How to Price Your Newsletter Sponsorships

(and Actually Close Deals)

So, you’ve built a solid newsletter audience—great open rates, decent clicks, and a loyal following. Now you’re ready to welcome sponsors aboard and turn your newsletter into a revenue stream. But there’s one tricky question: How much do I charge for a sponsor spot? Ask too much, and you risk scaring off advertisers; ask too little, and you leave money on the table.

In this guide, we’ll demystify newsletter sponsorship pricing, from basic formulas to real-world tips on negotiating. Let’s jump in!

1. Understand the Basics: CPM, CPC, and Beyond

What’s CPM?

  • CPM stands for Cost per Mille, or cost per thousand. Advertisers pay a set amount for every thousand subscribers you have.

  • Formula: CPM x (Subscriber Count / 1,000) = Base Price per ad.

Example: With 100,000 subscribers and a $10 CPM, your nominal ad price is $1,000.

What’s CPC?

  • CPC = Cost per Click. You charge sponsors based on how many unique ad clicks they get.

  • Great if you’re confident in your newsletter’s click rates and want to show direct ROI.

Which Is Better?

Honestly, it depends on your niche and advertiser expectations. If your open rates are high and your click rates are consistent, you can do well with a CPC model. If you have a large but less “click-happy” audience, a CPM (or flat-rate) model might be simpler.

Helpful Tool

If you want a quick sense of potential rates, check out the Newsletter Sponsorship Rate Calculator for a rough ballpark. It’s not a magic wand, but it’s a handy starting point.

2. Start with a Nominal Ad Price, Then Adjust

Think of any formula (like CPM x sub count) as a starting point. After all:

  1. Market Demand is crucial. If your inbox is flooding with sponsor requests, you can charge more.

  2. Niche Value: A smaller, hyper-targeted audience might command a higher CPM than a broad, general audience.

  3. Supply & Demand: If you have limited ad slots and they sell out fast, time to raise prices.

3. Find the Right CPM Ranges

General Guidelines (not set in stone!):

  • Native ads & Sponsorships: $20–$50 CPM

  • Banner & Text Ads: $10–$20 CPM

  • Listing Ads: $5–$15 CPM

But keep in mind if you have a very niche B2B newsletter, you might go higher than $50 CPM if your readers are all, say, CFOs of Fortune 500 companies. In that scenario, sponsors pay a premium for a small but powerful audience.

4. Price Low to Move Inventory (Then Raise Over Time)

When you’re new to selling ads:

  1. Prioritize filling your ad slots so you can build up testimonials and results. An empty ad slot is zero revenue.

  2. Overdeliver for initial sponsors; get them good outcomes so they become case studies or repeat customers.

  3. As you see demand outstrip supply, raise your rates.

Tip: Price increments can be every 4–6 weeks if you’re consistently selling out your ad spots.

5. Match Pricing to the Ad’s Psychology

  • Job Listing Ad: Typically cheaper, easier to buy, and frictionless. You want lots of job posts rolling in.

  • Deep-Dive Sponsored Content: A premium feature that justifies a bigger price tag—requires more editorial time and a deeper partnership with the sponsor.

  • Primary Sponsorship (like a “Featured” ad at top): Should reflect top-tier placement and go for a higher rate.

Pro Tip: If an advertiser wants a discount, consider adding an extra “bonus mention” or additional day instead of cutting your price. This preserves your dollar value while making them feel like they got more.

6. Consider Bundles & Packages

Instead of selling one ad at a time, create packages of multiple placements. For instance:

  • “Starter” Package: 3 main ads over 3 weeks, for $X each.

  • “Upsell” Package: 6 ads + 1 sponsored piece for a bigger one-time fee.

  • Discount: Offer a 10–20% discount on larger packages. This encourages advertisers to buy in bulk, giving you more consistent revenue.

Why It Works:

  1. Sponsors see more results over multiple placements (one ad spot might not move the needle enough).

  2. You secure more revenue upfront.

  3. It’s less time pitching new sponsors if you lock in multi-week deals.

7. Gather Data Through Affiliate or 3rd-Party Ads First

If you’re clueless about your average ad clicks, run a few affiliate or 3rd-party ads (like from Beehiiv’s ad network, SparkLoop, or Refind) to see how many clicks you typically generate. Then you can say:

“We typically drive 100–150 clicks per ad slot. With a $5 CPC, that’s a $500–$750 ad rate.”

You Probably

That’s concrete data, which helps you confidently quote prices (and not undercut yourself).

8. Build a Media Kit (Yes, Even If You’re Small)

What to Include:

  1. Intro: A sentence about your newsletter’s theme, tone, and audience.

  2. Metrics: Subscriber count, open rate, estimated ad clicks, relevant niche demographics.

  3. Ad Placement Options: E.g., top banner, mid-article “native ad,” or dedicated sponsored content.

  4. Pricing: Break down your base rate and any package deals.

  5. Testimonials / Past Sponsors: If you have them, great! If not, references to 3rd-party ad performance also helps.

A clean, one-page site or PDF is enough at first. The more data you show, the better you look—advertisers want to see they’re investing in a real business, not a random side hustle.

9. Raise or Lower Prices? Test & Tweak

When to Raise:

  • You’re selling out ad slots every week.

  • Advertisers keep re-booking.

  • You’ve grown your list or your CTR significantly.

When to Lower:

  • You’re not selling anything at all and losing deals strictly because of cost.

  • You’ve pivoted to a broader or less-targeted audience.

  • You can’t fill more than one or two sponsor slots a month.

No matter what, it’s a constant balancing act. If you can deliver real results, sponsors are willing to pay more. Keep track of your sponsor feedback, sign-ups, and your fill rate each month.

10. Instead of Discounting, Add Extra Value

If an advertiser balks at your rate:

  • Option A: Lower your rate by $200 (meh).

  • Option B: Keep your original rate but offer a free “welcome mention” or an additional smaller mention next week.

Option B is often better because your total revenue stays the same, and the advertiser feels they got a bonus. Win-win.

Final Takeaways

1. Start with a Ballpark

Use a nominal formula (CPM x subscribers) as a baseline. Then factor in open rates, CTR, your niche’s value, and any historical ad performance.

2. Price Low at First, Sell Out Slots

Lock in early sponsors, build case studies, then raise prices once you see strong demand. Try packages for more consistent revenue.

3. Gather Data, Show Data

Whether it’s from affiliate ads or your own sponsor pilot, you need real click numbers to confidently pitch. Show those in your media kit to prove your worth.

4. Add Extra Value Instead of Discounts

Preserve your top-line revenue by offering additional perks rather than slashing your rate.

Remember: Pricing is partly science (metrics, CPM, CPC) and partly art (demand, brand alignment, sponsor relationships). The main goal? Create a win-win: your audience gets relevant offers, your sponsor sees ROI, and you earn consistent, fair revenue.

Need More Help?

Want to chat sponsor pricing or get feedback on your media kit? check out more of our Monetization guides or hit us at [email protected]. Let’s make sure you’re getting paid what your hard work is worth!

Cheers,
The GoLetter Team