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Monetizing Podcasts and Newsletters - Chris Best of Substack and Jonathan Gill of Backtracks

Monetizing Podcasts and Newsletters - Chris Best of Substack and Jonathan Gill of Backtracks

38 segments available

Chris Best is the cofounder and CEO of Substack. Substack makes it simple for a writer to start a paid newsletter. They were in the Winter 2018 batch of YC. https://twitter.com/cjgbest https://substack.com/ Jonathan Gill is the cofounder and CEO of Backtracks. Backtracks is a podcast analytics and hosting platform. You can check them out at Backtracks.fm. https://twitter.com/jgill333 https://backtracks.fm/ The YC podcast is hosted by Craig Cannon. https://twitter.com/craigcannon Y Combinator invests a small amount of money ($150k) in a large number of startups (recently 200), twice a year. Learn more about YC and apply for funding here: https://www.ycombinator.com/apply/ *** Topics 00:00 - Intros 00:25 - Paid vs advertising in podcasting 2:55 - Are advertisers overpaying for podcast ads? 5:35 - What percent of the market will ultimately be paid content? 7:35 - Payment mechanisms 9:10 - Price anchoring 11:50 - Individual creators vs brands 16:45 - Deplatforming 18:15 - Spotify 19:45 - Discovery and growth in newsletters 22:05 - Public and private feeds 24:45 - Apple's role 26:00 - Will education be the driver of paid content? 29:45 - Educational podcasters in China 31:45 - How are their newsletter and podcast customers growing? 35:40 - Jack Ryder asks - In 5 years time, are personal newsletters going to replace social networks like Facebook? 37:35 - Debdut Mukherjee asks - Do podcasts actually work? If so, how do startups calculate the ROI & the CAC? 43:00 - Measurement 44:45 - Best practices for new podcasters and newsletter creators

Segments Timeline

1
0:00 - 0:25
0:24 duration72 words

Meet the Innovators

Chris Best and Jonathan Gill introduce themselves and their companies, Substack and Backtracks, respectively. They discuss the different strategies of monetizing audio content through paid subscriptions versus advertising, setting the stage for a deeper exploration of the podcasting landscape.

"so Chris what do you do I'm the CEO of sub stack we make it simple to start a paid newsletter and also you can put audio in it now in Jonathan I'm Jonathan Gill co-founder and CEO of backtracks we hel..."

2
0:25 - 2:55
2:30 duration461 words

Paid vs Advertising in Podcasting

Jonathan Gill shares insights on the current podcasting market, emphasizing that ad-supported sponsorship is prevalent due to consumer habits. Chris Best counters with the argument that paid content is a necessary evolution for the media landscape, highlighting the limitations of the existing podcast ecosystem.

"the current state of the podcasting market ad-supported sponsorship is one way forward when people are used to free products versus television and cable where they're used to different tiers so there ..."

3
2:55 - 5:35
2:40 duration519 words

Are Advertisers Overpaying?

The discussion shifts to whether advertisers are overpaying for podcast ads. Jonathan Gill points out the challenges in measuring listener engagement and the need for better metrics, comparing podcast downloads to early internet banner ad impressions, while Chris Best emphasizes the importance of accurate measurement for a healthier advertising ecosystem.

"advertisers today overpaying or under paying or paying about the right amount for podcast ads in general so it depends on the particular piece of content a particular advertiser one of the problems in..."

4
5:35 - 7:35
2:00 duration432 words

The Future of Paid Content

Chris Best speculates on the future of paid content in the podcasting market, suggesting that a significant portion of the audience will eventually pay for quality content. He argues that society underinvests in culture and that a shift towards paid content could enrich people's lives.

"percentage of the market do you think it's going to end up being because right I think obviously the answer to this question is it's gonna be a blend right there's just gonna be like a bunch of mass m..."

5
7:35 - 9:10
1:35 duration307 words

Payment Mechanisms and Consumer Behavior

The conversation explores various payment mechanisms for content creators, with Chris Best highlighting the success of subscription models. They discuss how consumers perceive value in content and the psychological aspects of pricing, such as anchoring and perceived value.

"parts of the world that or not the u.s. there's micropayments there's ways to facilitate that sort of ecosystem how do you view that just in the current infrastructure for direct payments to the creat..."

6
9:10 - 11:50
2:40 duration534 words

The Role of Individual Creators

Chris Best discusses the rise of individual creators and their potential to generate income through direct subscriptions. He emphasizes the unique relationship between creators and their audiences, suggesting that this model could lead to a more sustainable ecosystem for content creation.

"being 10 bucks a month and my newsletter being 15 or something like it depends on the content so you'll see more technical content more in each content that people will pay for not just in podcasting ..."

7
11:50 - 12:50
1:00 duration203 words

Cultural Investment and Future Trends

The segment concludes with a discussion on the future of cultural investment as automation increases in other sectors. Chris Best argues that as society evolves, there will be a greater need to support cultural creators financially, ensuring a vibrant and diverse media landscape.

"people who are like striking out on their own who are making a sizable income or are they going like are there gonna be like YC type things were YC podcasts is paid for or whatever and it turns into i..."

8
13:01 - 14:01
0:59 duration237 words

Quality Over Quantity in Podcasting

Best discusses how advertisers often prioritize audience quality over sheer numbers in podcasting. He explains that niche content can attract valuable audiences, allowing creators to monetize effectively. This approach contrasts with traditional metrics that focus solely on audience size, highlighting the need for tailored content that resonates with specific demographics.

"direct human connection and the creators that feel like they have this sort of like unmediated thing where they're answerable directly to their audience where they get to have intellectual freedom whe..."

9
14:01 - 15:01
1:00 duration230 words

The Role of Data in Content Creation

The segment delves into the impact of data-driven content production on creativity. Best warns against over-reliance on analytics, which can stifle innovation and lead to formulaic content. He advocates for a balance between data insights and creative freedom, allowing creators to produce unique content that may not fit conventional trends.

"people that are like a little bit into you that's great but if you're someone that has let's say 10,000 fans that find you completely irreplaceable and wouldn't want to go on living without you becaus..."

10
15:01 - 16:09
1:07 duration226 words

The Philosophy of Podcasting

Best raises a philosophical question about the purpose of podcasting: should content be driven by advertiser demands or audience desires? He argues that prioritizing what people want will naturally lead to successful monetization, emphasizing the importance of maintaining creative integrity in the face of commercial pressures.

"big podcasting studios will like tailor their shows like oh we're gonna make this show because this shows going to attract this audience of people that's very valuable to advertisers and so if you're ..."

11
16:09 - 17:06
0:57 duration181 words

The Centralization of Media Platforms

The discussion shifts to the centralization of platforms like YouTube and the implications for creators. Best highlights the importance of maintaining control over monetization and content distribution, noting that podcasting remains largely decentralized. He warns against the risks of losing creative freedom to centralized algorithms and corporate interests.

"there's a philosophical thing like who should be choosing what podcast get made should we be making the podcast that advertisers want or should be making the podcast that people yeah and I think there..."

12
17:06 - 18:02
0:56 duration179 words

The Future of Podcasting and Newsletters

Best expresses concern about the potential for podcasting to become overly commercialized, similar to trends seen on YouTube. He values the freedom and niche focus of podcasting, emphasizing the need for creators to maintain their unique voices amidst pressures for high production quality and metrics-driven content.

"connection while the phone or device people think about it as it's coming from Apple it's coming from a certain pod catcher but it's all these independent brands and creators getting their voices into..."

13
18:02 - 19:05
1:02 duration171 words

Discovery Challenges in Podcasting

Best and Gill discuss the difficulties of content discovery in both podcasting and newsletters. They explore how newsletters can grow organically through sharing, while podcasts often require more effort to recommend and discover. This segment highlights the need for effective strategies to enhance visibility and attract new audiences.

"yeah right like when somebody subscribes to your podcast if you make another episode they're gonna get it in most good podcast players whereas if someone follows you on Twitter and are they gonna get ..."

14
19:05 - 20:31
1:26 duration314 words

Building a Successful Newsletter

Best shares advice for writers on how to build their newsletters effectively. He suggests offering valuable, accessible content for free to attract readers, while reserving more in-depth or personal insights for subscribers. This strategy helps to grow an audience and convert casual readers into loyal subscribers.

"meant to meet certain metrics because metric driven content production that's very professionally done sometimes loses the magic of podcasting I think that's why YouTube's in many ways become really s..."

15
20:23 - 21:01
0:38 duration183 words

The Power of Word of Mouth

Chris Best discusses how podcasts and newsletters can grow through word of mouth and low-friction sharing mechanisms. He emphasizes the difference in discovery between written content and podcasts, highlighting the challenges of recommending podcasts compared to sharing articles. This segment explores the importance of discovery in monetized content and how creators can leverage sharing to build their audience.

"will tell their friends word of mouth but they'll also like the forward an issue yeah or they'll like there's a share button they can link to that on the web page or tweet about it or whatever there's..."

16
21:01 - 22:00
0:58 duration246 words

Building a Successful Newsletter

In this segment, Chris Best shares advice for writers on how to structure their newsletters. He suggests making the best, most accessible content free to attract readers, while reserving more specialized content for subscribers. This strategy aims to engage potential subscribers and build a loyal audience, emphasizing the importance of thoughtful content curation in monetization.

"kind of like the biggest thing and if you're charging for it it's like well how many people discover it and then how many like it or then how many of those people pay is tricky so you have to like you..."

17
22:00 - 23:00
0:59 duration196 words

Public vs. Private Content in Podcasting

Jonathan Gill explains the dynamics of public and private content in podcasting. He discusses how brands can manage multiple feeds and the challenges of monetizing private content. This segment highlights the balance between public discovery and private monetization, addressing the current trends in podcasting and the potential for growth in subscription models.

"like the unfiltered on Polish stuff do you have people running multiple feeds on backtracks yes okay so basically if you're a brand you have multiple podcast you can see all your data together and sep..."

18
23:00 - 24:00
1:00 duration218 words

The Future of Podcast Monetization

Chris Best and Jonathan Gill delve into the evolving landscape of podcast monetization. They discuss the historical context of podcasting and the challenges creators face in establishing a consistent user experience for subscription models. This segment explores the potential for new monetization mechanisms and the importance of adapting to audience needs in the podcasting space.

"because I know someone's going to share it and then come back in and then everybody wants to get access to this content that they need to pay for do you want it public to grow the audience to engage t..."

19
24:00 - 25:00
1:00 duration211 words

The Role of Apple in Podcast Distribution

The conversation shifts to Apple's significant role in podcast distribution. Chris and Jonathan discuss how Apple controls a large portion of podcast plays and the implications for creators. They touch on the challenges of discovery and the need for better search functionalities within podcasting platforms, emphasizing the importance of user experience in content consumption.

"solutions of I'm interested in this topic of podcast I don't care what series it's in or what show exactly give me a fix about this that are curated to my taste and based on some criteria I think I wi..."

20
25:00 - 26:00
1:00 duration189 words

Educational Content as a Monetization Strategy

Chris Best highlights the growing trend of educational content in podcasting and newsletters. He discusses how audiences are willing to pay for educational material and the potential for creators to monetize this content effectively. This segment examines the cultural shift towards valuing paid educational resources and the implications for content creators.

"despite that Microsoft lost that name blogcast could have been what we're talking about but that team was highly effective but they were small and then depending on how its viewed with an apple maybe ..."

21
26:00 - 27:00
1:00 duration240 words

The Chinese Market and Educational Podcasters

In this segment, Chris and Jonathan explore the success of educational podcasters in China, where creators can earn substantial income. They discuss the differences in audience perceptions of free versus paid content and how this impacts monetization strategies. This conversation sheds light on the potential for educational content to thrive in various markets.

"maybe the angle people start taking right for this paid small I like I'm wondering about what even the content is for your average paid newsletter like is much of it paid and is that the path forward ..."

22
27:00 - 28:00
1:00 duration185 words

The Rise of Personal Brands in Education

Chris Best discusses the potential for professors and educators to become personal brands in the podcasting space. He envisions a future where educational content creators can monetize their expertise similarly to sports stars. This segment highlights the changing landscape of education and the opportunities for creators to build profitable personal brands.

"heard so this is a sense of like oh if it's free it must be like for the rubes which they're not necessarily wrong about and if it's paid it must be good kind of thing and again it's part of the kind ..."

23
28:00 - 29:00
1:00 duration198 words

Cultural Shifts in Content Monetization

The conversation focuses on the cultural shift towards accepting paid content. Chris and Jonathan discuss how younger generations are more willing to pay for high-quality educational and cultural output. This segment emphasizes the importance of this shift for content creators and the potential for new monetization avenues to emerge.

"so Joe Rogan maybe three hours and you can actually get longer more well produced content that people will consume in in chunks because they don't need to consume it in the same day and then it become..."

24
29:00 - 30:00
1:00 duration195 words

Growth Strategies for Creators

Chris Best and Jonathan Gill share insights on how newsletter writers and podcasters can achieve growth. They discuss the importance of understanding audience needs and adapting content strategies to foster engagement. This segment provides practical advice for creators looking to expand their reach and monetize their content effectively.

"right where it's like they're all free but if you beyond a certain period you have to pay to get the back hat along right yeah so every time I like break my phone I lose all the old ones and have to b..."

25
29:51 - 30:40
0:48 duration159 words

The Future of Educational Content Monetization

Chris Best discusses the potential for educational content creators to monetize their work significantly in the future. He envisions a landscape where personal branding becomes crucial, likening professors to sports stars, and emphasizes the importance of paid content in capturing value for niche audiences. This segment highlights the cultural shift towards valuing high-quality education and content, suggesting that a willingness to pay for such content will lead to a richer media landscape.

"millions of dollars podcasting requires a certain style content a certain size audience and then to say that for educational content in the u.s. that you could make close to double-digit millions a ye..."

26
30:40 - 31:30
0:50 duration213 words

Cultural Shift Towards Paid Content

In this segment, Chris Best reflects on the historical context of free content on the internet and the cultural misstep of not monetizing effectively. He notes a significant shift in attitudes, where younger generations are increasingly willing to pay for quality education and cultural output. This change is expected to unlock new opportunities for content creators, making previously unviable content profitable and enriching the overall media landscape.

"of it I think it has to be paid like there's some stuff that's maybe a mass-market enough but this just the value that you can give to like a small number of people like the best way to get capture so..."

27
31:30 - 32:00
0:30 duration94 words

Strategies for Newsletter Growth

Chris Best shares effective strategies for growing newsletters, emphasizing the importance of providing valuable free content to attract subscribers. He discusses the role of referral programs and effective calls to action in converting casual readers into paying subscribers. This segment provides actionable insights for content creators looking to expand their audience and monetize their newsletters.

"cultural shift there's huge swaths of content that could not otherwise exist that become not just possible but like massively profitable yeah and you know the world gets richer and everything's happy ..."

28
32:00 - 33:00
0:59 duration247 words

Leveraging Community for Growth

In this segment, Chris Best explains how newsletters can grow through community engagement and referral incentives. He highlights the success of referral programs that allow paying subscribers to share free gifts with friends, encouraging new subscriptions. This approach not only fosters community but also enhances the perceived value of the newsletter, making it more appealing to potential subscribers.

"free and like make it easy for that to share on the on the web so like we send emails every time you publish a free thing we'll send the email to everybody but there's also like a version on the websi..."

29
33:00 - 34:25
1:24 duration286 words

Quality Over Quantity in Content Creation

Chris Best emphasizes the importance of quality in content creation, arguing that a well-produced podcast or newsletter can significantly impact audience growth. He warns against the pitfalls of prioritizing quantity over quality and stresses the need for compelling storytelling. This segment serves as a reminder that engaging content is key to retaining and expanding an audience.

"free gifts that you can give out that's like a couple months of subscription which is actually quite valuable I sometimes like worth 20 30 bucks but you can like give that to your friends who they mig..."

30
34:25 - 35:00
0:35 duration129 words

The Power of Storytelling in Podcasts

In this segment, Chris Best discusses the unique storytelling potential of podcasts and the importance of having a strong narrative. He notes that auditory content can leave a lasting impression, often more so than visual or written content. This highlights the significance of crafting a memorable story that resonates with listeners, which is crucial for successful podcasting.

"to all content what's the actual story is it good enough for someone to tell someone else about mm-hmm and when you get there and you can find a way to summarize that it's a part of it for us is a lot..."

31
35:00 - 36:24
1:23 duration244 words

Will Newsletters Replace Social Networks?

Chris Best responds to a question about whether personal newsletters will replace social networks like Facebook. He argues that while newsletters may not replace the social aspect of networks, they will transform how cultural content is consumed. This segment explores the potential for newsletters to provide a more direct and meaningful connection to audiences, shifting the landscape of content consumption.

"people remembering the story and just from our standpoint people actually do remember what they hear 36 to 39 percent longer than what they see in what they read which is actually a video advertiser l..."

32
36:24 - 37:41
1:17 duration239 words

The Role of Podcasts in Advertising

Chris Best and Jonathan Gill discuss the effectiveness of podcasts as an advertising medium. They explore how startups can measure ROI and CAC through podcast advertising, emphasizing the importance of direct response strategies. This segment provides insights into the value of podcasts for brand awareness and the challenges of measuring advertising effectiveness in this medium.

"replaced is where we're conducting our culture in there so the the idea that the place where not only do I get my updates of baby pictures but I'm gonna get my news from Facebook that should a hundred..."

33
37:41 - 39:47
2:06 duration409 words

Evaluating Podcast Advertising Effectiveness

In this segment, Chris Best shares insights on how startups can evaluate the effectiveness of podcast advertising. He discusses the importance of isolating variables to measure the impact of podcast ads on sales and brand perception. This segment offers practical advice for startups considering podcast advertising as part of their marketing strategy.

"how to startups calculate the ROI and the CAC and I guess that also means a startup potentially doing a podcast like you guys have done so maybe you can shed some light in that as well Chris yeah so p..."

34
39:47 - 40:52
1:04 duration243 words

Building Relationships Through Podcasting

Chris Best reflects on the early days of Substack and the importance of building personal relationships with writers. He explains how podcasting served as a tool to share their vision and connect emotionally with potential collaborators. This segment highlights the role of storytelling and personal connection in fostering community and driving engagement in content creation.

"for your brand so you guys are a start-up do you buy podcast ads we have yeah we do buy podcast that are they worth it they are worth it and then sometimes they're under price sometimes they're over p..."

35
41:06 - 42:05
0:59 duration256 words

Using Podcasts to Build Relationships

Chris Best shares how Substack leveraged podcasting to connect with writers in its early days. He explains the importance of storytelling and emotional resonance in attracting creators to the platform, highlighting how podcasts can effectively communicate a brand's mission and values without the need for in-person meetings.

"did and this was actually maybe related to the reason why advertising would be good which was we found the trick with sub stack when we were bringing writers on especially in the early days was we had..."

36
42:08 - 43:39
1:31 duration308 words

Measuring Podcast Success

Jonathan Gill discusses the importance of analytics in podcasting, explaining how Backtracks provides metrics to help podcasters understand their audience and improve content. He emphasizes the need for startups to establish clear metrics before launching their podcasts to ensure they can measure growth and engagement effectively.

"you go budgeting for that so you did it in-house right yeah and we you know we're fortunate wheat one of our our first employee is Nathan Bashaw who was previously head of product again what media he'..."

37
43:41 - 44:39
0:57 duration193 words

Best Practices for New Podcasters

Chris Best and Jonathan Gill offer practical advice for aspiring podcasters and newsletter creators. They stress the importance of consistency, understanding your content's purpose, and starting with a clear vision. They encourage creators to begin with free newsletters or practice podcasts to gain experience and refine their approach.

"those playbacks are occurring depending on your company if it's a startup that has a very social media focus and your audience is on Twitter is that audience listening to your content on Twitter are t..."

38
44:41 - 48:24
3:43 duration833 words

Just Start Creating

In this segment, Chris Best emphasizes the importance of taking action when starting a newsletter or podcast. He advises creators to begin with simple posts or episodes, engage their initial audience, and iterate based on feedback. The conversation highlights that success comes from consistency and a willingness to adapt and learn over time.

"newsletters in podcasts like a lot of the questions we also got or about people who are curious of getting started and so I think like best practices I'm like how to actually get going and what to exp..."