With the emergence of browser notifications, chatbots, and influencer marketing, it can sometimes feel like email marketing is the dinosaur of your pipeline. But, rest assured, email marketing is still the most cost efficient acquisition strategy and it isn’t going away anytime soon.
ConvertKit is a web application built to help creators optimize their email marketing efforts. They help online businesses growth their audience with easy-to-embed forms, analytics, and automation tools.
How much is ConvertKit doing in MRR?
ConvertKit is a pure-play SaaS product that charges its customers on a monthly subscription basis. Their prices begin at $29 per month and scale up as your list grows. On average, customers pay them $55 per month today.
The company currently serves more thank 19k total customers right now and is doing $1.1M in MRR, according to CEO Nathan Barry. The company is growing fast and is up from $5.8M in total revenue in 2016.
What is ConvertKit’s churn?
As a consequence of playing in the SMB space, churn is persistent for ConvertKit. The company is currently exhibiting monthly logo churn between 6% and 7% at this point in time. And while they are driving expansion revenue, they have yet to hit net negative revenue churn.
Barry explained that new customers are acquired through three main channels: affiliate programs and webinars, organic traffic through content marketing, and word of mouth referrals. The company drove 5,200 new free trials in June of 2018 and traditionally has converted 50-60% of these trials to monthly subscriptions.
What is ConvertKit paying to acquire new customers?
On a monthly basis, ConvertKit budgets approximately $20-25k for paid advertising efforts. The company is currently paying $250-280 in CAC from these channels and is optimizing for payback in under 5 months.
ConvertKit is a proudly bootstrapped company with no intentions to raise outside capital. Barry and his entire team of 37 full-time employees are all in on continuing to grow the business in a self-funded manner.