With an email newsletter, what you are doing is giving to people who agree to receive it more information on the products and services that your company or site sells or provides. If your anything like me, you'll probably have signed up for tons of these as they're free and get delivered to you. If your anything like me, you probably scan quickly through each one that's delivered to you, and if you find it in the least bit interesting you say cool, or act on it, or something else that doesn't do away with the service itself. However, for every email newsletter that I find in any way interesting, there's about 10 that go straight to the Spam file, and will forever remain there.
So what is this email newsletter thing? Simply put, it's your (site owner or operator) way of getting information in front of prospective repeat business or keeping clients informed of changes, additions, news and reviews about you and your product offerings. Almost all sites nowadays either ask if you would like to receive it, or make it part of their signing up policy to allow them to send it to you. What this in turn allows is for the marketing side of the company to tout its latest products, give info on new specials etc. etc. to a large number of people that you know have already expressed an interest in knowing more about your products and that said Yes, in one way or another to receiving this info.
Problem for most companies is to make sure people actually do read them - of course with analytics as they are now each link in a newsletter may be tracked to see if effective or not, number of repeat visits after each delivery will allow for demographics on what was effective, etc. etc.. Well and good for those who know exactly what they're doing with all the webmaster tools available, but only one thing makes an email newsletter worthy of the name - make it news!
Make sure your newsletter has new pertinent information or topics in it, links to new content on your site - make people want to visit your site, so that your email newsletter doesnt end up in the spam file with all the other no hopers.
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