The transformation is unmistakable: Substack has evolved from a simple newsletter platform into a thriving ecosystem where indie builders are creating products, launching businesses, and earning substantial revenue. This shift represents one of the most significant developments in the creator economy of 2025, fundamentally changing how independent entrepreneurs build and monetize their work.
Substack surpassed 4 million paid subscriptions in 2024, with over 50,000 publishers generating income on the platform. But the real story isn't about subscription revenue—it's about the indie builder economy that's emerged around it. Creators are no longer just writing newsletters; they're shipping tools, templates, courses, and digital products that generate significant revenue streams beyond traditional subscription models.[1][2][3]
The platform's growth trajectory shows why builders are flocking here: it added 1 million paying subscribers in late 2024 and Q1 2025 alone, reaching nearly 100 million website visits by December 2024. More importantly, Substack now represents over 50% of all paid subscriptions in the newsletter market, creating a concentrated audience of engaged, payment-ready readers.[3][4]
The appeal for indie builders goes far beyond reach. Community-first infrastructure has become Substack's killer feature. Creators who migrated from platforms like Beehiiv and Patreon report gaining 300 subscribers in just two months—significantly higher retention than on competing platforms—directly crediting Substack's community tools like co-livestreaming, recommendations, and cross-promotions.[5]
Unlike algorithm-driven social platforms, Substack offers direct audience ownership. Writers connect their own Stripe accounts, maintaining full control over billing relationships and customer data. This portability matters enormously to builders who've watched platforms like Facebook systematically devalue creator content.[6][7][8]
The platform's built-in discovery mechanisms create network effects that amplify reach. Strategic cross-promotions can add hundreds of subscribers per recommendation, while the Notes feature functions as a discovery engine that drives 10-30 new subscribers daily for active users. One creator described gaining 216 new subscribers—two-thirds of their total following—through 13 other publications recommending them.[9][10][11]
The most transformative aspect of Substack's builder economy is how creators monetize beyond paid subscriptions. Research shows that digital products are much faster to monetize than paid subscriptions. One creator generated $4,000 monthly from six digital products while acknowledging that "it's really hard to make money with paid subscriptions".[12]
Successful Substack builders are selling diverse product types:
Templates and databases priced between $17-$50, often built in Notion and packed with tools, frameworks, and resources. These low-overhead digital products deliver higher profit margins than subscriptions while solving specific problems for niche audiences.[13]
Courses and workshops that leverage the trust built through free content. Creators report making $2,000 in a single weekend from simple digital products, with others generating over $50,000 in eight months through systematic product launches.[14]
Coaching and consulting services that emerge naturally from newsletter engagement. The direct feedback loop helps creators understand exactly what their audience needs, making high-ticket offerings a natural extension.[15]
Tools and software built by technical indie builders for the Substack ecosystem itself. StackShelf, created by Karo Zieminski, exemplifies this trend—a marketplace platform where Substack creators showcase their digital products, books, templates, and tools. The platform grew through community co-creation, with creators providing feedback that shaped development rather than speculation about user needs.[16][17]
StackShelf represents the quintessential indie builder story on Substack. When Karo couldn't find a Notion template from a Substack writer she admired—spending 30 minutes searching across four platforms before ending up "shopping for soy candles on Etsy"—she recognized a systemic problem.[16]
Rather than building in isolation, she developed StackShelf through continuous dialogue with the community it serves. Creators like Justin, Anne, and others "spent their free time testing, finding bugs, making suggestions, and improving the product". This collaborative approach turned StackShelf into what creators call "the portfolio Substackers proudly share", earning Karo Substack Bestseller status shortly after launch.[17]
The platform aggregates products from Gumroad, Amazon, Ko-fi, and other marketplaces, bringing them "closer to the Substack audience". By creating a "shelf-in-bio" page with custom URLs (stackshelf.app/yourname), it solves discoverability for both creators selling products and readers trying to find them.[18][17]
The economics are compelling. While the top 10 Substack publishers collectively earn over $40 million annually, and more than 30 publications in Politics and News each generate at least $1 million per year, the real story is mid-tier creators building sustainable businesses.[3]
One creator grew from zero to 7,500 subscribers in less than a year, transitioning from startup founder to full-time Substack income in six months. Another built a newsletter to 4,000 subscribers with 700 paid members generating $40,000 in annualized revenue within 12 months. These aren't outliers—they're increasingly common trajectories for builders who combine consistent content with strategic product offerings.[19][20]
The fastest path to monetization combines multiple revenue streams. Creators report that digital products provide "quicker wins" while paid subscriptions build slowly. The successful formula: build audience through valuable free content, launch low-ticket products ($17-$47) to validate demand, then introduce higher-tier offerings like courses ($200+) or coaching (custom pricing).[21][12][13]
Substack's 2025 feature evolution specifically supports the builder economy. The platform now offers A/B testing for subject lines (improving open rates by 15-30%), advanced subscriber segmentation for targeted launches, and Chat features for building communities between posts.[10][22]
The recommendation system has become particularly powerful for builders. Unlike social media algorithms, Substack's cross-promotion generates predictable, sustainable growth. Strategic partnerships with aligned creators can add hundreds of subscribers per collaboration, creating compounding network effects that benefit all participants.[10]
SEO optimization capabilities often overlooked by creators provide "passive compounding assets". Posts optimized for search continue driving traffic months after publication, creating evergreen discovery paths for products and services. Combined with custom domains and Google Analytics integration, builders can track and optimize their entire funnel.[23][11]
Substack faces competition from Ghost, Beehiiv, ConvertKit, and others, but maintains distinct advantages for builders. Ghost offers more customization and no revenue share but requires more technical setup. Beehiiv provides superior automation and growth tools but locks key features behind $49/month plans. ConvertKit excels at email marketing but lacks Substack's community-first publishing environment.[24][25]
What competitors struggle to replicate is Substack's social publishing model combining long-form posts, short-form Notes, recommendations, comments, private chats, and re-stacks into a cohesive ecosystem. This all-in-one approach resonates with builders who want to focus on creating rather than managing multiple tools.[24]
Some creators left Substack in early 2025 over ideological concerns, with Beehiiv claiming nearly 1,000 migrations between January and March. However, overall platform growth accelerated during this period, suggesting the builder economy values Substack's infrastructure more than political positioning.[26]
The convergence of engaged audience, monetization infrastructure, and community features makes Substack uniquely positioned for indie builders in 2025. The platform enables what traditional media cannot: direct relationships, recurring revenue, product diversification, and audience ownership—all without requiring technical expertise or significant upfront capital.
For solo founders, consultants, and creators building products, Substack functions as distribution channel, payment processor, community platform, and marketing engine simultaneously. The emerging pattern shows builders using free newsletters to build trust, Notes for discovery, Chat for community, and strategic product launches to monetize beyond subscriptions.
The indie builder economy on Substack isn't replacing traditional subscription models—it's complementing them with diversified revenue streams that reduce risk and accelerate growth. As one creator noted about their bundle strategy combining courses with community access: "Instead of positioning it as 2 disparate products, I position it as a Creator Growth Bundle". This integrated thinking defines the new builder economy.[27]
The shift is already visible in creator behavior. Major figures like Justin Welsh, Dan Koe, and Jay Clouse launched Substack publications in 2025 despite having massive followings elsewhere. They recognize what early adopters discovered: Substack isn't just a newsletter platform anymore—it's infrastructure for building sustainable creator businesses.[28]
For indie builders looking to 2025 and beyond, the message is clear: the platform supporting direct audience relationships, multiple monetization models, and genuine community will win. Right now, that platform is Substack. The builder economy isn't coming—it's already here, and it's growing faster than subscription revenue alone suggests.
Sources [1] The Indie Builder Economy on Substack in 2025 https://karozieminski.substack.com/i/177080110/where-builders-are-selling