Email marketing platform designed for creators
ConvertKit monetizes primarily through recurring subscription fees charged to users based on subscriber tiers. Additionally, they generate revenue via an affiliate referral program where creators earn commissions for recommending ConvertKit, which contributes significantly to new signups. They also take a small transaction fee from sales of digital products and subscriptions through their Kit Commerce platform.
“Kit uses subscriber-based tiered pricing across three plans. The Newsletter plan is free for up to 10,000 subscribers with unlimited broadcast emails, landing pages, and forms. The Creator plan starts at $39/month for up to 1,000 subscribers ($33/month annually), $59/month for 3,000 subscribers, ...”
“Preorder just your first 3 months and you’ll get one month free. Plus, as a thank-you for your support, you’ll receive a 25% discount for life. (Starting at $37 per month, forever!)”
“If you could sum up an entire story in one image, it would be the monthly recurring revenue graph for ConvertKit. ... to start a brand new SaaS company and grow it to $5,000 in monthly recurring revenue within 6 months.”
“$29 at a time you enable us to work each day on the product we love.”
“We have nearly 20,000 customers, send billions of emails, and are at $12 million in annual revenue.”
“pure subscription SaaS companies like ConvertKit ($9-25/month) and Beehiiv ($42-84/month) with a simple model of charging a fixed monthly fee based on list size hit $38M annual recurring revenue (ARR) on zero capital raised (ConvertKit)”
“ConvertKit crossed $30 million in annual recurring revenue last year... And from day one, he charged a monthly fee. No freemium, no free trial longer than 14 days... I think they start around $29 a month. That's right. And they have a free plan for up to 1,000 subscribers, but it's quite limited....”
“You create product listings within Kit, set pricing (one-time or recurring), and Kit handles checkout via Stripe.”
“Preorder your first four months of ConvertKit for only $112.”
“In-App Purchases Yes ConvertKit One Pro $4.99”
“And Kit Commerce lets you sell digital products, paid newsletters, and subscriptions directly, taking only a 0.6% transaction fee vs. Substack's 10%.”
“Summer 2014 I experimented with selling SaaS like an info-product by launching ConvertKit Academy. It was initially very successful ($7,000 in revenue in one month), but then seats stopped selling and I once again lost motivation ... Even though ConvertKit Academy didn’t turn out to be as financi...”
“In 2017, they launched a referral program where creators could earn commissions by recommending ConvertKit to their audience. That turned customers into an affiliate army. The program now accounts for a significant portion of new signups, and it costs nothing upfront.”
“ConvertKit’s growth re-accelerated to 22% last month with the ad network launches of Creator Network, which lets writers do both free and paid recommendations of other newsletters, and Sponsor Network, which lets businesses sponsor writers.”
“The tip jar feature lets readers voluntarily support your free newsletter.”