Top Creators Defecting Substack Over Fees

The defections show that Substack’s biggest monetization risk sits at the top end of its writer base, where the math flips against a revenue share. A writer doing $500,000 a year on paid subscriptions gives up $50,000 before payment fees, which is far more than a fixed SaaS bill on Beehiiv or Ghost. That matters because Substack’s GMV is concentrated, with top earners driving a disproportionate share of volume, so losing even a handful of large publications can pressure growth and push the product toward more monetization tools like ads and sponsorship support.

• Beehiiv and Ghost sell a different bargain. Instead of taking a cut of every reader payment, they charge software fees, and Beehiiv adds growth and ad tools. For a large newsletter, that means keeping more of each incremental subscriber once fixed software costs are covered.
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• Substack historically won on brand, simplicity, and built in reader demand, not on economics for mature operators. Interviews with writers show that many stay because migration is painful and Substack still carries cultural weight, even when the 10% fee has become one of their largest line items.
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• The competitive split is becoming clearer. Beehiiv and Kit are building creator software that helps publishers grow lists and sell ads, while Substack is building more of a reader network with feed, recommendations, chat, and video. That makes Substack stronger at discovery, but weaker if top writers decide they can replicate the storefront elsewhere.
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The next phase is less about charging for newsletter software and more about proving platform take rate through added earnings. Substack is moving toward ad products and broader monetization so its best writers can make more money on platform than off it. If that works, the 10% fee becomes easier to defend. If it does not, Beehiiv, Ghost, and similar tools will keep pulling away the highest revenue operators.