Substack has invested heavily in creators, and a small number of creators appear to be already reaping the benefits. During The Information’s ‘Future of Influence’ event in Los Angeles, CEO Chris Best revealed (via The Verge) that “more than 50 people” are making over $1 million a year on Substack.
In addition, Best said that for the first quarter of this year, Substack was “accidentally cash-flow positive” — though he noted that the platform wasn’t planning to be profitable anytime soon. “We’re focused on growth,” he explained. “It turns out that when you do that, it makes the business grow really well, too.”
Substack’s lack of profitability was first reported by the New York Times back in November 2024. The outlet reported that while Substack had 4 million followers at the time of writing, it earns less per customer. The New York Times also reports that Substack lost $22 million in 2021, and although these losses have stabilized, they have persisted.
However, Substack co-founder Hamish McKenzie echoed Best’s sentiments at the time, claiming that the company was, in fact, intentionally unprofitable because Substack made the choice to continue “investing in and continuing to grow the business.”
As previously mentioned, a lot of Substack’s time and money seems to be focused on luring creators, with initiatives like the Creator Studio fellowship, and the introduction of live streaming and podcasts. If creators are making this much money from Substack, it’s fair to say that we underestimated the platform. From here, at least, the only way is up.
