I should buy a newsletter
Recently, two internet friends from the same group chat bought newsletters at ~basically the same time. (Prequel, about kids + entrepreneurship; and Newsletter Business, whose purpose is in the name. Go subscribe if you vibe with those topics!) When I found out, I responded:
It started as a joke, but now... 🤔 I'm thinkin' buying a cash-positive newsletter or media business could be a pretty decent way to learn about a new industry:
- Relatively low startup costs + high reversibility. Media assets tend to be easy to transact.
- Buying the asset provides skin in the game. Running an industry newsletter requires higher engagement than just reading one. More hands-on learning.
- Cashflow is a good signal for the usefulness of the newsletter's information, at least in a business context.
- Best case, it serves as a beachhead for other businesses and products. Worst case, it's a neat investment.
The popular case study these days is FreightWaves + Craig Fuller. Clearly it's worked out for him, cause he is now buying an aviation magazine. Seems like a pretty good playbook? Or maybe I'm just getting too caught up in the latest SMB/HoldCo twitter memes.