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... :(
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 is what worries me about Substack - I don't want my personal information out there, since I write under a pen name. On Medium, Medium pays me and it has nothing to do with readers subscribing to my work, just to Medium as a whole. I'd love to see if Substack readers are interested in my writing and if I could be successful turning on paid subscriptions, but I can't have my real name or address out there. I wish there was a way to keep that private here like on Medium. If you've figured out a way, I'd love to know how!
I agree completely! That’s why I’m on Medium and not Substack.
*Then* there’s the advice about how everyone should build an email list/newsletter, which I’ve been considering instead of Substack.
If you’re interested in building that, there are only two places I’ve seen that protect your privacy: Gumroad and ConvertKit.
On Gumroad you can create a newsletter as a product, and since Gumroad is the Merchant of Record, you’re protected.
With ConvertKit, they offer a dedicated physical address that ConvertKit users can put at the bottom of their emails instead of their own. (A real physical address is required by law at the bottom of marketing emails, which is a huge problem for people like you and me, who need safety and privacy.)
I hope that helps. (Also: I’m really glad to see I’m not the only one who worries about these things.)
Thank you! I’m so comfortable on Medium but I don’t want to limit any possibilities for sharing my work. I’m not really interested in building a newsletter, but I’ve heard good things about Gumroad in general.
I've just run into exactly this issue. My corp address is my home address, but I don't want every single subscriber to know that. I signed up for a PO box but Stripe won't accept it. I'm trying to convince them to verify me via my home/corp address and let me use a PO box for all customer-facing stuff, but I suspect they'll laugh and say no.
Hi Adrian, my company's address is also my home address and as far as I can tell this is never shared by Stripe except if someone generates an invoice. They do share an email addresses and a phone number so that if anyone has trouble with a payment or want to dispute a payment they can.
For me the company address/home address has not been a problem, and I have been using Stripe for 9 years with 100,000 transactions.
I wonder if it’s because it’s a PO box. Would they have accepted a virtual mailbox with a physical address, since those services have to accept the mail for you and scan or forward it to you?
I’m really curious how Stripe responds. Please let us know how it goes!
Update: even though the government of Canada accepts PO Boxes for business addresses, Stripe wouldn't budge. I ended up using my home address for all verification stuff, and I'm told by Stripe and validated by Karen above (thanks Karen) that I can ensure my business/home address is not listed on emails or invoices sent to my customers. Here's hoping.
Thank you for updating us! I’m actually a little shocked (in a good way) that Stripe told you they won’t share your address even if customers generate an invoice!
I actually went with ConvertKit months ago, for that reason.
Because I asked ConvertKit (now Kit) if my address showed up on invoices. They said no.
So I tested it out by creating a test product, put a 100% discount, and used a 2nd email address to “buy” it. I wanted to generate an invoice to see what a customer would see.
They were right. Only ConvertKit’s information was there (and it didn’t include their address).
But I assumed that was a ConvertKit thing. (Payhip is the same. They let you remove your address from customer invoices.)
Because, frankly, all of Stripe’s invoice templates don’t seem to let you remove the address portion. (I tried!)
Has anyone tried this on Substack? Actually, as a customer, generated an invoice? Just to see if an address is included? (I would do it, but I’m not active on Substack. I follow people on Medium instead.)
This is super helpful. There are so many ways to screw up setting this up and you seem to call them all out and offer valid approaches that are easy to understand and execute. Thanks so much. Going paid is somewhat nerve-racking on many levels. I hope the people kicking in five bucks a month. appreciate all that. :)
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'm going to turn them on from day one I think, and let the chips fall where they may, after a few weeks of basically writing super long winded "notes", I keep asking myself why I haven't started "writing" yet, that is, 'there is probably a reason you tend toward the *long winded*, you should just be putting this out there for people to read on your own substack" (is that what they're called? Are we not using "blog" anymore, or is it the same thing)?
I don't mean long winded as in nobody reads them, I'm getting a fairly positive response from them, it's just that this is so "different" to what I'd always imagined "writing" would be, so it is, yes, *super* nerve wracking.
I actually popped over here right in the middle of setting Stripe up, looking for an answer to what to write in the "product description" box, at the moment I have, "I will be writing about myself and/or opinion on current events." which doesn't really seem enough for a "business", but I really can't think of what else I could put in there, oh dear, oh dear, I'm getting more frightened by the minute, am I biting off more than I can chew? If you set it all up, is that just it, you're off to the races? Or can you set it all up and *not* turn it on for a while? But then I think, I am planning to write something of an "introduction" that basically explains where I'm at, my life (how I got where I'm at) to this point, and finding a way to generate income is definitely a part of that story, so it feels silly NOT to turn it on, cause what if...?
Sheesh, I don't know now, this is yet another time I've heard that the self doubt is a good thing, but man, for me it can be debilitating, hence I've been a prolific "commenter" on the internet since the Usenet/BBS days, am 63 years old, and have pretty much "planned to write someday", had people telling me I *should* write, pretty much forever, now here it is right in front of me, and it feels like jumping in front of a speeding train.... 🤦♂️
This post is kind of old, hope it gets some engagement still (other than me I mean), really need to get talked off the ledge here lol, but I don't want to post it as a note, still, beyond the fear, I'm kind of excited.....
Also, thanks so much for all this information, it definitely helps, but I'm still terrified.....
Oh wow, Dave. This is a lot 😮 You definitely need to talk this through with someone who has an objective/independent perspective. I can help you clarify your ideas, form a plan for executing them and talk you off the ledge. (Also, can answer your Stripe questions). If you'd like my help I offer 40 minute Zoom calls for US$97. They aren't usually available at this time of the week but if you purchase a call I can possibly fit you in within the next few hours (I'm in Australia and it's Monday morning here). Here's the link to learn more: https://karencherry.gumroad.com/l/help-with-Substack-2024
Oh, hey Karen, didn't expect a response that quick, sure, that works for me, will try from that page and see how it works. Thanks. 🙂
Edit: had a little issue with the bank's 'fraud protection' thing, so didn't go through, squared away (a pain, but I appreciate that they're looking out for me, so, cool) scheduled tomorrow, cause been up doing like a million things, I'm fried and need to get some food in me, thanks, talk soon.
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!
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!
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 is what worries me about Substack - I don't want my personal information out there, since I write under a pen name. On Medium, Medium pays me and it has nothing to do with readers subscribing to my work, just to Medium as a whole. I'd love to see if Substack readers are interested in my writing and if I could be successful turning on paid subscriptions, but I can't have my real name or address out there. I wish there was a way to keep that private here like on Medium. If you've figured out a way, I'd love to know how!
I agree completely! That’s why I’m on Medium and not Substack.
*Then* there’s the advice about how everyone should build an email list/newsletter, which I’ve been considering instead of Substack.
If you’re interested in building that, there are only two places I’ve seen that protect your privacy: Gumroad and ConvertKit.
On Gumroad you can create a newsletter as a product, and since Gumroad is the Merchant of Record, you’re protected.
With ConvertKit, they offer a dedicated physical address that ConvertKit users can put at the bottom of their emails instead of their own. (A real physical address is required by law at the bottom of marketing emails, which is a huge problem for people like you and me, who need safety and privacy.)
I hope that helps. (Also: I’m really glad to see I’m not the only one who worries about these things.)
Thank you! I’m so comfortable on Medium but I don’t want to limit any possibilities for sharing my work. I’m not really interested in building a newsletter, but I’ve heard good things about Gumroad in general.
I've just run into exactly this issue. My corp address is my home address, but I don't want every single subscriber to know that. I signed up for a PO box but Stripe won't accept it. I'm trying to convince them to verify me via my home/corp address and let me use a PO box for all customer-facing stuff, but I suspect they'll laugh and say no.
Hi Adrian, my company's address is also my home address and as far as I can tell this is never shared by Stripe except if someone generates an invoice. They do share an email addresses and a phone number so that if anyone has trouble with a payment or want to dispute a payment they can.
For me the company address/home address has not been a problem, and I have been using Stripe for 9 years with 100,000 transactions.
I wonder if it’s because it’s a PO box. Would they have accepted a virtual mailbox with a physical address, since those services have to accept the mail for you and scan or forward it to you?
I’m really curious how Stripe responds. Please let us know how it goes!
Update: even though the government of Canada accepts PO Boxes for business addresses, Stripe wouldn't budge. I ended up using my home address for all verification stuff, and I'm told by Stripe and validated by Karen above (thanks Karen) that I can ensure my business/home address is not listed on emails or invoices sent to my customers. Here's hoping.
Thank you for updating us! I’m actually a little shocked (in a good way) that Stripe told you they won’t share your address even if customers generate an invoice!
I actually went with ConvertKit months ago, for that reason.
Because I asked ConvertKit (now Kit) if my address showed up on invoices. They said no.
So I tested it out by creating a test product, put a 100% discount, and used a 2nd email address to “buy” it. I wanted to generate an invoice to see what a customer would see.
They were right. Only ConvertKit’s information was there (and it didn’t include their address).
But I assumed that was a ConvertKit thing. (Payhip is the same. They let you remove your address from customer invoices.)
Because, frankly, all of Stripe’s invoice templates don’t seem to let you remove the address portion. (I tried!)
Has anyone tried this on Substack? Actually, as a customer, generated an invoice? Just to see if an address is included? (I would do it, but I’m not active on Substack. I follow people on Medium instead.)
This is super helpful. There are so many ways to screw up setting this up and you seem to call them all out and offer valid approaches that are easy to understand and execute. Thanks so much. Going paid is somewhat nerve-racking on many levels. I hope the people kicking in five bucks a month. appreciate all that. :)
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'm going to turn them on from day one I think, and let the chips fall where they may, after a few weeks of basically writing super long winded "notes", I keep asking myself why I haven't started "writing" yet, that is, 'there is probably a reason you tend toward the *long winded*, you should just be putting this out there for people to read on your own substack" (is that what they're called? Are we not using "blog" anymore, or is it the same thing)?
I don't mean long winded as in nobody reads them, I'm getting a fairly positive response from them, it's just that this is so "different" to what I'd always imagined "writing" would be, so it is, yes, *super* nerve wracking.
I actually popped over here right in the middle of setting Stripe up, looking for an answer to what to write in the "product description" box, at the moment I have, "I will be writing about myself and/or opinion on current events." which doesn't really seem enough for a "business", but I really can't think of what else I could put in there, oh dear, oh dear, I'm getting more frightened by the minute, am I biting off more than I can chew? If you set it all up, is that just it, you're off to the races? Or can you set it all up and *not* turn it on for a while? But then I think, I am planning to write something of an "introduction" that basically explains where I'm at, my life (how I got where I'm at) to this point, and finding a way to generate income is definitely a part of that story, so it feels silly NOT to turn it on, cause what if...?
Sheesh, I don't know now, this is yet another time I've heard that the self doubt is a good thing, but man, for me it can be debilitating, hence I've been a prolific "commenter" on the internet since the Usenet/BBS days, am 63 years old, and have pretty much "planned to write someday", had people telling me I *should* write, pretty much forever, now here it is right in front of me, and it feels like jumping in front of a speeding train.... 🤦♂️
This post is kind of old, hope it gets some engagement still (other than me I mean), really need to get talked off the ledge here lol, but I don't want to post it as a note, still, beyond the fear, I'm kind of excited.....
Also, thanks so much for all this information, it definitely helps, but I'm still terrified.....
Oh wow, Dave. This is a lot 😮 You definitely need to talk this through with someone who has an objective/independent perspective. I can help you clarify your ideas, form a plan for executing them and talk you off the ledge. (Also, can answer your Stripe questions). If you'd like my help I offer 40 minute Zoom calls for US$97. They aren't usually available at this time of the week but if you purchase a call I can possibly fit you in within the next few hours (I'm in Australia and it's Monday morning here). Here's the link to learn more: https://karencherry.gumroad.com/l/help-with-Substack-2024
Oh, hey Karen, didn't expect a response that quick, sure, that works for me, will try from that page and see how it works. Thanks. 🙂
Edit: had a little issue with the bank's 'fraud protection' thing, so didn't go through, squared away (a pain, but I appreciate that they're looking out for me, so, cool) scheduled tomorrow, cause been up doing like a million things, I'm fried and need to get some food in me, thanks, talk soon.
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
To those that "liked" this, I found the answer to the question: Just don't select "paid only" option when building a post. It's that simple.
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 🙏
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!
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.