What should I ask about a newsletter’s growth sources and referral programs?
Ask where subscribers came from, channel by channel, and which sources still bring people in today. Then ask what each one costs the owner in money and time. A list built mostly on a program or partner that could end tomorrow is much weaker than one with several steady sources.
Ask the seller for a breakdown of sign-ups by source: the website, social posts, recommendations from other newsletters, paid ads, referral rewards and partner swaps. Ask for it over time, not as a snapshot, so you can see which channels have faded and which still work. Ask which of those channels the seller expects to keep working under new ownership, and why they believe so.
Referral programs deserve a close look. Who receives rewards, and who pays for them? Are people joining because they like the writing or because of a prize? Ask how many referred readers stay and open the emails compared with ordinary sign-ups. Ask for any messages with partners that show how the relationships work, so you are not relying on the seller’s memory of them.
Then ask about dependency. Does one partner newsletter send a large share of new readers? Would that partner keep doing so under a new owner? Does growth depend on the founder’s personal profile or on ads that the seller pays for quietly? Finally, ask what the seller would do next to grow. Their answer shows whether growth is a repeatable system or a series of lucky breaks.
Key takeaways
- Get sign-ups by source over time, not just a single total.
- Check whether referral readers stay and read, or leave quickly.
- Ask which sources depend on the current owner’s name or contacts.
Related reading
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Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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