The Iowa Writers’ Collaborative. Learn More
Your ability to read this column is thanks to the vision and commitment of three founders who launched Substack, including
. Also on that early team were entrepreneur and software engineer .Substack is experiencing explosive growth as big-name journalists, authors, and creators leave legacy media to forge their own paths. Why? Because here, they can write freely, earn directly from their audience, and remain independent—without corporate interference.
Now leading a team of 100 employees, Hamish is making it possible for writers, novelists, musicians, artists, and photographers to create on their own terms. Substack was designed by and for creative people—not as a cash cow for advertisers, but as a platform that values content for its own sake. As Hamish put it in a recent Note to Substack followers:
“Substack isn’t competing with TikTok, Instagram, or YouTube. We’re competing with bad business models that have shortchanged writers and creators for generations.”
That ethos resonated deeply with the 25 members of the Iowa Writers’ Collaborative who joined a Zoom call with Hamish. In him, we found our kind of guy—someone who rejects the “tech bro” stereotype in favor of championing writers and their work.
Thanks to the wonders of AI (yes, ChatGPT), here’s a recap of our conversation. And if you get a chance, listen to the recording—though fair warning, we hit “record” a little late!
Substack’s Mission & Growth
McKenzie outlined Substack as a platform designed to create a better media ecosystem, free from the toxic incentives of social media that prioritize engagement over truth and understanding.
Substack’s goal is to encourage deep, direct relationships between writers and their audiences, moving away from the traditional ad-based model.
The platform has primarily served journalists, analysts, and bloggers but is expanding to reach new audiences, including mobile-first, video-centric creators from platforms like TikTok, YouTube, and Instagram.
Challenges & Opportunities
A major growth challenge is bringing Substack’s model to a broader cultural audience without succumbing to the engagement-driven “brain rot” of social media.
Substack remains committed to fostering paid subscriptions rather than relying on algorithms that promote viral content.
The company is exploring tools to support different types of creators, including podcasters and video content producers.
Supporting Writers & Journalism
Substack’s success depends on fostering trust between writers and readers. Successful creators tend to have:
A distinctive voice and worldview
High-quality, thought-provoking content
Consistency in engagement and publication
Courage to tackle difficult topics
Substack does not curate or vet individual writers beyond enforcing basic content guidelines (e.g., no incitement to violence, spam, or porn).
Substack provides legal support through the "Substack Defender" program to help independent journalists facing legal challenges, particularly in an era of political and legal threats to media.
Local Journalism & Collaborative Models
Iowa Writers’ Collaborative was highlighted as a unique model, demonstrating how independent writers can band together for greater visibility and mutual support.
The sustainability of local journalism through Substack remains a concern, with small newspapers like The Storm Lake Times relying on Substack revenue but struggling against declining ad sales.
McKenzie encouraged collaboration, cross-promotion, and leveraging features like recommendations, cross-posting, and discounts to grow local and niche audiences.
Business Model & Revenue Considerations
While Substack supports subscription-based revenue, McKenzie addressed concerns about one-time payments and microtransactions, explaining that the focus is on encouraging recurring revenue rather than one-off donations.
Writers should position their subscription pitch as an investment in a mission rather than just content access.
Metrics indicate that 50% of all new subscriptions come directly from the Substack app, showing the power of discovery and internal promotion.
Future of Substack & Media
Live video and podcasting are growing areas for Substack, with built-in hosting and monetization options.
Expansion of discovery tools is ongoing, with the Substack Notes feature providing a curated social experience without engagement-driven algorithms.
Substack remains independent despite acquisition offers (including one from Elon Musk), prioritizing long-term sustainability over quick exits.
Final Insights
Substack is evolving into more than just a newsletter platform—it’s a full-fledged media ecosystem that supports diverse content forms.
McKenzie expressed admiration for the Iowa Writers’ Collaborative and sees it as a model that could be replicated elsewhere.
Substack's team is passionate about culture and media, and they welcome collaboration and ideas from independent writers.
This conversation reinforced Substack’s commitment to empowering independent voices, challenging the dominance of traditional media models, and offering new tools to help creators sustain their work financially.
Key Questions & Participants in the Conversation with Hamish McKenzie
Opening & Introduction
Julie Gammack led the discussion, introducing Hamish and setting the stage for a conversation about Substack’s mission, growth, and challenges.
Questions & Topics Discussed
Growth & Challenges for Substack
- (Reporter)
Asked: What makes a creator successful on Substack?
McKenzie’s Response: Success comes from fostering a strong relationship with readers, maintaining a distinctive voice, showing up consistently, and demonstrating courage in tackling important issues.
Trust & Content Guidelines
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Asked: Does Substack vet writers for truth and authenticity? If not, how do you manage misinformation?
McKenzie’s Response: Substack does not curate voices beyond banning extreme cases (violence, spam, porn, etc.). The platform’s model rewards quality over time, allowing audiences to decide which voices to trust.
Algorithm Bias & Local Journalism
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Asked: Do algorithms favor bigger names over smaller local journalists, like those in Iowa?
McKenzie’s Response: The Substack discovery algorithm prioritizes deep connections and engagement rather than celebrity status. Smaller, niche publications can thrive because the subscription model is based on depth rather than reach.
Substack’s Business Model & Exit Strategy
- (Investor & Startup Mentor)
Asked: How does Substack maintain integrity in the face of investor pressures? What does an exit strategy look like?
McKenzie’s Response: Substack is on an ideological mission, not just a business venture. While Andreessen Horowitz invested, they don’t exert undue pressure. Substack has rejected acquisition offers (including from Elon Musk) to maintain independence.
Legal Protections for Writers
- (former Wall Street Journal journalist)
Asked: With Trump’s history of suing media organizations, how does Substack protect writers from legal threats?
McKenzie’s Response: Substack provides legal support (Substack Defender) for independent writers, covering pre-publication legal reviews and responses to legal intimidation.
Local Journalism Sustainability
- (Pulitzer-winning newspaper owner, The Storm Lake Times)
Asked: How can Substack sustain small community newspapers facing declining ad revenue?
McKenzie’s Response: Local newsrooms are succeeding on Substack, but the platform is still developing tools to support them, such as automated marketing, metered paywalls, and potential advertising integrations.
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Asked: How can Iowa Writers’ Collaborative take our work to the next level?
McKenzie’s Response: Focus on collaboration—cross-posting, joint projects, shared promotions, and framing your subscription pitch as an investment in a mission, not just content.
Substack’s Role in the Future of Media
- (Veteran journalist)
Asked: What are your media roots? How did your career lead to founding Substack?
McKenzie’s Response: Started in journalism in New Zealand, worked in Canada and Hong Kong, freelanced in the U.S., and later worked for Tesla before co-founding Substack with a vision to reshape digital media.
Writers Beyond Journalism
- (Novelist)
Asked: How do creatives—fiction writers, poets, songwriters—fit into Substack’s model?
McKenzie’s Response: Writers can use Substack to build a direct audience, serialize books, draft in public, create premium content, and foster reader engagement. It’s about owning your audience and having flexibility in how you monetize.
Monetization & Payment Models
- (Political writer, Bleeding Heartland)
Asked: Why doesn’t Substack allow one-time donations or per-article purchases?
McKenzie’s Response: Recurring subscriptions provide sustainable revenue, and one-time donations could cannibalize long-term support. Substack wants to normalize direct payments for writing.
Podcasting & Live Video
- (Podcaster, Reading with Rochelle)
Asked: What’s the future of podcasting on Substack? What tools will be available?
McKenzie’s Response:
Free podcast hosting on Substack
Discovery features in the Substack app
Paywall options (e.g., premium episodes, partial access models)
Integration of podcasts with other content (email, text, community chats)
Expansion of live video tools for deeper engagement
11. Metrics & Future Plans
-
Asked: What are three things we don’t know about Substack?
McKenzie’s Response:
Substack App is driving 50% of subscriptions—Notes & Discovery tools are key to growth.
Live video is powerful—clips and automatic drafts make engagement easy.
Substack’s team is deeply invested in culture—employees are creatives themselves.
Closing Thoughts
McKenzie praised the Iowa Writers’ Collaborative, calling it an innovative model for independent media.
He welcomed collaboration on building solutions for small-town journalism.
He emphasized Substack’s mission of giving writers economic independence rather than being controlled by tech giants.
This conversation was wide-ranging and deeply insightful, covering everything from the philosophical foundation of Substack to practical tools for monetization and audience growth.
Thanks to Chatgpt for the assistance in summarizing and presenting the essence of our conversation.
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