# How Substack Built a Paid Newsletter Platform

Page: https://stenobird.com/podcast/business-models-explained-with-fexingo-subscription-marketplace-saas-and-service-companies-7871638/how-substack-built-a-paid-newsletter-platform
Text version: https://stenobird.com/podcast/business-models-explained-with-fexingo-subscription-marketplace-saas-and-service-companies-7871638/how-substack-built-a-paid-newsletter-platform.md
Podcast: [Business Models Explained with Fexingo: Subscription, Marketplace, SaaS, and Service Companies](https://stenobird.com/podcast/business-models-explained-with-fexingo-subscription-marketplace-saas-and-service-companies-7871638)
Published: 2026-07-12T04:52:41+00:00
Episode link: https://audio.fexingo.com/business/business-models-explained/episode-0109.mp3
Audio file: https://audio.fexingo.com/business/business-models-explained/episode-0109.mp3
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Duration seconds: 656

## Resource

In episode 109 of Business Models Explained, Lucas and Luna unpack the economics of Substack — the platform that turned email newsletters into a viable subscription business. They trace how Substack's 'take rate' of 10 percent compares to other creator platforms, why the company pays writers upfront advances, and whether its model can survive as competition from platforms like Ghost and Patreon intensifies. Lucas digs into the specific numbers: how a writer earning $100,000 in subscriptions keeps $90,000, how Substack's 10 percent cut compares to YouTube's 45 percent and Patreon's 8 to 12 percent, and why the company's bet on 'portfolio writers' — like the team behind Everything Bundle — signals a shift toward network effects. Luna pushes back on the sustainability of advances, noting that Substack reportedly spent millions on deals that haven't yet paid off. The hosts also explore the tension between newsletter discoverability (which Substack lacks) and stickiness (which it has). Recorded July 12, 2026. #Substack #NewsletterBusiness #CreatorEconomy #SubscriptionModel #PaidNewsletters #ChrisBest #HamishMcKenzie #EverythingBundle #TakeRate #WriterAdvances #GhostPlatform #Patreon #StripeIntegration #EmailNewsletters #BusinessModel #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo

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