Writers Are Fleeing the Substack Tax

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A growing number of writers are leaving Substack for alternatives most people haven't heard of like Ghost, Beehiiv, Patreon, and Passport. The reason, writes The Verge's Emma Roth, is the "platform's increased focus on social features as well as a pricing model that puts a chokehold on their business." From the report: Sean Highkin, the creator of the NBA-focused publication The Rose Garden Report, tells The Verge that he makes "significantly more money" after switching from Substack to Ghost last April. "When I first joined up, [Substack] gave me a big push and featured me and funneled a lot of traffic to me, which led to a good amount of growth," Highkin says. "But once I wasn't one of the 'new recruited talent' they could tout, they stopped featuring me and I saw my growth stagnate." Highkin now pays $2,052 per year using Ghost and an add-on called Outpost, compared to $4,968 per year on Substack. The Rose Garden Report's subscriber base has grown 22 percent since the end of 2024, Highkin says. [...] Substack launched in 2017 as a platform that allows writers to create their own newsletters and manage paying subscribers. Unlike some of its biggest rivals, Substack takes a 10 percent cut of total subscription revenue. That tax may not seem substantial at first, but it quickly adds up as creators gain subscribers and begin charging more for their subscriptions. A calculator on Substack's own website estimates that for a newsletter charging $10 per month with 400 subscribers, the total monthly cost -- including the platform's 10 percent cut and credit card processing fees -- would add up to $636. That cost jumps to $15,900 per month with 10,000 subscribers and skyrockets to $79,500 per month for 50,000 members -- nearly $1 million per year. Many Substack rivals charge a flat monthly fee, rather than a commission. Ghost, an open-source platform for blogs and newsletters, starts at $15 per month with 1,000 members for website creation, email newsletter capabilities, and a custom domain. Beehiiv, a creator platform with tools for launching a newsletter, website, and podcast, is free for up to 2,500 subscribers with limited access to certain features, like a built-in ad network, while its other plans vary in price based on subscriber count. A person with 10,000 subscribers, for example, will pay $96 per month for Beehiiv's "Scale" plan. There's also Kit, a newsletter platform that offers a tiered pricing model similar to Beehiiv, costing $116 per month with 10,000 subscribers on its "Creator" plan. It's not just the 10% fee critics are complaining about; they also argue the platform offers limited customization and third-party integrations compared to some of the mentioned alternatives, heavily promotes its own branding and social features, and makes creators more dependent on its ecosystem. Beehiiv founder Tyler Denk argues that creators should be able to build their own brands without the platform taking center stage: "We don't want to take credit for the work of our content creators." While writers can export subscribers, content, and some payment relationships, they cannot take Substack "followers" or Apple-managed iOS billing data with them.Read more of this story at Slashdot.