Hey online writer friend,
This week, I got so many questions about Substack fees, Stripe, VAT, and all that behind-the-scenes money stuff.
(I know some are still waiting for my reply via DM. I’ll get back to you on Monday as I’m off with the kids for a kite festival at the beach!)
So I figured, let’s clear it up once and for all with this video (I created a few months back before I went on vacay. Earnings and subscriber count are higher now).
If you’ve ever wondered how much you actually earn before taxes (!), this is for you.
🎉And heads up... I’m about to reveal something very special this weekend.
I’m currently prepping everything behind the scenes, and a few of you already got a little email from me. Founding members now have access to me via WhatsApp, for instance. YAY!🎉
Keep an eye on your inbox, you won’t want to miss what’s coming for all subscribers and paid members!
Now, back to the money talk...
✅ First, The Awesome News - Substack Is 100% FREE
Substack is 100% free to use if you're running a free newsletter or blog.
That means you can start building your audience today, without paying a single cent. I know many of you are still hesitant about starting their newsletter.
Compared to others, there are no setup fees. No hidden costs or monthly charges.
(Yes — even if you haven’t published your first post yet!)
I hear you say:
💸 But What Happens If I Turn On Paid Subscriptions?
This is where Substack keeps it refreshingly simple:
You only pay when you get paid.
I know many of you got your first paid subscribers this week. YAY! Others hit 70 paid subs or 29. Some are just a few subscribers away from becoming a bestseller (again). One person will start her Substack THIS WEEKEND and turn on the paid button.
Here’s the breakdown:
Substack takes a 10% platform fee
Only once you start earning. Until then? Totally free.Stripe (the payment processor) charges 2.9% + 30¢ per transaction
Standard for online payments, and it’s automated.
So let’s say a reader buys a $100 annual subscription:
You’ll take home about $86.
The rest covers Substack + Stripe.
That’s your income before taxes or VAT if you’re in the EU or UK.
Check your local setup to stay on the safe side! (I’m not a tax or legal advisor!)
Pro Tip From A Substack Bestseller & Professional Marketer
Focus on annual subscriptions, not monthly ones.
Monthly plans trigger more transaction fees.
Annuals bring stability and better margins. Your future self will thank you. Trust me.
That’s why people offer tiers like this:
Monthly subscription: $20
Annual subscription: $100
They want you to take the no-brainer.
I talked with
about the average monthly and annual fees. Plus the fees for founding members here:
It’s a Win-Win For Substack & Authors
Let me summarize what I shared with you in this post and today’s video:
Substack is free to start
You only pay when someone pays you
Substack = 10%
Stripe = 2.9% + 30¢
You keep about 86% of your revenue before taxes
Annual subscriptions = gold!
And that’s why I genuinely love the Substack model.
They only win when you win.
Wanna To Kickstart or Level Up Your Substack Journey?
If you join the Online Writing Club, you’ll get instant access to my Substack Course for Beginners — a step-by-step roadmap that’s already helped 800+ writers get started and grow to 300, 1,000, 10,000, or even 30,000 or 50,000 subs - and $$-$$$$$.
We have monthly LIVE masterclasses with my podcast guests and… LOTS OF SURPRISES ARE COMING! 🎉
Many thanks for letting me into your inbox!
I wish you a wonderful weekend, and watch out for the BIG REVEAL,
