One Formula You need as a Group of Independent Authors so You Make More Money Selling Newsletters Without Wrangling over Money

A writers collective makes money, but the money shouldn’t kill your friendship.

Matthias Bohlen
2 minutes reading time

If you’re brand new into the idea of forming a group of independent authors who sell a subscription bundle together and then share their revenue, your group will inevitably run into a problem:

How will you distribute the revenue to your members, without getting into a hefty argument that will potentially end your friendship?

The below formula will help you prevent this and go back to writing right away.

Three basic assumptions to get started

  1. Everyone of your group has a paid newsletter with a number of subscribers and a monthly fee.
  2. When someone joins the group, they ask their own subscribers to buy the bundle as well. Subscribers may accept or deny, as they please.
  3. You bundle your publications so that you and your fellow members suddenly sell to all subscribers, not only your own. This will increase everyone’s reach and income, including yours!

The magic formula that will tell everyone the percentage they get

For each member, keep a running(!) record of how many of their subscribers are currently subscribed to the bundle, and how high the price for each single newsletter was before they joined. Multiply them into “points”. Example:

  • Alice: 100 subscribers at $10 each = 1,000 points
  • Bob: 200 subscribers at $6 each = 1,200 points
  • Robin: 300 subscribers at $8 each = 2,400 points

That makes a total of 4,600 “points”.

The magic formula says that your members will now get these percentages of the revenue:

  • Alice: 1,000 / 4,600 = 22%
  • Bob: 1,200 / 4,600 = 26%
  • Robin: 2,400 / 4,600 = 52%

Automate the process

Problem solved? Well, almost…

You still have to count every subscription and unsubscription, and you’ll have to collect the fees and make payouts to your members.

Want to automate this? I recommend to use; it will do it for you hands-free, so that you can focus on writing.

Want your own small media business, together with another author you trust?

Download our FREE eBook called "2 Writers Making Money". It shows you exactly how to raise your income as a paid newsletter author by teaming up with a buddy, selling a bundle of your newsletters, and splitting the revenue.

Set this up once, then forget about it and get back to writing.


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