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STARTING A NEWSLETTER BUSINESS FOR INVESTORS OR TRADERS

So you want to create & sell an investor newsletter or premium trade alert service? Investor newsletter publishing- often called financial publishing (FP)- is a very lucrative business. How lucrative? While the current "kings" of the space earn more than $100 million in annual revenues, even a one-person company can realize 7-figure revenues with customer-centered products and highly effective marketing.

BI has extraordinary experience in this space. Several of our principals have had multiple ladder-climbing stints over many years for some of the most successful financial publishers. A number of our best subcontractor specialists are also masters of various crucial services in support of this kind of business. Engage us to tap "been there and done that" talent developing and growing financial publishers to all-time records (as measured by revenues, profits, monthly new customer acquisitions, retention, upsell conversions, etc). We've done it again and again... so tap our expertise to help you break into this industry with "best of" everything.

How Much Can a Newsletter Publishing Business Entrepreneur Make Each Year?

This table illustrates FP revenues at various levels of average annual revenue-per-subscriber...

Quantity of Subscribers
$150/yr
$250/yr
$350/yr
$450/yr
$550/yr
2,500
$375,000
$625,000
$875,000
$1,125,000
$1,375,000
25,000
$3,750,000
$6,250,000
$8,750,000
$11,250,000
$13,750,000
250,000
$37,500,000
$62,500,000
$87,500,000
$112,500,000
$137,500,000

There are several important concepts to grasp:

  1. Financial publishing is a business that scales up very easily. Your average unit cost of production tends to be highest with one subscriber and then falls with every additional subscriber. Thus, delivering an investor newsletter to 250K subscribers doesn't cost you 100 times more than delivering the same to 2.5K subscribers. Quite the contrary: once the product is created the relative cost to deliver to many subscribers can be near negligible. The point is that 2.5K vs. 25K vs. 250K is nearly irrelevant from a unit cost of production perspective... especially when most FP products are fulfilled by electronic means (no printing, postage, etc).
  2. Your production time commitment doesn't ramp up with subscriber volume either. For example, if you are publishing a newsletter for ONE subscriber and BI helps you grow your subscriber base to 250K, it won't take 250,000 times longer for you to create that same newsletter. Your product creation task remains mostly the same. It's the revenues & profits that spike up with subscriber volume.
  3. Some prospective new FPs see numbers like these and assume lots of infrastructure to support them. They imagine big staffs, office space requirements and so on. But again, this business involves product production & fulfillment that can be managed by as little as ONE (yourself). There are plenty of one-person FP businesses making hundreds of thousands to millions in annual revenues. They create & fulfill their own product(s) while outsourcing functions like marketing, sales & service to companies like BI. In short, you can build that big office & team if you want OR you can keep your costs very lean so that more of those revenues flow right into your own pocket as profit.
  4. New entrants often think of their revenue potentials in terms of what they want to charge for a single (their first) product. But the established publishers focus some effort on upselling & cross-selling with an additional product(s). While you might look at $150 to $350 per year (columns 2-4 above) as initial revenue targets for your startup, the more profitable FPs average $550+ per subscriber (column 6). Once you're established you'll likely follow that well-proven lead toward growing annual revenue-per-subscriber. It is THE proven path to great wealth in this space.
Compensation Replacement Target
Number of $550/yr Subscribers
Monthly Acquisition Quantity
$100,000
182
16
$150,000
273
23
$200,000
364
31
$250,000
455
38
$300,000
546
46
$350,000
637
54
$400,000
728
61
$450,000
819
69
$500,000
910
76

Because of these and other niceties in this kind of business, FP margins tend to be FAT which means a big slice of those revenues is actually profit per year.

You might be thinking: "...but where am I going to get 2,500+ subscribers?" First, you should identify how many customers you actually need. For example, if you are interested in starting this business to replace up to ALL of your current compensation as someone's employee, we suggest giving yourself a raise to where you think your annual compensation should really be. Let that number be $X per year. Now, divide $X by $550 and by $150. Those 2 resulting numbers represent the range of subscribers you need to fully replace your compensation target by becoming a FP entrepreneur. The table at right illustrates a variety of compensation replacement numbers at the $550/yr selling price. For example, to replace annual compensation of $300K/yr with a $550/yr average revenue-per-subscriber, you would need to acquire only 46 new subscribers each month.

If you already have a price target for your own product divide $X by that price to determine a very specific minimum number of new subscribers. For example, if you want to replace a $200K/yr salary with a $250/yr subscription product business, your minimum target will be only 800 paying subscribers per year (you'll need to acquire just 67 new subscribers each month). If you would rather make this a moonlighting business, just 800 subscribers at $250/yr could help you make an extra $200K/yr on the side... or 800 at $550/yr could yield an extra $440K on the side.

Second, hire BI expertise to help you put the business together with the crucial foundational (core startup) pieces and leverage our new subscriber acquisition marketing services. We've run cost-efficient acquisition marketing models for individual financial publishers that harvest more than 2,500 new paying subscribers EACH MONTH. Needless to say, we view targets like adding 46 or 67 new subscribers each month- or even 2500 each year- as smallish... and relatively easy.

The Crucial Checklist: What the Investor Newsletter Entrepreneur Needs To Succeed

  • Skills at market research and picking specific trades that investors or traders can follow (or a willingness to engage a contractor or employee with those skills. Note: we have such contractors in our network).Publishing your own Investor Newsletter is a terrific, high profit moonlighting business
  • Dedicated time to do this work well. Quality almost always takes time. That said, financial publishing can be an excellent source of moonlighting business revenue. If your trading systems are such that you could do most of this work in the evenings and/or on the weekend, this can become a lucrative second stream of income. Many investor newsletter publishers- including those who do this as their full-time career- publish on a single weekend each month, often doing the bulk of the work for that issue in that weekend.
  • Location in which to do this work well. This doesn't mean you have to lease office space; this kind of business can be run from anywhere on Earth with Internet access. Many very successful FP entrepreneurs work out of their home offices. Some of those "offices" are in places like Hawaii, Costa Rica, Ireland, England, Canada, various European & Asian nations, the Bahamas, Mexico, Florida and many other desirable destinations (often far from concrete jungles, dreary weather and Wall Street).
  • Equipment (reliable hardware, software, etc.) on which to do great work. If you have much investing or trading experience you probably already have a selection of favorite tools.
  • An ability to create at least rough drafts of your thoughts about the markets & specific recommendations which then might be passed on to a ghost writer (or transcriptionist) to polish (only if you lack confidence in this polished writing skill). If you are uncertain about your writing skill, we suggest preparing a sample (a faux trade recommendation with supporting rationale and/or an article about current market events & where you think the markets are going) and then email it to us as part of our free consultation.
  • Talent for all of the things needed on the business side: marketing & Emarketing, sales, development (website, product, technology, business), tactical planning & execution, etc... OR the wisdom to engage such talent to help you with these (all of which are services that we offer to do with- or for- you).
  • Targeted & actionable marketing research ("know thy customer"): the market that subscribes to these kinds of products is challenging to crack in volume by FP industry outsiders trying to do everything themselves. It's vitally important to thoroughly understand what this particular space wants and exactly how they want it. Don't fool yourself into believing that YOU are perfectly representative of your target market; else, designing a business exactly as you would like to be served will probably cap your paying subscriber database potential at as little as NONE. Over the last 2 decades, we've developed & refined several hundred thousand dollar's worth of market research specifically for this industry. It clearly spells out what buyers want & don't want... what they value & deem valueless... what should be in your product, website, mobile app and/or marketing & what is wasting space, precious resources, money or all of the above! Any good business startup primer will recommend objective market research to drive the process of developing a successful company. Targeted & actionable market research + quality customer analysis are extraordinarily helpful in building a very profitable financial publishing businessDon't make the common rookie mistake of trying to subjectively gut-guess your own way. Engage BI and much of the financial publishing industry buyer research you need is already done. It's a potent tool for doing everything right.
  • Relevant & actionable competitor analysis ("know thy competition"): The FP space is packed with many players trying to sell a product or service similar to what you have in mind. Objective competitive analysis identifies the pros & cons, benefits & advantages of those in active pursuit of the big segment of paying subscribers you covet. Good competitive analysis yields "best of" summaries of features & benefits you can weave into your own business. By incorporating better concepts from thriving competitors, you can launch your business as the obviously superior alternative to all others and take valuable share from even the deeply entrenched. This is vital if you want to roar out of the gates with some meaningful, short-term revenue successes. We can show you how you can access very valuable competitor information like their exact subscriber quantities to make narrow, accurate estimates of their revenues & profits. Our experience within the industry can be used to summarize specific advantages for you so that you can make decisions about absorbing some of those proven innovations within your own business. This too is a big key to doing it all right.
  • 2 kinds of focus: a great focus on consistently & regularly producing the highest quality deliverables for your customers (YOUR ability to deliver good market analysis and above average recommendations for them to trade) PLUS a separate focus on continual execution of marketing tactics (OUR abilities to cover all of the business growth-driving functions in industry-proven ways). Bigger successes are realized by delighting & retaining the customers you have while always working hard to acquire new subscribers. It is almost always difficult- if not impossible- for ONE person to be able to do both well. BI talent can offer significant value in the acquisition & retention functions in up to turnkey solutions for you. You bring the trading & analysis (or hire that talent).
  • Relationships with an accountant, lawyer, business advisor, etc. All can be contractors engaged by your business as needed. BI can help you connect with talented contractors experienced in this industry.

From Concept to Launch & Beyond • BI Can Be Your Experienced Guide Every Step of the Way

Review this interactive presentation to gain a modest sense of how our talented team can help you move from concept to product launch and beyond. When you hover over the image, left & right navigation arrows will appear. Click the right arrow to step forward through the presentation...

Developing a Profitable Investor Newsletter Business 01 Developing a Profitable Investor Newsletter Business 02 Developing a Profitable Investor Newsletter Business 03 Developing a Profitable Investor Newsletter Business 04 Developing a Profitable Investor Newsletter Business 05 Developing a Profitable Investor Newsletter Business 06 Developing a Profitable Investor Newsletter Business 07 Developing a Profitable Investor Newsletter Business 08 Developing a Profitable Investor Newsletter Business 09 Developing a Profitable Investor Newsletter Business 10 Developing a Profitable Investor Newsletter Business 11 Developing a Profitable Investor Newsletter Business 12 Developing a Profitable Investor Newsletter Business 13 Developing a Profitable Investor Newsletter Business 14


Other Helpful Assets for Starting an Investor or Trader Newsletter Publishing Business

Here's some other elements that can prove helpful- but are not absolutely required- in growing this kind of business...

  • A good story helps prospective subscribers bond with a new investor "guru." Prospective subscribers want to buy from someone who appears to know more about the markets than they do. Whether that's you or not doesn't matter as much as you might think. The key is in how weI can help anyone craft a good story. Our digital artists can also work wonders with imagery & video.
  • Entrepreneurial drive & determination: as in any type of startup business, the investor newsletter entrepreneur must be self-driven and committed to give it all they have. You will be competing against long-established companies with deeper pockets and larger staffs (unless you engage BI). Carving out a successful niche requires intense dedication to thrive against such challenges. Part-time or "when I have time" efforts tend to yield commensurate business results (while they can be quite good, more time investment typically yields more favorable results). Once you get to critical mass (the point at which new subscriber revenue inflows exceed the cost of ongoing operations plus growth initiatives) demands on your own time & energy can begin to diminish. Until then, the optimal model is in pouring it on.
  • Millions of Prospective Investor &
    Trader Product Subscribers Follow...

    Achieve some specialized fame by appearing on CNBC, Fox News, Fox Business or Bloomberg... or being read in WSJ, IBD, Barrons, Forbes, USA Today, Seeking Alpha and many others

    A Quality Newsletter Can Get YOU in
    Front of All of Those Willing Buyers

    FP offerings like investor & trader newsletters, netletters, E-zines, podcasts & vodcasts, blogs, etc, are aimed at building a following of tens-to-hundreds of thousands of paying subscribers. Smarter publishers often comp key media contacts including those shown above in hopes they'll get free publicity via quotes of their work and/or invitations to write guest articles or appear on popular programs. It's a great way to introduce yourself to millions of relevant prospects.

    Some of your new fans from such appearances will come looking for more from you. If they find a great website- especially one loaded with the more proven FP industry lead and customer-capturing hooks- and a wow product(s) they can buy, you'll likely get a good number of new subscribers with each appearance (along with building your name, reputation & marketability as a market guru).

    We are expert in all such matters. Use our talented consultants & contractors to help you do it all right.

     

  • A passion for exposure: The most successful newsletter publishers strive to appear to be EVERYWHERE they can be seen, heard or read by an audience likely to be interested in their product mix. We refer to this as "proactive PR" because it involves dedicated time & energy output to get articles printed in the major industry publications (like WSJ, Barron's, IBD, Forbes, etc.), appearances on the major business channels (like CNBC, Bloomberg, etc.), exposure on major investor portal websites, in iTunes & Android vehicles, etc. More simply, you want to aim for a specialized, narrow form of fame because prospective subscribers are more likely to buy from someone with which they have some level of awareness rather than from some stranger that blasted them yet another marketing promotion today. Besides, every such appearance is a form of high-value-added advertising... without the (sometimes great) expense of running an ad in those same vehicles.
  • Startup cash to help you get established and fund marketing tactical execution. Startup capital can help you engage talent like ours to work for/with you, short-cutting the path to a best-in-class business model. Cash will also minimize the timetable it takes to harvest lucrative, recurring profits. The classic entrepreneurial workload burden is not nearly so onerous when you can use cash to buy your way to key levels of success. Trying to grow this kind of business with no startup cash tends to be a very slow growth proposition (years). BI can help you raise startup cash if you are willing to take on investors or partners. And consider our referral rewards program if you know others who could use BI-type services.
  • Presentation skills: public speaking capabilities can help build your subscriber base. Seminars, industry trade shows, educational presentations, etc, all offer an excellent opportunity to impress an audience likely to be interested in your kinds of offerings. Good presentation skills also help you with mainstream PR such as appearing on business television channels, radio, vodcasts, podcasts, etc.
  • Managerial talents if you aspire to grow the business beyond your own maximum production capabilities. Visualize a small team working for you if you want 8-figure revenues and a larger staff if you want to eventually become one of the "kings" of this space.
  • Unique selling proposition (USP): A USP is something that distinguishes your offerings from the crowd (the key word is "unique"). Ideally, it is a great, succinct answer to "what's so special about your product?" or the meatiest short answer to "why should I buy your newsletter?" BI can help you determine your USP.
  • Connections: can anyone in your network of friends & family help get you in front of prospective subscribers? Anyone in your network a good lawyer, accountant, etc? Do you already have a sizable list of prospective subscribers that might be interested in your new product (maybe you already write a blog or free newsletter and have an established following)? Is there anyone who would make a good partner(s), content contributor(s) and/or source of working capital?
  • Etc. (there are several more)
As an Investor Newsletter Publisher, you'll enjoy great potential to appear on CNBC, Fox Business Channel & Bloomberg, and in the Wall Street Journal, Forbes, Barrons, IBD, Seeking Alpha, USA Today & similar

Attention Registered Investment Advisors, Brokers, Fund Managers, Institutional Research Firms, Market Analysts, Wealth Management Firms, Financial Planners, Etc.

You too can publish exciting, interesting newsletters and other forms of Internet communications... thoroughly FREE from the relentless burdens of the compliance department and registered-side regulations.

All those ideas you have about reaching out to current clients and prospects via an impressive newsletter, netletter, E-zine and similar can be accomplished through your own Financial Publishing small business unit. It's relatively simple to set up and can be extraordinarily lucrative at attracting new clients, keeping existing ones & quickly growing your revenues.

This is a big innovation you may already know something about but didn't realize you could make it work for your company. You can! And it can wow you in every key way: high quality clients & prospects, its own recurring revenue stream, a potent customer bonding vehicle, a delightful tax benefit, steady cash flows, a valuable new company asset, enhanced PR (even great personal fame) and much more.

 

We encourage you to take advantage of our FREE Consultation so that we can help you think through any of the initiatives that go into a successful startup in this industry. We can also provide you with our list of common & costly mistakes often made by new startups when they try to become an investor newsletter publisher on their own. Here's one of those examples now...

Most industry novices think that breaking into this space is little more than developing a better product and hanging a "we're open" e-shingle out on the world wide web. This business is definitely NOT a "build it and they will come" enterprise. Success requires proactive efforts to go get customers, not laying back hoping they'll come to you. Will some do the latter? Yes, but that kind of growth is often slow and we've yet to encounter a publisher happy with how much money they make from the trickle of business that seeks them out. Think proactive NOT reactive if you desire BIG success.

The "kings" of the space rarely have a better product, better trading system, etc.- in fact, it's often just the opposite if you check product rating entities like Hulbert's Financial Digest. Nevertheless, in spite of inferior products and poor-performing trading systems, money flows in great volume to the dominant players because they employ well proven, proactive marketing tactics to consistently add "new names to file" at a rapid clip month after month. What are those proven tactics? Hire BI and we'll help you adopt them.

If you can bring above average analysis and recommendations to this market, you can beat those dominant players by retaining more customers over time. In other words, adopt the proven tactics that add many new customers to your subscriber base (like they do) and then do a superior job of keeping subscribers for the longer term with better products (like they do NOT do). The smart financial publisher doesn't forego one (retention) for the other (acquisition); instead, the best of the bunch are relentlessly focused on BOTH: adding new names to file AND keeping the people already on file. Much of the industry doesn't maximize the latter which is a massive strategic opportunity for new players to enter the space and take a great amount of share quickly.

If you are already an established publisher looking for ways to significantly grow your revenues, be sure to review the 7 key investment newsletter business growth solutions highlighting proven strategic options to better compete with the most profitable players in the space. Those are some of the best ways to rapidly grow a smaller player into a much more successful enterprise.

Engage Our Deep Financial Publishing Industry Experience To Do It All Right

The BI team has very deep experience within the investor newsletter publishing industry. Our resumes include long-term tenures employed by some of the most successful trading gurus. Since we started BI in 2004 we've been advisors, consultants and contractors for a diverse mix of small, medium and large financial newsletter publishers. Before 2004, we were dynamic & highly productive employees & executives for many of the most successful FP industry companies in the space. We are the ONLY full-service firm in the world with direct experience in all aspects of growing this kind of business. Engaging our core team- which can also connect you to a multitude of the very best subcontractor specialists serving this space- is a great way to maximize your chances of success and accelerate your path to profitability. Use our FREE consultation to get a feel for how well we know our stuff... and how much we can bring to your personal ambitions within this industry.




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