I've been building, running and selling newsletters since 2020, and recently started a productized service helping other businesses launch and run theirs. What I've discovered is that AI has fundamentally changed the economics of newsletter operations in ways that most business owners don't realize yet.
I believe AI will 10x the number of newsletters being launched.
The Traditional Newsletter Problem
Most businesses understand the value of direct email communication with their audience. Unlike social media algorithms that control your reach, newsletters go straight to subscribers who actively want to hear from you. The conversion rates speak for themselves, with email consistently outperforming other channels for lead nurturing and customer retention.
But the operational reality has always been prohibitive. Creating a quality weekly newsletter traditionally requires:
- 3-4 hours of content research and curation
- 2-3 hours of writing and editing
- 1-2 hours of design and formatting
That's 6-9 hours weekly, which translates to $2,000-$5,000 monthly if outsourced to professionals. For most businesses, especially smaller ones, this investment is hard to justify without guaranteed ROI.
Where AI Changes the Game
Over the past year, I've been experimenting with AI workflows for newsletter production. The results have been surprising, even to someone already bullish on AI.
Content Research: AI can scan hundreds of industry sources simultaneously, identifying trending topics and relevant insights faster than any human researcher. What used to be the most time-consuming part of the process now happens automatically.
Writing Quality: After testing AI output against dozens of professional writers, I found that specialized AI workflows built in N8N consistently produce cleaner, more accurate content with fewer errors. The key is building custom workflows rather than using generic tools, linking together multiple LLMs and APIs.
Production Efficiency: Platforms like
The economic impact is dramatic. Tasks that previously required expensive human labor can now be automated while maintaining quality standards.
The New Economics
This shift in production costs creates interesting opportunities. At my productized service LetterOperators, we've been able to offer weekly newsletters for $499 monthly which is 90% less than the $5K/m traditional agency price we started at a year prior.
This isn't sustainable through cost-cutting on quality. It's possible because the underlying cost structure has changed. We previously sifted through 100s of applications for human writers, giving test stories to the best ones, andquickly realized that AI summarizes and generates output better than 90% of them. And obviously with no grammatical errors. When AI handles the labor-intensive research and writing tasks, the remaining human oversight becomes much more efficient.
The broader implication is that newsletter services are becoming accessible to businesses that couldn't previously afford them. A local consulting firm or ecommerce brand can now have a professional weekly newsletter for less than they might spend on other marketing tools.
The Death of Agencies
The newsletter example illustrates a broader pattern happening across content and marketing services. AI is making previously expensive, labor-intensive services affordable for smaller businesses.
We're already seeing traditional agencies struggle to adapt. A large content agency with 100+ writers shut down last year, with the owner citing: "The steep rise in AI content resulted in an incredibly quick decline in revenue. Being such a large business with lots of staff and high overheads, we were unable to cut costs quickly enough."
The agencies that survive will be those that embrace AI workflows early and pass the efficiency gains to clients, rather than trying to maintain legacy pricing models.
I’d much rather own a business with 100 customers paying $499/m than 10 clients paying $5K/m, especially one that involves complexity due to human labor.
The anti-agency we are building is anti-fragile in design, and is an AI tech-enabled asset that’s much easier to sell and will achieve a far higher multiple.
Looking Forward
The democratization of professional newsletter services is just beginning. As AI workflows become more sophisticated and accessible, we'll likely see even more dramatic cost reductions while quality continues to improve.
For business owners, this creates a window of opportunity. Professional newsletter services are now affordable, but not every business has realized this yet. Early adopters can build direct audience relationships while their competitors are still debating whether newsletters are worth the traditional investment.
The question isn't whether AI will continue to change content production. The question is whether businesses will adapt to these new possibilities or stick with assumptions based on outdated cost structures.
For those ready to explore this space, services like LetterOperators are making it easier than ever to test newsletter strategies without major upfront investments. The barrier to entry has never been lower.
