Overview

Substack is the dominant newsletter platform with built-in discovery and network effects. However, our analysis reveals significant concerns including a 10% revenue share on all paid subscriptions, complex subscriber data ownership terms, and limited portability that makes it difficult to fully migrate your audience to another platform.

Key Concerns

  • 10% Revenue Share: Substack takes 10% of all paid subscription revenue, significantly higher than competitors who charge 0%.
  • Complex Subscriber Data Terms: While you can export email addresses, Substack retains certain rights to subscriber relationships and engagement data.
  • Limited Portability: Moving paid subscribers to another platform is complicated - subscribers must re-enter payment details elsewhere.
  • Content Moderation Discretion: Substack has broad discretion over content moderation with controversial policies that have led to creator concerns.
  • Platform Dependency: Network features like Notes and recommendations create dependency on the Substack ecosystem.
  • Mandatory Arbitration: All disputes require binding arbitration with class action waivers.

Positive Aspects

  • Content Ownership: You retain intellectual property ownership of your written content.
  • Built-in Discovery: Recommendation engine and Notes feature help grow your audience.
  • Free to Start: No upfront costs - only pay the revenue share when you have paid subscribers.

Data Collection Summary

Substack collects extensive data including newsletter content, subscriber information, reading behavior, engagement metrics, payment data, and social interactions on Notes. This data is used to power recommendations, target content, and for platform analytics. Subscriber engagement data may be aggregated for Substack's own purposes.