Michael Houck 💡 Profile picture
May 6 20 tweets 5 min read Twitter logo Read on Twitter
My last startup drove tens of thousands in revenue via our newsletter

But most founders don't realize the potential of newsletters for their startup

Here's how to use a niche newsletter as a growth strategy:
Building an email list is high leverage for startups.

Unlike social media, an email list means you own the relationship with your potential users — even before they try your product.

And building an email list is the best way to take multiple shots on goal if you need to pivot.
Here's how to set up a niche newsletter:

→ Topic: What do your specific users want to read?
→ Structure: News? Entertainment? Advice?
→ Cadence: How often will you send emails?
→ Tools: Keep it simple

I'll dive into each of these 👇
Topic:

You may think your startup is too niche to build a newsletter around. It's not.

If your market can support a startup, it can support a newsletter.

If there's no dominant newsletter, this is an opportunity for you.

Structure:

Readers only want a few things from newsletters.

Pick one and infuse it with your brand's unique personality.

Your goal is to establish credibility with your audience so they trust that your product is worth checking out.

Cadence:

Chances are that you won’t have time to write a daily newsletter while also getting your startup off the ground.

Weekly is a smart choice for founders (if you're writing it yourself, like I do). Setting the expectation with readers matters.
Tools:

Don't get distracted by fancy tools right away.

Start by simply building the habit of writing and setting up your team's processes to getting it out the door.

If you need to generate revenue from the newsletter, explore Sparkloop's Upscribe and similar tools.
Once your newsletter is set up, you need to grow.

Growing a newsletter isn’t a mystery. There’s a proven playbook that almost all big newsletters have followed.

Content:

Find the platforms, communities, and spaces where your superniche spends time online.

Pick the one where they are most active and put out useful content.

Iterate based on their early feedback since these tend to be the most engaged subscribers.
Swaps:

Once you have a bit of an audience, find a few other newsletters that are a similar size and build relationships with them.

You can swap recommendations, or feature each other’s newsletters in place of running ads in your newsletter.
Referrals:

Don’t overcomplicate a referral program.

As a founder, you don’t want to be spending time fulfilling swag orders.

Keep it simple and offer a lead magnet for anyone who refers 1 person.

Plug this in your welcome email so everyone will see it at least once.
Paid Ads:

The secret of newsletters is that every major newsletter relies on paid ads.

Startups with capital and a clear target persona can and should start running ads as they feel confident the newsletter will be a part of their longterm strategy.

newsletteroperator.com/p/paid-acquisi…
Growing the newsletter is great, but you need to convert your readers into users of your product.

Here are some non-invasive ideas on how to do that 👇
Welcome Email:

Let your readers know about your startup right away.

Mention it in your welcome email.

Have a link in the welcome email that takes them to a landing page for your startup that is geared specifically towards readers of your newsletter.
Footer:

The readers who reach your footer in your newsletter are your biggest fans and most likely to be a good fit for your product.

Mention your product and see if it resonates like Nathan Baugh’s did.

Email Blasts:

You can send one-off emails to your newsletter email list about your startup launching, or new features.

Just don’t do this often — you’ll quickly lose your subscribers’ trust.
Bonuses:

Lastly, incentive newsletter readers to try your app with discounts or early access to new features.
Enjoyed this thread?

1. Follow @callmehouck for weekly threads about startups

2. Try my free newsletter where 36,000+ founders get actionable advice on how to build, grow, and raise capital for their startup try.houck.news
And retweet the first tweet to share this thread with others
How to use a niche newsletter to grow your startup:

1. Set it up simply
2. Focus on growth
3. Add non-invasive ways for readers to get exposed to your product

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More from @callmehouck

May 3
Equity is the most valuable thing startup founders can offer

But most founders don't know how much to give early employees

Use these 8 factors to determine how much to offer:
Role Type:

Engineers have different equity expectations than marketing managers.

Roles that are harder to recruit for have the leverage to demand higher grants.

Candidates who make commission sometimes don't expect a grant at all.

Here's an example from Index Ventures: Image
Employee Number:

The first non-founder who joins a startup is taking on a lot of risk.

Much more than the 10th employee, or even the 2nd.

This chart from Carta shows the typical distribution for your first 10 hires: Image
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Apr 23
Elon Musk is going to battle with Sam Altman and OpenAI

He cofounded the company 8 years ago but now he's suing it

How did things get to this point?

Here's the full story:
In 2015 Elon cofounded OpenAI alongside Sam Altman and 20 others

It was originally as a non-profit and didn't accept any investments — only donations

Cofounder Greg Brockman said it "needed to be a non-profit, without any competing incentives to dilute its mission"
OpenAI's mission is "to ensure that artificial general intelligence benefits all of humanity"

Originally, this meant keeping AI away from centralized control

At the time, the biggest risk of this happening was Google since they own DeepMind and Google Brain
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Mar 28
We're open for business 🔔

Houck's Newsletter has grown from 0 to 28,000+ subscribers in 6 months

And now I'm accepting partners to sponsor each issue

Here's how to get in front of thousands of founders:
In a short time, Houck's Newsletter has become the go-to weekly advice column for founders
This weekend we hit 28,000 subscribers after only 6 months

We're growing by over 2,000 subscribers per week (and accelerating)

Open Rate: 55%+
CTR: 7.5%+
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Mar 25
Peter Thiel is worth $4.2 billion

He wrote the manual for building startups — Zero to One

Here are the 12 main takeaways from the book about startups:
Create Something New:

Focus on innovation, not imitation.

Going zero to one means starting at 0.

Build a groundbreaking product that changes the world.
Aim to be a Monopoly:

99% of people think monopolies are bad.

Thiel argues they can be good — both for business and society.

Aim to dominate your market over the longterm.

This incentivizes continued value creation.
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Mar 22
GPT-4 makes it easy to create software even if you're not an engineer

It can write code and be your CTO

Software is no longer a competitive moat for startups

Here's how you need to adjust your thinking:
Don't believe me?

Startups are already cutting down development time by 10x.

Within the next few months we'll see VC-backed startups with a solo, non-technical founder.

New types of moats:

GPT-4 can build any type of software.

But you can still differentiate from competitors.

Instead, focus on:
→ A strong business model
→ High quality user experiences
→ Distribution and go-to-market strategy
→ Network effects
→ Unique data sets
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Mar 20
Sam Altman is the founder of OpenAI and was president of Y Combinator.

I used GPT-4 to analyze all of his best startup advice.

Here are his 10 most important lessons for founders:
Avoid "fake" trends:

The best predictor of success for a startup is if people:

→ Use the product obsessively
→ Spontaneously tell their friends about it

That's a real trend and achieving it is really hard.

A fake trend happens when people buy a product but then don't use it
Have a high bar for ideas:

Don't chase after all of your ideas.

Instead, focus on refining a small number of high-quality ideas.

Spend more time iterating and refining those ideas.
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