Scott Oldford

The end of newsletters

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Well, the end of my newsletter.

No, not this one. This one will keep going, as long as I keep needing therapy and as long as I keep refusing to trust anyone else with the task.

But as of today, I have decided to stop publishing my health newsletter.

I started that newsletter in January 2023. I published a new issue every week until this week — some 120k words in total.

Researching, writing, and publishing all that word-tonnage took up 300-400 hours of my productive waking time over the past 15 months.

And yet, I’m closing the old heap down. My reason is simple:

I couldn’t get my health newsletter going as a business. And rather than thinking about what I’ve already invested into it, I’m thinking about the time, money, and effort it might still take to turn it into something.

It’s not simply a matter of persistence, either. Because knowing what I know now, I’m not sure my health newsletter would ever turn into something, even if I were to persist.

I could tell you my arguments for that, or my predictions for the future of newsletter businesses.

But instead, I’ll share something by someone much more invested in newsletters than me. That someone is Scott Oldford.

Over the past year or two, Scott bought up dozens of newsletters and newsletter-related businesses with the goal of creating a newsletter roll-up. And then, here’s what he found:

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Our model originally with newsletters was to create lead flow for the companies that we owned inside of our portfolio.

As time went on we ended up a little further away from that model than I’d like to admit.

We attempted to monetize in many different ways and in the end we realized that keeping it with its original intent was a much better strategy.

[…]

We realized that the cost of running a media company at scale simply did not make sense and majority of the costs were actually from attempting to make it a direct-profit driver instead of a value-driver for the dozens of businesses we own and eventually hundreds of businesses we will own.

In short — newsletters and owned media makes a lot of sense. However, I believe the opportunity that people see isn’t the true one.

The real opportunity? Owning your audience.

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For me at least, it’s the end of newsletters as a business.

​​On the other hand, I will be looking for a business to start or grow, one where a newsletter could be a valuable tool.

Maybe you’re lucky, and you already have a business like that. Maybe you even have your own owned audience. But maybe you’re not doing anything with it.

If so, you’re not alone. I’m always amazed by how many businesses have email lists of tens of thousands of leads or even buyers — that they never do anything with.

If you want my help or advice with that, hit reply and we can talk.

​​Or if you don’t want my help, and you want to profit from your email list all by yourself, here’s how to start writing a newsletter that complements and feeds your business:

https://bejakovic.com/sme/

AI bros make $4.20, I make $0.36, it’s still a win

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A couple weeks ago, I read a mostly mindboggling email from Scott Oldford, who has been buying up newsletters and newsletter-related services.

Scott’s email was all about about an AI newsletter he bought recently for some undisclosed sum.

The acquired newsletter has 22,000 subscribers. Its creators have been running Facebook ads to get new readers, and paying $1.40 per new reader.

So far, so grim. But please pay attention to the next fact, because it’s remarkable:

That AI newsletter was making 3x that ad spend right at signup time, right when people opted in, without selling anything.

Did that last line make you pull down your glasses to the tip of your nose, and look at me with suspicion? It should have.

Direct response logic says that if you can acquire a customer at breakeven or slight loss, you’re doing well.

Granted, these newsletter subscribers aren’t necessarily customers, but they are a list of people who are potential customers, and they are certainly valuable as an audience in other ways.

Now let me repeat the rather shocking point again:

These AI bros are building that list of subscribers, not at a slight loss, not at cost, but actually getting paid 3x what they put in to acquire each new reader.

What tricky flamingos. How are they doing it?

Well, that’s my offer for you today. It’s called Sparkloop. It’s basically a network of coregistration partners.

If you’ve ever signed up for a Substack newsletter, you’ve seen this approach in action. Once you opt in, a window of newsletter recommendations pops up. “Would you like some more, sir?” it says. And there on the plate are 3 or 4 or 20 different other newsletters, which you can opt into with just a click o’ the button.

That’s what Sparkloop does as well, except it’s not limited to Substack newsletters only, but it can be integrated on almost any platform.

That’s how those AI bros were making 3x their ad spend right at optin time, without selling anything. They had Sparkloop installed, and they were recommending a bunch of other Sparkloop-network newsletters.

Now a word of disclosure:

I have been using Sparkloop myself. Its little window pops up when somebody signs up to my new health newsletter. I have made money from Sparkloop. But it’s nowhere close to what this AI newsletter is making.

The fact is, I’m not making $4.20 per new subscriber… but more like $0.36, at least on day 0.

Still, money is money, and Sparkloop is helping me offset the cost of ads I’ve been running.

Plus, Sparkloop allows you to promote newsletters inside your newsletter as well, which means that if you email regularly and promote other newsletters each time you email, you can hope to make a buck or two more per subscriber in the very first month.

So there you go. If you have a newsletter, and have nothing great to promote yet… or you’re simply looking for other ways to monetize your email list… then try out Sparkloop. I’ve done it, it works, and I’m happy to recommend it to others.

You can sign up for Sparkloop at the link below. Yes, that’s an affiliate link. Yes, I will get paid if you sign up. No, you don’t have to use this link, and no, I won’t ever know if you circumvent my link and go straight to Sparkloop and sign up there. But in case you don’t want to do that:

https://bejakovic.com/sparkloop

My new, Morning Brew-like newsletter gets an F

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A few days ago, I mentioned a guy named Scott Oldford, who is buying up other people’s newsletters. Yesterday, Oldford tweeted a long thread about what makes a newsletter worth buying.

I got my popcorn ready and I sat down to read.

As I’ve mentioned before, I’ve started a new, Morning Brew-like newsletter in the health space.

I told myself from the start to make it sellable. Not because I want to necessarily sell it. But simply because if it’s sellable, it’s more likely to be the kind of business that’s viable for the long term, and that I’d like to be involved in.

I stuffed my mouth full of popcorn and started reading down Oldford’s list. And though it’s still early days for my newsletter, I started feeling pretty good about myself.

Diverse traffic sources: check.

High engagement: check.

Not a personal brand: check.

Diverse monetization strategies: getting there. Like I said, it’s still early days, but monetization is something I know how to do.

​​But then, I got to this part of Oldford’s thread:

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5. You need everything inside of your media brand segmented and process driven & it shouldn’t require you whatsoever.

If I see a business and the founder is running everything— it’s not valuable.

If I see it and the founder is working 5hr/week— it is.

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I stopped chewing my popcorn and I swallowed hard. Fact is, I’m working way more than 5 hours a week on this thing. And I’m doing everything myself.

The biggest time suck is simply the research — keeping on top of all the news stories, tweets, podcasts, blog posts, YouTube videos, and science papers relevant to my newsletter.

​​Like I’ve written before, better ingredients, better emails. If you want to write an interesting newsletter, you have to have interesting things to write about. And that takes time.

So here’s where I hope you can help me:

I might in the end simply have to hire somebody trustworthy and competent to do all this research for me. ​But I’m holding out hope that there’s a technological solution to this problem. Some combination of automated polling of all these resources… machine transcription… AI-based parsing of what’s interesting or not.

​​Something that can reduce this research work by 50%, 80%, maybe 95%.

Something that can take this aspect of my newsletter from an F to maybe a C. Or who knows, a B or even an A.

Maybe it’s a pipe dream. Maybe not.

If you have any info here — whether you yourself have skills and experience to create something like this, or you know someone who does, or you have somewhere to point me to — write in and let me know.

​​All I can promise in return is my gratitude. But who knows — maybe there’s a business in here as well, because there are a million and one newsletters like mine, and I imagine most face this same problem.

Dentists vs. copywriters: Who wins the better customer battle?

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Here’s a new perspective I found insightful, about who you sell to. Maybe it can save you some headache and even failure:

A few days ago, I was talking to a newsletter strategy consultant. He was telling me about his own newsletter, and the paid advertising he is planning for getting paid subscribers to it.

I won’t name this guy — I’m not sure he would want me to — and I won’t reveal the kinds of people he will be targeting with his ads — not so relevant to others but maybe very valuable to him.

So what’s left?

What’s left is the people he will not be targeting with his ads. And this I believe is relevant whatever your actual business is.

The newsletter expert said he will not be targeting independent newsletter creators. Why? Because, as he told me, they are “a little short term and flaky.”

How could it really be any other way?

If somebody has no employees, no office, no expensive and custom equipment, no contracts to fulfill, and in general no obligations, what’s keeping them going if things ever get bad? The answer is nothing.

That’s why it’s in general better to sell to, say, dentists, who are tethered by a million hooks to their businesses, than to, say, copywriters, who can decide from today to tomorrow to close their laptops and go work as a park ranger or to maybe roast coffee for a living.

That’s not to say you can’t make money selling to people who are a little short-term and flaky. But it exposes you to more risk, and it limits what you can sell and for how much.

That’s something to keep in mind whether you sell to other businesses (hopefully, chained and burdened dentists) or direct to consumers (hopefully, people with an unavoidable problem or an all-consuming obsession).

Last point:

​​I found an interesting new newsletter recently.

This newsletter gives the perspective of somebody who manages to profit from short-term and flaky independent newsletter creators. That somebody is Scott Oldford, who has been buying up independent newsletters and then investing in them and scaling them up. Scott writes about his adventures here:

https://investing.scottoldford.com/