What is Substack and How Does it Work?
The Complete Guide to Substack: How It Redefined Independent Publishing
The media landscape used to give writers a brutal choice, you can hunt for a rare staff job at a legacy publication, or build a personal blog and pray that banner ads might eventually pay for a cup of coffee.
Then came Substack. What is Substack and How Does it Work?
At its core, Substack is an all-in-one publishing platform that allows independent writers, podcasters, and creators to send digital newsletters directly to subscribers and monetize their audience through paid subscriptions.
By stripping away the technical headaches of web hosting, payment processing, and email design, Substack flipped the traditional media model on its head. Instead of chasing clicks for advertisers, creators focus entirely on delivering value to their readers.
How Substack Works: The Core Ecosystem
Substack functions as a hybrid between a traditional blogging platform (like WordPress), an email marketing tool (like Mailchimp), and a subscription management software (like Patreon).
Here is how the system operates from setup to payout:
1. The Content Delivery System
When a creator publishes a piece on Substack, it simultaneously goes to two places:
The Inbox: It is delivered immediately as a clean, ad-free email newsletter to everyone on the subscriber list.
The Web: It is automatically formatted and hosted on a dedicated, sleek web archive that acts as the writer’s personal blog/website.
2. The Freemium Monetization Model
Substack is famous for its freemium structure. Creators choose which posts are free for anyone to read and which posts sit behind a paid paywall.
Free Subscribers: Act as the top of the funnel. They get a taste of the content and help grow the writer’s overall reach.
Paid Subscribers: Pay a monthly or annual fee (usually starting at $5/month) to unlock exclusive articles, deep dives, community discussion threads, or podcast episodes.
3. Direct Financial Integration
Substack partners natively with Stripe to handle global credit card payments. When a reader subscribes, the money goes straight to the creator’s Stripe account.
The Reader Pays a Substack Publication » Stripe Processes the Payment » The Writer Keeps 90% » Substack Takes 10% » Stripe Takes a 3% Credit Card Fee
What Makes Substack Distinctive? (The “Information Gain” Factors)
If you are evaluating Substack against other platforms, three core features define its unique position in the market:
Platform-Led Discovery (The Network Effect)
Historically, the biggest flaw of email newsletters was discovery… you had to bring your own audience. Substack solved this by introducing social and discovery features within its ecosystem:
Substack Recommendations: When a writer joins, they can recommend other newsletters. When a reader signs up for Newsletter A, Substack pops up a prompt saying, “You might also like Newsletter B.” This single feature drives a massive percentage of all new subscriptions across the platform.
The Substack App & Notes: Substack features a centralized app and a text-based social feed called Notes. It allows writers and readers to share short thoughts, quote-post articles, and interact in a Twitter-like environment without leaving the ecosystem.
Complete Audience Ownership
On Facebook, Instagram, or YouTube, the platform owns the relationship with your audience. If the algorithm changes or your account is suspended, you lose access to your followers.
The Substack Guarantee: You own your email list and your intellectual property. If you decide to leave Substack tomorrow, you can export your entire subscriber list (both free and paying) and migrate to a competitor like Ghost or Beehiiv without losing a single reader.
Substack Video & Audio Expansion
Substack is no longer just for the written word. The platform natively supports video hosting and podcast publishing. Creators can set up paid, subscriber-only podcast feeds that integrate directly with Apple Podcasts or Spotify, making it a viable alternative to traditional podcast hosting networks.
The Benefits for Creators
No Upfront Costs: Free to use for unlimited free subscribers and email sends.
Zero Tech Knowledge: No coding, plugin management, or design skills required.
Built-in Network: Massive growth potential via cross-recommendations and Substack Notes.
Who is Substack Best For?
Substack is an ideal fit for anyone who wants to build a deeply loyal, highly engaged community. It rewards depth over speed. If your content is built to be skimmed in 5 seconds, traditional social media platforms will serve you better. But if your goal is to build an independent media business funded directly by the people who value your perspective, Substack is arguably the most frictionless launchpad on the internet.
Paul Arino
Substack Growth Tips | How To Grow
Master Substack growth with a unique dual-engine strategy. Learn how to combine internal features like Notes and Recommendations with Google SEO and Search Console: Substack Growth SEO Strategy
The Simple Step-by-Step Guide to Connect GOOGLE SEARCH CONSOLE to your Substack Publication so your newsletters will show up on Google Searches: Substack Google Search Console
Learn why chasing followers and likes can ruin your Substack writing. Discover the old-school wisdom of writing for a loyal community of subscribers instead: Substack Writing Tips Subscribers vs Followers
This article breaks down "What Is Substack" and how does it work for modern content creators looking to bypass traditional media platforms.
By seamlessly merging the community-building power of traditional blogging with direct-to-inbox email distribution, Substack has fundamentally shifted how writers monetize their work through flexible free and paid subscription models.
Many consider this the definitive framework, and why I wrote The Complete Guide to Substack: How It Redefined Independent Publishing. By giving creators total ownership of their audience data, RSS feeds, and premium content tiers, it eliminates the unpredictable algorithms of traditional social networks.
Whether you're leveraging Substack Notes for organic discovery or launching a multi-tier membership, their ecosystem provides the exact technical infrastructure needed to turn independent journalism and niche passion projects into sustainable, reader-supported businesses.