Hi there, unicorns! 👋
It feels great to be back in the saddle after a month-long holiday hiatus.
We’ve missed you ❤️!
Today, we’re diving into the growth playbook of Beehiiv – the newsletter platform that’s been causing quite a buzz in the creator economy.
Fun fact: We’re not just talking about Beehiiv; we’re using it!
That’s right, this very newsletter you’re reading is powered by Beehiiv.
So, you could say we’re not just fans; we’re part of the hive.
From a simple idea to solve newsletter woes to a $100M+ valuation in just 2.5 years, Beehiiv has grown into a powerhouse in the newsletter space.
Let’s unpack how they did it 🐝
The Idea💡
It was 2020 when Tyler Denk, one of the founding growth engineers at Morning Brew, along with co-founders Benjamin Hargett and Jake Hurd, stumbled upon a game-changing concept.
Frustrated by the patchwork of tools needed to run a successful newsletter, they envisioned a platform that could do it all – essentially recreating Morning Brew’s entire tech stack for the masses.
This idea, born from hands-on experience building a newsletter empire from 100k to over 1m subscribers in just over a year, would become the foundation of Beehiiv.
Tyler’s core concept was simple yet powerful:
Create an all-in-one platform that allows newsletter creators to write, grow, and monetize their content seamlessly, just like Morning Brew did.
No more juggling multiple tools or losing sleep over tech integrations.
Beehiiv would be the Swiss Army knife of newsletter creation – a one-stop shop for content creators to turn their passion into profit.
The Problem 😫
Before Beehiiv, newsletter creators faced a fragmented landscape:
- Pay big bucks for clunky email tools 💸
- Struggle with basic platforms lacking real monetization power 😤
- Deal with the nightmare of cobbling together multiple services 😱
While Substack had made newsletters cool, it had a rigid obsession with only B2C paid subscriptions.
This left creators wanting more flexible monetization options.
Creators were wasting hours on complex tech stacks, trying to piece together writing, growth, and revenue tools.
Collaboration?
More like collabo-frustration.
Teams were siloed, feedback was slow, and don’t even get us started on trying to scale a newsletter business beyond subscriptions.
Beehiiv saw an opportunity to build the ultimate creator’s toolkit.
The MVP 🛠️
Beehiiv’s journey to MVP wasn’t a quick sprint – it was a focused marathon fueled by the team’s experience at Morning Brew.
For nearly ten months, Tyler, Benjamin, and Jake spent nights and weekends building what would become Beehiiv.
They later brought on Andrew Platkin as CTO, adding crucial expertise to the development process.
The goal?
Build “Substack, but better” with the entire Morning Brew tech stack baked in.
Launching in 2021, beehiiv’s MVP focused on two key differentiators:
- Style-heavy, no-code customization: Addressing Substack’s lack of branding options.
- Built-in referral program: Leveraging Morning Brew’s growth secret sauce.
Despite the temptation to build everything at once, they kept it lean:
- Content: Write with customizable style
- Growth: Get a powerful referral system
- Monetization: Keep 100% of subscription revenue
This MVP was just enough to prove their wild idea might work.
It wasn’t perfect, but it was a start – one that would lay the foundation for beehiiv’s rapid growth and innovation in the years to come.
Product-Market Fit 🎯
Beehiiv’s journey to product-market fit was marked by rapid growth and strong user adoption.
Within their first year, they approached $1M ARR, growing an average of 55% month-over-month since launch.
By November 2022, they had sent over 275 million emails and were on pace to send 70 million per month.
This explosive growth attracted thousands of popular publishers and content creators worldwide.
The team’s relentless focus on user experience and feature development, guided by customer feedback, played a crucial role in achieving PMF.
Key indicators included:
- Rapid revenue growth
- Exponential increase in emails sent
- Strong user adoption among target creators
- Continuous product improvements based on user needs
Beehiiv’s success in meeting real market needs was reflected in their ability to compete effectively in a crowded, competitive industry
Positioning & Branding 🎨📐
Beehiiv positioned itself as the ultimate newsletter companion – “Everything you need to start, grow, and monetize your newsletter” became their mantra
Their branding strategy focused on:
- Newsletter-first: Emphasizing their laser focus on newsletters, not general email marketing
- Empowerment: Highlighting tools that enable creators to own their audience and scale effectively
- Simplicity: Showcasing their all-in-one platform built specifically for newsletter creation
Beehiiv’s logo, a simple yet modern beehive, perfectly embodied their ethos of community and productivity in the newsletter space.
Campaigns like “Write. Grow. Monetize.” spoke directly to the journey of building a successful newsletter.
By positioning themselves as newsletter experts rather than a general email tool, beehiiv carved out a distinct niche.
This focused branding helped them stand out in a crowded market, appealing to both aspiring and established newsletter creators seeking a specialized, powerful platform.
Pricing 💰📊
Beehiiv’s pricing strategy evolved as they grew, focusing on creating value for creators of all sizes.
Their current model includes:
- Launch (Free): Up to 2,500 subscribers, perfect for beginners.
- Scale ($39/month): Up to 100,000 subscribers, includes monetization features.
- Max ($99/month): Up to 100,000 subscribers, with advanced features and branding removal.
- Enterprise: Custom pricing for large-scale operations.
Initially, Beehiiv offered a simpler structure to attract early adopters.
They’ve since expanded their tiers to cater to growing creators and established newsletters.
This model serves two purposes:
- It keeps the platform affordable for new creators.
- It creates a sustainable revenue stream for beehiiv as creators grow.
By offering value at every stage of a creator’s journey, beehiiv’s pricing strategy supports both user growth and their own business model.
Acquisition 🚀
Beehiiv’s growth strategy used multiple channels and tactics:
- Product-Led Growth: Their freemium model and 30-day free trial for paid plans lowered barriers to entry, driving rapid user adoption.
- Word-of-Mouth: Satisfied creators became brand evangelists, driving organic growth. By November 2022, beehiiv was home to thousands of popular publishers and content creators worldwide.
- Content Marketing: beehiiv invested heavily in educational content, including:
- A blog with newsletter best practices
- Regular product updates
- The “NewsletterXP” course for advanced users
- Video tutorials and a comprehensive changelog
- Social Media Presence: Active on platforms like Twitter, LinkedIn, and TikTok, sharing updates and engaging with the creator community.
- Building in Public: Regular transparency about their growth journey fostered trust and interest. In November 2022, they shared they were approaching $1M ARR, growing 55% month-over-month since launch.
- Strategic Partnerships: Collaborations with other tools in the creator economy expanded their reach.
- SEO: Optimized website content and comparison pages to capture search traffic from potential users evaluating newsletter platforms.
- Referral Program: An affiliate program incentivized existing users to bring in new creators.
- Creator Spotlights: Showcasing successful newsletters on their platform, attracting both readers and potential creators.
- Ad Network: Launched in 2023, it became a significant growth driver, attracting publishers seeking monetization options.
Results:
- By November 2022: Sent over 275M emails, on pace for 70M/month
- April 2024: Reached $13M ARR, up 450% year-over-year from $3M in June 2023
- April 2024: ~150,000 publishers creating newsletters for 50M unique readers
Growth Loops 🔄🚀
Beehiiv’s explosive growth can be attributed to their focus on building self-reinforcing growth loops rather than traditional funnels.
This strategy allowed them to achieve $100k MRR in just 14 months, with 96% of their growth coming organically.
Here are the four key growth loops beehiiv implemented:
- Co-Create in Public Loop:
→ Build/engage with users in public
→ User feedback
→ Product iteration
→ Customer social sharing
→ Attract new users
The team actively interacts with users on Twitter, quickly implementing feedback and releasing 3-5 new features weekly.
This rapid response turns customers into brand evangelists, driving word-of-mouth growth.
- Product Updates as Content Loop:
→ Product update content
→ Educate current customers
→ Customer social sharing/SEO
→ Attract new users
Beehiiv transforms each product launch into a content marketing opportunity, creating in-depth blog posts and videos.
This educates existing users, attracts potential customers, and builds a valuable content library.
- “Published on Beehiiv” Viral Loop:
→ Users send newsletter
→ Recipients see “Published on Beehiiv” footer
→ Attract new users
With a viral factor of 0.86, this simple footer in every newsletter means each active user brings in 0.86 new users on average.
- Creator-Driven Growth Loop:
→ Promote creator
→ Creator growth + Case study content
→ More exposure to beehiiv
→ Attract new users
Beehiiv showcases successful creators through weekly spotlights and case studies, simultaneously promoting their customers and attracting new users.
These interconnected loops create a compound effect, where each piece of content or user action has the potential to bring in multiple new users.
Activation 🎬🔥
Beehiiv’s activation strategy focuses on minimizing friction and maximizing value discovery for new users.
Here’s how they approach it:
- Quick, Personalized Onboarding: The process is streamlined with only essential questions, tailored to the user’s experience level. This allows beehiiv to guide users towards appropriate activation events (e.g., first post for newbies, import and publish for experienced newsletter creators).
- Frictionless Migration: Recognizing that switching platforms is a major hurdle, beehiiv provides extensive documentation, support, and built-in tools to make importing subscribers and content as painless as possible.
- No Paywalls During Trial: Users get access to a generous trial with no credit card required, removing financial barriers to exploration.
- Focus on Time-To-First-Value: beehiiv aims to get users to their “aha” moment quickly, whether that’s publishing their first newsletter or successfully importing an existing one.
- Extended Onboarding: The team recognizes that onboarding extends beyond the initial signup, focusing on guiding users through key features and benefits throughout their early experience.
Retention 🔒❤️
Beehiiv’s retention strategy revolves around continually delivering value to creators throughout their journey.
Key elements include:
- Constant Innovation: With 3-5 new features or enhancements released weekly, users always have something new to explore and leverage.
- Vertical Integration: By offering tools for writing, growth, and monetization in one platform, Beehiiv increases the likelihood of users staying engaged across multiple aspects of their newsletter business.
- Community Building: Their active engagement on social media and creator spotlights foster a sense of belonging among users.
- Education and Support: Regular content, tutorials, and their NewsletterXP course help users maximize the platform’s potential.
- Monetization Opportunities: The introduction of their Ad Network provides an additional incentive for creators to stay and grow on the platform.
- User-Driven Development: By rapidly implementing user feedback, beehiiv ensures the product evolves in line with user needs.
- Scalable Solutions: As users grow, beehiiv’s tiered pricing and feature set grow with them, reducing the need to switch platforms.
This multi-faceted approach aims to make beehiiv an indispensable tool for newsletter creators at every stage of their journey.
Referral 📣🎉
Beehiiv’s referral program, “Let’s Grow & Earn Together,” is a powerful tool for expanding their user base:
- 50% Commission: Partners earn half of the revenue from referred customers for an entire year.
- Easy Signup: Users can quickly become partners, accessing a dashboard and custom link.
- Unlimited Earning Potential: There’s no cap on referrals or earnings.
- Comprehensive Support: Partners receive a playbook, weekly newsletters, resource library, and case studies.
- Incentives: Top partners can win luxury beach getaways quarterly.
- Flexible Payouts: Commissions adapt to plan changes and are paid monthly.
This program turns satisfied users into motivated ambassadors, driving growth through trusted recommendations and attractive financial incentives.
Lessons Learned 🎓
Lesson 1: Solve a Real, Burning Problem
Beehiiv didn’t just create another email tool; they built a comprehensive platform that addressed the unique needs of newsletter creators, from writing to monetization.
The takeaway? Identify and solve a genuine problem in your industry. The more specific and pressing the need, the more valuable your solution will be.
Lesson 2: Speed and Iteration are Key
Beehiiv released 3-5 new features or enhancements weekly, constantly improving their product based on user feedback.
The takeaway? Prioritize rapid iteration. Quick improvements based on user input can accelerate growth and build customer loyalty.
Lesson 3: Build Growth into Your Product
Beehiiv’s “Published on Beehiiv” footer created a viral loop, turning every sent newsletter into a potential customer acquisition tool.
The takeaway? Design your product with built-in growth mechanisms. Features that naturally encourage sharing or visibility can drive organic growth at scale.
Lesson 4: Leverage First-Hand Experience
The founders’ experience at Morning Brew gave them unique insights into the needs of successful newsletter operators.
The takeaway? Your personal experience in an industry can be a powerful differentiator. Use it to inform product decisions and build credibility with your target market.
Lesson 5: Foster a Strong Community
Beehiiv actively engaged with users on social media, quickly responding to feedback and showcasing successful creators.
The takeaway? Build a community around your product. Engaged users become advocates, driving word-of-mouth growth and providing valuable feedback.
Lesson 6: Diversify Revenue Streams
Beehiiv expanded from subscription-based pricing to include an ad network, providing more value to creators and additional revenue for the company.
The takeaway? Don’t rely on a single revenue model. Diversifying can make your business more resilient and attractive to a wider range of customers.
Lesson 7: Make Onboarding Frictionless
Beehiiv focused on making user onboarding and platform migration as smooth as possible, reducing barriers to adoption.
The takeaway? Invest in a seamless onboarding experience. The easier it is for users to start and see value, the more likely they are to stick around and grow with your product.
And that’s a wrap, unicorns! 🦄
Beehiiv’s journey from a nights-and-weekends project to a $100M+ valuation in just 2.5 years is nothing short of remarkable.
They’ve not only disrupted the newsletter industry but reimagined it entirely.
From their laser focus on solving real problems to their breakneck speed of innovation, Beehiiv’s playbook is a masterclass in product-led growth.
They’ve proven that with the right product, timing, and a dash of first-hand experience, even the most established markets can be shaken up.
Whether you’re crafting the next big thing in tech or just looking to level up your product game, there’s plenty to learn from Beehiiv’s sweet success story.
If you found this breakdown helpful, why not spread the love?
Share it with a fellow entrepreneur or product enthusiast who could use some inspiration.
After all, growth is always better when it’s shared!
Until next time, keep buzzing and growing! 🐝
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