The importance of the 2 percent

Seven months in, I debut my first Substack telethon.

I’m no Jerry Lewis, who also wasn’t afraid to ask for a donation.

Note: This one’s important to me. 

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Most people know me as a writer or journalist, but I’ve also acquired extensive experience in sales. I’ve sold advertising and subscriptions for newspapers, commercials for radio stations, memberships for my local Chamber of Commerce, automobile “hard flags” and even fine art cityscape prints.

The most important lesson I learned in sales is don’t be afraid to ask for the sale. 

Seven months ago when I started this newsletter, I intentionally decided I’d NOT ask for a sale … at least right away. I knew 99 percent of readers had never heard of Bill Rice, Jr. My first goal was to prove that my articles were worth reading.

Approximately 90 articles later, I’m now comfortable asking readers to consider spending $5 or $40 to help support my work.

(I appreciate this button … and everyone who clicks on it!)

Selling Substack subscriptions is a horse of a different color …

Before I became a Substack author, I’d never tried to sell a product that customers could get for free.

If Substack authors/entrepreneurs are honest, what we’re really asking for is donations. 

One quality that makes our country great is many citizens will support a “charitable cause”  … if he or she believe a cause or mission is a worthwhile endeavor and is worth supporting.

The reason civic-minded business owners support a quality Chamber of Commerce is the same reason certain people support their favorite Substack sites … Or the local United Way. If you believe X organization (or individual) is making a difference or stands for values you think are important, you’ll support them if you can.

I feel the same way about Substack except with my Substack newsletter I’m not contributing to dialogues that will affect my hometown …. But issues affecting a nation I also care passionately about. 

Such sentiment might strike some as egotistical hokum (“Oh, you are going to make a difference, huh?”) … but I believe this. 

So, today, when I’m selling Substack subscriptions, I’m selling them to people I believe think like I do. 

It’s a Group Effort …

Today, Substack has more than 35 million subscribers. I think this figure can be 50 million in 12 months. It could be 100 million in two or three years. This (my opinion) is exactly what the worst elements in our society do NOT want to happen. 

One reason someone might consider supporting a given Substack author is because you want to play a small, but important role in the noble fight to defeat people and organizations you believe are doing harm to a country you love.

Most readers can’t spend 8 to 14 hours a day crafting articles that might make more people join our side in this battle for the future of our country. But Substack authors can … If we get minimal financial support.

(Via their excellent Reader Comments sections, Substack newsletters also give everyone a chance to express views that can be read by thousands of people) 

This is my first Substack telethon or fund-raiser

Life is a numbers game. My magic number is 2 percent. I don’t need everyone who is a free subscriber to become a paid subscriber. To make a living and keep doing this for many more years, I need just two percent of existing free subscribers to become paid subscribers. 

Expressed differently: For every 50 people reading today’s fund-raising appeal, I’m trying to persuade one person in this group to upgrade their subscription to paid. 

I’ve always believed a very small group of benevolent citizens can make a huge difference for the collective good. (As I view things, the “extra two percent” are a key counter-weight to the nefarious “1 percent” who are sowing our collective bad). 

Unlike the CDC, I don’t mind sharing my key data or metrics. 

N = 3,648 - Toal subscribers to the “Bill Rice, Jr.’s Newsletter” as of May 4, 2023.

Comment: This represents impressive and deeply-flattering growth. Thank you to every person who hit the “subscribe” button.

N = 106 - Total paid subscribers to my newsletter. To my current paid subscribers, I can’t thank you enough for your show of support.

Comment: 2.9 percent of my subscribers have made a “donation” to me. 

According to Substack metrics, at my current paid ratio and if I don’t add any more paid subscribers in the next five months,  I’ll gross $4,580 in my first year as a Substack author.  This averages out to $382/month. 

As appreciative as I am to my paid subscribers, these figures are not “sustainable,” at least if I want to keep doing what I’m doing (which I definitely do).

As noted above, Approximately 3 percent of my subscribers are supporting my work with a paid subscription.

However, per my business analysis, I need to boost this figure to five percent. So, while my key metrics are trending in the right direction, I need to go ahead and reach that magic five-percent level …. thus I need to convert an additional 2 percent of my free subscribers into paid subscribers … Thus, today’s specific “ask.”

Math: Based on my total subscriber growth trends, I’m confident by the time our next president takes office in January 2025, this newsletter will have 20,000 subscribers (maybe more if I break some major “scoops,” which I think is actually possible).

If just 5 percent of my future (anticipated) subscribers are “paid,” I’ll have 1,000 paid subscribers. At $50 annualized average subscription, my Substack site would gross $50,000 year. 

For many people my age, this might qualify as an an embarrassing salary, but in Troy, Alabama one can live comfortably and provide for two children with this income stream … as long as my lovely and supportive wife keeps her high school teaching job … which she will since she is the most popular teacher in her school.

Where the rubber meets the road …

At the moment, Substack doesn’t have a payment option that allows people to send me a small, one-time tip if they appreciate a particular article.

However, a monthly subscription at my newsletter is only $5. If someone stays with me for 12 months, that’s $60 (I’d net $48, Substack would make $12). 

Today, I’m asking for “tips.” That is, readers who are so-inclined could pay me $5 today and, with one click of your mouse, cancel your “paid” subscription tomorrow. I get $4, Substack $1.

(if all 3,500 of my “free” subscribers sent my account at Troy Bank & Trust this modest “gratuity,” I’d net - Gulp - $14,000!)

If 10 people do this, I’ve made $40 with this article, which is more than I’ll ever make at a mainstream newspaper (because no mainstream newspaper would hire an apostate like myself).

The other payment option is the annual subscription, which I’ve priced significantly lower than most Substackers at $40/year. On a monthly basis, that’s only $3.33/month - less than the price of a gallon of gasoline.

Overcoming one common objection ….

One reason more people don’t become paid subscribers is they are already supporting X number of Substack writers with subscriptions. I can relate. I’m a paid subscriber to about 12 sites, but I wish I was wealthy enough to support 25 writers.

On one level, I’m actually competing with my fellow Substack colleagues for a piece of the coveted home-made Subscription Pie. 

When I think about this reality, I think back to growing up in Troy in the 1970s and 1980s. Back then, my parents probably spent $75/month (if not more) subscribing to two newspapers, Newsweek, Sports Illustrated, Reader’s Digest and TV Guide (I think every family subscribed to TV Guide).

The good news is most people have cut-out paid subscriptions to woke newspapers and magazines, which leaves more money for Substackers. 

Readers who want to show symbolic support to their favorite Substackers might consider budgeting $XX/month for Substack subscriptions. Some people might support two writers, others are probably already supporting 20.

Again, I don’t need everyone to “vote” with their debit cards for my Substack. My goal today is to get just  2 percent (approximately 70 people) who will (for one day or 12 months) include my newsletter in their “paid” roster of stacks.

In conclusion …

I’ll probably write a piece like this once or twice a year. If you are going to remain a Substacker, you can’t be afraid of asking for a sale. 

Otherwise, I’ve still got 100 great stories I’ve yet to write, including several big and “news-worthy” ones I’ll publish in the the next few weeks.

And if nobody becomes a paid subscriber today, I’ve still been “paid” by doing what I always wanted to do. Many of my subscribers (free and paid) already feel like new friends.

To everyone, thank you for reading my first-ever Substack telethon and for considering a paid subscription. 

P.S. My partner and co-author, Annie, sends her thanks as well!

Annie and I are going to buy a new desk with proceeds from today’s telethon.