🔑 Platforms ≠ Digital Assets

Hey there 👋,

This week beehiiv CEO Tyler Denk dropped a grenade on X about Substack:

He is right. When you hand over billing, you hand over the relationship. That is not just a technical change. It is a transfer of ownership.

And once ownership is gone, the endgame is always the same:

1. Take control of the end user

2. Increase platform dependency

3. Raise the take rate

We have seen this movie before:

• Patreon raised its cut from 5% to 12%

• Gumroad went from 4% to 10%

• Etsy jumped from 3.5% to 6.5%

When investors put money into a platform (Substack is now valued at $1.1B), they want it back with interest. Guess who pays. The creators who thought they owned something.

Here is the sharper truth: Substack is not useless. It is simply not an asset.

Treat it as a funnel. Nothing more.

• Discovery: Notes and recommendations spread your work

• Front end: Apple billing makes $50–$100 subs frictionless

• Export: Subscribers must move into your system: your beehiiv, your CRM, your podcast, your stack

That is the sophisticated publishing model. Acquire customers at the front end. Compound wealth at the back end. The funnel feeds the asset, not the other way around.

If your entire business sits on Substack, you do not have a business. You have a dependency.

Investor takeaway: Discovery is rented. Ownership compounds. Platforms are not assets.

In other news, Maciej and I have room for just one more customer at LetterOperators. We’re capped at 20 (as I explained last week), so if you want us to run your business’ newsletter for you, hit reply and we’ll set it up.

📰 Top News Stories

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🐝 beehiiv introduces Very Good Newsletters → the most beautiful templates

👑 Alex Hormozi is about to sell $200M in physical books → God tier

🪙 Bitcoin largest deviation from M2 money supply in 2 years → buying opp?

💰 B Strategy announces plans for a BNB treasury → $1 billion raise

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That’s it for this week, until next time, buy my product and catch me in the community!

Cheers!

Richard (@richardpatey)

Disclaimer: This email is for informational and entertainment purposes only. It is not financial advice, and I am not a licensed investment adviser. I share what I’m doing personally in the digital asset space—always do your own research. Some links may be affiliate links, so assume I may earn a commission if you use them.