Why do most local newsletter operators leave money on the table?

Big B2B newsletters run on tactics most local operators have never tried. I think I know why.

"Most of us are all siloed with a low TAM, total addressable market. No matter how good one of us does in one of our areas, what's the most we can make? If you were the best ever, maybe $500,000 a year."

Why don't local operators optimize like B2B newsletters?

Incentive. When you have eight or nine figures on the line, you dig in to find the absolute best way to maximize everything. You hire the best people and hold executive meetings. In the small business space, which is what we are, we don't have that ability. We've got so many other things going on, and we don't get into the weeds like this.

Which B2B ideas carry over to local?

The concept, adapted. Make an offer to your readers that's such good value they take it at a scale big enough to pay for all your acquisition costs. Local has a built-in advantage: much lower acquisition costs, so the payout per subscriber can be lower and still be very valuable. That's the thinking behind monetizing a subscriber at signup.

Why are solo owners too protective of their readers?

Most people in this business run it in their own town, as a personal project. Corporate-run brands treat it like a business, which is part of why they can charge so much for ads. Ask anybody who makes money in this business and they'll tell you they don't worry much about overwhelming people.

I aim for a middle ground. More revenue focus than the hobbyists, and a more personable voice than the big corporate brands.

Is a big pile of small newsletters an asset?

Not automatically. Say you have a ton of newsletters, all with 5,000 subscribers, and they cost you nothing. They still cost mental energy, time and effort, even if you mostly automate them. Without a sales strategy in the newsletter or some other way to make money, so what? It sounds like an asset, and it isn't one. I'm in that same boat with some of mine right now.

What should I prove before scaling?

Revenue per brand. My gate for launching many more is whether a new local newsletter can reach about $2,500 a month in ad revenue relatively quickly. I had about 20 brands and wanted 50 or 100. With proof of that number, I could sell the model all day.

Why aren't more people copying what already works?

Some obvious models sit wide open. One local B2B newsletter model is so clearly smart to people like us that there should be 50 or 100 of them. My guess is its founder already has millions and doesn't want the hassle of launching and managing franchises, which leaves the category open. A lot of what works at a big scale can also work locally.