on Substack?

Yes. Writers own their subscriber list and can export emails and content at any time. This makes Substack lower-risk than social platforms where audiences are locked in.

Is Substack social media or email?

Substack is primarily an email newsletter platform, not traditional social media. However, it includes social-style features like comments, recommendations, and Notes, which help writers discover new readers.

What’s the difference between Substack and Medium?

The biggest difference is distribution and ownership. Substack focuses on email-first publishing and paid subscriptions, while Medium prioritizes on-platform discovery and readership within its ecosystem.

Can businesses use Substack?

Businesses can use Substack, but it’s best suited for founder-led content, thought leadership, or editorial-style updates. It lacks advanced marketing features like automation, CRM, and sales funnels that many businesses need.

Final thoughts

Substack represents a significant shift in the landscape of content creation and distribution, offering creators a powerful platform to share their ideas, stories, and expertise directly with their audience. While Substack is not without its challenges and limitations, its rapid growth and impact on independent publishing are undeniable. 

What are some of your favorite authors on Substack? 

All images are credited to Substack unless otherwise specified.

Updated: 24 December, 2025

In this article
What is Substack? How does Substack work? Is Substack free? Who should use Substack? How to use Substack? Tips for growing your Substack newsletter How to make money on Substack? Main competitors What the future holds for Substack? Is Substack worth it for you? FAQ Final thoughts
Anastasia Ushakova

Written by Anastasia Ushakova

Anastasia is a bilingual writer and former breaking news editor with a background in mathematics. She specializes in digital content and copywriting for SaaS companies, with a focus on making complex ideas clear and accessible. Her interests include fashion, travel, art, and trying to learn everything at once.