Substack is a publishing platform where you write a newsletter, build a free list and switch on paid subscriptions when readers are ready to pay. It costs nothing to start. Substack takes 10% of paid subscription revenue, and Stripe adds its processing fees on top. Its main pull is the network: readers discover writers through the Substack app and recommendations from other publications.
At a glance
| What it is | Newsletter and publishing platform |
| Cost to start | Free |
| Platform fee | 10% of paid subscriptions |
| Processing | Stripe fees, plus a 0.7% billing fee for newer paid publications |
| Paid plans | Monthly and annual, plus an optional founding member tier |
| Growth tools | Recommendations, the Substack app, Notes |
| Payouts | Through your Stripe account |
How it works
You create a publication, choose a name and start sending posts by email and on the web. Readers subscribe for free. When you have enough readers who value your work, you connect Stripe and turn on paid subscriptions. Every paid publication must offer both a monthly and an annual price, and you can add a higher founding member tier for your biggest fans. You decide which posts go to everyone and which sit behind the paywall.
Substack handles the payment pages, the paywall and the email delivery. You keep the subscriber list and can export it if you leave.
The fees in plain terms
Substack keeps 10% of what paid readers pay you. Stripe charges its usual card fees, and publications that turned on payments after July 2024 also pay a 0.7% Stripe billing fee. On a typical monthly plan, you keep roughly 85 to 87 cents of every dollar. The fee never drops as you grow, which is why some large writers later move to flat-fee platforms.
Discovery is the real advantage
Substack is a network as much as a tool. Other writers can recommend your publication when their readers subscribe, and the Substack app and Notes feed surface new writers to people already reading on the platform. For a new writer with no audience, that discovery can matter more than the fee.
What you can realistically earn
Earnings depend entirely on your audience and topic. A common rule of thumb is that a small share of free readers, often a few percent, become paying subscribers once you offer something worth paying for. Substack reported around 5 million paid subscriptions across the platform in early 2026.
Getting started
Pick one clear topic and a regular schedule. Publish free posts for a while, then add paid subscriptions once readers reply and share. Offer something specific behind the paywall, such as a weekly deep dive, a database or a community thread.
Common mistakes
Some writers turn on payments on day one with almost no readers. Others paywall everything, which stops the free posts that bring new readers in. A third mistake is posting irregularly, which loses readers faster than any fee.
Keeping track
Substack’s dashboard shows open rates, new free and paid subscribers, and where they came from. Check which posts convert free readers into paid ones and do more of them. A short welcome email that explains what paid readers get also helps conversions.
Final tip
Turn on recommendations early and recommend writers you genuinely read. They often return the favour, and it is the cheapest way to grow on Substack.
Owen’s take
Substack is the easiest way to test whether people will pay for your writing. You pay nothing until they do. If the newsletter grows into a real business, the 10% becomes worth reviewing, but that is a good problem to have.
Who it suits
It suits writers, journalists and experts who want to start without upfront costs and benefit from a built-in reader network. It suits less well publishers who want a native ad network or full control over design.
Similar options
- beehiiv charges a monthly fee and runs an ad network.
- Ghost takes 0% of paid memberships.
- Buttondown is a minimalist option with no revenue cut.
- Patreon suits creators selling memberships beyond writing.
More options are in Newsletters.
Pros and cons
Pros
- Free to start
- Built-in reader network
- You own your list
Cons
- 10% fee that never drops
- Limited design control
- No native ad network
FAQ
Is Substack free?
Yes. It only takes a cut when readers pay you.
How much does Substack take?
10% of paid subscriptions, plus Stripe fees.
Can I leave Substack with my subscribers?
Yes, you can export your subscriber list.
Do I have to offer both monthly and annual plans?
Yes, paid publications must offer both.
What is a founding member?
An optional higher-priced tier for readers who want to support you more.
