How much equity should I give up or ask for in a newsletter partnership?
Short answer
Don't sell a big stake early in something you already know how to do. I'd rather self-fund until the list hits 5,000 to 10,000 subscribers, then give up 5% instead of 20%. When I'm the one bringing Meta ads, setup and know-how to someone else's money and effort, I ask for 30 to 40%.
I've looked at it from both sides: raising money for a new newsletter, and putting my know-how into someone else's.
Should I sell equity to fund a new newsletter?
Usually not early. One option I considered was pushing hard on companies with an offer like: we'll build this for you, you get 20% ownership, all you do is give us $5,000 a month. The problem is we'd be giving up too much on something we already know how to do.
It makes more sense to own it all ourselves and get it off the ground.
When does outside money get cheaper?
After you've proven it. If the signup survey can make about 50 cents per subscriber from leads, the project can pay for itself.
"Once we get like 5,000 subs or 10,000, hopefully very quickly if we're just going to go hard on it, then we go to those companies. And now we get what we want for 5% instead of 20."
How much money does it take?
My rough average is about $3,000 a month per location to run a new local newsletter. That's an average, not an audited number. Someone who wants to launch six to 10 at once is looking at $25,000 to $30,000 a month to start. That takes a certain person: someone who understands the model, wants to do it, and has the funds.
How much should I ask for if I bring know-how instead of cash?
I was thinking 30 to 40%. The pitch is simple: this is your company, you're in charge, and all I want is 40% of it.
The reason I can ask that is that the other person can't do it without me. The Meta ads, the process, the setup. It's so much to figure out that they wouldn't get it off the ground alone. In that deal I'm managing all of their Meta ads, giving them every best practice, and they have an expert on speed dial.
For comparison, another operator I know takes 50% or more and says all he does is marketing.
| Who said it | Equity for know-how |
|---|---|
| My proposal | 30 to 40% |
| Another operator, marketing only | 50% or more |
| An advisor on the call | At least 15%, ideally about 30% |
The advisor also suggested tying equity to results, like subscriber milestones.
Who should run it?
The other person. I need enough upside to make it worth my while, but the company is theirs to lead. I'm not a lawyer, so get the actual deal papered by one.
For other ways to structure operator deals, see how to run local newsletters in many cities.
Answered by TJ Larkin. From partner and advisor calls, 2025-2026. Comparison figures are what other people said on those calls. Last updated .