Hey, Grow Newsie reader!

If you've been building your newsletter and wondering when (and how much) to charge for sponsorships, you're not alone. Pricing is one of the biggest challenges newsletter creators face—charge too little and you leave money on the table, charge too much and sponsors ghost you.

Today, I'm breaking down the exact pricing strategies that successful newsletter creators use to monetize their audience without the guesswork.

Unlike traditional advertising, newsletter sponsorships offer something special: direct access to an engaged, opted-in audience. Your readers chose to hear from you, which means your recommendations carry weight.

But this also means pricing can't follow standard banner ad logic. Your engaged community deserves premium pricing.

This is the simplest formula to start with:

Charge 5% of your total subscriber count.

When to use it: You're just starting with sponsorships and want a straightforward number to present to brands. This method is easy to explain and justify.

Pro tip: As your engagement grows, you can increase this to 6-7% of your subscriber count.

CPM is the industry standard and what most advertisers expect. Here's how it works:

Formula: (Your rate / Total opens) × 1,000 = CPM

Newsletter CPM benchmarks:

Example: If you have 15,000 subscribers with a 40% open rate (6,000 opens) and you want to charge a $60 CPM:

When to use it: You have solid open rate data and want to speak the language advertisers understand. This is especially useful when working with agencies or experienced media buyers.

Set one price per sponsorship placement, regardless of subscribers or opens.

Example rates based on list size:

When to use it: You want pricing simplicity and don't want to constantly recalculate based on fluctuating metrics. This works especially well for smaller newsletters or when selling packages.

The advantage: Easy for both you and the sponsor. No complicated calculations or performance tracking needed.

You only get paid when readers click through to the sponsor's website.

Average newsletter CPC: $5-$10 per click

Formula: Number of clicks × CPC rate = Your payment

When to use it: You're extremely confident in your audience's engagement and the sponsor has a compelling offer. This is higher risk but can pay off significantly if you have a click-happy audience.

Warning: Only 20-30% of newsletters succeed with this model. It puts all the risk on you.

Bundle multiple sponsorships at a discounted rate to secure guaranteed income.

Example package:

Benefits:

Pro tip: Always include a "most popular" tier that's your ideal package. Most sponsors will choose the middle option.

Increase your sponsorship value by offering extras:

This allows sponsors to customize their package while you maximize revenue per deal.

Adjust your rates based on proven results:

Start with baseline pricing, then after 3 months of sponsor data:

Track these metrics for every sponsorship:

Use this data in your pitch: "Our last 10 sponsors averaged a 4.2% CTR, which is 3x the industry standard."

Here's the exact pricing structure I recommend:

For newsletters with 10,000+ subscribers:

❌ Pricing too low "just to get started" – You devalue your work and set a bad precedent

❌ Only offering one pricing option – Give sponsors choices to increase close rates

❌ Forgetting to raise rates – Increase prices as you grow (at minimum annually)

❌ Charging the same for all placements – Primary placement should cost more than secondary

❌ Not tracking performance metrics – You need data to justify rate increases

There's no "perfect" pricing strategy—the right one depends on your audience size, engagement, niche, and goals. But the biggest mistake you can make is not charging at all.

Start somewhere, track your results, and adjust. Every newsletter that's successfully monetized through sponsorships started exactly where you are now.

Your audience has value. Price accordingly.

Keep growing!

With love,
Nikhil