In a bid to draw in creators from other subscription-based platforms, Substack has launched a $20 million initiative named the Creator Accelerator Fund. This fund aims to bolster creators’ financial security during their transition to Substack, protecting their income streams.
Substack, unlike competitors Ghost and Beehiiv, retains only a 10% share of a newsletter’s revenue instead of levying a monthly fee. The latest Creator Accelerator Fund is meant to address apprehensions creators might have about shifting platforms, given their dependence on existing revenue sources.
Beyond financial assurance, Substack pledges continuous support from its partnerships division during the transition and business strategizing. As an extra perk, creators also get an early sneak peek into beta features with membership in Substack’s product lab.
This launch gains significance in light of the recent unrest in social media platforms like TikTok and Instagram, which has led creators to seek alternate medium for their content. To increase its allure, Substack has expanded its features, including live video options, to stand toe-to-toe with these platforms.
The announcement comes on the heels of a successful pilot program with selective creators. Eminent beneficiaries include Sarah Stewart Holland and Beth Silvers, the duo behind Pantsuit Politics, who migrated to Substack in October 2024 and reportedly gained over 18,000 subscribers, with paying members in the thousands.
Currently, Substack is inviting applications from creators who generate a minimum monthly recurring revenue of $2,000 and reside in the U.S.
Original source: Read the full article on TechCrunch
