Newsletters are typically used by clubs and organisations to distribute information that is not usually displayed on their websites, wikis or blogs. Often used to advertise events, publish competition or event results, newsletters may be delivered by email, or via the post. There are several free and subscription services that provide web-based newsletter creation tools (ENewsLettersOnline, LetterPop, ConstantContact, CampaignMonitor, Topica and MadMimi). Some even track reader statistics (VerticalResponse,EmailNow, and MailChimp) . Most are designed for businesses, as this blog post from Listio explains, but many have free trials or low volume free accounts for small community users. Most use templates to set the style and layout, and many can link with your image hosting account (LetterPop can link with Flickr).
Personally, I only subscribe to newsletters when the information within them is worthwhile - well written, concise, information rich, regularly published, and providing more information than what is available on a website or blog. I prefer to receive newsletters as non-fancy, plain text emails - I really dislike receiving fancy HTML emails with various fonts and backgrounds (especially as I often read email on my phone).
LetterPop allows viewers of an online published newsletter to leave comments, and can email your newsletter to a small group of recipients (a mailing list). LetterPop does display Google ads on one side of your newsletter - these may not be displayed if you have a subscription.

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