Beehiiv, led by CEO Tyler Denk, has experienced rapid growth since its official launch in 2021, reaching an impressive $10.2 million in Annual Recurring Revenue (ARR) by mid-2024.
This success didn’t happen overnight. It was built on a well-planned strategy that combined a robust SaaS platform for email marketers with innovative revenue streams.
Beehiiv’s ARR has grown significantly from $4 million in 2022, making it one of the fastest growing companies I’ve written about in a while.
The platform boasts over 20,000 active senders, meaning users who sent at least one email in the past 30 days. Of these, around 4,000 are monetizing their content, earning a collective $1.2 million in May 2024 alone.
“Revenue is our Northstar metric because it reflects everything else we’re doing right—from user retention to the effectiveness of our monetization tools.”
-Tyler Denk, CEO of Beehiiv
Subscription Models Are Not Going Away
One thing I’ve noticed from interviewing SaaS business owners is that the most successful companies have adopted a subscription model.
Subscription plans have been central to Beehiiv’s ability to scale and generate recurring revenue.
Offering a free tier for up to 2,500 subscribers allowed the company to attract small creators and businesses without upfront costs, while paid plans—starting at $39 and going up to $399 for larger enterprises—provide more advanced features like customization and ad network access.
This tiered subscription model allows Beehiiv to grow alongside its users, giving them flexibility to upgrade as their businesses scale.
We can learn from this approach by making sure that pricing plans provide value at different stages of customer growth.
“We designed our subscription model to ensure that users see more value from us than they pay in subscription fees.” This focus on delivering value has been critical to driving long-term loyalty and growth.”
Key Takeaway: A tiered subscription model helps companies cater to different customer needs while creating predictable, recurring revenue streams. Offering real value at every tier encourages growth and long-term user loyalty.
Fixate on Value Beyond the Core Product
Beehiiv’s ability to offer value beyond simple email marketing has been a key driver of its success.
Rather than just competing directly with platforms like Beehiiv’s competitor, Mailchimp on core features, Beehiiv focuses on helping users grow and monetize their newsletters, setting itself apart in a crowded market.
A key example is Beehiiv’s ad network, which connects newsletter publishers with brands like Netflix and HubSpot which enables creators to generate revenue, even with smaller audiences.
Beehiiv solves the cold-start problem by offering monetization options from day one through programs like Boost, where smaller newsletters can earn commissions by recommending others.
By creating early revenue opportunities, Beehiiv allows even its smallest users see immediate value.
This focus on early monetization fosters loyalty and long-term growth, making the platform attractive for new users and small creators looking to scale.
“What differentiates Beehiiv is our ability to help users not just send emails but also grow and monetize their audiences from day one.”
By offering a suite of tools beyond basic functionality, Beehiiv keeps users engaged and upgrading their plans as they grow.
The lesson here is to offer more than just the core product. Continuously innovating and providing tools that help customers grow ensures long-term engagement and loyalty. Adding growth analytics, monetization options, and integrations creates a product that users are reluctant to leave.
Key Takeaway: Look for ways to add value beyond your core product. Offering additional tools that help customers grow and succeed can set you apart from competitors and create lasting customer relationships.
Focusing on Original SaaS Product and Ad Networks
One of the most impressive aspects of Beehiiv’s growth is how efficiently it has scaled.
By layering monetization features like ad networks on top of its SaaS platform, Beehiiv created multiple revenue streams without overcomplicating the business.
Denk and his team focused on perfecting the email marketing platform first, and only once they had a large user base did they introduce the ad network.
“The goal was always to layer on the ad network, but we needed to build a great SaaS platform first to attract enough publishers.”
This approach allowed Beehiiv to help smaller newsletters monetize early with programs like Boost, which gives users commissions for recommending other newsletters.
By solving the cold-start problem for smaller creators, Beehiiv created a system where even new users could generate revenue, making the platform more attractive to those just starting out.
The lesson is clear: expand thoughtfully. Building a strong core product before introducing additional revenue-generating features ensures that your business can grow sustainably.
Key Takeaway: Scale efficiently by expanding thoughtfully. Don’t rush to introduce new features before ensuring your core product is strong enough to support them.
Valuation Growth of Beehiiv
Beehiiv’s valuation has grown significantly along with its revenue.
The company raised $33 million in a Series B round in March 2024, bringing its valuation to $225 million.
This growth in valuation reflects not only the company’s impressive revenue but also its efficient use of capital.
“We care less about valuation in terms of numbers and more about having enough capital to build the business the right way.”
By focusing on lean operations and only raising capital when necessary, Beehiiv has managed to scale quickly without overextending itself. SaaS companies can take a page from Beehiiv’s playbook by being strategic with fundraising and ensuring that capital is used to grow the business sustainably.
Key Takeaway: Be strategic with fundraising and capital allocation. Focus on scaling efficiently to drive sustainable growth and valuation increases.
