Substack’s built-in payment feature is one of the top reasons you should be using Substack for your newsletter. In this post I'll cover: When to turn on payments; Who shouldn’t use payments (and who can’t use payments on Substack); What you need to know about Stripe; Whether you should use the local currency feature; What to offer paying subscribers; How to tell your subscribers; Pitfalls to avoid
I just started my newsletter at the end of May. I turned on paid subscriptions right away--I saw no reason not to. Paid and free subscribers all get the same content--no paywall--but I give my paid subscribers a couple of extra perks, like an autographed copy of my book when it’s published. Although I have less than 200 subscribers at this point, 24% of them paid. I am thrilled with that!
That's fantastic! (I've got a question for you, though. How do you get that autographed copy of your book to those subscribers? Do they have to send you a request for it? Or is there a way to do it automatically?) I've got an idea for a physical reward for my (currently non-existant) paid subscribers, but I'm not sure how to go about setting it up...
I email paid subscribers a Google form asking them to request a copy, the format they want, and if a print book, their mailing address. Then I mail the copy, old school. There might be a way, depending on the POD publisher, to mail it to them directly but my numbers are low enough that this works for now. If you have any better ideas, I'd love to hear them!
Thank you! Since I was looking at a monthly option of stickers/art prints, I'm looking at keeping my physical offers on Patreon and keeping my substack writing based and funneling folks there or to my website for goodies... :(
Still no regrets going paid early, and I believe I'm finally settling a on a model that's fair for my free readers and my paid supporters. I really appreciate the trust and support from my readers while I tested, iterated and zeroed in on that.
I loved the idea of Substack - but then I encountered Stripe invoicing.
Here’s the thing: I want to write under a pen name because of privacy and safety reasons, and I’m a solopreneur who works from home. Thus, Stripe considers my home address as my business address, understandably.
Here’s the thing: you can put your "Business Name" as your newsletter name, like you said, to show up on your customers’ credit card statements.
But customers can also click a button on their receipt called "Generate Invoice." That invoice contains your Substack newsletter name… and your business address.
And if you work from home like me, that’s your *home* address. The use of a pen name to protect your privacy is pointless.
The answer, of course, is to rent a real or virtual mailbox that you can list as your business address.
But still — I want other people to know that using a pseudonym on Substack doesn’t protect you unless you also have a business address Stripe can use to put on your invoices.
Hi Jenny, you're right, there is the Stripe invoice address issue. I didn't unpack that in the post to keep the post focussed and not too long. Some pseudonym-users might not worry about sharing their home address, while others, like you, do worry about it. I hope you can solve your problem.
This has been really helpful. May you please explain how to set up "Offer nothing (extra)?" option? I'm working on setting mine up, and I want it to be all access to everyone. I like the "subscribe just to support me" idea. How?
C.M., The easiest way to figure out how to set up for "offer nothing (extra)" is to find a few publications that do this and makes notes of what you like about their 'offer' and what you could do differently. Otherwise you can always jump on a call with me ($97) and we can formulate a strategy together. Book a slot: https://karencherry.gumroad.com/l/help-with-Substack-2024
Thank you, Karen, great tips on going paid! I recently did after waiting and definitely am grateful I said yes as it is paying- getting compensated for my time and skills!
Stripe has to collect information by law because it is a financial institution. The rules are called "know your customer" and they are to prevent crime gangs and terrorists using payment processors for money laundering and sending money off-shore.
I had a few bad experiences with Payments on Substack.
My payment account was blocked by Stripe. Their reason was that there were unauthorized transactions on my Substack, when I had none. Next, Substack couldn't migrate my paid followers when I changed the Stripe account.
I haven't turned on paid subscriptions again since.
Wow, that's terrible, I'm sorry to hear that, Ashish. I have had mostly good experiences with Substack's support team over my 2.5 years on the platform. Can't believe they couldn't/wouldn't get your paid subscribers connected to a new Stripe account... they are missing out on collecting fees from you! Crazy.
I started out as paid, but I'm curious if I can't turn it off, activate pledges, and return to paid later? Haven't been able to find a clear answer to that and when I am in the Danger Zone it says it can't be undone...
I have delayed writing on Substack as I am only just getting back to writing on Medium. I feel I have plenty to write about my area and believe I can do it after a lifetime of writing courses and teaching them. The idea of paying subscription to my newsletter instantly generates ‘Imposter Syndrome’ in a way that selling or showing my prints doesn’t. I guess I really need to just jump right in. I like the idea of giving subscribers discounts and free downloads on my work including the e-books I am writing.
I am posting fairly good content frequently, though I do need to increase my engagement with the community here, in order to get more readership and potential paying subscribers.
This is such a valuable post! I have only just started on Substack but I am thinking about turning on the paid option. However I would like to offer those paid subscribers an extra reason to do it and I'm not sure what yet... So maybe I just need to try it without offering extra content and see what happens. Loads to think about!
I will be turning off paid as having to register, remit and pay tax - like Vat myself (when I am Canadian and well below the threshold) is confusing and stressful. Wish this worked like Etsy where they handle it for you.
I just started my newsletter at the end of May. I turned on paid subscriptions right away--I saw no reason not to. Paid and free subscribers all get the same content--no paywall--but I give my paid subscribers a couple of extra perks, like an autographed copy of my book when it’s published. Although I have less than 200 subscribers at this point, 24% of them paid. I am thrilled with that!
oh my gosh, Annette, that is absolutely fabulous: 24%, well done!
Thanks! I don’t know if I can maintain that percentage, but it’s affirming for now!
That's fantastic! (I've got a question for you, though. How do you get that autographed copy of your book to those subscribers? Do they have to send you a request for it? Or is there a way to do it automatically?) I've got an idea for a physical reward for my (currently non-existant) paid subscribers, but I'm not sure how to go about setting it up...
I email paid subscribers a Google form asking them to request a copy, the format they want, and if a print book, their mailing address. Then I mail the copy, old school. There might be a way, depending on the POD publisher, to mail it to them directly but my numbers are low enough that this works for now. If you have any better ideas, I'd love to hear them!
Thank you! Since I was looking at a monthly option of stickers/art prints, I'm looking at keeping my physical offers on Patreon and keeping my substack writing based and funneling folks there or to my website for goodies... :(
That makes good sense. Good luck!
Thanks!
This is a great read for those, like me, who have yet to consider “turning on” paid. Great advice. A must read.
Thank you for the mention!
Still no regrets going paid early, and I believe I'm finally settling a on a model that's fair for my free readers and my paid supporters. I really appreciate the trust and support from my readers while I tested, iterated and zeroed in on that.
I loved the idea of Substack - but then I encountered Stripe invoicing.
Here’s the thing: I want to write under a pen name because of privacy and safety reasons, and I’m a solopreneur who works from home. Thus, Stripe considers my home address as my business address, understandably.
Here’s the thing: you can put your "Business Name" as your newsletter name, like you said, to show up on your customers’ credit card statements.
But customers can also click a button on their receipt called "Generate Invoice." That invoice contains your Substack newsletter name… and your business address.
And if you work from home like me, that’s your *home* address. The use of a pen name to protect your privacy is pointless.
The answer, of course, is to rent a real or virtual mailbox that you can list as your business address.
But still — I want other people to know that using a pseudonym on Substack doesn’t protect you unless you also have a business address Stripe can use to put on your invoices.
Hi Jenny, you're right, there is the Stripe invoice address issue. I didn't unpack that in the post to keep the post focussed and not too long. Some pseudonym-users might not worry about sharing their home address, while others, like you, do worry about it. I hope you can solve your problem.
Thanks Karen 🙏 I have been looking for this info online specifically about whether I can link my current Stripe account to Substack.
Does Substack add VAT (where applicable) to the fees or is that done in Stripe settings?
Glad it helped. Substack doesn't add/collect/report any taxes for Europe or Australia. But it does look like Stripe can do that now if you want it to. More details here: https://support.stripe.com/questions/charging-sales-tax-gst-or-vat-on-payments
thanks Karen 🙏
This has been really helpful. May you please explain how to set up "Offer nothing (extra)?" option? I'm working on setting mine up, and I want it to be all access to everyone. I like the "subscribe just to support me" idea. How?
C.M., The easiest way to figure out how to set up for "offer nothing (extra)" is to find a few publications that do this and makes notes of what you like about their 'offer' and what you could do differently. Otherwise you can always jump on a call with me ($97) and we can formulate a strategy together. Book a slot: https://karencherry.gumroad.com/l/help-with-Substack-2024
Thank you, Karen, great tips on going paid! I recently did after waiting and definitely am grateful I said yes as it is paying- getting compensated for my time and skills!
Why is it required that I provide my social security number?
Stripe has to collect information by law because it is a financial institution. The rules are called "know your customer" and they are to prevent crime gangs and terrorists using payment processors for money laundering and sending money off-shore.
This post is very informative. You covered a lot of details that I didn't know about. Thank you!
I had a few bad experiences with Payments on Substack.
My payment account was blocked by Stripe. Their reason was that there were unauthorized transactions on my Substack, when I had none. Next, Substack couldn't migrate my paid followers when I changed the Stripe account.
I haven't turned on paid subscriptions again since.
Wow, that's terrible, I'm sorry to hear that, Ashish. I have had mostly good experiences with Substack's support team over my 2.5 years on the platform. Can't believe they couldn't/wouldn't get your paid subscribers connected to a new Stripe account... they are missing out on collecting fees from you! Crazy.
I started out as paid, but I'm curious if I can't turn it off, activate pledges, and return to paid later? Haven't been able to find a clear answer to that and when I am in the Danger Zone it says it can't be undone...
I have delayed writing on Substack as I am only just getting back to writing on Medium. I feel I have plenty to write about my area and believe I can do it after a lifetime of writing courses and teaching them. The idea of paying subscription to my newsletter instantly generates ‘Imposter Syndrome’ in a way that selling or showing my prints doesn’t. I guess I really need to just jump right in. I like the idea of giving subscribers discounts and free downloads on my work including the e-books I am writing.
Thanks for sharing this, Karen.
For me, I turned on payments from day 1.
I am posting fairly good content frequently, though I do need to increase my engagement with the community here, in order to get more readership and potential paying subscribers.
This is such a valuable post! I have only just started on Substack but I am thinking about turning on the paid option. However I would like to offer those paid subscribers an extra reason to do it and I'm not sure what yet... So maybe I just need to try it without offering extra content and see what happens. Loads to think about!
I will be turning off paid as having to register, remit and pay tax - like Vat myself (when I am Canadian and well below the threshold) is confusing and stressful. Wish this worked like Etsy where they handle it for you.
I'm going to go paid soon. This post has given me a lot to think about - and some positivity!
Thank you 😊