Substack Fees Explained: Why the 10% Platform Fee is a Scaling Trap
You did it. You launched on Substack and got your first paying subscriber. You check your payout and see the deduction: a 10% platform fee, plus a payment processing fee. "Fair enough," you think.
But what if that simple Substack 10% fee is quietly setting a ceiling on your potential? What if the Substack pricing model is costing you far more than you think?
As your publication grows, this "simple fee" becomes a significant drag on your business. Let's break down the true cost.
The Obvious Cost: How Much Does Substack Take?
On the surface, the math of Substack fees is straightforward. Substack takes 10%, and their payment processor, Stripe, takes an additional fee (typically 2.9% + $0.30 per transaction).
So for a $10/month subscriber, your breakdown looks like this:
- Substack's Cut: $1.00 (10%)
- Stripe's Cut: $0.59 (2.9% + $0.30)
- Your Take-Home: $8.41
You're paying nearly 16% in total fees. The real damage, however, is in the hidden costs that emerge as you scale.
The Hidden Cost #1: The Opportunity Cost
That extra percentage that goes to the platform isn't just lost income; it's lost investment capital. This is money you could be reinvesting into your growth.
Imagine you're making $1,000/month. On Substack, around $130-$160 vanishes in fees. On a platform with a lower fee structure (like Postion's 5%), you'd keep an extra $80 of that.
What could you do with an extra $80 every month?
- Run targeted ads to find new subscribers.
- Pay for premium design tools.
- Invest in a course to improve your writing.
High creator platform fees aren't just a tax on your earnings; they are a tax on your future growth.
The Hidden Cost #2: The Scaling Trap
A percentage-based fee is a classic scaling trap. The more successful you become, the more you pay in absolute dollars. It actively punishes your growth.
Let's see how this plays out, almost like a Substack fee calculator:
| Monthly Revenue | Substack Fees (~13%) | Postion Fees (5% + ~3%) | Your Extra Earnings on Postion |
|---|---|---|---|
| $500 | ~$65 | ~$40 | $25/month ($300/year) |
| $2,000 | ~$260 | ~$160 | $100/month ($1,200/year) |
| $10,000 | ~$1,300 | ~$800 | $500/month ($6,000/year) |
At $10,000 a month, the Substack fees are costing you $15,600 a year. That's the price of a used car or a marketing hire.
The Solution: A Creator-First Philosophy & A Better Substack Alternative
This isn't just about a lower fee; it's about a fundamental difference in philosophy.
At Postion, we believe creators should keep the vast majority of the value they create. That’s why our platform fee is just 5%.
We built Postion because we saw creators getting stuck in the scaling trap. We saw them paying exorbitant fees while lacking the tools they needed for SEO, customization, and community building. We aimed to be the cheapest Substack alternative with the most power.
Your success shouldn't be penalized. It should be celebrated. Keeping more of your revenue allows you to build a sustainable, independent business.
The choice of a platform is one of the most critical financial decisions you'll make. Don't let a "simple" 10% fee become a multi-thousand-dollar problem.
Ready to see how much you could save and reinvest? Explore the Postion difference and see why we're the next logical stop for serious creators.