Do Not Start a Membership Site | YMH Creator Roundup



Top stories for bloggers, newsletter writers, and content creators.


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No. 1: Thinking About Starting a Membership Site? Here Are 3 Myths to Consider

Tim Stoddart gets real about membership sites. Everyone thinks they're a goldmine of passive income and recurring revenue. The truth? It's not that simple.

Myth #1: Passive Income

Forget the fantasy of "set it and forget it." Membership sites demand constant attention. You're on the hook for daily content, answering questions, running workshops—you name it. It's a full-time job. Sure, once you scale, profits look good, but getting there is a grind. Tim's Copyblogger Academy took years before it turned a real profit. Most of you won't have the time or energy to reach that point.

Myth #2: Recurring Revenue Is Always Good

Monthly payments sound nice, but they're not always better. People cancel. You're better off getting an annual payment upfront, even if it means giving a discount. Or, skip the membership altogether and sell a one-time product like a course. You make the sale, pocket the cash, and move on.

Myth #3: It's Easy to Start

Starting a membership site is easy. Getting people to join? Not so much. No one wants to sign up for an empty room. Building engagement takes serious time and effort. If you're not prepared for that uphill battle, don't bother.

Bottom line: membership sites aren't the easy win you've been sold. Focus on simpler products that let you build momentum without the grind.


No. 2: Don't Panic About "Entity SEO" – You're Probably Already Doing It

"Entity SEO" – sounds daunting, right? Just hearing the term feels like another complex task to add to your already overwhelming SEO checklist. But here's some good news: you're likely already doing it, whether you realize it or not.

Let's break it down. In 2012, Google introduced the Knowledge Graph, a database of entities (things like people, places, and concepts) and how they relate to each other. Essentially, entities help Google better understand the meaning behind your searches. For example, Google can figure out that when you search for "Han Solo," you really mean Harrison Ford, thanks to the connection between these two entities in the Knowledge Graph.

This change has allowed Google to reduce its reliance on old-school keyword matching, shifting towards understanding what you're really looking for. So, when it comes to "entity SEO," it's about optimizing your content to fit this new understanding of search.

Here's the kicker - you don't have to reinvent the wheel to "do" entity SEO. Most of the so-called "entity SEO tactics" are just standard SEO practices you're probably already implementing.


No. 3: Spotter Secures $7.4 Million in New Funding Amid AI Expansion

In a significant move that could reshape the future of content creation, Spotter, a startup known for underwriting YouTube creators and developing AI tools, has raised $7.4 million, according to a recent SEC filing. While Spotter has confirmed the legitimacy of the filing, the company has remained tight-lipped about the specifics. This latest infusion of cash comes on the heels of a much larger $200 million Series D funding round led by SoftBank in 2022, which, at the time, pegged Spotter's valuation at a staggering $1.7 billion.

Spotter's business model is innovative, and it's getting results. The company provides creators like YouTube powerhouses MrBeast and The Try Guys with upfront capital in exchange for licensing their content for extended periods. To be clear—Spotter doesn't touch the intellectual property or copyright of these creators—instead, the company profits by collecting the ad revenue from the licensed content. And so far, it has been working. Spotter has invested nearly $1 billion into over 735 YouTube channels, building a significant presence in the growing creator economy.

But what's really catching the attention of industry watchers is the timing of this latest funding. Spotter has recently launched Spotter Studio, an AI-powered suite of tools designed to help creators grow and manage their channels. It is another sign that Spotter is staying ahead of the curve, offering both financial backing and cutting-edge technology to its partners.

With traditional financial institutions often ignoring creators—no matter how successful their channels may be—Spotter and other startups like Jellysmack and Karat have carved out a niche by providing essential financial resources. And it is paying off. According to Spotter, MrBeast used the funds from his deal to launch a Spanish-language channel, increasing his monthly views by an incredible 300%.

As creators continue to seek alternative financing options, Spotter's model is proving to be a game-changer in the digital content landscape.


No. 4: The $100k Social Experiment They Didn't Tell You About

In a bold move that could shake up the content creation industry, Authority Hacker’s Gael Breton has come clean about a secret that could change how you think about AI and online marketing. Speaking on a recent episode of the Authority Hacker Podcast, Breton revealed that their latest product launch, “Product Review Profit,” wasn’t just a success—it was an AI-driven experiment.

That’s right. Nearly 90% of the sales page and marketing emails were created by an AI model called Claude 3.5 Sonnet. And the result? Six figures of revenue in just over a week.

Breton didn’t shy away from calling out the current wave of AI content online, much of which he slammed as “spammy” and filled with empty promises. But, unlike the junk you see on YouTube tutorials, Authority Hacker’s AI-generated content wasn’t some half-baked attempt to game the system. This was a calculated effort designed to see just how effective AI could be in a professional, high-stakes environment. And the results speak for themselves.

What sets Authority Hacker’s approach apart? They didn’t just prompt AI to generate emails and sales copy—they trained it. Using high-quality swipe files, extensive guidelines, and rigorous testing, Breton’s team proved that AI can deliver not only traffic but real, paying customers.

As Breton puts it, “We had to lie to you, because we needed to see how robust the system was when real money was on the line. And it worked.”


No. 5: California's SB 1047 Lead or Stifle Innovation?

California is on the brink of passing SB 1047, a groundbreaking bill regulating artificial intelligence, and would almost certainly lead to Chinese-style restrictions.

AI is moving at lightning speed, creating both astonishing advancements and alarming dangers—everything from deepfake celebrity harassment to massive phone scams.

SB 1047 isn't just any regulation; it's the strictest AI framework the U.S. has seen. Supporters claim it's the necessary guardrail for a potentially dangerous technology running wild for too long. Critics? They're painting a picture of doom, saying the bill threatens to strangle innovation, hobble open-source developers, and send California's tech entrepreneurs fleeing to friendlier states.

The bill, introduced by state Senator Scott Wiener, initially sought to impose tough safety testing on advanced AI models, requiring third-party evaluations and even a "kill switch" for rogue systems. Developers would have had to prove their models didn't pose a serious risk or face lawsuits and potential perjury charges. Wiener's totalitarian measures, however, garnered significant backlash from the tech world—including industry titans like OpenAI's Sam Altman and Google Brain's Andrew Ng.

Critics like venture capitalists and major players in the tech industry warn that SB 1047, even in its revised form, will stifle innovation and send talent packing. OpenAI's chief strategy officer, Jason Kwon, went as far as to say the bill could drive California's world-class engineers out of the state.

The bill could also make it much more difficult for content creators to use AI, and it would eliminate the use of generative AI for anything close to an unpopular opinion.


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