Substack takes 10% of paid subscription revenue. Patreon takes 8-12% depending on plan. Ghost charges $9-$25/month flat with 0% revenue share. At 100 paid subscribers paying $10/month ($1,000 gross): Substack nets $870, Patreon nets $880-$920, Ghost nets $975-$991. The gap widens as revenue grows — at $10,000 gross/month, Substack's 10% costs $1,000 vs Ghost's $25.
The reason most writers still choose Substack: discoverability. Substack's recommendation engine, Notes feed, and network of readers drive organic subscriber growth that competing platforms cannot replicate. For writers prioritizing audience building over margin optimization, Substack's network effects often justify the premium through mid-2025.
How much does Substack pay writers?
Substack does not pay writers directly. Revenue comes from readers paying subscriptions. After Substack 10% and Stripe processing (~3%), writers keep roughly 87% of subscription revenue. 200 paid subscribers at $10/month nets approximately $1,740/month.
What is a good Substack conversion rate?
Free-to-paid conversion of 5-10% is typical. Above 15% is strong. Conversion depends on content quality, how clearly you position paid value, and whether you actively promote the paid tier with upgrade prompts.
Should I charge monthly or annual on Substack?
Annual plans reduce churn significantly and convert at 15-20% higher rates than monthly in most cases. Standard practice: offer annual at 15-20% discount to monthly (e.g., $9/month or $80/year). Annual subscribers have 4-6x lower churn than monthly.
How many free subscribers before launching paid?
Most Substack writers wait until 500-2,000 free subscribers before launching paid, to ensure enough audience to convert. However, launching paid earlier builds the habit and tests willingness to pay before you invest heavily in growing free subscribers who may never convert.