Way back in 2021, I called out #Substack as a scam because it was masquerading as a service provider when it fact it was paying certain writers (often secretly) to create content for them. (https://buttondown.email/thehypothesis/archive/heres-why-substacks-scam-worked-so-well/) They had an editorial mission and a paid writing staff, but claimed to be a neutral service provider like Etsy for authors. Here's how that story is going ...
Here's why Substack's scam worked so well

I think of myself as having decent critical faculties, but somehow I got suckered again by a bog-standard publishing venture masquerading as a useful...

Thanks to @nilaypatel's interview with CEO Chris Best about Substack Notes (https://www.tiktok.com/@decoderpod/video/7221602731998498094), the company's questionable ethics are in the headlines again. Nilay points out that Substack needs to prioritize content moderation because Substack Notes are a consumer-facing social media offering. But I would argue that they were social media all along.
TikTok - Make Your Day

Not only that, but they were arguably an actual publication, with a staff of paid writers. I got a lot of pushback on this idea, for reasons I'm still perplexed by. We rail against the Twitter and FB algorithm for shaping content. But Substack was shaping content by paying actual people to write for them. They were creating a content ecosystem. And now, they are selling this ecosystem back to writers -- touting the way paid subscribers come largely from the Substack network.
In a recent newsletter, @parkermolloy points out that the vast majority of her paying subscribers come from recommendations through the Substack network. (https://www.readtpa.com/p/likes-are-now-florps). Chris Best said something similar in his interview with Nilay Patel, pointing out that the value of joining Substack is that it provides paying customers to authors. This means that the main "freedom" of Substack -- the freedom to leave -- is illusory.
"Likes Are Now Florps"

Elon Musk treats Twitter like a toy, and that's going to alienate his user base.

The Present Age
If a writer leaves the ecosystem, they risk losing access to tons of paid subscribers who are being recommended to them through the network. So in my book, that makes Substack social media. It creates microcelebrities through its own network effects. And it promises potential writers a captive audience of readers within the network, who will become paying customers.
I don't begrudge any writer who wants to keep writing for Substack. Make money however you can do it! But I am tired of people saying that there is nothing scammy or problematic about a publication that hides its financials, hides who it is paying, and then says that we should just trust that it is a neutral platform with no agenda. And on top of that, they now refuse to have any kind of coherent moderation policy.
But here are the facts. Substack has promoted hate speech and misinformation by paying and/or not moderating its top authors and celebrities. It claims to offer authors freedom, while at the same time promoting the idea that leaving the network will prevent authors from gaining new paying subscribers. (And, as Parker Molloy showed, it's true that most new subscribers come from within the network, not from Twitter or elsewhere.)
Again, no shade on the many amazing authors who are on Substack (and whose newsletters I pay for). It's not easy to make a living writing, and Substack can be a source of valuable revenue. But let's not pretend it offers freedom, or that readers of one newsletter are somehow shielded from another newsletter's misinformation, racism, and transphobia. If you are an author, Substack is selling its network to you. If you are a consumer, you are being sold to authors. That means ...
... That means that at some point you will be exposed to hate speech, misinformation, and all the other problems that have plagued social media for twenty years. We are not in "new territory." Substack isn't a novel thing whose trajectory we can't predict. Go into this shit with your eyes open. And don't act surprised when it turns out that Substack is flushing you down the toilet and asking you to thank them.
@annaleen It feels akin to Uber claiming they don't employ drivers but rather "contractors". A dance done to avoid responsibility.
@annaleen totally agree. The fact that they are pretending to do something completely different is hilarious, theyโ€™re just creating a new brand for internetโ€™s old tricks.
@annaleen Great thread! Also: Seeing parallels between what you wrote about Pro and the already-popular writers now marveling over how many signups theyโ€™re getting from Notes. Seems like another manufactured growth story being sold to the rest of us.
@annaleen Oh great, more right wing followers. I agree, no thanks. Out of the bird app, into the pan.
@annaleen Excellent points. Excellent rant.

@annaleen
This is spot on.

I'm thinking hard on how to build a trusted network effects across subscription/newsletter sites that puts the majority of the value into the nodes, not the connector.

And doesn't include the hate, racism, transphobia, etc.

Simple, right?

@annaleen You can see Cory Doctorow's Enshittification Cycle playing out in the background too.
@annaleen the way he talks about it, youโ€™d think he invented a whole new kind of text or something
@annaleen So true. I continue to send along your original essay and after that Patel interview I'm just like "How are these guys this dumb?" but I guess they just feel like the rules don't apply to them (or their VC) and that just saying something is "new territory" is enough to make it so even when we all know it isn't. Moderation isn't a solved problem, but it's definitely one that's been addressed better than this.

@jessamyn @annaleen Iโ€™m not sure itโ€™s dumb when every indication is they can do this shtick and what most outlets will report is fReE sPeaCH and few will push them on it. Itโ€™s more surprising theyโ€™re not better at it, since the reporting is always on how hamfisted they are. When they do the stonewall with no stumbling it gets shrugged off.

Itโ€™s almost surprising these guys donโ€™t get better media training but not too much so - their defining trait is thinking theyโ€™re already best at everything.

@annaleen
Well, this is great. I'd just signed up with them. Speaking as someone who is not currently a celebrity, but has had reach before and is about to re-launch in a dozen different ways, what's your alternative to substack? It's all very well to shit on them from a great height when you're not personally dependent on what they do--I have no loyalty to them; the question is, what else, specifically, can take the place of this service? For example, what are your thoughts on beehiiv?
@annaleen
And understand, I will build my own newsletter system if I have to. It's just that that would be yet one more thing I'm doing instead of writing.
@KarlSchroeder I've been using Buttondown for two years now for my newsletter, and it's terrific -- great service, responsive to my questions within hours. A lot of other folks use Ghost.
@annaleen
Thanks, I'll check it out. Might end up back with Patreon, if I decide to add other services.
@annaleen Oh, very well said. Iโ€™d love to see us add topics like media ethics and how to recognize disinformation abnd conspiracy theories to our middle school curriculum (not go mention adding Civics back in, which was stripped out of many schools years ago).
@annaleen Fortunately (?), Substack doesnโ€™t appear to be doing well at the valuable revenue for long-tail writers anymore (possibly due to Twitter now disappearing as a good discovery tool). I hope this will promote other, non-terrible platforms for publishing subscription newsletters as better choices. I feel terrible for anyone who hooked their wagon on Substack because it was NOT a bad choice initially. Then youโ€™re locked into something workingโ€”hard enough already, as you say.

@annaleen

You are being too charitable. Substack is a right wing cesspool.

@annaleen I wonder when some bright techie is gonna create a redirect from nazibar.com to substack.com. It's just a stupid nginx web site that does a html redirect.
@annaleen Speaking as a local newspaper, the platform is _very_ good at hosting an independent publication. I know how to build web sites, integrate Paypal, blah blah blah. But they spare me all of that, and do it better to boot.

https://vashonloop.com/

Notes, OTOH. I don't see if this is a good idea yet.
@vandys that's good to hear! I'm glad it's working for you.
@annaleen itโ€™s kind of a perfect little synecdoche of The American Dream: look! These (secretly boosted) people made it! You can too! Anybody can! What an opportunity!
@detritus @annaleen
Thanks for using the word synecdoche. I had to look it up. I appreciate your comment but the word is it for me.
@annaleen@waFurthermore, it is essential that they have an effective policy of moderation so as not to put any user at risk while using the platform. Transparency builds credibility which should always be taken into consideration when creating business models.
ndering.shop
@annaleen Which is worse than any conspiracy theory against public broadcasters I know of, since even the worst outlets [KCTV, CGTN & RT] don't try to hide their financials and have to publicly report those...

@annaleen

Did you look at the video in this post revealing the racist attitude of the CEO of Substack Notes? https://infosec.exchange/@malwaretech/110193720428451726

Marcus Hutchins :verified: (@[email protected])

Attached: 1 video Welp, Substack Notes has set a new record for fastest time to me to leave a platform after joining. Libertarian tech bros say no to racism challenge, difficulty: impossible

Infosec Exchange
@henrystrick did you notice that's the same video as was posted up-thread?
@womble I had tried to check it but must have missed it. Sorry.
@henrystrick @annaleen that's the interview she is taking about
@annaleen
So, Musk's fears were not unwarranted it seems, when he blocked - *throttled* - Substack
https://www.businessinsider.com/substack-ceo-chris-best-disappointed-elon-musk-twitter-throttle-links-2023-4
Substack CEO 'incredibly disappointed' at Musk for throttling links

Twitter suppressing Substack links "ultimately hurt writers" and there was a "strong backlash," Chris Best told The Verge.

Insider
@annaleen The cognitive dissonance between that and Best's earlier claim that the "freedom" to leave was critical to the founding of Substack is just staggering.
@annaleen @parkermolloy My employer has 56K followers on Twitter and can't easily bring them elsewhere.
@annaleen @parkermolloy Also, I found his reply as to whether they were still paying some creators (including though not mentioning some were/are those promoting hate-speech/bigotry "No. Not really" felt a tad disngenuous. "Not really" is a hell of a qualifier to put after "No." IMO.
@annaleen @parkermolloy
I'm not a prolific writer, with no interest in or capacity to make use of substack. But I can say I haven't liked the feel of substack when I've followed some writers I know of there to read their articles.

@annaleen SAY IT, hell yes

this week broke me and I ended all my paid subs, and told the authors exactly why

@annaleen Another example of what @doctorow calls "enshitification."
@annaleen This exemplifies enshitification according to @pluralistic. It's almost textbook. It's just that the MBA papers on enshitification need to be written first before you can call out specific examples.
@annaleen do you have any concrete examples of Substack exerting editorial influence over their โ€œstaff of paid writersโ€?
@stevens they fired a Substack editor who worked on a post that portrayed the company negatively (also pay attention: they had EDITORS for their authors) https://observer.com/2022/08/substacks-clumsy-firing-of-editor-sam-thielman-is-just-the-latest-controversy-for-the-platform/
Substackโ€™s Clumsy Firing of Editor Sam Thielman Is Just the Latest Controversy for the Platform

Substack fired Sam Thielman after he edited Spencer Ackerman's farewell newsletter which criticized the company. Now the company is under fire for appearing to act out of spite.

Observer
@annaleen If they're not going to moderate, their end-state will just be "nazi twitter with a magazine." Any half-awake techbro should be able to see that.
@annaleen @nilaypatel this interview was enough for us to decide that Substack was not the place for us to spend our efforts.
@annaleen I always thought Substack was a backdoor way for Russia to fund anti-American propagandists like Greenwald, whether they knew who was paying them or not. I donโ€™t think this new information alters my theory much.

@annaleen

Oh no!

A new site wants to draw traffic to their site, so they entice some moderately successful writers to their site by guaranteeing them a set amount of earnings for a given time period.

It is almost like they want to be a successful business! How dare they do that!

@annaleen thanks so much for this Annalee. Iโ€™d heard some nondescript rumblings about Substack but not found anything about what was dodgy.

Do you not recommend buttondown as a solution, though? Iโ€™d love to have something to offer my writer friends as an alternative, though changing platforms once established is hugely risky so I suspect a lot of them wonโ€™t go for itโ€ฆ

@[email protected] thing is, these people are doing newsletters on buttondown, which is a great and more private, non monetized service.