How to Make $500 a Month on Substack

From someone who never believed it was possible.

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Have you ever read the subject line of an email and thought what a load of… well, you know.

I get those kinds of emails every week.

• “Here’s how this creator went from 0 to 100,000 followers in 3 days”

• “You should be making six-figures a year already - why aren’t you?”

• “My 5-step plan will guarantee you’ll be a millionaire by this time next year”

And so on. And so forth.

We read these subject lines and scoff because, quite frankly, they’re often garbage.

And why are they garbage? Because no-one jumps from zero to Scrooge-McDuck-sliding-down-a-big-pile-of-gold-coins overnight. Or in 12 months. Or in less than 3 years, if we’re being honest here.

There are almost always a plethora of steps in between. And each of those steps takes time, effort and patience to reach.

So today, let’s dial back from our Big Audacious Financial Goals as writers who want to make a living and focus on a smaller, more manageable step. For now, let’s forget the distant six-figure dream. Let’s even put aside the five-figures-annually target. Or even the four-figures-a-month goal.

Today, let’s talk about how to add a handy and very doable $500 a month to your bank balance through Substack.

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We’ll start with the most obvious one: converting free subscribers to paid.

Let me give you 5 ways you can go about doing this.

1. Build trust and engagement

Trust is the currency you should aim to become rich in as a writer on Substack.

The more your audience trusts you, the more likely they are to boop the upgrade button on your latest free post, right below your gently persuasive call-to-action (you’ve got one of those in every free post, right?).

And the best way to build that trust and loyalty is by sending your free subs high-quality, consistently-helpful content.

Over-deliver here and your readers will wonder what else is behind that big ol’ paywall curtain. If [insert your own name here]’s free stuff is this good, what might their paid content be like?

Start by creating a clear content strategy. Balance your free and premium content to make it clear to your audience just how much value you’re offering. Build that trust, always.

2. Highlight the benefits of subscribing

If you don’t talk about your paid tier, no-one will give it much thought.

Share Notes breaking down everything that’s included in your paid membership. Create a dedicated Membership page for your publication and link to it as often as you can. Offer incredible content for your paying subscribers: exclusive articles, deep dives, case studies, and much more.

Oh, and don’t forget your CTAs (again with the CTAs, Dave?). You’ve got to move your readers from being consumers to action-takers if you want to convert a portion of your free audience into your paid tier.

3. Offer limited-time promotions

I’m sure you’ve noticed already (because you’ve been paying attention), but I do this all the time.

If you want to move your free subscribers into action, light a little fire under them.

Offer discounts for early adopters if you’re just starting out with your paid membership tier. Offer trial periods for new paid subs. Whack a chunk off your annual membership for a short time.

Give your readers a reason to upgrade now rather than later. Over-deliver with your content and offerings but set clear boundaries and end-dates in place.

Why? Because we all need a little nudge sometimes. Don’t be afraid to prod your readers every so often with a genuinely good, common-sense offer.

Move. Your. Audience. Into. Action.

4. Share testimonials and success stories

Social proof is a powerful thing.

We live in an era of reviews and public feedback. Usually, we don’t part with our cash until we’ve seen someone else do it first, and not regret it.

Gather feedback from your paid members and share it with your free subscribers. Reassure them that upgrading is a sound investment. Make it easy.

For instance, here’s a quote from one of my paid subs:

“The How to Write for a Living community has skyrocketed my confidence in my writing abilities and my growth on multiple platforms. I spent 7 years writing daily without getting many views. Within two weeks of connecting to this community I'm seeing new subscribers, comments, and am surrounded by a community of other writers cheering me on.” ~ Erica

Remove the uncertainty factor as much as possible. Your free subscribers are waiting for proof - let them have it.

5. Offer a Founding Member Tier

If you haven’t added a Founding Member Tier to your Substack publication, now is the time.

This is your highest-tier subscription level for your most dedicated readers. It’s where you offer the cherry on top of your normal paid tier with those juicy extras, like one-on-one chats, personalised advice, or behind-the-scenes content.

For example, my “Sustaining” Membership includes 3 one-to-one Zoom calls and a video publication audit on top of my standard paid tier perks. It’s perfect for anyone who wants to work with me more closely (and I love helping people in that way!).

Start by setting a reasonable price for your Founding Membership. Base it on value delivered rather than an hourly rate. You can also give readers the option to set their own price, which can be a good incentive when you’re easing into it.

Again, you can create some urgency around this, too. Maybe only take on a handful of Founding Members each year. Maybe offer a limited-time discount. Give your audience that little nudge some of them might be waiting for.

It’s also a good idea to recognise your Founding Members publicly. Share a Note about them. Share a screengrab of your online call. Create a Hall of Fame page on your publication.

And if you don’t feel ready for this just yet, don’t panic. Understand how you can best serve your audience first, then gradually work your top tier offer into the frame.

So, how do Paid Member upgrades fit into your $500-a-month setup?

Well, let’s look at it this way: if 100 free readers upgrade to being paid monthly subscribers, there’s your $500. Or, you could have 72 paid subs at $7 each. Or just 50 at $10.

It doesn’t seem so out of reach when you put it that way, does it?

Alternatively, you could aim to convert a handful of free subs to your annual membership each month.

For instance, just 10 free subs upgrading to a $50-a-year package = $500.

Or that might be 7 upgrades at $72 each.

Again, it’s all very doable. Just keep focusing on providing a ton of value in your free and paid tiers. Nudge your audience. Make what you’re offering super clear and easy to access.

If you want a brief break from reading, give this a watch (sorry in advance about the poor quality audio!):

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Ok, that’s paid subscribers covered. Let’s talk about the second option for generating $500 a month from your Substack publication: getting newsletter sponsors.

Connecting a handful of applicable brands or creators with your audience is an excellent way of generating consistent, straightforward revenue on Substack.

Here’s how:

1. First, understand your audience.

Define your niche and gather data on your audience’s demographics and interests. Do this by running polls and surveys, or just by flat-out asking them in Chat threads or comments sections.

Once you know what your audience are looking for, you’ll be able to identify the perfect sponsors for your publication.

2. Next, pitch to sponsors.

Do this by creating a sponsorship pitch deck that highlights your audience size, email engagement rates, and niche relevance. That pitch deck could be standard email or direct message copy, a downloadable PDF, or even a recorded video.

Only approach brands, services or creators who align closely with your audience and niche. If you don’t, the brands won’t pay you much attention and your audience won’t be interested (or may even be confused) when they see the ad appear in your post.

3. Don’t forget to offer multiple sponsorship options.

This is crucial.

Not every brand will be willing or able to invest a lot in your sponsorship package. Put at least one cheaper option on the table. At the same time, don’t be afraid to include a premium tier in there for the brands who can afford to splash the cash. You’ll be pleasantly surprised when one says yes to your most expensive package for the first time.

Offer a few different ad options for your post, like top-of-email promo blocks, in-text links and footer calls-to-action.

Try to keep your rates competitive and aligned with the size of your audience. Start very small and work your way up as your readership grows. If you’re realistic, potential sponsors will take you seriously.

And you only need one to get started.

4. Finally, don’t forget to track and optimise your sponsorship offer.

If you can, provide sponsors with metrics like click-through rates or conversions. Gather feedback after campaigns have been completed. Use that data to lock in higher-paying sponsorships in future.

Again: start low, work your way up.

How does sponsorship fit into your monthly revenue target?

If you publish, say, 8 posts a month, you’d only need to charge $63 per ad to reach your $500-a-month goal. Or, if you publish once per week, $125 per ad.

In all honesty, you could easily charge the full $500 for one promo spot once your audience and engagement levels reach a certain point. Some brands pay much, much more than that. But start at a manageable place and go from there.

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Paid memberships: check.

Sponsorships: check.

Here’s one more, and you may already be doing it: podcast monetisation.

If you haven’t started a podcast to run alongside your written content, let me tell you, you’re missing a trick.

Yes, there are a lot of podcasts out there. Yes, it’s a crowded market.

But is it hard to get started? No.

Starting a podcast on Substack is a great way to solidify the bond between you as the creator and your audience. When readers feel like they know you personally, they’re naturally more inclined to trust you. And if you have a trusting, loyal, engaged audience, you can do almost anything as a writer.

Podcasts help readers get to know you by transitioning them seamlessly into listeners and watchers. They give voice to your words. They build context around your stories. They entertain, educate and often edify.

If the thought of starting a podcast from scratch feels overwhelming, don’t panic - I’ve created this course to help you get started. Check it out.

Monetising a podcast works in the same way as newsletter sponsorship. 

Simply offer podcast-specific subscriptions like exclusive paywalled episodes, bonus content, or early access for paid Substack subscribers. Create a pitch-deck specifically for your pod. Offer multiple sponsorship options.

Then go out there and secure podcast sponsors. Listen to other podcasts and see which brands and businesses are sponsoring them. Then reach out to them yourself.

You’ll be surprised how much a brand is willing to pay for a brief mention in your next podcast episode.

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Some bonus ideas

• Paywall comments. This annoys the crap out of some people, but it’s another added incentive for free subs to upgrade. Just flick the Paid Subscribers Only button on your posts or Notes. Simple as that.

• Affiliate marketing. Know of a great little digital resource your audience would love? Just reach out to the creator and ask if you can be an affiliate. You can create ad blocks specifically for that product, or sprinkle some mentions into your posts. As long as it’s relevant to your audience, it’s worth adding it to your arsenal.

• Coaching. I know this isn’t for everyone, but please don’t rule yourself out too quickly. If you have a solid understanding of a particular topic or subject matter, someone else out there will want your help. Bake coaching into your Founding Member tier or offer it as a separate entity.

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In all of this, just remember a few key points.

• First, consistency is so key. Create a schedule and stick to it. Show up when your audience expects you to. Over-deliver. Do what you say you’re going to do.

• Second, leverage that social proof. When someone sends you an encouraging message or email, screenshot it. Share your testimonials. Build a folder and pack it with positive feedback for later use.

• Third, engage with your community. Respond to comments, reply to emails and messages, and invite feedback where you can through polls and surveys. Turn your audience into a community.

• Finally, upskill yourself. Invest time and dollaz in improving your writing, editing, and marketing skills. Buy courses and coaching. Learn all the time, grow your understanding, and develop your skill stack as a writer.

And best of all, nothing I’ve mentioned so far has to work in isolation.

You can combine paid subscriptions with sponsorships and monetisation to create a well-rounded, scalable income stream that flows directly from Substack.

As a final for-instance:

50 monthly paid subs ($5 each)

+ two sponsored ads ($50 each)

+ two affiliate product sales ($25 each)

+ one podcast sponsor ($50)

+ one coaching session ($50)

= $500

And if you found this post useful, you’ll like this one, too.

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