Welcome to Marketing School, the only podcast that provides daily top level marketing tips and strategies from entrepreneurs that practice what they preach and live what they teach. Let's start leveling up your marketing knowledge with your instructors, Neil Patel and Eric Sue.

Welcome to Marketing School, the only podcast that provides daily top level marketing tips and strategies from entrepreneurs that practice what they preach and live what they teach. Let's start leveling up your marketing knowledge with your instructors, Neil Patel and Eric Sue.

All Right, we're going to talk about what you can learn from the best newsletter businesses. So I'm gonna give a couple examples. First, what do we mean by newsletter? Morning Brew? That's one Morning Brew they update you with the latest business news each day, The Milk Road great crypto newsletter, Axios. They got a lot of news in the VC world, investing world. So there's a lot of newsletters out there. E Marketers another one and it's newsletter. It's just the email newsletter that you get that's keeping you updated on subjects that you're interested in. And we want to talk about what you can learn from the best newsletter businesses today. By the way, what do you think is the best newsletter business if you had to pick one, A Goorra. Yeah, I let's say a Goorra too. That's the question. Because you mentioned Morning Brew and you mentioned Agora. Agora I think is the biggest. I don't have it mentioned what they are to tell them about what what a gore is. So Agora is a financial newser think about like stock trading, Hedgemund's economy. And they have a lot of different divisions like Stansbury Research, a Goora Financial, Moneymap Press that are all owned by I think the guy's name is Bill BONNERM and Agora. I don't know what they're doing this year, but I remember because we've done quite a bit of their marketing over the years. It's a billion plus dollar revenue company. And it may be a little bit down or a little bit more, but that's a lot of revenue to generate from selling newsletters on an annual basis. Like just think about that, A billion plus dollars year in revenue for selling newsletters. I think it's impressive. I mean, you look at Morning Bruce sold to Business Insider for an eight figure amount and now Morning Brew' is doing like eighty ninety million a year whatever. And the founders, you know, they've done well for themselves. Congrats to them. And they started it, you know, when they went to Michigan. The Hustle I think sold for maybe twenty seven to twenty eight million dollars too, spot and these are legit media companies. And the way I look at them is, I think these businesses are super actually sold for five hundred and fifty three million, and then a Gora to your point you said, high point was they're doing like north of a billion in revenue annually. Uh huh. So there's a lot of different ways to play, but I think a Gora pub probably played it the best because the other newsletters that I talked about are very advertising based, whereas a Gora, they their monetization vehicles are for their own products, and so it could be like a Mastermind or it could be a subscription that costs, you know, five thousand dollars a year, ten thousand dollars a year. There's like proprietary research that they that they do, and they have a lot of events and things like that, right, and people that are really interested in money or making money, they're naturally okay with spending on stuff like this. And so I think my opinion on this isn't for the newsletter business is there's a couple of things. One, if you have a good monetization engine. Let's say me and I we both have ad agencies. Right, if we were to build a newsletter, like a strong marketing newsletter, we would be promoting our own stuff. So we might be voting our ad agencies. We might be promoting the mastermind that I have. We might be promoting Answer to Public or Uber Suggests, which is the product that Neil has. I think the best move is, sure, you can sell ads, but just like other channels, eventually, what I believe the best move is is you are then promoting affiliate products or other people's products, and then you're building your own products to sell, because that's where you're going to get the best margin for the most part. And Axio sold in twenty twenty two. But to give you some data, I'm reading this article. Axio so to Cox Enterprises for five hundred and twenty five, pretty much the same price Eric mentioned, And in twenty twenty one it says they generated eighty eight million in revenue and made four million in EBIT. In twenty twenty two, it was believed and they're owned by Cox now, so not really going to get the stats of the data. I don't think we will. But in twenty twenty two it says they we're targeting one hundred and ten million dollars, So they sold for call it five hundred plus million dollars. A gore, let's say, is ten times the size of them. And I know some of the divisions, and they some of the divisions that I know we were working on, generated way more profit. Then call it what they were doing. What was it for on eighty eight? What is that five percent? Or so you have four point five four percent, So a goro is more profitable, good growth, billion dollars. What is that five billion dollar business? I don't know. Probably valuations in this market is much less. But newsletters, it is a massive business. The big thing that I've learned from the newsletter business, and this was just me as a marketer, wasn't actually related to newsletters. It was related to the concept of if you can get someone in to your funnel, your marketing funnel for something really cheap, free like an email address or something for a dollar or five dollars, it's really easy to start selling them things that are one hundred dollars, one thousand dollars, ten thousand. Takes a lot of work, but you can go upstream really quickly. And what I learned from a go working from them is a you need to go after a big TAM. TAM stands for total addressable market because as a marketer, the bigger market you got after the easiest to do marketing because you can just spray and pray in essence, target a lot of people, so you don't have frequency issues with your ads. The second thing I learned from them is you just need to get people in the funnel and get them to buy something, even the dollar's worth. Because buyers are buyers, and it's really easy to get people to buy more once they buy once, no matter how low that product was. But it's hard to get a new buyer to buy something whether it's expensive or cheap. So just try to find something that you can sell profitably or break even on or lose a little bit of money selling, knowing that you can generate way more revenue in the long run from people. Great example of Amazon, right, Amazon will sell people. Sometimes they'll lose money with things like Prime, but they know they'll make the money in the long run because people keep coming back and buying more and more and it makes them really profitable. Yeah. The final few things I'll say, so what Neil's talking about is also known as a trip wire. So people in the internet marketing world will create a tripwire where you might sell something for a dollar or ten dollars or whatever. And the whole idea here is you collect a credit card and then you can figure out how you can upsell down cell and things like that. Now click funnels is actually really good for this. So if you combine your newsletter with click funnels, they're actually known for having the down cells, the upsells, and things like that. The final thing I want to say is I want to share a story around Agora. So back in the day so Neil used to do was a lot more involved with a Gora. So they would put on events, they would do courses. So I actually shot a course along with Neil, and we spent an entire day shooting this course. It was like in Burbing, California. And so what I'm basically saying behind this is that they are producing great content for the newsletters. They have a YouTube channel, they have multiple YouTube channels and different business lines. And what I learned from this is, remember I went to an event a couple of years ago, right before the pandemic kit and I learned from one of the founder of a Gora. The Bill Bonder guy that you're talking about, actually met him, and the one thing that he said that they do at a Gore is that they share all the data. Even though they have competitive business units, they're all trying to kind of beat each other, they share all the data and they're all kind of trying to help each other get better. So it's like competitive in a sense, but it's also like competitive, it's competitive greatness. That's what it ultimately is at the end of the day. And the thing I wanted to touch on what the course is is Neil and I spent another entire day back up a little bit. They actually, you're so right. I remember they send out a daily email of sales numbers for all the different products for different divisions, even if they're competing with each other, and it inspires the others and it makes them compete and crank even harder on their marketing. And not only that, I mean what ends up happening. Let's say Neil and Neil and were in different business divisions and a Gora. I might see Neil's numbers and it's like, oh crap, he did a million dollars in sales. Yes, shay, what did he do? And Neil's not going to hold back. He's gonna be like, yeah, here's exactly what we do. So they all help each other out. And I think that's the beautiful piece about it what I wanted to touch on, and we can work towards wrapping. Here was a Gora when Neil and were recording the courses. There was I think there had like ten or fifteen people there, including the film staff, and that just shows how serious they are about building their own products and their own services. And I think that's impressive. So I think owning your own monetization vehicles, I think that is the way well, not just newsletters, but any audience in general. So that is it for today. Please don't forget to rate and review, subscribe, hit us on YouTube as well, and we'll see you later.

All Right, we're going to talk about what you can learn from the best newsletter businesses. So I'm gonna give a couple examples. First, what do we mean by newsletter? Morning Brew? That's one Morning Brew they update you with the latest business news each day, The Milk Road great crypto newsletter, Axios. They got a lot of news in the VC world, investing world. So there's a lot of newsletters out there. E Marketers another one and it's newsletter. It's just the email newsletter that you get that's keeping you updated on subjects that you're interested in. And we want to talk about what you can learn from the best newsletter businesses today. By the way, what do you think is the best newsletter business if you had to pick one, A Goorra. Yeah, I let's say a Goorra too. That's the question. Because you mentioned Morning Brew and you mentioned Agora. Agora I think is the biggest. I don't have it mentioned what they are to tell them about what what a gore is. So Agora is a financial newser think about like stock trading, Hedgemund's economy. And they have a lot of different divisions like Stansbury Research, a Goora Financial, Moneymap Press that are all owned by I think the guy's name is Bill BONNERM and Agora. I don't know what they're doing this year, but I remember because we've done quite a bit of their marketing over the years. It's a billion plus dollar revenue company. And it may be a little bit down or a little bit more, but that's a lot of revenue to generate from selling newsletters on an annual basis. Like just think about that, A billion plus dollars year in revenue for selling newsletters. I think it's impressive. I mean, you look at Morning Bruce sold to Business Insider for an eight figure amount and now Morning Brew' is doing like eighty ninety million a year whatever. And the founders, you know, they've done well for themselves. Congrats to them. And they started it, you know, when they went to Michigan. The Hustle I think sold for maybe twenty seven to twenty eight million dollars too, spot and these are legit media companies. And the way I look at them is, I think these businesses are super actually sold for five hundred and fifty three million, and then a Gora to your point you said, high point was they're doing like north of a billion in revenue annually. Uh huh. So there's a lot of different ways to play, but I think a Gora pub probably played it the best because the other newsletters that I talked about are very advertising based, whereas a Gora, they their monetization vehicles are for their own products, and so it could be like a Mastermind or it could be a subscription that costs, you know, five thousand dollars a year, ten thousand dollars a year. There's like proprietary research that they that they do, and they have a lot of events and things like that, right, and people that are really interested in money or making money, they're naturally okay with spending on stuff like this. And so I think my opinion on this isn't for the newsletter business is there's a couple of things. One, if you have a good monetization engine. Let's say me and I we both have ad agencies. Right, if we were to build a newsletter, like a strong marketing newsletter, we would be promoting our own stuff. So we might be voting our ad agencies. We might be promoting the mastermind that I have. We might be promoting Answer to Public or Uber Suggests, which is the product that Neil has. I think the best move is, sure, you can sell ads, but just like other channels, eventually, what I believe the best move is is you are then promoting affiliate products or other people's products, and then you're building your own products to sell, because that's where you're going to get the best margin for the most part. And Axio sold in twenty twenty two. But to give you some data, I'm reading this article. Axio so to Cox Enterprises for five hundred and twenty five, pretty much the same price Eric mentioned, And in twenty twenty one it says they generated eighty eight million in revenue and made four million in EBIT. In twenty twenty two, it was believed and they're owned by Cox now, so not really going to get the stats of the data. I don't think we will. But in twenty twenty two it says they we're targeting one hundred and ten million dollars, So they sold for call it five hundred plus million dollars. A gore, let's say, is ten times the size of them. And I know some of the divisions, and they some of the divisions that I know we were working on, generated way more profit. Then call it what they were doing. What was it for on eighty eight? What is that five percent? Or so you have four point five four percent, So a goro is more profitable, good growth, billion dollars. What is that five billion dollar business? I don't know. Probably valuations in this market is much less. But newsletters, it is a massive business. The big thing that I've learned from the newsletter business, and this was just me as a marketer, wasn't actually related to newsletters. It was related to the concept of if you can get someone in to your funnel, your marketing funnel for something really cheap, free like an email address or something for a dollar or five dollars, it's really easy to start selling them things that are one hundred dollars, one thousand dollars, ten thousand. Takes a lot of work, but you can go upstream really quickly. And what I learned from a go working from them is a you need to go after a big TAM. TAM stands for total addressable market because as a marketer, the bigger market you got after the easiest to do marketing because you can just spray and pray in essence, target a lot of people, so you don't have frequency issues with your ads. The second thing I learned from them is you just need to get people in the funnel and get them to buy something, even the dollar's worth. Because buyers are buyers, and it's really easy to get people to buy more once they buy once, no matter how low that product was. But it's hard to get a new buyer to buy something whether it's expensive or cheap. So just try to find something that you can sell profitably or break even on or lose a little bit of money selling, knowing that you can generate way more revenue in the long run from people. Great example of Amazon, right, Amazon will sell people. Sometimes they'll lose money with things like Prime, but they know they'll make the money in the long run because people keep coming back and buying more and more and it makes them really profitable. Yeah. The final few things I'll say, so what Neil's talking about is also known as a trip wire. So people in the internet marketing world will create a tripwire where you might sell something for a dollar or ten dollars or whatever. And the whole idea here is you collect a credit card and then you can figure out how you can upsell down cell and things like that. Now click funnels is actually really good for this. So if you combine your newsletter with click funnels, they're actually known for having the down cells, the upsells, and things like that. The final thing I want to say is I want to share a story around Agora. So back in the day so Neil used to do was a lot more involved with a Gora. So they would put on events, they would do courses. So I actually shot a course along with Neil, and we spent an entire day shooting this course. It was like in Burbing, California. And so what I'm basically saying behind this is that they are producing great content for the newsletters. They have a YouTube channel, they have multiple YouTube channels and different business lines. And what I learned from this is, remember I went to an event a couple of years ago, right before the pandemic kit and I learned from one of the founder of a Gora. The Bill Bonder guy that you're talking about, actually met him, and the one thing that he said that they do at a Gore is that they share all the data. Even though they have competitive business units, they're all trying to kind of beat each other, they share all the data and they're all kind of trying to help each other get better. So it's like competitive in a sense, but it's also like competitive, it's competitive greatness. That's what it ultimately is at the end of the day. And the thing I wanted to touch on what the course is is Neil and I spent another entire day back up a little bit. They actually, you're so right. I remember they send out a daily email of sales numbers for all the different products for different divisions, even if they're competing with each other, and it inspires the others and it makes them compete and crank even harder on their marketing. And not only that, I mean what ends up happening. Let's say Neil and Neil and were in different business divisions and a Gora. I might see Neil's numbers and it's like, oh crap, he did a million dollars in sales. Yes, shay, what did he do? And Neil's not going to hold back. He's gonna be like, yeah, here's exactly what we do. So they all help each other out. And I think that's the beautiful piece about it what I wanted to touch on, and we can work towards wrapping. Here was a Gora when Neil and were recording the courses. There was I think there had like ten or fifteen people there, including the film staff, and that just shows how serious they are about building their own products and their own services. And I think that's impressive. So I think owning your own monetization vehicles, I think that is the way well, not just newsletters, but any audience in general. So that is it for today. Please don't forget to rate and review, subscribe, hit us on YouTube as well, and we'll see you later.

We appreciate you joining us for this session of Marketing School. Be sure to rate, review, and subscribe to the show and visit marketingschool dot io for more resources based on today's topic, as well as access to more episodes that will help you find true marketing success. Tax marketingschool dot io until next time. Class dismissed

We appreciate you joining us for this session of Marketing School. Be sure to rate, review, and subscribe to the show and visit marketingschool dot io for more resources based on today's topic, as well as access to more episodes that will help you find true marketing success. Tax marketingschool dot io until next time. Class dismissed