Hey, Grow Newsie reader!
The #1 metric most creators obsess over? Subscriber count. The #1 metric that actually predicts revenue? Not even in their top 10.
Today, I'm sharing the 12 metrics that separate hobby newsletters from profit-generating machines—plus the exact benchmarks you need to hit at each revenue milestone.
The Vanity Metrics Trap
Before we dive in, let's destroy some sacred cows:
Metrics that DON'T predict success:
Total subscriber count
Social media followers
Website traffic
Email list growth rate (by itself)
Industry awards or mentions
Why these fail: A newsletter with 500 engaged subscribers can out-earn one with 50,000 passive readers. I've seen it happen dozens of times.
The difference? They track metrics that correlate with revenue.
Tier 1: Revenue-Direct Metrics
These metrics have the strongest correlation with newsletter income
1. Revenue Per Subscriber (RPS) - Monthly
What it is: Total monthly revenue ÷ Total active subscribers
Why it matters: This is your newsletter's profit efficiency score. A newsletter earning $10,000/month with 1,000 subscribers (RPS: $10) is infinitely better than one earning $10,000/month with 20,000 subscribers (RPS: $0.50).
Benchmarks:
Beginner: $0.50-1.00/subscriber/month
Intermediate: $2.00-5.00/subscriber/month
Advanced: $8.00-15.00/subscriber/month
Elite: $20.00+/subscriber/month
How to improve:
Increase pricing on existing products
Launch higher-value offerings
Improve conversion rates
Remove low-value subscribers
2. Engaged Subscriber Percentage
What it is: (Opens + Clicks + Forwards + Replies) ÷ Total subscribers × 100
Why it matters: Engaged readers buy. Passive readers don't. This metric predicts future revenue better than any other single KPI.
Calculation example:
1,000 subscribers
400 opens, 80 clicks, 20 forwards, 10 replies
Engaged percentage: 51%
Benchmarks:
Poor: <20%
Average: 20-35%
Good: 35-50%
Excellent: 50%+
Optimization tactics:
Prune inactive subscribers monthly
Send re-engagement campaigns
Improve content relevance
Ask questions to encourage replies
3. Customer Lifetime Value (CLV)
What it is: Average revenue per customer × Average customer lifespan
Why it matters: Tells you how much you can spend on acquisition and still be profitable.
Quick calculation:
Average customer pays $97
Stays subscribed for 8 months
CLV = $776
Benchmarks by business model:
Course creators: $200-2,000
Consultants: $500-10,000
SaaS founders: $1,000-25,000
Community builders: $100-1,000
Tier 2: Engagement Quality Metrics
These predict future revenue and audience health
4. Reply Rate
What it is: Number of replies ÷ Number of emails sent × 100
Why it matters: Replies indicate true engagement and help you understand your audience's needs. High-reply newsletters convert 3-5x better than low-reply ones.
Benchmarks:
Poor: <0.5%
Average: 0.5-2%
Good: 2-5%
Exceptional: 5%+
Tactics to increase:
End with specific questions
Share personal stories
Ask for feedback on content
Create controversy (respectfully)
What it is: (Forwards + Social shares) ÷ Total opens × 100
Why it matters: Forwarded content brings higher-quality subscribers and indicates your content is share-worthy.
Benchmarks:
Poor: <2%
Average: 2-5%
Good: 5-10%
Viral: 10%+
Growth tactics:
Include "forward to a friend" CTAs
Create shareable insights/statistics
Use compelling subject lines
Add social sharing buttons
6. Time-to-Purchase (TTP)
What it is: Average days from subscription to first purchase
Why it matters: Shorter TTP means better nurturing sequences and content-market fit.
Benchmarks:
Course creators: 30-90 days
Consultants: 60-180 days
Product sellers: 14-45 days
Community builders: 7-30 days
How to shorten:
Improve onboarding sequence
Add social proof early
Create urgency in offers
Better audience targeting
Tier 3: Growth Sustainability Metrics
These ensure long-term success
7. Subscriber Quality Score (SQS)
What it is: Custom score based on:
Email domain quality (Gmail = 5, Corporate = 10, Spam = 1)
Signup source (Referral = 10, Social = 5, Purchased list = 1)
Engagement within first 30 days (High = 10, None = 1)
Why it matters: Quality subscribers are worth 10x more than quantity subscribers.
Calculation: Average all three scores for each subscriber, then average across your list.
Benchmarks:
Poor: <4.0
Average: 4.0-6.0
Good: 6.0-8.0
Excellent: 8.0+
8. Churn-to-Growth Ratio
What it is: Monthly unsubscribes ÷ Monthly new subscribers
Why it matters: Shows if you're building a sustainable audience or fighting a losing battle.
Benchmarks:
Healthy: <0.3 (losing <30% of what you gain)
Warning: 0.3-0.7
Crisis: >0.7
If your ratio is high:
Survey churning subscribers
Improve content quality
Set better expectations during signup
Segment your audience better
9. Referral Multiplier
What it is: New subscribers from referrals ÷ Total new subscribers × 100
Why it matters: Referred subscribers have 2-3x higher lifetime value and lower churn rates.
Benchmarks:
Poor: <10%
Average: 10-25%
Good: 25-40%
Viral: 40%+
Improvement strategies:
Create formal referral programs
Incentivize shares with bonuses
Make content inherently shareable
Feature subscriber success stories
Tier 4: Monetization Efficiency Metrics
These optimize your revenue streams
10. Conversion Rate by Traffic Source
What it is: Purchases ÷ Subscribers from each source × 100
Why it matters: Shows which acquisition channels bring buyers vs. browsers.
Typical performance:
Referrals: 3-8%
Organic search: 2-5%
Social media: 1-3%
Paid ads: 0.5-2%
Partnerships: 4-10%
Optimization:
Double down on high-converting sources
Improve nurturing for low-converting sources
Create source-specific content
Adjust acquisition spend accordingly
11. Email-to-Revenue Attribution
What it is: Revenue generated within 48 hours of each email send
Why it matters: Identifies your most profitable content types and sending patterns.
Tracking method:
Use UTM parameters in all links
Track revenue by email campaign
Measure immediate vs. delayed conversions
Account for attribution windows
Optimization:
Replicate high-performing email formats
Test different CTA placements
Experiment with sending frequency
A/B test revenue-focused vs. relationship-focused emails
12. Sponsor Revenue Per 1K Subscribers
What it is: Monthly sponsor revenue ÷ (Subscribers ÷ 1,000)
Why it matters: Standardizes sponsorship performance regardless of list size.
Benchmarks:
Beginner: $50-200 per 1K/month
Intermediate: $200-500 per 1K/month
Advanced: $500-1,500 per 1K/month
Premium: $1,500+ per 1K/month
Growth tactics:
Improve engagement metrics
Create sponsor-specific content
Develop case studies and testimonials
Package multiple touchpoints together
The Weekly Metrics Dashboard
Track these 12 metrics using this simple framework:
Daily (5 minutes):
Revenue
New subscribers
Unsubscribes
Weekly (15 minutes):
RPS calculation
Engagement percentages
Reply/forward rates
Monthly (30 minutes):
CLV updates
Churn analysis
Source performance review
Sponsor revenue analysis
Tools for Tracking
Google Sheets with formulas
ConvertKit analytics
beehiiv reports
Substack stats
Red Flag Metrics (When to Pivot)
Immediate action needed if:
RPS declining for 3+ months
Engaged percentage <15%
Churn-to-growth ratio >1.0
Reply rate <0.2%
Time-to-purchase increasing consistently
Setting Your 90-Day Targets
Based on your current revenue level, focus on these metrics:
$0-1K/month: Focus on metrics 1, 2, 4, 8
$1-10K/month: Add metrics 3, 5, 6, 10
$10K+/month: Track all 12 religiously
The Metrics That Don't Matter Until Later
Ignore these until you hit $10K/month:
Advanced segmentation metrics
Cohort analysis
Predictive modeling
Cross-platform attribution
Advanced funnel analytics
Why: They're interesting but don't move the revenue needle for smaller newsletters.
Your Action Plan This Week
Day 1: Set up tracking for your top 4 metrics
Day 2-3: Calculate current benchmarks
Day 4-5: Identify your weakest metric
Day 6-7: Implement one improvement strategy
The 80/20 rule: Focus 80% of your energy on improving your worst-performing metric. It'll have the biggest impact on overall performance.
Keep growing!
With love,
Nikhil
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