Latest / Marketing Made Simple with Fexingo: Branding, SEO, and Digital Strategy for Beginners / How Email Newsletters Beat Social Media Algorithms
Transcript
- Lucas: If you've been on any social platform in the past year, you've probably noticed something: your posts just aren't reaching as many people. And it's not you — the algorithm is actively shrinking your organic reach so you'll pay for ads. Luna: Right, it's like the rug keeps getting pulled. And a lot of brands are waking up and asking, where do I actually own my audience? Lucas: Exactly. And the answer, increasingly, is email newsletters. I know — email sounds old school. But in 2026, newsletters are having a serious moment. Morning Brew, which started as a daily email for college kids, was bought by Insider for something like seventy-five million dollars. The Hustle, another newsletter, got acquired by HubSpot for a reported twenty-seven million. Luna: Those numbers are eye-popping. But for every Morning Brew, there are thousands of smaller newsletters quietly making great money. What's the secret sauce? Lucas: Let's start with the big structural advantage. When you post on Instagram or LinkedIn, you are renting the audience. The platform decides who sees your content. With email, you own the list. You control the message, the timing, the frequency. And your open rate? It's typically twenty to forty percent. Compare that to an average organic Facebook post that might reach two percent of your followers. Luna: Two percent is brutal. I've seen that firsthand with clients. So email gives you back that direct line. But it's not just about deliverability — it's about connection. Lucas: Totally. A newsletter is intimate. It lands in someone's inbox, often first thing in the morning. The best ones have a distinct voice. Morning Brew's tone is witty, irreverent, like a smart friend giving you the business headlines. The Hustle was similar — punchy, opinionated, not afraid to be funny. That voice is what builds loyalty, not just readership. Luna: And that voice is something algorithms can't replicate. It's inherently human. So if a brand tries to automate it with generic content, it falls flat. Lucas: Exactly. Which brings me to the economics. Morning Brew scaled to over four million subscribers before the acquisition. But you don't need millions. A newsletter with just five hundred engaged subscribers can be a viable business if they're the right people — say, B2B buyers or high-ticket consumers. The key is monetization: sponsorships, affiliate links, or your own products. Luna: So how do you actually start? I imagine there's a lot of advice out there, but what's the one thing that actually matters? Lucas: The single most important thing is consistency. Morning Brew sent every single weekday from day one. No breaks. The Hustle did the same. You build a habit in your reader. And you need a specific angle. 'Business news' is too broad. 'Business news for millennials who hate boring finance' — that's a hook. Or 'Marketing tips for solo founders' — that's a niche. Luna: And the technical side? You can start with something like Substack or Beehiiv for free, right? No design skills needed. Lucas: Right. Substack is the simplest — you write, you hit publish, people subscribe. Beehiiv has more growth tools, like referral programs and polls. Mailchimp is fine for existing businesses. The barrier to entry is basically zero. But here's the catch: it takes time to build traction. Morning Brew spent two years barely growing before it took off. Patience is part of the strategy. Luna: I've noticed a lot of brands now treat their newsletter as the centerpiece of their content strategy, with social media as a distribution channel to drive sign-ups. That flips the old model on its head. Lucas: Completely. And it's smarter. You post a thread on X that points to your newsletter. You make a Reel that teases the week's edition. Social becomes a funnel, not a destination. And when the algorithm inevitably changes, your list is still there. That's the moat. Luna: If these marketing conversations have sparked something you've actually used — maybe a newsletter idea or a shift in how you think about reach — then you know the value of a direct connection. A couple of dollars a month is genuinely what keeps these going. Lucas: Yeah, buy me a coffee dot com slash fexingo, if you've gotten something out of them. It really adds up and lets us keep this ad-free. Every bit helps. Luna: Right. Okay, back to newsletters. So once you have a list, how do you grow it? Because the first hundred subscribers are the hardest. Lucas: The most effective growth tactic for a new newsletter is what I call the 'giveaway plus landing page.' You create a lead magnet — a PDF, a template, a checklist — that's genuinely useful. Then you point all your social traffic to a simple sign-up page using something like Carrd or Linktree. You can also cross-promote with other newsletters in your niche. That's how The Hustle grew early on — they traded shout-outs with similar-sized newsletters. Luna: And content sharing? Like, can I just repurpose my blog posts? Lucas: You can, but don't just copy-paste. The newsletter format is shorter, more personal. If you have a blog post about five SEO tips, turn it into a story — 'Last week I tried this SEO tactic and got a 40% boost in traffic. Here's how.' That narrative hook is what makes people open it next time. Also, include a clear call to action to forward to a friend. Word of mouth is still the best growth driver. Luna: Speaking of word of mouth, Morning Brew had a brilliant referral program. They gave away branded merch like coffee mugs and t-shirts for referring friends. It turned subscribers into evangelists. Lucas: Exactly. And you can do that even on a small scale. Offer a free ebook or a shout-out in the newsletter. The psychology is powerful: when someone refers others, they become more committed to your brand. It's the same principle as community-led growth, which we talked about a few episodes back. Luna: So let's talk monetization. When do you start making money, and how? Lucas: Most newsletters start with sponsorships. The typical model is cost per thousand subscribers, or CPM. A newsletter with 10,000 subscribers might charge $500 to $2,000 per sponsorship slot, depending on the niche. Business and finance newsletters command higher rates because the audience has buying power. You can also do affiliate marketing — recommend a tool you use, and get a commission. Luna: And what about selling your own products? I've seen people launch online courses or consulting services through their newsletter. Lucas: That's where the real money is. The newsletter builds trust, and then you offer something premium. Ben Thompson's Stratechery is a perfect example: he has a free newsletter and a paid subscription for deeper analysis. He makes millions a year. But even a modest course at $200 a pop with 100 buyers is $20,000 — not bad for a side hustle. Luna: It's interesting that newsletters are thriving precisely because social media is fragmenting. People are tired of noise and want something curated. Lucas: Absolutely. The attention economy is shifting from feeds to inboxes. And the smartest marketers are riding that wave. If you haven't started a newsletter yet, today is a good day to begin. You can write your first edition in an hour and send it to ten friends. That's all it takes to start owning your audience. Luna: And that direct relationship? It's worth more than a million followers on a platform you don't control. Lucas: Exactly. So whether you're a solopreneur or a brand marketer, the newsletter is your digital home base. Build it, nurture it, and it will pay dividends for years.