What is a Paywall?

The digitization of content creation and sharing has opened up new ways to earn revenue for businesses and entrepreneurs, like content creators. One of the popular ways creatives and businesses are making money is by adding a paywall to their digital content.

Paywalls aren’t useful just for media organizations or social media creators. For professionals who offer consultations, online courses, guides and ebooks, or training materials, a paywall is a useful way to both generate revenue and nurture an audience for your work. 

This guide will cover what a paywall is, the different types of paywalls, why you might benefit from implementing one, and what to consider before trying out this revenue model.

What is a paywall? 

A paywall restricts users from freely accessing content, like an article, video, podcast, or newsletter. Users with a paid subscription or membership to a website with a paywall are allowed to see the entire available contents. 

You’re probably most familiar with paywalls in digital media publications. Many digitized newspapers have pop-ups to let you know a paywall is in effect and/or there are only a certain number of free articles available per month and you must become a subscriber to see everything. 

However, paywalls can be put on any type of content. They’re available to use on video content, reports and research papers, courses and webinars, and anything else you deem as valuable content for your audience.

Access to the paywall is often based on a monthly or annual subscription, a one-time purchase like an online course, or a membership. Some examples of paywalled platforms include Substack, where readers can subscribe to their favorite writer’s newsletter, news outlets like The New York Times (or any local paper), or edX, an e-learning platform. 

4 types of paywalls 

Not all paywalls are the same. There are a few different paywall types to choose from. For most people, a soft or metered paywall is best, because it allows you to offer a free preview. But the right fit will depend on your business and audience loyalty. 

1. Soft paywall 

A soft paywall makes some content available to users, while the rest sits behind a paywall. This is important if you want some content to be discovered through organic search. For example, on Substack’s platform, newsletter writers may have a weekly newsletter that’s free to read while the majority of their content or a second weekly newsletter  is under a soft paywall and only available to subscribers. 

2. Hard paywall 

A hard paywall is when content isn’t available to anyone who isn’t a subscriber or a member. Think of your favorite streaming service as an example. Those are hard paywalls. 

This type of paywall is often used for content that already has a large following and built-in subscriber or member audience. To use a hard paywall, businesses or creators know that their high-quality content is sought after. 

3. Metered paywall

A metered paywall often provides users with a few pages of free content before the paywall goes into effect. This is a predetermined amount—such as three or five free articles—during a specific period, like one month. A metered paywall is useful so audiences can get a glimpse at what’s offered and are encouraged to become subscribers if they’re excited to keep reading. 

4. Dynamic paywall  

A dynamic paywall is a data-informed type of paywall that, using modern algorithmic technology, can analyze a reader’s browsing habits and patterns, customizing paywall access. This paywall type can evolve as a user’s interests, behaviors, or patterns change, adapting to convert them to a subscriber when possible. 

Benefits of using a paywall 

Paywalls have great benefits if you choose to implement one for your business. On top of being a way to earn money, you’ll get to know your audience better and build awareness of your brand in the process.  

Revenue generation

The foremost reason paywalls are great for content and creators is revenue generation. As it’s become more difficult to earn traditional ad revenue, especially as an independent creator or expert, paywalls offer another pathway to bring in money. If you paywall access to something that doesn’t need regular maintenance, like downloadable templates or an online course, it also helps you earn passive income.

This also keeps you from relying solely on payouts from content platforms and brand sponsorships or ads that interrupt the browsing experience. Paywalls are a direct revenue stream creators and businesses can tap into. 

Dedicated buyers and audience 

When you have people who are willing to pay for content, that brings with it a dedicated and engaged group of buyers and readers. By having a financial stake in the business, even through a few dollars per month, your audience can develop a deeper connection and community with your brand or business.

Data analysis 

Paywalls can help you understand your business and your content better. By design, paywalls collect information about who a user is, which can help you see the specifics of your audience, such as demographic information and their readership or viewership behaviors. 

This data can help you see:

• Why or when a user churns and whether it’s a pattern among users who cancel

• What content many users enjoy so you can offer more in that style

•  Interest in new premium offerings like exclusive interviews or guides 

Then, you can turn that data into action items, like creating more or different content and fixing usability issues.

Brand perception

Generally, content that’s gated or withheld on the basis of exclusivity is very attractive to audiences. They want to be part of that community or conversation. And if others are willing to pay for what you share, it suggests others see value in it. 

This all generates a better brand perception, which leads to your brand and content appearing higher-value. A loyal audience has merit in a business’ overall perception too. Long-term subscribers or members will let potential subscribers or members know that the content is worthwhile. 

Learn more about building a brand

Value 

A paywall creates value for you and your subscribers or members. Gated content offers your audience access to content they’re excited about and a sense of community. Plus, they benefit from the content itself, whether it’s educational, inspirational, or entertaining. 

In addition to the financial value for you, you’ll also benefit from the external motivation to keep creating high-quality content. And just like your audience, you’ll gain community and connection with people who share your interests.

What to consider before implementing a paywall 

A paywall is a useful way to keep your audience engaged and drive revenue, but they also allow you to personalize content to add more value for your audience. How you set up your paywall and premium content depends on some considerations for your supporters and your content or offerings. 

Business goals vs. authenticity

There’s a lot of content floating around online. It’s important to understand why you’re making yours and its value. 

When it comes to your paywalls, you need to understand what your business goals are. This may include brand visibility and reach, monetization, or exclusivity. For businesses and creators who offered free content before and are considering a paywall now, how does a paywall impact your content’s authenticity? Does it feel like a natural next step that your audience will be excited for? Will the quality still be the same if you’re creating more content than you did before?

Flexible pricing

Many paid content platforms are popular with creatives because writers and content creators can offer tiered pricing. Consider whether tiers could help you create a paywall strategy that feels accessible to all of your supporters, where different content is available at different pricing levels. 

For example, you may want to offer in-depth courses and guides in addition to your regular content. You can offer a price for those readers who want to engage only with your usual content and a higher price for the ability to access that guided content in perpetuity. This allows for your user to pick their experience. 

Read our guide to pricing products

Knowing your audience

A key part of implementing a paywall is understanding if your audience will not only pay for it, but actually read and/or engage with your content. Consider sending out a survey or asking users whether they would pay a small fee to access new and exclusive content. 

You can get as detailed as you’d like, down to asking about formats or topics they’d be most interested in, how much they’d consider paying, and what would convince them to become a paying subscriber or customer. Empowering them to have a say in your business also helps develop a community feel. 

Competition 

Competitor analysis is always helpful to understand what others are doing versus what you’re doing with your content offering. If your audience can get similar free content elsewhere, then it’s worth asking yourself how to set yourself apart from competitors. 

This is where determining what makes your content exclusive and high-value becomes important. If a competitor is offering a course for free while you’re asking for a subscription to access it, consider what other value-adds you can have to make a user’s payment to you worthwhile. 

User experience

How is your reader or user going to experience your content? Considering centering the user experience when deciding to implement a paywall. Start from the paywall prompt all the way through the actual experience of watching or reading your content.

• When does the prompt to pay for access appear, and is the wording warm and friendly? 

• Is your fee straightforward and can someone sign up or pay quickly? 

• Can a supporter find and navigate paywalled content easily and stay up to date on new content?

• How will your paid content differ from your free content? For example, users will usually pay to have a seamless, ad-free experience.