How to Start and Monetize AI Newsletter (Step-by-Step) (2025)

Look, I’m going to be straight with you: everyone and their dog is talking about AI newsletters right now.

But here’s what most people won’t tell you—96.2% more newsletters launched in 2024 compared to 2023, and the AI space is more crowded than a Black Friday sale.

But that doesn’t mean you’re too late. It means you need to be smarter.

The winners in this game aren’t just churning out AI content. They’re building actual businesses.

The Rundown AI grew from zero to 150,000 subscribers in just 4 months, and Superpower Daily hit $150,000 in annual revenue within 5 months.

These aren’t flukes—they’re blueprints.

The real question isn’t “Can I make money with AI newsletters?” It’s “Am I willing to do what actually works?”

Let’s find out.

Table of Contents

TL;DR: The Blueprint Path to a Profitable AI Newsletter

Here’s what you need to know right now:

Pick a micro-niche within AI (not just “AI news”)—think AI for marketing agencies, AI coding tools for developers, or AI productivity hacks for remote workers
Launch on Beehiiv or Substack (both handle the tech, let you focus on content)
Get to 5,000-10,000 subscribers minimum before expecting serious ad revenue
Timeline: 3-6 months to build an audience worth monetizing if you’re consistent
Revenue potential: Newsletter ads typically cost $15-$30 per 1,000 opens (CPM) for primary sponsorships, meaning 10,000 subscribers with a 40% open rate = $60-$120 per sponsored issue
Main monetization channels: Sponsored ads, affiliate marketing for AI tools, paid premium tiers, and selling your own digital products

This works if you commit to 3-6 months of consistent publishing, pick a specific niche, and focus on engagement over vanity metrics.

Why AI Newsletters Are the Move (And Why Most People Screw This Up)

Let me address the elephant in the room: “Isn’t the AI newsletter space saturated?”

Kind of. But so is every profitable market.

AI-focused newsletters on leading platforms generated over $8.67 million in paid subscriptions and $3.73 million via ad networks in 2024.

The money is there.

The question is whether you can get your piece.

Here’s what most people get wrong: they try to cover “everything AI.”

That’s a losing strategy.

The Rundown, Superhuman, and other winners dominate general AI news because they got there first and have massive teams now.

Your advantage? Specificity.

Instead of competing with established players on general AI content, you win by going narrow:

AI tools specifically for e-commerce brands
AI coding assistants reviewed for Python developers
AI writing tips for B2B marketers
AI automation for real estate agents
Weekly ChatGPT prompts for content creators

See the pattern? Niche + AI application = your sweet spot.

What It Actually Takes to Monetize AI Newsletters

Let’s talk numbers because hopium doesn’t pay bills.

Here’s the cold math:

A common formula is charging 5% of your subscriber count per sponsorship. So 20,000 subscribers = $1,000 per sponsored issue.

But you’re not starting with 20,000 subscribers. You’re starting with zero.

Phase 1: 0-1,000 subscribers (Months 0-2)

Revenue: $0
Focus: Finding your voice, testing content formats
Cost: $0-$50/month (platform fees)

Phase 2: 1,000-5,000 subscribers (Months 2-4)

Revenue: $0-$200/month (small affiliate commissions)
Focus: Consistency, growing through content sharing
Cost: $50-$100/month

Phase 3: 5,000-10,000 subscribers (Months 4-6)

Revenue: $200-$800/month (first sponsor deals + affiliates)
Focus: Building sponsor relationships, optimizing engagement
Cost: $100-$200/month

Phase 4: 10,000+ subscribers (Month 6+)

Revenue: $1,000-$5,000+/month (multiple sponsors, affiliates, premium tier)
Focus: Scaling, systematizing
Cost: $200-$500/month

The brutal truth?

Most people quit somewhere between month 2 and 4 when they’re doing all the work but seeing minimal returns.

That’s exactly when you need to double down.

That aside, here’s how to start and monetize AI newsletter.

Step 1: Pick Your AI Niche (And Don’t Be Stupid About It)

Stop trying to boil the ocean.

You can’t compete with The Rundown on general AI news.

You can own “AI productivity tools for freelance designers.”

Questions to ask yourself:

What do I actually know about? If you’re a marketer, focus on AI for marketing. Developer? AI coding tools. Don’t fake expertise.
Is there commercial intent? Niches with businesses and professionals willing to spend money will pay better. “AI for hobbyists” is cute. “AI for SaaS founders” pays your rent.
Can I find 20 topics in 5 minutes? If you can’t brainstorm 20 newsletter topics right now, your niche is either too narrow or you don’t know enough about it.

Smart AI newsletter niches for 2025:

AI automation for specific industries (real estate, healthcare, legal)
AI tools for specific roles (designers, writers, developers, marketers)
AI implementation case studies for business owners
Weekly AI prompts/workflows for specific use cases

The test: Can you describe your newsletter in one sentence that makes someone say “That’s exactly what I need”?

Step 2: Set Up Your Newsletter (Without Overthinking It)

You have two real choices: Substack or Beehiiv.

Stop researching and pick one.

Substack:

Pros: Simple, built-in discovery, readers know the platform
Cons: Less design flexibility, takes a cut of paid subscriptions
Best for: Writers who want to focus purely on content

CHECKOUT SUBSTACK HERE

Beehiiv:

Pros: Built-in ad network, more customization, better monetization tools
Cons: Slightly more complex, requires more setup
Best for: People serious about newsletter monetization

CHECKOUT BEEHIIV HERE

Kit.com (formerly ConvertKit) and Mailchimp are fine if you’re already using them, but they’re overkill for starting.

Time to set up: 2-4 hours

What you need:

Platform account (15 minutes)
Basic template/design (1 hour)
Welcome sequence for new subscribers (1 hour)
First 3-5 newsletter drafts ready (2+ hours)

Don’t spend weeks on design. Get a clean template, use consistent formatting, and ship it.

Step 3: Create AI Content That People Actually Want to Read

Here’s where people waste months: creating content nobody asked for.

Venture capital newsletters including AI content reported the highest engagement rates at 50.4%.

Know why?

They give people actionable information they can use immediately.

Content that works for AI newsletters:

1. Tool Roundups

“5 AI Tools That Actually Saved Me Time This Week”

Quick reviews
Real use cases
Pricing breakdown
Your honest take

2. Tutorial/How-To

“How I Used ChatGPT to Write 10 LinkedIn Posts in 30 Minutes”

Step-by-step process
Screenshots/examples
Templates readers can copy
Results you got

3. Industry Analysis “What OpenAI’s Latest Update Means for Content Creators”

Break down complex news
Explain practical implications
Give specific recommendations

4. Curated News + Commentary

“This Week’s AI Updates (And What Actually Matters)”

Filter the noise
Add your perspective
Focus on actionable insights

The secret: Use ChatGPT, Claude, or other AI tools to help research and draft, but add your unique angle. The market doesn’t need another AI news aggregator. It needs your perspective on AI tools and trends.

Publishing frequency:

Starting out: Once per week (every Monday or Friday)
Building momentum: 2-3 times per week
Going pro: Daily (only when you have systems)

Miss one week and you lose momentum. Miss two and subscribers forget you exist.

Step 4: Grow Your Subscriber Base (The Part That Actually Matters)

You can have the best newsletter in the world, but if nobody reads it, you make zero dollars.

Growth strategies that work:

1. Social Media Distribution (Months 0-3).

52% of newsletter creators use LinkedIn and 50% use Facebook to share newsletter content

Post snippets from your newsletter on LinkedIn/Twitter/X
End every post with “Full breakdown in my newsletter”
Engage in comments, build relationships
Join relevant communities and add value

Time investment: 30-60 minutes per day

2. Cross-Promotions (Months 2-4).

Partner with complementary newsletters for subscriber swaps.

Find newsletters with similar audience, different focus
Reach out with specific value proposition
Start with smaller newsletters (easier to close)

Expected result: 5-15% of their list converts

3. Lead Magnets (Months 1-6).

Create free resources people actually want:

“50 ChatGPT Prompts for [Your Niche]”
“AI Tools Comparison Sheet”
“Weekly AI News Roundup Template”

Gate it behind email signup. Promote everywhere.

4. Refind/Newsletter Directories (Months 2+).

42% of newsletter creators ranked direct recommendations from current subscribers as the most effective growth strategy

Get listed on:

Refind
Newsletter directories
Relevant subreddits (carefully, no spam)

Realistic growth targets:

Month 1-2: 100-500 subscribers
Month 3-4: 500-2,000 subscribers
Month 5-6: 2,000-5,000 subscribers
Month 7+: 5,000-10,000+ subscribers

These assume consistent effort.

No effort = no growth.

Step 5: Monetize Through Ads (Finally Making Money With AI Newsletter)

This is what you came for.

Let’s talk about making money with AI newsletters through advertising.

When to start monetizing:

Minimum: 1,000 subscribers with 40%+ open rate
Ideal: 5,000+ subscribers with 35%+ open rate
Premium rates: 10,000+ subscribers with 40%+ open rate

AI newsletter monetization strategies:

1. Sponsored Ads (Primary Revenue)

Newsletter CPCs (cost per click) usually range from $1-$5 per click on average

How to price your sponsorships:

Primary sponsorship (top of email):

5,000 subscribers × 40% open rate = 2,000 impressions
At $15-$30 CPM = $30-$60 per sponsored post

10,000 subscribers × 40% open rate = 4,000 impressions

At $20 CPM = $80 per sponsored post

20,000 subscribers × 45% open rate = 9,000 impressions

At $25 CPM = $225 per sponsored post

Where to find sponsors:

Beehiiv Ad Network: Autopilot sponsors (if using Beehiiv)
Direct outreach: Email AI tools you already mention
Sponsor networks: Paved, SparkLoop
Your network: Companies in your industry

Your pitch to sponsors: “My newsletter reaches [number] [specific professionals] interested in AI tools. My average open rate is [X]% and click rate is [Y]%. I’d love to feature [their product] in an upcoming issue.”

2. Affiliate Marketing for AI Tools

This is where AI newsletters have a massive advantage. Every AI tool wants customers.

Top AI affiliate programs:

Jasper: Up to 30% recurring commissions
Copy.ai: 25-30% recurring
Notion AI: Commission on upgrades
Grammarly: $20-200 per conversion
Various AI tools: Most offer 20-30% commissions

How to do affiliate marketing in newsletters:

Review tools honestly (builds trust)
Share real use cases
Include affiliate links naturally
Disclose affiliate relationships

Expected revenue: $100-$1,000/month with 5,000 engaged subscribers

3. Paid Premium Tiers

Some newsletters create Founding Member tiers priced at 1.5-2x the annual subscription with additional benefits like free access to all future digital products

Freemium model:

Free: Weekly AI news and tips
Paid ($10-20/month): Deep dives, templates, community access, AI tool database

Don’t gate all content immediately. Build trust with free content first.

4. Selling Digital Products

Once you have an engaged audience, sell what they need:

AI prompt libraries ($27-97)
Course on AI implementation ($97-497)
Templates and workflows ($17-47)
Consulting/coaching (premium pricing)

Timeline for product launches: Month 6+ when you understand your audience’s needs

What You’ll Actually Spend To Start and Monetize AI Newsletter

Let’s be honest about the money you need to invest in starting an AI newsletter business model.

Platform costs:

Substack: Free (takes 10% of paid subscriptions)
Beehiiv: Free tier available, paid tiers $49-99/month
Kit.com: $15-29/month starting

Tool costs:

ChatGPT Plus/Claude Pro: $20/month (for content research)
Design tools (Canva): $0-13/month
Domain (optional): $12/year

Total starting cost: $0-50/month

Time investment:

Content creation: 3-5 hours/week
Growth activities: 5-7 hours/week
Sponsor management: 2-3 hours/week (once monetized)

Total: 10-15 hours/week minimum

Anyone telling you this is passive income is lying. It’s work. But it’s leveraged work that compounds.

Common Mistakes That Kill AI Newsletters (And How to Avoid Them)

1. Inconsistent publishing.

You can’t post randomly and expect growth. Pick a schedule and stick to it. 67% of newsletter professionals agree that subscribers will expect much higher personalization by 2030, but before personalization comes consistency.

2. Boring, generic content.

If I can get your content from 10 other sources, why subscribe to you? Add personality, opinions, and unique angles.

3. Ignoring engagement metrics.

Open rates and click rates tell you what’s working. Monitor them weekly. While the average open rate across all industries was 38.7% in 2024, quality AI newsletters can achieve 50%+ engagement.

4. Charging too early (or too late).

Don’t pitch sponsors at 500 subscribers. But don’t wait until 50,000 either. Start monetizing around 5,000 engaged subscribers.

5. Not building an email list asset.

Your newsletter is a business asset. Treat it like one. This could be worth $100K+ if you decide to sell it later.

Next Steps: Your 30-Day AI Newsletter Launch Plan

Stop researching. Start executing.

Week 1:

Choose your AI niche (Day 1)
Set up Substack or Beehiiv account (Day 2)
Create basic template and welcome email (Day 3-4)
Write first 3 newsletter drafts (Day 5-7)

Week 2:

Publish first newsletter (Day 8)
Share on all social platforms (Day 8-9)
Create lead magnet (Day 10-12)
Set up landing page with Stripe/Gumroad for future products (Day 13-14)

Week 3:

Publish second newsletter (Day 15)
Reach out to 10 complementary newsletters (Day 16-17)
Engage in 5 LinkedIn/Twitter AI discussions daily (Day 18-21)

Week 4:

Publish third newsletter (Day 22)
Analyze metrics: open rates, click rates, unsubscribes (Day 23)
Adjust content based on data (Day 24-25)
Create media kit for future sponsors (Day 26-28)

After 30 days, you’ll have:

4 published newsletters
100-500 initial subscribers
Working systems and templates
Momentum to keep building

Final Thoughts

Can you make money with AI newsletters? Absolutely.

Is it easy? No.

Is it worth it? If you stick with it for 6 months, yes.

25% of newsletter creators saw substantial profit growth last year, but 55% believe earning newsletter revenue will become significantly harder by 2030.

Translation: the window is open now.

The AI space isn’t going anywhere. The demand for clear, actionable information about AI tools won’t dry up.

But the newsletters that win will be the ones that start now, stay consistent, and provide real value.

Most people will read this and do nothing. Some will start and quit after a month. A few will push through and build actual income streams.

Which one are you?

The clock’s ticking. Pick your niche, open Substack or Beehiiv, and publish your first newsletter this week.

Everything else is just excuses.