Writers are abandoning Substack due to tax concerns.

Substack, once the go-to platform for newsletter creators, is seeing a wave of writers migrate to lesser-known competitors. Recently, The Ankler, a standout publication on Substack, made the switch to a platform that offers greater control over its content. Other creators who have left Substack in the past year have echoed similar frustrations, pointing to the platform’s growing emphasis on social features and a pricing structure that hampers their profitability.

The talent exodus from Substack gained momentum in 2024, partly due to its association with controversial content, but now it’s not just the platform’s stance on hate speech that’s pushing creators away. Sean Highkin, who runs the NBA-focused The Rose Garden Report, shared that he’s earning “significantly more money” since moving from Substack to Ghost last April. Initially, Substack provided a boost by featuring him prominently, but once he was no longer a “new talent,” his visibility dropped, leading to stagnation in growth. Now, he spends $2,052 annually on Ghost and an add-on called Outpost, a significant reduction from the $4,968 he paid on Substack. Since the end of 2024, his subscriber count has increased by 22 percent.

Matt Brown, creator of Extra Points with 71,000 subscribers, also found success after leaving Substack for Beehiiv in 2021, saving thousands in fees. “With my current subscriber count, I’d be looking at over $25,000 a year on Substack, while I only pay around $3,000 on Beehiiv,” he noted.

The Ankler’s transition to Passport, a platform developed in collaboration with WordPress.com and Stratechery, marks a significant shift towards becoming a fully integrated media company. Janice Min and Richard Rushfield from The Ankler explained that they required more flexibility and control over their products and audience relationships than Substack could provide. They’re not alone; other notable publications like Culture Study and The Bulwark have also explored alternatives to Substack.

Launched in 2017, Substack allows writers to create newsletters and manage subscriptions, taking a 10 percent cut of revenue. While this may seem manageable initially, costs can escalate quickly as subscriber numbers grow. For instance, a newsletter charging $10 per month with 400 subscribers would incur a total monthly cost of $636, which skyrockets to $79,500 for 50,000 subscribers.

In contrast, many competitors charge a flat monthly fee. Ghost starts at $15 per month for 1,000 members, while Beehiiv offers a free tier for up to 2,500 subscribers, with pricing scaling based on subscriber count. For example, a user with 10,000 subscribers would pay $96 monthly on Beehiiv’s “Scale” plan.

Critics of Substack also highlight its restrictive ecosystem, which limits integrations with third-party apps and customization options. While Substack has introduced new features over time, including tools for podcasts and social networking, it has faced backlash for its recent TV app and integration with a prediction market.

Rival platforms like Beehiiv and Ghost provide more extensive customization, allowing creators to build their brands without Substack’s branding overshadowing their content. Beehiiv’s founder likens the platform to Shopify, emphasizing that it empowers creators to establish their own identities.

Substack has invested in discovery features, which can help some creators gain visibility, but it also pressures them to engage in writing short “Notes” to enhance their algorithmic reach. However, followers gained through this feature do not translate into newsletter subscribers, complicating the growth narrative for creators.

When creators leave Substack, they can export their mailing lists but not their followers, which raises concerns about the platform being a “walled garden.” Substack co-founder Hamish McKenzie argues against this notion, stating that creators can take their mailing lists and content with them, but acknowledges that followers gained through Notes are not portable.

Additionally, while Substack has introduced in-app payments on its iOS app, Apple manages these transactions and takes a 30 percent cut, complicating matters for creators who switch platforms.

Substack’s head of New Media, Hanne Winarsky, asserts that creators should own their audience relationships and have the freedom to leave if they wish. However, some creators, like Casey Newton, who left Substack in 2024, emphasize the importance of having control over their online presence, regardless of potential cost savings.

While the departure of high-profile creators may not spell doom for Substack, it could indicate a shift in how the platform is perceived—potentially as a stepping stone for publications rather than a long-term home. The rise of competing platforms may also challenge Substack’s ability to attract new creators who want to avoid being pigeonholed as just another Substack.