Latest / The Newsletter Podcast with Fexingo: Substack, Beehiiv, and Email Newsletter Business / How Newsletters Use Affiliate Revenue Without Losing Trust
Transcript
- Lucas: I was looking at a newsletter operator's revenue breakdown the other day, and affiliate income was their second-biggest line item — bigger than sponsored placements, bigger than paid subscriptions. Luna: That's surprising, because affiliate links always feel a little... I don't know, tacky, if they're not done right. Lucas: Exactly. And that's the tension. Done poorly, it erodes trust fast. Done well, it can be a steady, reader-friendly revenue stream. So today I want to talk about the actual playbook for affiliate revenue in newsletters — the specific tactics that make it work without making your audience feel sold to. Luna: Let's start with the elephant in the room: disclosure. How do you do it without sounding like a disclaimer robot? Lucas: Right. So there's a newsletter called 'The Pour Over' — it's a daily news digest, very clean, very respected. They do affiliate links for books and tools they genuinely recommend. And their disclosure is a one-liner at the top of the section: 'We may earn a commission if you buy through these links — but we only recommend stuff we actually use.' That's it. No legal wall of text. Luna: And they put it at the top, not buried at the bottom. That's key. Lucas: Huge. Because if you hide it, readers feel tricked when they eventually notice. The Pour Over's approach signals respect: 'I'm telling you upfront, because I want you to trust me.' And that trust pays off — they reportedly earn over two hundred thousand dollars a year from affiliate commissions. Luna: That's a lot of coffee mugs. But what about the actual product? I mean, not every newsletter is about books or tech gadgets. Lucas: True. The principle scales to any niche. Let's say you run a fitness newsletter. You can link to resistance bands, protein powders, maybe a training app. The key is relevance and personal experience. The worst affiliate move is linking to something you've never tried, just because the commission is high. Luna: I've seen that backfire. A finance newsletter I read once promoted a credit card with a huge sign-up bonus, but the fine print was terrible. Readers called them out in the comments. Lucas: Exactly. And once that trust is broken, it's hard to rebuild. So smart operators use what I call the 'three strikes' rule: they only recommend a product if they've used it personally, if it fits their audience's needs, and if the vendor has a solid reputation. Not just the first and the last. Luna: So it's a quality filter. That makes sense. But what about the economics? Affiliate commissions vary wildly — from one percent to fifty percent or more. Lucas: Right. The common mistake is chasing the highest commission rate. But a thirty percent commission on a product your audience doesn't want is worse than five percent on something they'd buy anyway. The better metric is earnings per subscriber, or maybe click to purchase conversion rate. Luna: So it's not just link, link, link — it's about curation. You're acting as a filter for your audience. Lucas: Exactly. And that's why the best affiliate programs often don't shout the loudest. For example, Amazon's affiliate program pays relatively low commissions — but conversion rates are high because people trust Amazon. So net revenue can be solid. Meanwhile, some niche software companies pay forty percent but have very few buyers. Luna: So you need to know your audience's purchase behavior. If they're impulse buyers, Amazon works. If they're research-heavy, maybe a detailed review with a link to a specialized tool. Lucas: Bingo. And this is where some newsletter operators get clever. They don't just drop a link — they write a mini-review or a comparison. 'I tried three project management tools and here's why I stuck with this one.' That turns a link into content. Luna: That also helps with SEO. Those comparison posts get searched for. Lucas: Right. So the newsletter becomes a resource, not a sales page. And that's the fundamental mindset shift: affiliate revenue should be a byproduct of being helpful, not the goal itself. Luna: I want to talk about frequency. How often can you include affiliate links before it feels spammy? Lucas: Great question. I've seen a rule of thumb: no more than one affiliate link per issue, unless it's a dedicated roundup. But even then, the ratio matters. If your newsletter has five sections and three of them are affiliate links, that's too many. Luna: What about the format? Some people use plain text links, others use buttons or images. Lucas: Buttons tend to convert better, but they also feel more promotional. A plain text link with a contextual sentence feels more editorial. I think the trend is toward authenticity: use the format that matches your voice. If you're a minimalist writer, a button might feel out of place. Luna: Another thing: timing. Do affiliate links work better at certain points in the week or month? Lucas: Weekends, surprisingly. People have more time to browse and buy. Also, end of month when paychecks hit. But the bigger factor is relevance to what's happening. If you're a personal finance newsletter, tax season is gold for linking to TurboTax or H&R Block. Luna: Let's talk about platforms. Substack doesn't have a native affiliate program, but Beehiiv does. How does that change the game? Lucas: Beehiiv's affiliate network is a big selling point. They've pre-vetted a bunch of partners, so you don't have to negotiate individually. You just pick from a catalog. That lowers the barrier for small newsletters. Luna: But doesn't that also mean you're limited to their partners? What if you want to promote something outside their catalog? Lucas: You can still do manual affiliate links — Beehiiv allows that. The native program just gives you an easy starting point. For a lot of hobbyist newsletters, that's enough. For pros, they'll build their own relationships for better rates. Luna: I've also seen newsletters use affiliate links as a loss leader — they offer a bonus or discount code to their audience, and the affiliate link is how they track it. Lucas: Yes, that's a smart twist. It turns the affiliate link into a value-add for the reader: 'Use this link and get twenty percent off.' The reader feels like they're getting a deal, and you earn a commission. Win-win. Luna: But you need to make sure the discount is actually good. If it's the same as a public coupon code, the trust erodes. Lucas: Absolutely. Exclusive codes are better. They make the reader feel special, and they reinforce that your newsletter has insider access. Luna: What about tracking and attribution? If a reader clicks a link but buys three days later, does the newsletter still get credit? Lucas: Most affiliate programs use cookies. Standard is thirty days, but some are seven days or even ninety days. Amazon's is twenty-four hours for some categories, which is shorter than people think. So you want to pick programs with longer attribution windows, especially for high-ticket items where people research first. Luna: That's a practical tip right there. Check the cookie duration before you join an affiliate program. Lucas: Exactly. And don't be afraid to ask for a longer window if you're a trusted partner. Some merchants will negotiate. Luna: Okay, let's pivot slightly. Affiliate revenue is often seen as a side income, but some newsletters make it their primary model. Are there any that have scaled it to a full-time business? Lucas: Yes, 'The Wirecutter' is the ultimate example — though it's not a newsletter per se, it's a review site. But in the newsletter world, 'Morning Brew' uses affiliate links in their 'Brew Market' section. They're not the main revenue driver, but they're meaningful. And smaller ones like 'Trends.vc' use affiliate links for specific reports. Luna: So it's a supplementary stream, not the whole pie. Unless you're a dedicated review newsletter. Lucas: Right. And I think that's the healthy mindset: treat affiliate as one of several legs on the stool. That way, if one affiliate program changes its terms, you're not wiped out. Luna: Speaking of terms, they can change. Amazon famously cut commissions for some categories a few years ago. That hurt a lot of publishers. Lucas: Yeah, that was a wake-up call. Diversification matters. Some newsletters now use multiple affiliate networks — ShareASale, CJ Affiliate, Impact — so they're not dependent on one. Luna: And they also mix in other revenue like sponsorships and paid subscriptions. That's the smart play. Lucas: Exactly. But for those just starting, affiliate is often the easiest to set up. You don't need a huge audience — even a few hundred engaged readers can generate some income if the product is right. Luna: I think if these marketing conversations have sparked something you've actually used — maybe a tip on affiliate links or something else — and it was worth a coffee to you, that's the link. It's buy me a coffee dot com slash fexingo. Lucas: Yeah, listener support is what keeps this show ad-free and independent. No pressure, just if it's useful. Luna: Alright, back to the topic. One thing I've noticed is that the best affiliate newsletters don't just link — they contextualize. They say 'I used this for X project and it saved me three hours.' Lucas: That's the gold standard. Specificity creates desire. 'This tool cut my editing time in half' is way more compelling than 'great tool for editors.' Luna: And it also signals that you've actually used it, which goes back to trust. Lucas: Right. So the takeaway: affiliate revenue is viable if you treat it as a service to your audience, not a tax on their attention. Be transparent, be selective, and always prioritize the reader's experience. Luna: I'd add: track your metrics religiously. Know which links convert, which days perform best, and which products your audience actually buys. That data will guide your strategy. Lucas: Great point. And one final thought: if you're unsure, test with a small segment of your list first. That way you can see the reaction before rolling it out broadly. Luna: That's a smart low-risk approach. Well, I think we've covered the essentials. Next time we might talk about negotiating sponsorship deals directly. Lucas: Good idea. That's a whole other world. But for now, if you're a newsletter operator, I hope this gives you a concrete framework for affiliate revenue that doesn't feel icky. Luna: Yeah, it's all about balance. Thanks Lucas.