So skalierst du deinen Newsletter

0:00My name is Jaz, I run Winnipeg Digest. It's a local newsletter / media company. Okay. With an audience of 110,000 people in Winnipeg. Sweet. >> Um, so that's about 70,000 on socials, 40,000 newsletter list in the last 18 months. That's awesome. >> We right now do Yeah, thank you. We do about $10,000 in revenue right now, 6,000 profit through local advertising. Okay.

0:26>> per month or per year? That's per month, yeah. Okay. And then and then six We currently have six annual advertisers, mostly paying about 1,000 per month with two paying 2,000 per month. Okay. >> And then the rest of the revenue comes from single one-off ads. Okay. >> My question is a little two-part. So, the first one is how do I scale to a million without running out of local advertisers in the future, which I'm afraid of, or running into a supply constraint because we only send out 12 newsletters per month.

0:56Um, so basically we have 12 >> No, we send out 12 newsletters per month. So, it's three per week. >> Okay, got it. >> Cuz every Monday, Wednesday, and Friday. And these are digital, right? Yeah, these are these are digital email newsletters. Got it. Got it. Got it. Okay. Yeah. And are you I mean >> Yes. So, that's my question. Yeah, so I would not be worried about running out of advertisers. There's 110,000 people in the city. There's you can for sure get enough advertisers. That's not an issue.

1:22So, put that one away. Um, you running out of ad space is more uh more possible. So, you have how many people on your list? >> [clears throat] >> Yes, so we have 40,000 on the list. The city is a million people. So, the city's a million Yeah, so the city is a million people. The 110,000 is what our audience size is. So, it's 70,000 on social media. Oh, word. Dude, you have so much room. You have so much room. So much room.

1:51Yeah, so that's kind of So, okay. So, if I have room, then kind of from a growing perspective, then I'm afraid that we'll run out of ad space. So, we'll run run into a supply constraint. >> not going to run out of ad space. You're going to have to make sure that you're pricing your CPMs appropriately. So, said differently, if you have you know, 250,000 of the people out of the million in the city on your newsletter, you could charge a tru- I mean, every ad would be you'd be, you know, $100,000. Like it would be a lot.

2:19Mhm. Yeah. >> what I'm saying? So, yeah, so the space itself, obviously you have limited you you don't want you don't want to send your entire newsletter is just all ads, right? That's not going to work. The way that media scales is via impressions and and and quality of impressions. And so, you can charge more for the same space. That's what That's what you have to do. So, it's like, how do I scale this business? You get more eyeballs. But it's like there's not that or like I don't know if there's enough businesses that can pay me 200 like $100,000 per ad, you know?

2:50There are for sure businesses Well, again, you're you're selling 12 ads a month. There's $1,000 a month in in advertising is not like many businesses can can do that. Many businesses can do five or 10. Mhm. Dude, like my dad used to run My dad's local business owner, right? He used to spend 10 or 15,000 [clears throat] dollars to be in like Baltimore Digest or something or Baltimore's whatever.

3:13They one one magazine per month went out and he would spend $15,000 to be in that thing for like a half page, right? Mhm. So, >> Okay, yeah. So, that kind of that kind of semi I guess that kind of answers my second question, too, which was like it was either okay, should I expand to new cities, stay in the current one, but niche down? So, let's say go start another one, but say Winnipeg real estate digest or something, right? Or just keep

3:40>> I want you to keep scaling this way. I do not think it's worth you uh splitting splitting your attention right now. I think you have way more way more impressions to capture. The other piece that you want to consider here there is like, you're sending a a newsletter. It's like, are there other places you can like you have 70k on social. It's like, we can charge for posts, we can charge for stories, we can charge for YouTube video integrations, we can charge for newsletter. Like, I would rather you do all that stuff first before even considering the niche down for now.

4:11Okay, but what you would say the next step would be to niche down after like a certain scale No, for I would I don't even want you to think about niching down. I want you to just do more. You need way more. Okay. Okay. And then Okay. And from a acquisition standpoint of subscribers, we are currently running Facebook ads in acquiring subscribers at like a dollar 40. Okay. >> that's kind So, my question then is do we continue to face the scale Facebook ads cuz right now it takes about like three months to break even on a subscriber. Okay, so you already know that. Yeah. I mean, that's fine, man. Yes, so it Okay. Yeah. And so, we're still doing Facebook ads and social. Yeah.

4:53You can also sell people longer, you know, periods of time on the front end. Mhm. And is there and is there like a front-end offer? Like cuz I know a lot of people in this space trying trying to achieve like negative cost for acquiring a subscriber, right? So, um, having some sort of a front-end offer. Would you say I should still continue to just push B2B advertising or >> push B2B advertising as you do your Facebook ads when people opt in for the newsletter.

5:20Just have something called an SLO, which is self- self-liquidating offer on the thank you page. Okay. Do you have anything on the thank you page that you sell on? No, nothing right now. I mean, >> Bro, I'm about to change your life. I'm about to change your life. You ready? Yeah. I want you to offer a a 10-pack of guide to Winnipeg's best restaurants, guide to Winnipeg's best new uh spots, guide to Winnipeg's best ski guide to Winnipeg's best dessert. Like literally, just put a put 10 different kind of like magazines, do it once. Uh, make that 10-pack like $37, put it on the thank you page. If you can get one out of 37 people to buy it, your cost of acquisition is zero, and then you can scale this thing to the [ __ ] moon.

6:05So, those would be physical like physical things or like digital things? >> You can make it digital. It's fine. Okay, yeah. I was literally about to offer that for free in our welcome sequence, so. There we go. >> [snorts] >> Okay. And yeah, okay. No, I think that kind of answers my my question. >> I feel like that was pretty good. Yeah, I mean, no, that was >> [laughter] >> great. Thank you. All right. No, like I mean, I've been I've been like going back and forth with like, oh [ __ ] I started Christmas holiday lights company on top of this.

6:36>> No, dude. No. No. Wait, that sounds [ __ ] awful. No, it sounds horrible. Do more of this. All you have to do is add a self-liquidating offer on the front end, you'll be able to grow the hell out of your media, you can charge more, [snorts] you can get more advertisers in. Done and done. You can also, if to your concern, you can also parse your list, >> [snorts] >> right? So, let's say you triple your list size. If for some reason you can't find advertisers who can pay more, which I wholeheartedly reject, but just to show you that you can still be creative here. You can say, I'm going to send uh 12 emails to these people, 12 emails to these people, and 12 emails to these people. List A, B, and C cuz you made the list three times as big, and you can charge that many more times.

7:12>> Uh-huh. Okay, got it. That answers I think all my questions. Thank you. >> Rock and roll, man. Appreciate you. >> Thank you so much. Bye-bye. Bye-bye.