Which is better in your opinion?

People are very motivated by instant gratification. I would have to vote for something they can get right away and then tell them you will be following up with a weekly newsletter.

I would suggest you to offer a free ebook or report. Like billnad said, people want things right here, right now. It feels good to get what you want asap!

Personally I'd go with both. The free report is instant gratification and the regular newsletter (which you can do 'real time' or via auto responder) allows you to build a relationship with them over time.

I know I've signed up for reports in the past and then heard nothing until months later, out of the blue, the person emails me a sales pitch and I'm left wondering who on earth they are and when I gave them my email address. I usually hit the unsubscribe link at that point.

It ultimately is going to depend on the niche you are involved with, but I have found more times then not you are going to have great success with offering something for free up front but that is delivered over a period of time.

I was offering just free ebooks for a sign up, but lately I have gone the way of e-courses or step by step video series. I deliver each step or series in intervals. This gets rid of a lot of freebie seekers and helps focus on qualified buyers that are actually interested in what you're talking about.

For example, I'm running the Ultimate Niche Secret's E-course in my signature and they sign up and get a mini e-course to set up automatic sales funnels like you're doing. One piece is delivered each day.

I am expanding this free e-course to 30 days shortly and will be offering the first week for free with no optin then have them sign up to receive the last 23 days. I haven't tried this method yet, but I suspect this will increase my conversions on my sales.

Travis

If you want them to sign up to pay money before they have got anything most will leave. They don't know you, there has been no relationship built so why buy when they can get something similar for Free somwhere else.

Get them in the funnel first then start the selling process.

Getting FREE stuff or instant gifts will NEVER get old. I often offer some sort of bonus for those who opt in. I also happen to think that newsletters should be weekly, as long as you have something NEW to actually say of course! I think it lets people know you are on top of your business, are constantly thinking about new additions, new upgrades and ways of making your members or clients have a better buying experience.

Remember, you want to try to keep the information brief, if you wait to send out newsletters once a month there will be way too much accumulated and your readers will be turned off instantly. This can increase the unsubscribe request and that is something you do not want.