The Three Models at a Glance
| Platform | Revenue Streams | Platform Cut | Required Tier |
|---|---|---|---|
| beehiiv | Boosts (ad network) + Paid subscriptions + Sponsorships | 0% on paid subs (Stripe fees only) | Scale $49/mo |
| Kit (ConvertKit) | Digital products (courses, ebooks) + Paid newsletter + Sponsor network | 3.5% + $0.30 per transaction (Kit fee on top of Stripe) | Creator $39/mo |
| Substack | Paid subscriptions only | 10% of subscription revenue (+ Stripe fees) | Free (all features included) |
beehiiv: The Multi-Revenue Model
Boosts (Ad Network): beehiiv's built-in ad network lets you earn money by recommending other newsletters to your subscribers. You get paid per recommendation (typically $0.50–$3 per subscriber who opts in). This is available on Scale ($49/mo) and above.
Paid Subscriptions: Offer premium content behind a paywall. beehiiv takes 0% platform cut — you only pay Stripe processing fees (approximately 2.9% + $0.30). Available on Scale ($49/mo).
Sponsorships: Sell ad placements directly in your newsletter. beehiiv provides analytics and sponsor management tools on Scale and above.
Referral Program: Built-in referral program (Scale $49/mo) lets subscribers earn rewards for referring others, reducing your acquisition cost to near zero.
Revenue Example: 10,000 subscribers on beehiiv Scale ($49/mo)
Boosts: 200 recommendations/mo at $1.50 avg = $300/mo. Paid subs: 200 paid at $10/mo = $2,000/mo (minus ~$87 Stripe fees). Total: ~$2,213/mo revenue minus $49/mo platform cost = $2,164/mo net.
Kit: The Digital Products Model
Digital Products (Commerce): Sell ebooks, courses, presets, templates, and other digital products directly through Kit. Kit charges 3.5% + $0.30 per transaction on top of Stripe fees. Available on Creator ($39/mo) and above.
Paid Newsletter: Offer a paid newsletter subscription. Same 3.5% + $0.30 Kit fee applies on top of Stripe processing. Available on Creator ($39/mo).
Sponsor Network: Kit connects creators with sponsors for newsletter ad placements. Available on Creator Pro ($79/mo).
Newsletter Referral Program: SparkLoop-style referral program is available on Creator Pro ($79/mo) only.
Revenue Example: 10,000 subscribers on Kit Creator ($39/mo)
Digital product: 50 sales/mo at $29 = $1,450/mo (minus ~$72 Kit fee, minus ~$57 Stripe fees). Paid newsletter: 100 paid at $8/mo = $800/mo (minus ~$40 Kit fee, minus ~$35 Stripe fees). Total: ~$2,046/mo net after fees and platform cost.
Substack: The Simplest Model (But the Most Expensive Cut)
Paid Subscriptions: The only monetization method. Readers pay $5–$50+/month or annual equivalents. Substack takes 10% of all subscription revenue, plus Stripe fees (~2.9% + $0.30).
No Platform Fee: Substack has no monthly subscription cost. You pay nothing until you earn. The trade-off is the 10% perpetual revenue share.
Network Discovery: Substack's recommendations network and mobile app provide built-in discovery that beehiiv and Kit do not match. This has real value for growing a paid audience.
No Ad Network: No built-in Boosts or sponsor tools. No digital product sales. No referral program.
Revenue Example: 10,000 subscribers on Substack (Free)
Paid subs: 500 paid at $10/mo = $5,000/mo. Substack cut: $500/mo (10%). Stripe fees: ~$175/mo. Total: ~$4,325/mo net. No platform cost but 10% revenue share in perpetuity.
The Crossover Math: When Substack's 10% Costs More Than a Platform Fee
Break-even vs beehiiv Scale ($49/mo): Once your paid subscription revenue exceeds $490/mo, Substack's 10% cut costs more than beehiiv's flat $49/mo fee. That is roughly 50 subscribers at $10/mo.
Break-even vs Kit Creator ($39/mo): Kit's 3.5% + $0.30 per transaction is cheaper than Substack's 10% from the first dollar. However, Kit charges a monthly fee. At approximately $600/mo in revenue, Kit's total cost ($39/mo + transaction fees) exceeds Substack's 10% cut. Below that, Substack is cheaper because there is no monthly fee.
The real question: If you will earn more than $500/mo from your newsletter, beehiiv's 0% platform cut saves you money. If you earn less than $500/mo, Substack's zero monthly cost and network discovery may be worth the 10%.
Which Model Fits Which Creator?
Choose beehiiv if: You want multiple revenue streams (ads + subscriptions + sponsorships), plan to earn over $500/mo, and value keeping 100% of subscription revenue. Requires Scale at $49/mo.
Choose Kit if: You sell digital products (courses, ebooks, templates) alongside your newsletter. The commerce features are Kit's strongest differentiator. Creator at $39/mo.
Choose Substack if: You are starting from zero, value the built-in network for discovery, want the simplest possible setup, and are willing to pay 10% forever. Best for writers who prioritize audience growth over revenue optimization.
Frequently Asked Questions
Can I use Boosts on beehiiv and still have paid subscriptions?
Does Substack really take 10% forever?
How much do beehiiv Boosts actually pay?
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