CPM Rates and How to Set Your Sponsorship Pricing

Price too high, and you'll scare away potential partners. Price too low, and you're leaving money on the table—or worse, signaling to sponsors that your audience isn't valuable.

Getting your pricing right isn't just about making money—it's about positioning yourself as a professional publisher who understands their value. Sponsors can smell uncertainty, and nothing kills a deal faster than a creator who can't confidently explain their rates.

When you understand CPM pricing, you can:

This isn't just pricing theory—it's the foundation of a sustainable sponsorship business.

Here's what I see happen constantly:

Newsletter creators either pull a number out of thin air ("$500 sounds good?") or they frantically Google "average newsletter CPM" and pick something from the middle. Then when a sponsor pushes back or ghosts them, they have no idea if they were too high, too low, or if pricing wasn't even the issue.

The real problem isn't just not knowing what to charge—it's not understanding why you're charging what you're charging. Without that foundation, every negotiation becomes guesswork, and you'll either leave money on the table or lose deals you should have closed.

Today, we're breaking down everything about CPM rates and sponsorship pricing:

By the end, you'll have a clear, defensible pricing structure based on real factors—not guesswork.

Let's dive in.

CPM stands for "cost per mille"—basically, the cost per 1,000 subscribers who will see a sponsor's message.

Here's the simple formula:

CPM = (Sponsorship Price / Number of Subscribers) × 1,000

So if you charge $500 for a sponsorship and have 10,000 subscribers, your CPM is $50.

But here's where it gets interesting: CPM is just the starting point for your pricing conversation. It's not the whole story.

Newsletter CPM rates typically fall between $15 and $100+, depending on several factors we'll cover in a moment.

Here's a rough breakdown:

I've seen newsletters command $150+ CPMs when they hit the sweet spot of highly engaged audience + high-value niche + proven conversion rates.

But these numbers mean nothing without context. Let's talk about what actually drives your CPM.

A newsletter with 5,000 engaged VP-level executives in tech will command higher rates than a newsletter with 50,000 general consumers.

Why? Because the value of reaching the right person far exceeds the value of reaching more people.

What sponsors care about:

If you're sending to marketing directors at mid-size companies, you can charge more than if you're sending to college students interested in marketing.

Everyone obsesses over open rates, and yes, they matter. A 40% open rate is better than a 20% open rate.

But here's what's more important: engaged opens.

Sponsors don't just want eyeballs—they want readers who actually consume content and take action.

What to track and share:

A newsletter with a 30% open rate where readers actually engage with content is worth more than a 50% open rate where people skim and delete.

The more targeted your audience, the more valuable it becomes to the right sponsors.

A newsletter about "productivity" is broad. A newsletter about "productivity tools for remote engineering teams" is specific—and worth more to the companies selling to that exact audience.

Why niche matters:

If you can say "97% of my readers work in financial services," you're in a strong position with fintech sponsors.

Not all sponsorship placements are created equal.

Here's the hierarchy of value:

Highest value:

Mid-tier value:

Lower value:

Your CPM should reflect placement. A primary spot might be your full rate, while a footer placement might be 40-50% of that rate.

This is the secret weapon that separates $30 CPMs from $75 CPMs: proof.

What moves the needle:

When you can tell a sponsor "Our last sponsor in your space got 500 qualified clicks and 12 demos booked," you're not selling ad space anymore—you're selling results.

Start tracking this data from day one, even if you're running free trial sponsorships.

Here's a practical system to establish your pricing:

Step 1: Determine your baseline CPM

Step 2: Calculate your base sponsorship price

Step 3: Apply multipliers based on your advantages

So that $280 base price might become $350-400 with the right factors in play.

Step 4: Create tiered options

This gives sponsors options and gives you flexibility in negotiations.

Your pricing strategy should mature as your newsletter does:

Phase 1 (0-2,500 subscribers): Testing and proof

Phase 2 (2,500-10,000 subscribers): Establishing value

Phase 3 (10,000+ subscribers): Premium positioning

Each phase requires different positioning and confidence. Don't jump to premium pricing too early, but don't stay in "testing" mode too long either.

Your gut isn't a pricing strategy. Use data, competitive research, and the formulas above.

As your newsletter grows and engagement improves, your rates should increase. Review and adjust every 5,000 new subscribers or every quarter.

A 50% discount signals desperation. If you need to negotiate, offer added value instead—extra placements, longer sponsorship periods, or social media amplification.

Writing custom sponsored content takes time. If a sponsor wants integrated content vs. a standard ad block, charge more to reflect that extra effort.

10,000 subscribers where 4,000 actively open and engage is more valuable than 15,000 subscribers with minimal engagement. Price based on engaged audience, not vanity metrics.

Don't benchmark against newsletters with completely different audiences. A B2B fintech newsletter and a lifestyle newsletter aren't comparable, even if they have similar subscriber counts.

Hold firm on your rates when:

Remember: sponsors have budgets. If they want your audience badly enough, they'll find the money.

Before you reach out to your next potential sponsor, here's your homework:

Start with these foundations. You'll adjust as you learn what the market will bear and as your newsletter grows, but having this structure gives you confidence in every sponsor conversation.

One practical tip: If a sponsor balks at your rates, don't immediately fold. Ask them what their budget is and what success looks like for them. Sometimes the conversation reveals they're just not the right fit—and that's okay. Better to wait for the right sponsor at the right price than to undervalue your work.

Your pricing should be:

The newsletters commanding $75-100+ CPMs aren't necessarily bigger than yours—they're just clearer about their value and better at communicating it.

Your audience is valuable. Your time is valuable. Your expertise in reaching these specific people is valuable.

Price it accordingly.

Struggling to find sponsors or tired of sending cold pitches that go nowhere? Let us do the heavy lifting. Our sponsor-finding service connects you with high-quality, relevant brands that want to be in front of your audience. No more guesswork, no more rejection — just real deals that grow your revenue.