Rising newsletter platform, Substack, is stepping up its game to attract creators from competitors like Patreon, Supercast, and Circle. The company has announced a $20 million fund aimed at helping creators transition their paying audiences to Substack.
Here’s how it works: Substack will offer what it describes as “white glove service,” meaning it will offer personal assistance to make the switch as smooth as possible.
Creators will also get early access to new features, and if they lose revenue in the first year, Substack promises to cover the difference. Creators must however close all other paid subscription accounts to participate.
Substack’s co-founders say they want to help creators build independent businesses. “The challenges of relying on social media alone have become clear,” they wrote, referencing platforms like TikTok and the uncertainty surrounding them.
However not everyone is happy about Substack’s new strategy, though. Some existing users worry that focusing on big creators will make it harder for smaller ones to grow while some others feel Substack should stick to its roots as a platform primarily for writers.
Substack charges a 10% fee on subscription revenue, compared to Patreon’s 5–12%. With the new fund, it’s clear Substack is betting real big on becoming the go-to platform for creators. What do you think? Would you make the move if you were a creator?
Babatunde Philips