Nathan May@_May_Ham
9 out of 10 newsletters get stuck at 1000-2000 subscribers and/or fail in <1 year because of these 5 avoidable mistakes:
1. Spending too much time in the wrong niche
Many creators with 15-25K subscribers make just $500/month. They're stuck in niches that will never scale to six figures.
How do you avoid that?
Set a 90-day test: "Can I get 5K subscribers & 2 sponsors while spending <$15K?"
If not, pivot. Fast.
2. Not calculating subscriber LTV
Almost no one tracks subscriber LTV, so they have no idea how much they can spend to acquire subscribers.
They're guessing instead of growing.
Tim Huelskamp was different. He left a high-paying PE job to build 1440 because his LTV math showed:
• LTV per subscriber = $20+
• CAC via paid ads = $2-3 (as low as $1 early)
That 10-20x ROI gave him the confidence to raise debt (not VC) & grow from 50K to 500K subscribers in one year.
Calculate your LTV in 3 steps:
• Pick a cohort (e.g., Jan subscribers)
• Track monthly open rates
• Multiply opens by your revenue per open
Example:
25 emails/mo at $40 CPM ($0.04 per open)
Year 1 calculation:
Month 1: 25 emails × 45% open rate = 11.25 opens × $0.04 = $0.45
Month 2: 25 × 40% = 10 opens × $0.04 = $0.40
Month 3: 25 × 37% = 9.25 opens × $0.04 = $0.37
Months 4-12: 25 × 35% = 8.75 opens × 9 months × $0.04 = $3.15
Year 1 LTV = $4.37
Year 2 LTV = $8.57
Rule of thumb:
Spend up to 25% of LTV to acquire subscribers. So, if LTV is $8.57, keep the CAC under $2.14.
3. Avoiding paid acquisition
It’s hard to build a 7 or 8-figure business relying entirely on organic growth.
Why?
Even top creators convert 10-20% of their social followers into newsletter subscribers.
For example, Dickie Bush & Nicholas Cole have a combined ~1M social followers, are A+ on converting folks down to the newsletter, & have 165,000 subs (16.5% conversion).
To reach 100K subscribers at this rate, you'd need 600K followers.
But how many people have that kind of following? Not many.
So, if you want to grow your list, your best bet is to:
• Quickly convert any organic following you have
• Start with small paid campaigns
• Know LTV and CAC
• Validate your unit economics and double down or switch niches
4. Letting ego dictate ad pricing
Many creators with 30K subscribers sell ONLY 1-2 sponsorships monthly because "I won't go below $2,000!"
Bot Eat Brain is an AI newsletter (acquired) that did the opposite.
Initially, they sold their first spots for just $1-50 (with 15K subscribers).
This smart move got sponsors in the door, proved value, and then allowed them to raise rates while building case studies for new clients.
5. Obsessing over subscriber count vs. engagement
I've seen 50K-subscriber newsletters drive only 50 clicks to sponsors. No advertiser returns with metrics this poor.
Sponsors care about:
• Click-through rate: Aim for 0.5%+
• Effective CPC: $2-5 for B2C, $5-15 for B2B
Focus on improving these metrics first, and you'll build a sustainable business that can scale.