As internet creators look to diversify their income streams and retain ownership over their audiences, membership software maker Memberful is launching a newsletter feature today to add to its subscription membership services.
While competitor Substack takes 10% of creator revenue, Memberful charges 4.9%, plus a monthly rate of either $25 or $100, depending on the pricing plan. For those with a large enough audience, retaining that extra 5.1% of revenue can make a difference, even with the added monthly fee.
Without its own newsletter feature, Memberful has been attracting former Substack users. Since Memberful offers white-label membership plans, creators can use the service to have more agency over how their branding and their newsletter appear. Like Substack, Memberful allows users to retain ownership over their email lists.
Patreon bought Memberful in 2018, but instead of absorbing the independent brand, Memberful now functions as a subsidiary of Patreon.
When creators offer subscriptions on Patreon, it’s housed under the company’s domain — but Memberful lets creators embed subscription tools on their own websites. (See, for example, the YouTube series Good Mythical Morning’s website or podcast network Relay FM’s membership page, which use Memberful). While Patreon charges a percentage of creator earnings (between 5% and 12%, depending on the plan), Memberful charges a set rate plus a transaction fee (10% for the $0 starter plan, or $4.9% for the $25 pro plan and $100 premium plan). The premium plan is a white-label offering, removing the Memberful branding altogether.
At launch, the newsletter feature will function like a members-only blog and email list. Users need to log in to view content on the web, but in the future, Strojny says that creators will be able to make public posts that are available to anyone online, subscriber or not. Memberful customers will be able to schedule emails and send messages to targeted subscriber groups, like members on different monthly tiers. This feature will appear on Memberful customers’ dashboards alongside conversion analytics, branding, checkout and content hosting tools.