Denk: Revenue is the ultimate North Star because it reflects retention and conversion
Tyler Denk · The next Mailchimp? Email SaaS Hit $15m Revenue Last Month · Aug 20, 2024 · at 4:43
Tyler Denk, founder and CEO of newsletter platform beehiiv, discusses why top-line revenue is his primary operational metric over activity-based metrics.
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“Revenue is easy because it actually means you do so many other things. Right. Right. Like if retention is important to you, but a decrease in revenue will show that you aren't retaining users. Or if a decrease or slowing of revenue shows that you aren't attracting the right users to adopt the platform and converting them. So revenue really is the North star”
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Denk: 10% to 15% of beehiiv users are net positive on fees
“If 25% are actively monetizing on a month-to-month basis I don't know, probably half of that are net positive because we are very affordable, so probably I'd say 10, 15% are net positive.”
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“So we're sending what, 1.3 billion emails a month right now, and active readerships usually I think about 10 per, 10%, probably like a 150 to two hundred million subscribers, unique subscribers across the ecosystem.”
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“The SAS business is purely has nothing to do with ads. That is people paying us a monthly or annual recurring subscription for the SAS platform. And that's at eight to 900,000 a month. Currently the ad network itself is bringing in another several 100,000 doll…”