The fees that Substack charges its newsletter creators, are another factor that should be factored in when determining the price of your newsletter.
Substack collects 10% of all revenue generated by your newsletter. Additionally, Stripe, the payment processor Substack uses, charges 2.9% + $.30 per transaction fee.
So what does this actually look like, in practice?
Using my own newsletter as an example, a $50 payment, from a reader, for an annual subscription to Blogging Guide, nets me $42.75 (14.5% taken in total fees).
This might not seem like a lot, but if you are going to try to grow a large Substack audience, this amount can become a meaningful difference.
So it is important that you pick a newsletter subscription price, that will meet your needs net of the fees from Substack and Stripe.
Obviously, one solution is to raise the price of your newsletter, but depending on who your audience is, a small raise in price can trigger subscription cancellations.
It’s also worth noting that newsletter prices are not static, meaning, you can change them over time. So if you are stuck deciding between two prices, choose the more affordable option and revisit the issue after you actually have some paid subscribers.